S.Amdt. 3812

TEXT OF AMENDMENTS

SA 3804. Mr. BAUCUS submitted an amendment intended to be proposed by
him to the bill H.R. 3996, to amend the Internal Revenue Code of 1986
to extend certain expiring provisions, and for other purposes; as
follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Tax Increase Prevention Act
of 2007''

SEC. 2. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNT.

(a) In General.--Paragraph (1) of section 55(d) of the
Internal Revenue Code of 1986 (relating to exemption amount)
is amended--
(1) by striking ``($62,550 in the case of taxable years
beginning in 2006)'' in subparagraph (A) and inserting
``($66,250 in the case of taxable years beginning in 2007)'',
and
(2) by striking ``($42,500 in the case of taxable years
beginning in 2006)'' in subparagraph (B) and inserting
``($44,350 in the case of taxable years beginning in 2007)''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.

SEC. 3. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
NONREFUNDABLE PERSONAL CREDITS.

(a) In General.--Paragraph (2) of section 26(a) of the
Internal Revenue Code of 1986 (relating to special rule for
taxable years 2000 through 2006) is amended--
(1) by striking ``or 2006'' and inserting ``2006, or
2007'', and
(2) by striking ``2006'' in the heading thereof and
inserting ``2007''.
(b)  Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
______

SA 3805. Mr. CORKER (for himself and Mr. Alexander) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

On page 1500, between lines 10 and 11, insert the
following:

PART V--COMPETITIVE CERTIFICATION AWARDS

SEC. 12701. COMPETITIVE CERTIFICATION AWARDS MODIFICATION
AUTHORITY.

(a) In General.--Section 48A (relating to qualifying
advanced coal project credit) is amended by adding at the end
the following new subsection:
``(h) Competitive Certification Awards Modification
Authority.--In implementing this section or section 48B, the
Secretary is directed to modify the terms of any competitive
certification award and any associated closing agreement
where such modification--
``(1) is consistent with the objectives of such section,
``(2) is requested by the recipient of the competitive
certification award, and
``(3) involves moving the project site to improve the
potential to capture and sequester carbon dioxide emissions,
reduce costs of

[[Page S14859]]

transporting feedstock, and serve a broader customer base,

unless the Secretary determines that the dollar amount of tax
credits available to the taxpayer under such section would
increase as a result of the modification or such modification
would result in such project not being originally certified.
In considering any such modification, the Secretary shall
consult with other relevant Federal agencies, including the
Department of Energy.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act
and is applicable to all competitive certification awards
entered into under section 48A or 48B of the Internal Revenue
Code of 1986, whether such awards were issued before, on, or
after such date of enactment.
______

SA 3806. Mr. COBURN submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

On page 266, between lines 10 and 11, insert the following:

SEC. 19__. ELIGIBILITY FOR DEPARTMENT PROGRAMS.

(a) In General.--Section 508(b)(7) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)(7)) is amended by striking
subparagraph (A) and inserting the following:
``(A) In general.--
``(i) Requirement to purchase crop insurance.--Effective
for the spring-planted 2008 and subsequent crops (and fall-
planted 2008 crops at the option of the Secretary) of each
agricultural commodity or commercial crop (other than dairy
or livestock), to be eligible for any benefit described in
clause (ii), a person shall--

``(I) in the case of an agricultural commodity for which
insurance is available under this title, obtain at least the
catastrophic level of insurance for each crop of economic
significance in which the person has an interest; or
``(II) in the case of an eligible crop for which payments
are available under section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333), provides
a level of coverage that is comparable to the coverage
described in subclause (I), as determined by the Secretary.

``(ii) Covered benefits.--Benefits referred to in clause
(i) are--

``(I) any type of price support, payment, loan, or other
benefit, as determined by the Secretary, under--

``(aa) title I of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7901 et seq.);
``(bb) title I of the Food and Energy Security Act of 2007;
``(cc) the Commodity Credit Corporation Charter Act (15
U.S.C. 714 et seq.);
``(dd) any law providing agricultural disaster assistance;
or
``(ee) any other similar Act administered by the Secretary,
as determined by the Secretary; or

``(II) any benefit described in section 371(b) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
2008f(b)).

``(iii) Waiver.--To be eligible for any benefit described
in clause (ii), a person that elects not to obtain coverage
described in subclause (I) or (II) of clause (i) for an
agricultural commodity or commercial crop shall submit to the
Secretary a written waiver to waive any eligibility for
emergency crop loss assistance for that agricultural
commodity or commercial crop.''.
(b) Offset.--
(1) In general.--The cost of the amendment made by
subsection (a) shall be offset by the savings accrued as a
result of the amendment made by paragraph (3).
(2) Remaining costs.--Any costs remaining after the
amendment made by paragraph (3) shall be offset from amounts
made available for each of fiscal years 2008 through 2012 to
carry out Forest Service land acquisition.
(3) Adjusted gross income limitation.--Notwithstanding the
amendment made by section 1704(c), section 1001D of the Food
Security Act of 1985 (7 U.S.C. 1308-3a) (as amended by
section 1704(c)) is amended by striking paragraphs (1) and
(2) of subsection (b) and inserting the following:
``(1) Commodity and conservation programs.--
``(A) 2009.--Notwithstanding any other provision of law, an
individual or entity shall not be eligible to receive any
benefit described in paragraph (2) during the 2009 crop or
fiscal year (as appropriate) if the average adjusted gross
income of the individual or entity exceeds $1,000,000, unless
not less than 66.66 percent of the average adjusted gross
income of the individual or entity is derived from farming,
ranching, or forestry operations, as determined by the
Secretary.
``(B) 2010 and subsequent years.--Notwithstanding any other
provision of law, an individual or entity shall not be
eligible to receive any benefit described in paragraph (2)
during any of the 2010 and subsequent crop or fiscal years
(as appropriate) if the average adjusted gross income of the
individual or entity exceeds $750,000, unless not less than
66.66 percent of the average adjusted gross income of the
individual or entity is derived from farming, ranching, or
forestry operations, as determined by the Secretary.
``(2) Covered benefits.--Paragraph (1) applies with respect
to the following:
``(A) Title XII of this Act.
``(B) A direct payment or counter-cyclical payment under
part I or III of subtitle A of title I of the Food and Energy
Security Act of 2007.
``(C) A marketing loan gain or loan deficiency payment
under part II or III of subtitle A of title I of the Food and
Energy Security Act of 2007.
``(D) An average crop revenue payment under subtitle B of
title I of Food and Energy Security Act of 2007.
``(E) Title II of the Food and Energy Security Act of 2007.
``(F) Title II of the Farm Security and Rural Investment
Act of 2002 (Public Law 107-171; 116 Stat. 223).''.
______

SA 3807. Mr. COBURN submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

On page 1362, between lines 19 and 20, insert the
following:

SEC. 1107_. EXPENDITURE OF CERTAIN FUNDS.

None of the funds made available or authorized to be
appropriated by this Act or an amendment made by this Act
(including funds for any loan, grant, or payment under a
contract) may be expended for any activity relating to the
planning, construction, or maintenance of, travel to, or
lodging at a golf course, resort, or casino.
Strike section 6023.
Strike section 6025 and insert the following:

SEC. 6025. HISTORIC BARN PRESERVATION.

Section 379A of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2008o) is amended--
(1) in subsection (c)(4)--
(A) by striking ``There are'' and inserting the following:
``(A) In general.--There are''; and
(B) by adding at the end the following:
``(B) Limitation.--If, at any time during the 2-year period
preceding the date on which funds are made available to carry
out this section, Congress has provided supplemental
agricultural assistance to agricultural producers or the
President has declared an agricultural-related emergency--
``(i) none of the funds made available to carry out this
section shall be used for the program under this section; and
``(ii) the funds made available to carry out this section
shall be--

``(I) used to carry out programs that address the
agricultural emergencies identified by Congress or the
President; or
``(II) returned to the Treasury of the United States for
debt reduction to offset the costs of the emergency
agricultural spending.''; and

(2) by adding at the end the following:
``(d) Repeal.--If, during each of 5 consecutive fiscal
years, Congress has provided supplemental agricultural
assistance to agricultural producers or the President has
declared an agricultural-related emergency, this section is
repealed.''.
______

SA 3808. Mr. STEVENS submitted an amendment intended to be proposed
by him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

On page 416, between lines 16 and 17, insert the following:

SEC. 6003A. RURAL BROADBAND.

Section 306(a)(20(E) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(20)(E)) is amended by
striking ``dial-up Internet access or''.
______

SA 3809. Mr. HARKIN submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

On page 755 after line 22, insert the following:

SEC. 60__. INTEREST RATES FOR WATER AND WASTE DISPOSAL
FACILITIES LOANS.

