SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conservation Reserve Program Reform 
Act of 1995''.

SEC. 2. EXTENSION OF ENVIRONMENTAL CONSERVATION ACREAGE RESERVE 
              PROGRAM.

    (a) In General.--The following provisions of the Food Security Act 
of 1985 are each amended by striking ``1995'' and inserting ``2005'':
            (1) Section 1230(a) (16 U.S.C. 3830(a)).
            (2) Section 1231(a) (16 U.S.C. 3831(a)).
            (3) Section 1231(b)(3) (16 U.S.C. 3831(b)(3)).
            (4) The first sentence of section 1231(d) (16 U.S.C. 
        3831(d)).
            (5) Section 1232(c) (16 U.S.C. 3832(c)).
            (6) Section 1238B(a)(1) (16 U.S.C. 3838b(a)(1)).
            (7) Section 1238B(a)(2) (16 U.S.C. 3838b(a)(2)).
            (8) Section 1238B(a)(11) (16 U.S.C. 3838b(a)(2)).
            (9) Section 1239(a) (16 U.S.C. 3839(a)).
    (b) Wetlands Reserve Program.--Section 1237(c) of such Act (16 
U.S.C. 3837(c)) is amended by striking ``2000'' and inserting ``2005''.

SEC. 3. AUTHORITY TO MODIFY OR EXTEND CONTRACTS.

    (a) In General.--Subchapter B of chapter 1 of subtitle D of title 
XII of the Food Security Act of 1985 (16 U.S.C. 3831-3836) is amended 
by inserting after section 1235A the following:

``SEC. 1235B. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER USES.

    ``(a) In General.--Prior to or upon the expiration of a contract 
entered into under this subchapter with respect to environmentally 
sensitive land (as defined by the State conservation review committee 
established under section 1261 in the State in which the land is 
located, or until such committee is formed, the State technical working 
group), the Secretary shall extend the duration of the contract, or 
modify the terms of the contract, in accordance with this section. The 
Secretary shall place a priority on extending or modifying under this 
section contracts entered into under this subchapter in such a way as 
to enable owners and operators to comply with the applicable plan 
referred to in section 1232(a)(1).
    ``(b) Options for Owners and Operators.--The Secretary shall permit 
an owner or operator who has entered into a contract under this 
subchapter that is in effect on the date of the enactment of this 
section--
            ``(1) before the expiration of the contract, to remove land 
        (including partial fields) from enrollment in the conservation 
        reserve established under this subchapter if--
                    ``(A) the land is not highly erodible cropland;
                    ``(B) the Soil Conservation Service has classified 
                the land as class I, II, III(s), III(w), or III(c), and 
                the land is covered by a conservation plan approved by 
                the local conservation district (or, if the land is not 
                within a conservation district, a plan approved by the 
                Secretary) that limits the soil erosion to such land to 
                not more than the soil loss tolerance level referred to 
                in section 1201(a)(7)(A)(ii); or
                    ``(C) the land is replaced by land of the same 
                owner that, according to the local conservation 
                district or the Secretary, is more environmentally 
                sensitive;
            ``(2) before the expiration of the contract, to re-enroll 
        in the reserve for not more than 10 years portions of land 
        enrolled in the reserve if--
                    ``(A) the land will remain planted to permanent 
                cover and devoted to filter strips, field borders, 
                waterways, terraces, wildlife corridors, well-head 
                protection; buffer strips adjacent to rivers, streams, 
                lakes, wetlands, water retention structures, or any 
                other conservation purpose that the Secretary deems 
                appropriate; and
                    ``(B) future production on the re-enrolled land 
                will not contribute to erosion in excess of the soil 
                loss tolerance level referred to in section 
                1201(a)(7)(A)(ii);
            ``(3) before the expiration of the contract, to enter into 
        negotiations with the Secretary to receive reduced annual 
        rental payments in exchange for permission to allow limited 
        uses (as defined by the State conservation review committee 
        established under section 1261 in the State in which the land 
        is located, or until such committee is formed, the State 
        technical working group) on enrolled land, including haying, 
        grazing, seed production, production of bio-mass, timber, or 
        such other uses as the Secretary may deem appropriate; or
            ``(4) upon expiration of the contract, to retain or 
        transfer cropland bases, with respect to crops for which there 
        is a production adjustment program, to other lands, as long as 
        enrolled croplands remain in permanent cover.
    ``(c) Limitation on Annual Rental Payment for Re-Enrolled Land or 
Land Permitted To Be Devoted to Limited Uses.--Annual rental payments 
made under this subchapter with respect to land that is the subject of 
an agreement entered into pursuant to paragraph (2) or (3) of 
subsection (b) shall not exceed an amount equal to 80 percent of the 
annual rental payment made under this subchapter with respect to the 
land for the 12-month period ending on the date the agreement takes 
effect.''.
    (b) Conforming Amendment.--Section 1232(a)(7) of such Act (16 
U.S.C. 3832(a)(7)) is amended by inserting ``except to the extent 
authorized under section 1235B,'' after ``(7)''.
    (c) State Conservation Review Committees.--Subtitle G of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3861-3862) is amended--
            (1) in the subtitle heading, by striking ``TECHNICAL'' and 
        inserting ``CONSERVATION REVIEW'';
            (2) by striking ``technical committee'' each place such 
        term appears and inserting ``conservation review committee''; 
        and
            (3) in section 1261(c)--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) the State committee appointed under section 
        8(b)(5)(A) of the Soil Conservation and Domestic Allotment 
        Act;''; and
                    (B) by amending paragraph (5) to read as follows:
            ``(5) 3 agricultural producers nominated by the State 
        committee referred to in paragraph (2);''.

SEC. 4. DEMONSTRATION PROJECTS.

    (a) Grant Authority.--
            (1) In general.--The Secretary of Agriculture may make 
        grants to producers of agricultural commodities to retain land 
        in the conservation reserve established under subchapter B of 
        chapter 1 of subtitle D of title XII of the Food Security Act 
        of 1985, or to enroll land in the reserve, for the purpose of 
        enabling the owner of the land to grow grass or raise legumes 
        (or do both) on such land, in rotation, as approved by the 
        State conservation review committee established under section 
        1261 of such Act in the State in which the land is located or 
        until such committee is formed, the State technical working 
        group.
            (2) Number of sites.--The Secretary may not select more 
        than 3 sites in each State with respect to which grants are to 
        be made under paragraph (1).
    (b) Evaluation.--Not later than 3 years after the first grant is 
made under subsection (a), the Secretary shall evaluate the economic 
and environmental effects of the uses to which grants under subsection 
(a) have been put, and shall submit to the Congress a report that 
contains the findings of the Secretary.
    (c) Limitations on Authorization of Appropriations.--For grants 
under subsection (a), there are authorized to be appropriated to the 
Secretary not more than $500,000 for each of fiscal years 1996, 1997, 
and 1998.
Output: Conservation Reserve Program Reform Act of 1995 - Amends the Food Security Act of 1985 to extend:  (1) the Environmental Conservation Acreage Reserve Program; and (2) the wetlands reserve program. 
Authorizes the Secretary of Agriculture to extend or modify conservation reserve contracts under specified circumstances. 
Authorizes a demonstration grant program to permit grass or legumes to be grown on reserve land.  Authorizes appropriations.