Section 307(a)(3) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(3)) is amended by adding at
the end the following:
``(E) Interest rates for water and waste disposal
facilities loans.--Notwithstanding subparagraph (A), for
loans (other than guaranteed loans) for water and waste
disposal facilities--
``(i) in the case of a loan that would be subject to the 5
percent interest rate limitation under subparagraph (A), the
Secretary shall set the interest rate equal to 60 percent of
the current market yield for outstanding municipal
obligations with remaining periods to maturity comparable to
the average

[[Page S14860]]

maturity of such loans, adjusted to the nearest one-eight of
1 per centum; and
``(ii) in the case of a loan that would be subject to the 7
percent limitation in subparagraph (A), the Secretary shall
set the interest rate equal to 80 percent of the current
market yield for outstanding municipal obligations with
remaining periods to maturity comparable to the average
maturity of such loans, adjusted to the nearest one-eight of
1 per centum.''.
______

SA 3810. Ms. KLOBUCHAR (for herself, Mr. Durbin, and Mr. Brown)
submitted an amendment intended to be proposed to amendment SA 3500
proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr.
Grassley) to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

Beginning on page 210, strike line 15 and all that follows
through page 214, line 9, and insert the following:
(c) Modification of Limitation.--
(1) In general.--Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308-3a) is amended by striking subsection (b)
and inserting the following:
``(b) Limitation.--
``(1) Commodity and conservation programs.--
``(A) Commodity programs.--Notwithstanding any other
provision of law, an individual or entity shall not be
eligible to receive any benefit described in paragraph (2)(A)
during a crop year if the average adjusted gross income of
the individual or entity, or the average adjusted gross
income of the individual and spouse of the individual,
exceeds--
``(i) $250,000, if less than 66.66 percent of the average
adjusted gross income of the individual or entity, or the
average adjusted gross income of the individual and spouse of
the individual, is derived from farming, ranching, or
forestry operations, as determined by the Secretary; or
``(ii) $750,000.
``(B) Conservation programs.--Notwithstanding any other
provision of law, an individual or entity shall not be
eligible to receive any benefit described in paragraph (2)(B)
during a crop year if the average adjusted gross income of
the individual or entity, or the average adjusted gross
income of the individual and spouse of the individual,
exceeds $2,500,000, unless not less than 75 percent of the
average adjusted gross income of the individual or entity, or
the average adjusted gross income of the individual and
spouse of the individual, is derived from farming, ranching,
or forestry operations, as determined by the Secretary.
``(2) Covered benefits.--
``(A) In general.--Paragraph (1)(A) applies with respect to
the following:
``(i) A direct payment or counter-cyclical payment under
part I or III of subtitle A of title I of the Food and Energy
Security Act of 2007.
``(ii) A marketing loan gain or loan deficiency payment
under part II or III of subtitle A of title I of the Food and
Energy Security Act of 2007.
``(iii) An average crop revenue payment under subtitle B of
title I of Food and Energy Security Act of 2007.
``(B) Conservation programs.--Paragraph (1)(B) applies with
respect to a payment under any program under--
``(i) title XII of this Act;
``(ii) title II of the Farm Security and Rural Investment
Act of 2002 (Public Law 107-171; 116 Stat. 223); or
``(iii) title II of the Food and Energy Security Act of
2007.
``(3) Income derived from farming, ranching or forestry
operations.--In determining what portion of the average
adjusted gross income of an individual or entity is derived
from farming, ranching, or forestry operations, the Secretary
shall include income derived from--
``(A) the production of crops, livestock, or unfinished raw
forestry products;
``(B) the sale, including the sale of easements and
development rights, of farm, ranch, or forestry land or water
or hunting rights;
``(C) the sale of equipment to conduct farm, ranch, or
forestry operations;
``(D) the rental or lease of land used for farming,
ranching, or forestry operations, including water or hunting
rights;
``(E) the provision of production inputs and services to
farmers, ranchers, and foresters;
``(F) the processing (including packing), storing
(including shedding), and transporting of farm, ranch, and
forestry commodities;
``(G) the sale of land that has been used for agriculture;
and
``(H) payments or other income attributable to benefits
received under any program authorized under title I or II of
the Food and Energy Security Act of 2007.''.
(2) Increased funding for certain programs.--In addition to
the amounts made available under other provisions of this Act
and amendments made by this Act, of the funds of the
Commodity Credit Corporation, the Secretary shall use to
carry out--
(A) the grassland reserve program established under
subchapter C of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838n et seq.), an
additional $20,000,000 for the period of fiscal years 2013
through 2017;
(B) the provision of assistance for community food projects
under section 25 of the Food and Nutrition Act of 2007 (7
U.S.C. 2034) (as amended by section 4801(g)), an additional
$10,000,000 for each of fiscal years 2013 through 2016;
(C) the beginning farmer and rancher individual development
accounts pilot program established under section 333B of the
Consolidated Farm and Rural Development Act (as added by
section 5201), an additional $5,000,000 for each of fiscal
years 2013 through 2017;
(D) the program of grants to encourage State initiatives to
improve broadband service established under section 6202, an
additional--
(i) $40,000,000 for the period of fiscal years 2009 through
2012; and
(ii) $30,000,000 for the period of fiscal years 2013
through 2017;
(E) the organic agriculture research and extension
initiative established under section 1672B of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925b) (as amended by section 7104), an additional
$10,000,000 for each of fiscal years 2013 through 2014;
(F) the beginning farmer and rancher development program
established under section 7405 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f) (as amended by
section 7309), an additional $15,000,000 for each of fiscal
years 2013 through 2017;
(G) the biomass crop transition assistance program
established under subsections (b) and (c) of section 9004 of
the Farm Security and Rural Investment Act of 2002 (as
amended by section 9001), an additional $40,000,000 for the
period of fiscal years 2009 through 2012; and
(H) the Rural Energy for America Program established under
section 9007 of the Farm Security and Rural Investment Act of
2002 (as amended by section 9001), an additional $40,000,000
for the period of fiscal years 2009 through 2012.
(3) Extensions.--Notwithstanding any other provision of
this Act, or an amendment made by this Act--
(A) the authority to carry out the grassland reserve
program established under subchapter C of chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3838n et seq.), is extended through September 30,
2017;
(B) the authority to carry out the provision of assistance
for community food projects under section 25 of the Food and
Nutrition Act of 2007 (7 U.S.C. 2034) (as amended by section
4801(g)), is extended through September 30, 2016;
(C) the authority to carry out the beginning farmer and
rancher individual development accounts pilot program
established under section 333B of the Consolidated Farm and
Rural Development Act (as added by section 5201), is extended
through September 30, 2017;
(D) the authority to carry out the program of grants to
encourage State initiatives to improve broadband service
established under section 6202, is extended through September
30, 2017;
(E) the authority to carry out the organic agriculture
research and extension initiative established under section
1672B of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925b) (as amended by section 7104), is
extended through September 30, 2014;
(F) the authority to carry out the beginning farmer and
rancher development program established under section 7405 of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
3319f) (as amended by section 7309), is extended through
September 30, 2017;
(G) the authority to carry out the biomass crop transition
assistance program established under subsections (b) and (c)
of section 9004 of the Farm Security and Rural Investment Act
of 2002 (as amended by section 9001), is extended through
September 30, 2012; and
(H) the authority to carry out the Rural Energy for America
Program established under section 9007 of the Farm Security
and Rural Investment Act of 2002 (as amended by section
9001), is extended through September 30, 2012.
______

SA 3811. Ms. KLOBUCHAR submitted an amendment intended to be proposed
to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

Beginning on page 210, strike line 15 and all that follows
through page 214, line 9, and insert the following:
(c) Modification of Limitation.--
(1) In general.--Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308-3a) is amended by striking subsection (b)
and inserting the following:
``(b) Limitation.--
``(1) Commodity and conservation programs.--
``(A) Commodity programs.--Except as provided in
subparagraph (C) and notwithstanding any other provision of
law, an individual or entity shall not be eligible to receive
any benefit described in paragraph (2)(A) during a crop year
if the average adjusted gross income of the individual or
entity, or the average adjusted gross income of

[[Page S14861]]

the individual and spouse of the individual, exceeds--
``(i) $250,000, if less than 66.66 percent of the average
adjusted gross income of the individual or entity, or the
average adjusted gross income of the individual and spouse of
the individual, is derived from farming, ranching, or
forestry operations, as determined by the Secretary; or
``(ii) $750,000.
``(B) Conservation programs.--Except as provided in
subparagraph (C) and notwithstanding any other provision of
law, an individual or entity shall not be eligible to receive
any benefit described in paragraph (2)(B) during a crop year
if the average adjusted gross income of the individual or
entity, or the average adjusted gross income of the
individual and spouse of the individual, exceeds $2,500,000,
unless not less than 75 percent of the average adjusted gross
income of the individual or entity, or the average adjusted
gross income of the individual and spouse of the individual,
is derived from farming, ranching, or forestry operations, as
determined by the Secretary.
``(C) Exceptions.--This subsection shall not apply to--
``(i) a public school; or
``(ii) an organization that is--

``(I) described in section 501(c)(3) of the Internal
Revenue Code of 1986;
``(II) organized and operated exclusively for charitable
purposes; and
``(III) exempt from taxation under section 501(a) of that
Code.

``(2) Covered benefits.--
``(A) In general.--Paragraph (1)(A) applies with respect to
the following:
``(i) A direct payment or counter-cyclical payment under
part I or III of subtitle A of title I of the Food and Energy
Security Act of 2007.
``(ii) A marketing loan gain or loan deficiency payment
under part II or III of subtitle A of title I of the Food and
Energy Security Act of 2007.
``(iii) An average crop revenue payment under subtitle B of
title I of Food and Energy Security Act of 2007.
``(B) Conservation programs.--Paragraph (1)(B) applies with
respect to a payment under any program under--
``(i) title XII of this Act;
``(ii) title II of the Farm Security and Rural Investment
Act of 2002 (Public Law 107-171; 116 Stat. 223); or
``(iii) title II of the Food and Energy Security Act of
2007.
``(3) Income derived from farming, ranching or forestry
operations.--In determining what portion of the average
adjusted gross income of an individual or entity is derived
from farming, ranching, or forestry operations, the Secretary
shall include income derived from--
``(A) the production of crops, livestock, or unfinished raw
forestry products;
``(B) the sale, including the sale of easements and
development rights, of farm, ranch, or forestry land or water
or hunting rights;
``(C) the sale of equipment to conduct farm, ranch, or
forestry operations;
``(D) the rental or lease of land used for farming,
ranching, or forestry operations, including water or hunting
rights;
``(E) the provision of production inputs and services to
farmers, ranchers, and foresters;
``(F) the processing (including packing), storing
(including shedding), and transporting of farm, ranch, and
forestry commodities;
``(G) the sale of land that has been used for agriculture;
and
``(H) payments or other income attributable to benefits
received under any program authorized under title I or II of
the Food and Energy Security Act of 2007.''.
(2) Increased funding for certain programs.--In addition to
the amounts made available under other provisions of this Act
and amendments made by this Act, of the funds of the
Commodity Credit Corporation, the Secretary shall use to
carry out--
(A) the grassland reserve program established under
subchapter C of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838n et seq.), an
additional $20,000,000 for the period of fiscal years 2013
through 2017;
(B) the provision of assistance for community food projects
under section 25 of the Food and Nutrition Act of 2007 (7
U.S.C. 2034) (as amended by section 4801(g)), an additional
$10,000,000 for each of fiscal years 2013 through 2016;
(C) the beginning farmer and rancher individual development
accounts pilot program established under section 333B of the
Consolidated Farm and Rural Development Act (as added by
section 5201), an additional $5,000,000 for each of fiscal
years 2013 through 2017;
(D) the program of grants to encourage State initiatives to
improve broadband service established under section 6202, an
additional--
(i) $40,000,000 for the period of fiscal years 2009 through
2012; and
(ii) $30,000,000 for the period of fiscal years 2013
through 2017;
(E) the organic agriculture research and extension
initiative established under section 1672B of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925b) (as amended by section 7104), an additional
$10,000,000 for each of fiscal years 2013 through 2014;
(F) the beginning farmer and rancher development program
established under section 7405 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f) (as amended by
section 7309), an additional $15,000,000 for each of fiscal
years 2013 through 2017;
(G) the biomass crop transition assistance program
established under subsections (b) and (c) of section 9004 of
the Farm Security and Rural Investment Act of 2002 (as
amended by section 9001), an additional $40,000,000 for the
period of fiscal years 2009 through 2012; and
(H) the Rural Energy for America Program established under
section 9007 of the Farm Security and Rural Investment Act of
2002 (as amended by section 9001), an additional $40,000,000
for the period of fiscal years 2009 through 2012.
(3) Extensions.--Notwithstanding any other provision of
this Act, or an amendment made by this Act--
(A) the authority to carry out the grassland reserve
program established under subchapter C of chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3838n et seq.), is extended through September 30,
2017;
(B) the authority to carry out the provision of assistance
for community food projects under section 25 of the Food and
Nutrition Act of 2007 (7 U.S.C. 2034) (as amended by section
4801(g)), is extended through September 30, 2016;
(C) the authority to carry out the beginning farmer and
rancher individual development accounts pilot program
established under section 333B of the Consolidated Farm and
Rural Development Act (as added by section 5201), is extended
through September 30, 2017;
(D) the authority to carry out the program of grants to
encourage State initiatives to improve broadband service
established under section 6202, is extended through September
30, 2017;
(E) the authority to carry out the organic agriculture
research and extension initiative established under section
1672B of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925b) (as amended by section 7104), is
extended through September 30, 2014;
(F) the authority to carry out the beginning farmer and
rancher development program established under section 7405 of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
3319f) (as amended by section 7309), is extended through
September 30, 2017;
(G) the authority to carry out the biomass crop transition
assistance program established under subsections (b) and (c)
of section 9004 of the Farm Security and Rural Investment Act
of 2002 (as amended by section 9001), is extended through
September 30, 2012; and
(H) the authority to carry out the Rural Energy for America
Program established under section 9007 of the Farm Security
and Rural Investment Act of 2002 (as amended by section
9001), is extended through September 30, 2012.
______

SA 3812. Mr. CARDIN (for himself and Mr. Casey) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

On page 272, between lines 2 and 3, insert the following:

SEC. 19__. ENTERPRISE AND WHOLE FARM UNITS.

(a) Savings.--Any savings realized by the amendment made by
subsection (b) shall be used by the Secretary to provide
matching funds under section 524(b)(4)(C) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(4)(C) (as added by section
1921).
(b) Enterprise and Whole Farm Units.--Section 508(e) of the
Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by
adding at the end the following:
``(6) Enterprise and whole farm units.--
``(A) In general.--The Corporation may carry out a pilot
program under which the Corporation pays a portion of the
premiums for plans or policies of insurance for which the
insurable unit is defined on a whole farm or enterprise unit
basis that is higher than would otherwise be paid in
accordance with paragraph (2) for policyholders that convert
from a plan or policy of insurance for which the insurable
unit is defined on optional or basic unit basis.
``(B) Eligibility.--To be eligible to participate in a
pilot program established under this paragraph, a
policyholder shall--
``(i) have purchased additional coverage for the 2005 crop
on an optional or basic unit basis for at least 90 percent of
the acreage to be covered by enterprise or whole farm unit
policy for the current crop; and
``(ii) purchase the enterprise or whole farm unit policy at
not less than the highest coverage level that was purchased
for the acreage for the 2005 crop.
``(C) Amount.--
``(i) In general.--The amount of the premium per acre paid
by the Corporation to a policyholder for a policy with an
enterprise and whole farm unit under this paragraph shall be,
the maximum extent practicable, equal to the average dollar
amount of subsidy per acre paid by the Corporation under
paragraph (2) for a basic or optional unit.

[[Page S14862]]

``(ii) Limitation.--The amount of the premium paid by the
Corporation under this paragraph may not exceed the total
premium for the enterprise or whole farm unit policy.
``(D) Conversion of pilot to a permanent program.--Not
earlier than 180 days after the date of enactment of this
paragraph, the Corporation may convert the pilot program
described in this paragraph to a permanent program if the
Corporation has--
``(i) carried out the pilot program;
``(ii) analyzed the results of the pilot program; and
``(iii) submitted to Congress a report describing the
results of the analysis.''.
______

SA 3813. Mr. FEINGOLD (for himself and Mr. Menendez) submitted an
amendment intended to be proposed to amendment SA 3500 proposed by Mr.
Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to
the bill H.R. 2419, to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes; which was
ordered to lie on the table; as follows:

At the end of title I, insert the following:

Subtitle H--Flexible State Funds

SEC. 1941. OFFSET.

(a) Offset.--
(1) In general.--Except as provided in paragraph (3) and
notwithstanding any other provision of this Act, for the
period beginning on October 1, 2007, and ending on September
30, 2012, the Secretary shall reduce the total amount of
payments described in paragraph (2) received by the producers
on a farm by 35 percent.
(2) Payment.--A payment described in this paragraph is a
payment in an amount of more than $10,000 for the crop year
that is--
(A) a direct payment for a covered commodity or peanuts
received by the producers on a farm for a crop year under
section 1103 or 1303; or
(B) the fixed payment component of an average crop revenue
payment for a covered commodity or peanuts received by the
producers on a farm for a crop year under section 1401(b)(2).
(3) Application.--This subsection does not apply to a
payment provided under a contract entered into by the
Secretary before the date of enactment of this Act.
(b) Savings.--The Secretary shall ensure, to the maximum
extent practicable, that any savings resulting from
subsection (a) are used--
(1) to provide $15,000,000 for each of fiscal years 2008
through 2012 to carry out section 379F of the Consolidated
Farm and Rural Development Act (as added by section 1943);
(2) to provide an additional $35,000,000 for fiscal year
2008 and $40,000,000 for each of fiscal years 2009 through
2012 to carry out section 231 of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
224) (as amended by section 6401);
(3) to provide an additional $5,000,000 for each of fiscal
years 2008 through 2012 to carry out the grassland reserve
program established under subchapter C of chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3838n et seq.);
(4) to provide an additional $10,000,000 for each of fiscal
years 2008 through 2012 to carry out section 2501 of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279)) (as amended by section 11052);
(5) to provide an additional $30,000,000 for each of fiscal
years 2008 through 2012 to carry out the farmland protection
program established under subchapter B of chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3838h et seq.) (commonly known as the ``Farm and Ranch
Lands Protection Program'');
(6) to provide an additional $5,000,000 for fiscal year
2008 to carry out the Farmers' Market Promotion Program
established under section 6 of the Farmer-to-Consumer Direct
Marketing Act of 1976 (7 U.S.C. 3005);
(7) to carry out sections 4101 and 4013 (and the amendments
made by those sections), without regards to paragraphs (1)
and (3) of section 4908(b); and
(8) to make any funds that remain available after providing
funds under paragraphs (1) through (7) to the Commodity
Credit Corporation for use in carrying out section 1942.

SEC. 1942. FLEXIBLE STATE FUNDS.

(a) Funding.--
(1) Base grants.--The Secretary shall make a grant to each
State to be used to benefit agricultural producers and rural
communities in the State, in the amount of--
(A) for fiscal year 2008, $220,000; and
(B) for the period of fiscal years 2009 through 2017,
$2,500,000.
(2) Proportional funding.--
(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall allocate among the States
$220,000,000 for fiscal years 2009 through 2017, with each
State receiving a grant in an amount equal to the proportion
that--
(i) the amount of the reduction in payments in the State
under section 1941(a); bears to
(ii) the total amount of reduced payments in all States
under that section.
(B) State funds.--The Secretary shall maintain a separate
account for each State consisting of amounts allocated for
the State in accordance with subparagraph (A).
(C) Use of funds.--The Secretary shall use amounts
maintained in a State account described in subparagraph (B)
to carry out eligible programs in the appropriate State in
accordance with a determination made by a State board under
subsection (b)(3).
(b) State Boards.--
(1) In general.--The Secretary shall establish a State
board for each State that consists of the State directors
of--
(A) the Farm Service Agency;
(B) the Natural Resources Conservation Service; and
(C) USDA-Rural Development.
(2) Stakeholder input.--A State board established under
paragraph (1) shall consult with and conduct appropriate
outreach activities with respect to relevant State agencies
(including State agencies with jurisdiction over agriculture,
rural development, public schools, and nutrition assistance),
producers, and local rural and agriculture industry leaders
to collect information and provide advice regarding the needs
and preferred uses of the funds provided under this section.
(3) Determination.--
(A) In general.--Each State board shall determine the use
of funds allocated under subsection (a)(2) among the eligible
programs described in subsection (c)(1) based on the State
needs and priorities as determined by the board.
(B) Requirement.--Of the funds allocated under subsection
(a)(2) during each 5-year period, at least 20 percent of the
funds shall be used to carry out eligible programs described
in subparagraphs (M) through (P) of subsection (c)(1).
(c) Eligible Programs.--
(1) In general.--Funds allocated to a State under
subsection (b) may be used in the State--
(A) to provide stewardship payments for conservation
practices under the conservation security program established
under subchapter A of chapter 2 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3838 et seq.);
(B) to provide cost share for projects to reduce pollution
under the environmental quality incentives program
established under chapter 4 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3839aa et seq.),
including manure management;
(C) to assist States and local groups to purchase
development rights from farms and slow suburban sprawl under
the farmland protection program established under subchapter
B of chapter 2 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3838h et seq.) (commonly
known as the ``Farm and Ranch Lands Protection Program'');
(D) the grassland reserve program established under
subchapter C of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838n et seq.);
(E) to provide loans and loan guarantees to improve
broadband access in rural areas in accordance with the
program under section 601 of the Rural Electrification Act of
1936 (7 U.S.C. 950bb);
(F) to provide to rural community facilities loans and
grants under section 306(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a));
(G) to provide water or waste disposal grants or direct or
guaranteed loans under paragraph (1) or (2) of section 306(a)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1926(a));
(H) to make value-added agricultural product market
development grants under section 231 of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
224);
(I) the rural microenterprise assistance program under
section 366 of the Consolidated Farm and Rural Development
Act (as added by section 6022);
(J) to provide organic certification cost share or
transition funds under the national organic program
established under the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et seq.);
(K) to provide grants under the Rural Energy for America
Program established under section 9007 of the Farm Security
and Rural Investment Act of 2002 (as amended by section
9001);
(L) to provide grants under the Farmers' Market Promotion
Program established under section 6 of the Farmer-to-Consumer
Direct Marketing Act of 1976 (7 U.S.C. 3005);
(M) to provide vouchers for the seniors farmers' market
nutrition program under section 4402 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 3007);
(N) to provide vouchers for the farmers' market nutrition
program established under section 17(m) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(m));
(O) to provide grants to improve access to local foods and
school gardens under section 18(i) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769(i)); and
(P) subject to paragraph (2), to provide additional locally
or regionally produced commodities for use by the State for
any of--
(i) the fresh fruit and vegetable program under section 19
of the Richard B. Russell National School Lunch Act (as added
by section 4903);
(ii) the commodity supplemental food program established
under section 5 of the Agriculture and Consumer Protection
Act of 1973 (7 U.S.C. 612c note; Public Law 93-86);
(iii) the emergency food assistance program established
under the Emergency Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.);
(iv) the child and adult care food program established
under section 17 of the Richard

[[Page S14863]]

B. Russell National School Lunch Act (42 U.S.C. 1766); and
(v) the food distribution program on Indian reservations
established under section 4(b) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2013(b)).
(2) Waivers.--
(A) In general.--The Secretary may waive a local or
regional purchase requirement under any program described in
clauses (i) through (v) of paragraph (1)(P) if the applicable
State board demonstrates to the satisfaction of the Secretary
that a sufficient quality or quantity of a local or regional
product is not available.
(B) Effect.--A product purchased by a State board that
receives a waiver under subparagraph (A) in lieu of a local
or regional product shall be produced in the United States.
(d) Maintenance of Effort.--Funds made available to a
program of a State under this section shall be in addition
to, and shall not supplant, any other funds provided to the
program under any other Federal, State, or local law
(including regulations).

SEC. 1943. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND
IMPROVE QUALITY OF RURAL HEALTH CARE
FACILITIES.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 6028) is
amended by adding at the end the following:

``SEC. 379F. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND
QUALITY OF RURAL HEALTH CARE FACILITIES.

``(a) Definitions.--In this section:
``(1) Health information technology.--The term `health
information technology' includes total expenditures incurred
for--
``(A) purchasing, leasing, and installing computer software
and hardware, including handheld computer technologies, and
related services;
``(B) making improvements to computer software and
hardware;
``(C) purchasing or leasing communications capabilities
necessary for clinical data access, storage, and exchange;
``(D) services associated with acquiring, implementing,
operating, or optimizing the use of computer software and
hardware and clinical health care informatics systems;
``(E) providing education and training to rural health
facility staff on information systems and technology designed
to improve patient safety and quality of care; and
``(F) purchasing, leasing, subscribing, or servicing
support to establish interoperability that--
``(i) integrates patient-specific clinical data with well-
established national treatment guidelines;
``(ii) provides continuous quality improvement functions
that allow providers to assess improvement rates over time
and against averages for similar providers; and
``(iii) integrates with larger health networks.
``(2) Rural area.--The term `rural area' means any area of
the United States that is not--
``(A) included in the boundaries of any city, town,
borough, or village, whether incorporated or unincorporated,
with a population of more than 20,000 residents; or
``(B) an urbanized area contiguous and adjacent to such a
city, town, borough, or village.
``(3) Rural health facility.--The term `rural health
facility' means any of--
``(A) a hospital (as defined in section 1861(e) of the
Social Security Act (42 U.S.C. 1395x(e)));
``(B) a critical access hospital (as defined in section
1861(mm) of that Act (42 U.S.C. 1395x(mm)));
``(C) a Federally qualified health center (as defined in
section 1861(aa) of that Act (42 U.S.C. 1395x(aa))) that is
located in a rural area;
``(D) a rural health clinic (as defined in that section (42
U.S.C. 1395x(aa)));
``(E) a medicare-dependent, small rural hospital (as
defined in section 1886(d)(5)(G) of that Act (42 U.S.C.
1395ww(d)(5)(G))); and
``(F) a physician or physician group practice that is
located in a rural area.
``(b) Establishment of Program.--The Secretary shall
establish a program under which the Secretary shall provide
grants to rural health facilities for the purpose of
assisting the rural health facilities in--
``(1) purchasing health information technology to improve
the quality of health care or patient safety; or
``(2) otherwise improving the quality of health care or
patient safety, including through the development of--
``(A) quality improvement support structures to assist
rural health facilities and professionals--
``(i) to increase integration of personal and population
health services; and
``(ii) to address safety, effectiveness, patient- or
community-centeredness, timeliness, efficiency, and equity;
and
``(B) innovative approaches to the financing and delivery
of health services to achieve rural health quality goals.
``(c) Amount of Grant.--The Secretary shall determine the
amount of a grant provided under this section.
``(d) Provision of Information.--A rural health facility
that receives a grant under this section shall provide to the
Secretary such information as the Secretary may require--
``(1) to evaluate the project for which the grant is used;
and
``(2) to ensure that the grant is expended for the purposes
for which the grant was provided.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this section such sums as are necessary for each of fiscal
years 2008 through 2012.''.
______

SA 3814. Ms. STABENOW (for herself, Mr. Craig, and Mr. Crapo)
submitted an amendment intended to be proposed to amendment SA 3500
proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr.
Grassley) to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

On page 1362, between lines 19 and 20, insert the
following:

SEC. 110__. SEAFOOD AND AQUACULTURE BLOCK GRANT PILOT
PROGRAM.

(a) Definitions.--In this section:
(1) State.--The term ``State'' means--
(A) each of the several States of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) Guam;
(E) American Samoa;
(F) the Commonwealth of the Northern Mariana Islands; and
(G) the United States Virgin Islands.
(2) State department of agriculture.--The term ``State
department of agriculture'' means the agency, commission, or
department of a State government responsible for agriculture
within the State.
(b) Availability and Purpose of Grants.--Subject to the
appropriation of funds to carry out this section, the
Secretary shall carry out a pilot program to make grants to
States for each of fiscal years 2008 through 2012 to be used
by the State department of agriculture solely to enhance the
competitiveness of seafood and aquaculture.
(c) Grants Based on Value of Production.--Subject to
subsection (e), the amount of the grant for a fiscal year to
a State under this section shall bear the same ratio to the
total amount appropriated pursuant to the authorization of
appropriations in subsection (j) for that fiscal year as--
(1) the value of seafood and aquaculture production in the
State during the preceding calendar year; bears to
(2) the value of seafood and aquaculture production during
the preceding calendar year in all States whose application
for a grant for that fiscal year is accepted by the Secretary
under subsection (g).
(d) Minimum Grant Amount.--Subject to the appropriation of
sufficient funds to carry out this subsection, each State
shall receive at least $100,000 each fiscal year as a grant
under this section notwithstanding the amount calculated
under subsection (c) for the State.
(e) Eligibility.--To be eligible to receive a grant under
this section, a State department of agriculture shall prepare
and submit, for approval by the Secretary, an application at
such time, in such a manner, and containing such information
as the Secretary shall require by regulation, including--
(1) a State plan that meets the requirements of subsection
(c);
(2) an assurance that the State will comply with the
requirements of the plan; and
(3) an assurance that grant funds received under this
section shall supplement the expenditure of State funds in
support of seafood and aquaculture, rather than replace State
funds.
(f) Plan Requirements.--The State plan shall--
(1) identify the lead agency charged with the
responsibility of carrying out the plan; and
(2) indicate how the grant funds will be used to enhance
the competitiveness of seafood and aquaculture.
(g) Review of Application.--
(1) In general.--In reviewing the application of a State
submitted under subsection (b), the Secretary shall ensure
that the State plan would carry out the purpose of grant
program.
(2) Discretion.--The Secretary may accept or reject
applications for a grant under this section.
(h) Effect of Noncompliance.--If the Secretary, after
reasonable notice to a State, finds that there has been a
failure by the State to comply substantially with any
provision or requirement of the State plan, the Secretary may
disqualify, for 1 or more years, the State from receipt of
future grants under this section.
(i) Audit Requirements.--
(1) In general.--For each year that a State receives a
grant under this section, the State shall conduct an audit of
the expenditures of grant funds by the State.
(2) Submission to secretary.--Not later than 30 days after
the completion of the audit, the State shall submit a copy of
the audit to the Secretary.
(j) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to make grants under this
section $44,500,000 for each of fiscal years 2008 through
2012.
______

SA 3815. Mr. LUGAR (for himself, Mr. Lautenberg, Mr. Menendez, Mr.
Cardin, Mr. Whitehouse, Mr. Reed,

[[Page S14864]]

Mr. Hatch, Ms. Collins, Mr. Domenici, Mr. Nelson of Florida, Mr.
McCain, and Mr. Sununu) submitted an amendment intended to be proposed
by him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Food and
Energy Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

TITLE I--PRODUCER INCOME PROTECTION PROGRAMS

Subtitle A--Traditional Payments and Loans

Sec. 1001. Commodity programs.

Subtitle B--Risk Management Accounts

Sec. 1101. Definitions.
Sec. 1102. Risk management account contracts.
Sec. 1103. Treatment of risk management account accounts on transfer.
Sec. 1104. Administration of risk management accounts.

Subtitle C--Sugar

Sec. 1201. Sugar program.
Sec. 1202. Storage facility loans.
Sec. 1203. Commodity Credit Corporation storage payments.
Sec. 1204. Flexible marketing allotments for sugar.
Sec. 1205. Sense of the Senate regarding NAFTA sugar coordination.

Subtitle D--Dairy

Sec. 1301. Dairy product price support program.
Sec. 1302. National dairy market loss payments.
Sec. 1303. Dairy export incentive and dairy indemnity programs.
Sec. 1304. Funding of dairy promotion and research program.
Sec. 1305. Revision of Federal marketing order amendment procedures.
Sec. 1306. Dairy forward pricing program.
Sec. 1307. Report on Department of Agriculture reporting procedures for
nonfat dry milk.
Sec. 1308. Federal Milk Marketing Order Review Commission.
Sec. 1309. Mandatory reporting of dairy commodities.

Subtitle E--Administration

Sec. 1401. Administration generally.
Sec. 1402. Suspension of permanent price support authority.
Sec. 1403. Payment limitations.
Sec. 1404. Adjusted gross income limitation.
Sec. 1405. Availability of quality incentive payments for certain
producers.
Sec. 1406. Hard white wheat development program.
Sec. 1407. Durum wheat quality program.
Sec. 1408. Storage facility loans.
Sec. 1409. Personal liability of producers for deficiencies.
Sec. 1410. Extension of existing administrative authority regarding
loans.
Sec. 1411. Assignment of payments.
Sec. 1412. Cotton classification services.
Sec. 1413. Designation of States for cotton research and promotion.
Sec. 1414. Government publication of cotton price forecasts.
Sec. 1415. State, county, and area committees.
Sec. 1416. Prohibition on charging certain fees.
Sec. 1417. Signature authority.
Sec. 1418. Modernization of Farm Service Agency.
Sec. 1419. Geospatial systems.
Sec. 1420. Leasing office space.
Sec. 1421. Repeals.

Subtitle F--Specialty Crop Programs

Sec. 1501. Definitions.

PART I--Marketing, Information, and Education

Sec. 1511. Fruit and vegetable market news allocation.
Sec. 1512. Farmers' market promotion program.
Sec. 1513. Food safety initiatives.
Sec. 1514. Census of specialty crops.

PART II--Organic Production

Sec. 1521. Organic data collection and price reporting.
Sec. 1522. Exemption of certified organic products from assessments.
Sec. 1523. National Organic Certification Cost Share Program.
Sec. 1524. National organic program.

PART III--International Trade

Sec. 1531. Foreign market access study and strategy plan.
Sec. 1532. Market access program.
Sec. 1533. Technical assistance for specialty crops.
Sec. 1534. Consultations on sanitary and phytosanitary restrictions for
fruits and vegetables.

PART IV--Specialty Crops Competitiveness

Sec. 1541. Specialty crop block grants.
Sec. 1542. Grant program to improve movement of specialty crops.
Sec. 1543. Healthy Food Enterprise Development Center.

PART V--Miscellaneous

Sec. 1551. Clean plant network.
Sec. 1552. Market loss assistance for asparagus producers.
Sec. 1553. Mushroom promotion, research, and consumer information.
Sec. 1554. National Honey Board.
Sec. 1555. Identification of honey.
Sec. 1556. Expedited marketing order for Hass avocados for grades and
standards and other purposes.

Subtitle G--Risk Management

Sec. 1601. Definition of organic crop.
Sec. 1602. General powers.
Sec. 1603. Reduction in loss ratio.
Sec. 1604. Controlled business insurance.
Sec. 1605. Administrative fee.
Sec. 1606. Time for payment.
Sec. 1607. Surcharge prohibition.
Sec. 1608. Premium reduction plan.
Sec. 1609. Denial of claims.
Sec. 1610. Measurement of farm-stored commodities.
Sec. 1611. Renegotiation of standard reinsurance agreement.
Sec. 1612. Change in due date for Corporation payments for underwriting
gains.
Sec. 1613. Controlling crop insurance program costs.
Sec. 1614. Supplemental deductible coverage.
Sec. 1615. Revenue-based safety net.
Sec. 1616. Whole farm insurance.
Sec. 1617. Access to data mining information.
Sec. 1618. Producer eligibility.
Sec. 1619. Contracts for additional crop policies.
Sec. 1620. Research and development.
Sec. 1621. Funding from insurance fund.
Sec. 1622. Camelina pilot program.
Sec. 1623. Risk management education for beginning farmers or ranchers.
Sec. 1624. Crop insurance education assistance.
Sec. 1625. Agricultural management assistance.
Sec. 1626. Crop insurance mediation.
Sec. 1627. Drought coverage for aquaculture under noninsured crop
assistance program.
Sec. 1628. Increase in service fees for noninsured crop assistance
program.
Sec. 1629. Determination of certain sweet potato production.
Sec. 1630. Perennial crop report.

TITLE II--CONSERVATION

Subtitle A--Definitions

Sec. 2001. Definitions.

Subtitle B--Highly Erodible Land Conservation

Sec. 2101. Review of good faith determinations; exemptions.

Subtitle C--Wetland Conservation

Sec. 2201. Review of good faith determinations.

Subtitle D--Agricultural Resources Conservation Program

Chapter 1--Comprehensive Conservation Enhancement

subchapter a--comprehensive conservation enhancement program

Sec. 2301. Reauthorization and expansion of programs covered.

subchapter b--conservation reserve

Sec. 2311. Conservation reserve program.
Sec. 2312. Flooded farmland program.
Sec. 2313. Wildlife habitat program.

subchapter c--wetlands reserve program

Sec. 2321. Wetlands reserve program.
Sec. 2322. Easements and agreements.
Sec. 2323. Payments.

subchapter d--healthy forests reserve program

Sec. 2331. Healthy forests reserve program.

``subchapter d--healthy forests reserve program

``Sec. 1237M. Establishment of healthy forests reserve program.
``Sec. 1237N. Eligibility and enrollment of lands in program.
``Sec. 1237O. Restoration plans.
``Sec. 1237P. Financial assistance.
``Sec. 1237Q. Technical assistance.
``Sec. 1237R. Protections and measures.
``Sec. 1237S. Involvement by other agencies and organizations.
``Sec. 1237T. Authorization of appropriations.

Chapter 2--Comprehensive Stewardship Incentives Program

subchapter a--general provisions

Sec. 2341. Comprehensive stewardship incentives program.

``Chapter 6--Comprehensive Stewardship Incentives Program

``subchapter a--comprehensive stewardship incentives program

``Sec. 1240T. Comprehensive stewardship incentives program.

``subchapter b--conservation stewardship program

``Sec. 1240U. Purposes.
``Sec. 1240V. Definitions.
``Sec. 1240W. Establishment of program.
``Sec. 1240X. Eligibility.
``Sec. 1240Y. Regulations.

subchapter b--environmental quality incentives program

Sec. 2351. Purposes.
Sec. 2352. Definitions.
Sec. 2353. Establishment and administration of environmental quality
incentives program.

[[Page S14865]]

Sec. 2354. Evaluation of offers and payments.
Sec. 2355. Duties of producers.
Sec. 2356. Environmental quality incentives program plan.
Sec. 2357. Limitation on payments.
Sec. 2358. Conservation innovation grants.
Sec. 2359. Ground and surface water conservation.
Sec. 2360. Organic conversion.
Sec. 2361. Chesapeake Bay watershed conservation program.

Chapter 3--Farmland Protection

subchapter a--farmland protection program

Sec. 2371. Farmland protection program.

subchapter b--grassland reserve program

Sec. 2381. Grassland reserve program.

``subchapter c--grassland reserve program

``Sec. 1238N. Definitions.
``Sec. 1238O. Grassland reserve program.
``Sec. 1238P. Duties.
``Sec. 1238Q. Terms and conditions.

Chapter 4--Other Conservation Programs

Sec. 2391. Conservation security program.
Sec. 2392. Conservation of private grazing land.
Sec. 2393. Reauthorization of wildlife habitat incentive program.
Sec. 2394. Grassroots source water protection program.
Sec. 2395. Great Lakes basin program for soil erosion and sediment
control.
Sec. 2396. Farm viability program.
Sec. 2397. Discovery watershed demonstration program.
Sec. 2398. Emergency landscape restoration program.
Sec. 2399. Voluntary public access and habitat incentive program.
Sec. 2399A. Migratory bird habitat conservation security program.

Subtitle E--Funding and Administration

Sec. 2401. Funding and administration.
Sec. 2402. Regional equity.
Sec. 2403. Conservation access.
Sec. 2404. Delivery of technical assistance.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Conservation programs in environmental services markets.

Subtitle F--State Technical Committees

Sec. 2501. State technical committees.

Subtitle G--Other Authorities

Sec. 2601. Agricultural management assistance.
Sec. 2602. Agriculture conservation experienced services program.
Sec. 2603. Technical assistance.
Sec. 2604. Small watershed rehabilitation program.
Sec. 2605. Resource conservation and development program.
Sec. 2606. National Natural Resources Conservation Foundation.
Sec. 2607. Desert Terminal Lakes.
Sec. 2608. Crop insurance ineligibility relating to crop production on
native sod.
Sec. 2609. High Plains water study.
Sec. 2610. Payment of expenses.
Sec. 2611. Use of funds in Basin funds for salinity control activities
upstream of Imperial Dam.
Sec. 2612. Great Lakes Commission.
Sec. 2613. Technical corrections to the Federal Insecticide, Fungicide,
and Rodenticide Act.
Sec. 2614. Conservation of greater Everglades ecosystem.

TITLE III--TRADE

Subtitle A--Food for Peace Act

Sec. 3001. Short title.
Sec. 3002. United States policy.
Sec. 3003. Food aid to developing countries.
Sec. 3004. Trade and development assistance.
Sec. 3005. Agreements regarding eligible countries and private
entities.
Sec. 3006. Use of local currency payments.
Sec. 3007. General authority.
Sec. 3008. Provision of agricultural commodities.
Sec. 3009. Microenterprise activities.
Sec. 3010. Levels of assistance.
Sec. 3011. Food Aid Consultative Group.
Sec. 3012. Administration.
Sec. 3013. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable prepackaged
foods.
Sec. 3014. Pilot program for local purchase.
Sec. 3015. General authorities and requirements.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Expiration date.
Sec. 3019. Authorization of appropriations.
Sec. 3020. Micronutrient fortification programs.
Sec. 3021. Germplasm conservation.
Sec. 3022. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

Subtitle B--Agricultural Trade Act of 1978 and Related Statutes

Sec. 3101. Nongovernmental organization participation in the resolution
of trade disputes.
Sec. 3102. Export credit guarantee program.
Sec. 3103. Market access program.
Sec. 3104. Export enhancement program.
Sec. 3105. Voluntary certification of child labor status of
agricultural imports.
Sec. 3106. Foreign market development cooperator program.
Sec. 3107. Food for Progress Act of 1985.
Sec. 3108. McGovern-Dole International Food for Education and Child
Nutrition Program.

Subtitle C--Miscellaneous

Sec. 3201. Bill Emerson Humanitarian Trust.
Sec. 3202. Emerging markets and facility guarantee loan program.
Sec. 3203. Biotechnology and agricultural trade program.
Sec. 3204. Technical assistance for the resolution of trade disputes.

TITLE IV--NUTRITION PROGRAMS

Subtitle A--Food and Nutrition Program

PART I--Renaming of Food Stamp Program

Sec. 4001. Renaming of food stamp program.

PART II--Improving Program Benefits

Sec. 4101. Exclusion of certain military payments from income.
Sec. 4102. Strengthening the food purchasing power of low-income
Americans.
Sec. 4103. Supporting working families with child care expenses.
Sec. 4104. Encouraging retirement and education savings among food
stamp recipients.
Sec. 4105. Facilitating simplified reporting.
Sec. 4106. Accrual of benefits.
Sec. 4107. Eligibility for unemployed adults.
Sec. 4108. Transitional benefits option.
Sec. 4109. Minimum benefit.
Sec. 4110. Availability of commodities for the emergency food
assistance program.

PART III--Improving Program Operations

Sec. 4201. Technical clarification regarding eligibility.
Sec. 4202. Issuance and use of program benefits.
Sec. 4203. Clarification of split issuance.
Sec. 4204. State option for telephonic signature.
Sec. 4205. Privacy protections.
Sec. 4206. Study on comparable access to food and nutrition assistance
for Puerto Rico.
Sec. 4207. Civil rights compliance.
Sec. 4208. Employment, training, and job retention.
Sec. 4209. Codification of access rules.
Sec. 4210. Expanding the use of EBT cards at farmers' markets.
Sec. 4211. Review of major changes in program design.
Sec. 4212. Preservation of access and payment accuracy.
Sec. 4213. Nutrition education.

PART IV--Improving Program Integrity

Sec. 4301. Major systems failures.
Sec. 4302. Performance standards for biometric identification
technology.
Sec. 4303. Civil penalties and disqualification of retail food stores
and wholesale food concerns.
Sec. 4304. Funding of employment and training programs.
Sec. 4305. Eligibility disqualification.

PART V--Miscellaneous

Sec. 4401. Definition of staple foods.
Sec. 4402. Accessory food items.
Sec. 4403. Pilot projects to evaluate health and nutrition promotion in
the food and nutrition program.
Sec. 4404. Bill Emerson National Hunger Fellows and Mickey Leland
International Hunger Fellows.
Sec. 4405. Hunger-free communities.
Sec. 4406. State performance on enrolling children receiving program
benefits for free school meals.

Subtitle B--Food Distribution Program on Indian Reservations

Sec. 4501. Assessing the nutritional value of the FDPIR food package.

Subtitle C--Administration of Emergency Food Assistance Program and
Commodity Supplemental Food Program

Sec. 4601. Emergency food assistance.
Sec. 4602. Commodity supplemental food program.

Subtitle D--Senior Farmers' Market Nutrition Program

Sec. 4701. Exclusion of benefits in determining eligibility for other
programs.
Sec. 4702. Prohibition on collection of sales tax.
Sec. 4703. WIC farmers' market nutrition program.

Subtitle E--Reauthorization of Federal Food Assistance Programs

Sec. 4801. Food and nutrition program.
Sec. 4802. Commodity distribution.
Sec. 4803. Nutrition information and awareness pilot program.

Subtitle F--Food Employment Empowerment and Development Program

Sec. 4851. Short title.
Sec. 4852. Definitions.
Sec. 4853. Food employment empowerment and development program.

Subtitle G--Miscellaneous

Sec. 4901. Purchases of locally grown fruits and vegetables.
Sec. 4902. Summer food service program for children.
Sec. 4903. Healthy food education and program replicability.
Sec. 4904. Fresh fruit and vegetable program.
Sec. 4905. Buy American requirements.
Sec. 4906. Minimum purchases of fruits, vegetables, and nuts through
section 32 to support domestic nutrition assistance
programs.

[[Page S14866]]

Sec. 4907. Conforming amendments to renaming of food stamp program.
Sec. 4908. Effective and implementation dates.

TITLE V--CREDIT

Subtitle A--Farm Ownership Loans

Sec. 5001. Direct loans.
Sec. 5002. Purposes of loans.
Sec. 5003. Soil and water conservation and protection.
Sec. 5004. Limitations on amount of farm ownership loans.
Sec. 5005. Down payment loan program.
Sec. 5006. Beginning farmer or rancher contract land sales program.

Subtitle B--Operating Loans

Sec. 5101. Farming experience as eligibility requirement.
Sec. 5102. Limitations on amount of operating loans.
Sec. 5103. Limitation on period borrowers are eligible for guaranteed
assistance.

Subtitle C--Administrative Provisions

Sec. 5201. Beginning farmer and rancher individual development accounts
pilot program.
Sec. 5202. Inventory sales preferences; loan fund set-asides.
Sec. 5203. Transition to private commercial or other sources of credit.
Sec. 5204. Loan authorization levels.
Sec. 5205. Interest rate reduction program.
Sec. 5206. Deferral of shared appreciation recapture amortization.
Sec. 5207. Rural development, housing, and farm loan program
activities.

Subtitle D--Farm Credit

Sec. 5301. Authority to pass along cost of insurance premiums.
Sec. 5302. Technical correction.
Sec. 5303. Confirmation of Chairman.
Sec. 5304. Premiums.
Sec. 5305. Certification of premiums.
Sec. 5306. Rural utility loans.
Sec. 5307. Equalization of loan-making powers of certain district
associations.

Subtitle E--Miscellaneous

Sec. 5401. Loans to purchasers of highly fractioned land.
Sec. 5402. Determination on merits of Pigford claims.
Sec. 5403. Sense of the Senate relating to claims brought by socially
disadvantaged farmers or ranchers.
Sec. 5404. Eligibility of equine farmers and ranchers for emergency
loans.

TITLE VI--RURAL DEVELOPMENT AND INVESTMENT

Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. Rural business opportunity grants.
Sec. 6003. Child day care facility grants, loans, and loan guarantees.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Multijurisdictional regional planning organizations.
Sec. 6006. Rural hospital loans and loan guarantees.
Sec. 6007. Tribal college and university essential community
facilities.
Sec. 6008. Community facility loans and grants for freely associated
States and outlying areas.
Sec. 6009. Priority for community facility loan and grant projects with
high non-Federal share.
Sec. 6010. SEARCH grants.
Sec. 6011. Emergency and imminent community water assistance grant
program.
Sec. 6012. Water systems for rural and native villages in Alaska.
Sec. 6013. Grants to develop wells in rural areas.
Sec. 6014. Cooperative equity security guarantee.
Sec. 6015. Rural cooperative development grants.
Sec. 6016. Grants to broadcasting systems.
Sec. 6017. Locally-produced agricultural food products.
Sec. 6018. Center for Healthy Food Access and Enterprise Development.
Sec. 6019. Appropriate technology transfer for rural areas.
Sec. 6020. Rural economic area partnership zones.
Sec. 6021. Definitions.
Sec. 6022. Rural microenterprise assistance program.
Sec. 6023. Artisanal cheese centers.
Sec. 6024. National Rural Development Partnership.
Sec. 6025. Historic barn preservation.
Sec. 6026. Grants for NOAA weather radio transmitters.
Sec. 6027. Grants to train farm workers in new technologies and to
train farm workers in specialized skills necessary for
higher value crops.
Sec. 6028. Grants for expansion of employment opportunities for
individuals with disabilities in rural areas.
Sec. 6029. Delta Regional Authority.
Sec. 6030. Northern Great Plains Regional Authority.
Sec. 6031. Rural business investment program.
Sec. 6032. Rural collaborative investment program.
Sec. 6033. Funding of pending rural development loan and grant
applications.

Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Energy efficiency programs.
Sec. 6102. Loans and grants for electric generation and transmission.
Sec. 6103. Fees for electrification baseload generation loan
guarantees.
Sec. 6104. Deferment of payments to allow loans for improved energy
efficiency and demand reduction.
Sec. 6105. Rural electrification assistance.
Sec. 6106. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6107. Expansion of 911 access.
Sec. 6108. Electric loans to rural electric cooperatives.
Sec. 6109. Agency procedures.
Sec. 6110. Access to broadband telecommunications services in rural
areas.
Sec. 6111. Substantially underserved trust areas.
Sec. 6112. Study of Federal assistance for broadband infrastructure.

Subtitle C--Connect the Nation Act

Sec. 6201. Short title.
Sec. 6202. Grants to encourage State initiatives to improve broadband
service.

Subtitle D--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 6301. Rural electronic commerce extension program.
Sec. 6302. Telemedicine, library connectivity, public television, and
distance learning services in rural areas.

Subtitle E--Miscellaneous

Sec. 6401. Value-added agricultural product market development grants.
Sec. 6402. Study of railroad issues.
Sec. 6403. Insurance of loans for housing and related facilities for
domestic farm labor.

TITLE VII--RESEARCH AND RELATED MATTERS

Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977

Sec. 7001. Definitions.
Sec. 7002. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7003. Veterinary medicine loan repayment.
Sec. 7004. Eligibility of University of the District of Columbia for
grants and fellowships for food and agricultural sciences
education.
Sec. 7005. Grants to 1890 Institutions to expand extension capacity.
Sec. 7006. Expansion of food and agricultural sciences awards.
Sec. 7007. Grants and fellowships for food and agricultural sciences
education.
Sec. 7008. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from agricultural commodities
and forest products.
Sec. 7009. Policy research centers.
Sec. 7010. Human nutrition intervention and health promotion research
program.
Sec. 7011. Pilot research program to combine medical and agricultural
research.
Sec. 7012. Nutrition education program.
Sec. 7013. Continuing animal health and disease research programs.
Sec. 7014. Appropriations for research on national or regional
problems.
Sec. 7015. Animal health and disease research program.
Sec. 7016. Authorization level for extension at 1890 land-grant
colleges.
Sec. 7017. Authorization level for agricultural research at 1890 land-
grant colleges.
Sec. 7018. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including Tuskegee
University.
Sec. 7019. Grants to upgrade agriculture and food sciences facilities
at the District of Columbia land grant university.
Sec. 7020. National research and training virtual centers.
Sec. 7021. Matching funds requirement for research and extension
activities of 1890 Institutions.
Sec. 7022. Hispanic-serving institutions.
Sec. 7023. Hispanic-serving agricultural colleges and universities.
Sec. 7024. International agricultural research, extension, and
education.
Sec. 7025. Competitive grants for international agricultural science
and education programs.
Sec. 7026. Indirect costs.
Sec. 7027. Research equipment grants.
Sec. 7028. University research.
Sec. 7029. Extension Service.
Sec. 7030. Supplemental and alternative crops.
Sec. 7031. Aquaculture research facilities.
Sec. 7032. Rangeland research.
Sec. 7033. Special authorization for biosecurity planning and response.
Sec. 7034. Resident instruction and distance education grants program
for insular area institutions of higher education.
Sec. 7035. Farm management training and public farm benchmarking
database.

[[Page S14867]]

Sec. 7036. Tropical and subtropical agricultural research.
Sec. 7037. Regional centers of excellence.
Sec. 7038. National Drought Mitigation Center.
Sec. 7039. Agricultural development in the American-Pacific region.
Sec. 7040. Borlaug international agricultural science and technology
fellowship program.
Sec. 7041. New Era Rural Technology Program.
Sec. 7042. Farm and ranch stress assistance network.
Sec. 7043. Rural entrepreneurship and enterprise facilitation program.
Sec. 7044. Seed distribution.
Sec. 7045. Farm and ranch safety.
Sec. 7046. Women and minorities in STEM fields.
Sec. 7047. Natural products research program.
Sec. 7048. International anti-hunger and nutrition program.
Sec. 7049. Consortium for Agricultural and Rural Transportation
Research and Education.

Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 7101. National genetic resources program.
Sec. 7102. High-priority research and extension initiatives.
Sec. 7103. Nutrient management research and extension initiative.
Sec. 7104. Organic agriculture research and extension initiative.
Sec. 7105. Agricultural telecommunications program.
Sec. 7106. Assistive technology program for farmers with disabilities.
Sec. 7107. National Rural Information Center Clearinghouse.

Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998

Sec. 7201. Initiative for Future Agriculture and Food Systems.
Sec. 7202. Partnerships for high-value agricultural product quality
research.
Sec. 7203. Precision agriculture.
Sec. 7204. Biobased products.
Sec. 7205. Thomas Jefferson initiative for crop diversification.
Sec. 7206. Integrated research, education, and extension competitive
grants program.
Sec. 7207. Support for research regarding diseases of wheat, triticale,
and barley caused by Fusarium graminearum or by Tilletia
indica.
Sec. 7208. Bovine Johne's disease control program.
Sec. 7209. Grants for youth organizations.
Sec. 7210. Agricultural biotechnology research and development for
developing countries.
Sec. 7211. Specialty crop research initiative.
Sec. 7212. Office of Pest Management Policy.
Sec. 7213. Food animal residue avoidance database program.

Subtitle D--Other Laws

Sec. 7301. Critical Agricultural Materials Act.
Sec. 7302. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7303. Smith-Lever Act.
Sec. 7304. Hatch Act of 1887.
Sec. 7305. Research Facilities Act.
Sec. 7306. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Sec. 7307. Competitive, Special, and Facilities Research Grant Act.
Sec. 7308. Education grants to Alaska Native serving institutions and
Native Hawaiian serving institutions.
Sec. 7309. Beginning farmer and rancher development program.
Sec. 7310. McIntire-Stennis Cooperative Forestry Act.
Sec. 7311. National Aquaculture Act of 1980.
Sec. 7312. National Arboretum.
Sec. 7313. Eligibility of University of the District of Columbia for
certain land-grant university assistance.
Sec. 7314. Exchange or sale authority.
Sec. 7315. Carbon cycle research.

Subtitle E--National Institute of Food and Agriculture

Sec. 7401. National Institute of Food and Agriculture.
Sec. 7402. Coordination of Agricultural Research Service and National
Institute of Food and Agriculture.

Subtitle F--Miscellaneous

Sec. 7501. Joint nutrition monitoring and related research activities.
Sec. 7502. Demonstration project authority for temporary positions.
Sec. 7503. Review of plan of work requirements.
Sec. 7504. Study and report on access to nutritious foods.

TITLE VIII--FORESTRY

Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Community forests working land program.
Sec. 8003. Federal, State, and local coordination and cooperation.
Sec. 8004. Comprehensive statewide forest planning.
Sec. 8005. Assistance to the Federated States of Micronesia, the
Republic of the Marshall Islands, and the Republic of
Palau.

Subtitle B--Tribal-Forest Service Cooperative Relations

Sec. 8101. Definitions.

PART I--Collaboration Between Indian Tribes and Forest Service

Sec. 8111. Forest Legacy Program.
Sec. 8112. Forestry and resource management assistance for Indian
tribes.

PART II--Cultural and Heritage Cooperation Authority

Sec. 8121. Purposes.
Sec. 8122. Definitions.
Sec. 8123. Reburial of human remains and cultural items.
Sec. 8124. Temporary closure for traditional and cultural purposes.
Sec. 8125. Forest products for traditional and cultural purposes.
Sec. 8126. Prohibition on disclosure.
Sec. 8127. Severability and savings provisions.

Subtitle C--Amendments to Other Laws

Sec. 8201. Renewable resources extension activities.
Sec. 8202. Office of International Forestry.

TITLE IX--ENERGY

Sec. 9001. Energy.

``TITLE IX--ENERGY

``Sec. 9001. Definitions.
``Sec. 9002. Biobased markets program.
``Sec. 9003. Biodiesel fuel education.
``Sec. 9004. Biomass crop transition.
``Sec. 9005. Biorefinery and repowering assistance.
``Sec. 9006. Bioenergy program for advanced biofuels.
``Sec. 9007. Rural Energy for America Program.
``Sec. 9008. Biomass Research and Development Act of 2000.
``Sec. 9009. Sun grant program.
``Sec. 9010. Regional biomass crop experiments.
``Sec. 9011. Biochar research, development, and demonstration.
``Sec. 9012. Renewable woody biomass for energy.
``Sec. 9013. Community wood energy program.
``Sec. 9014. Rural energy systems renewal.
``Sec. 9015. Voluntary renewable biomass certification program.
``Sec. 9016. Administration.
``Sec. 9017. Biofuels infrastructure study.
``Sec. 9018. Rural nitrogen fertilizer study.
``Sec. 9019. Study of life-cycle analysis of biofuels.
``Sec. 9020. E-85 fuel program.
``Sec. 9021. Research and development of renewable energy.
``Sec. 9022. Northeast dairy nutrient management and energy development
program.
``Sec. 9023. Future farmstead program.

Sec. 9002. Sense of the Senate concerning higher levels of ethanol
blended gasoline.
Sec. 9003. Conforming amendments.

TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS

Subtitle A--Marketing

Sec. 10001. Livestock mandatory reporting.
Sec. 10002. Grading and inspection.
Sec. 10003. Country of origin labeling.

Subtitle B--Agricultural Fair Practices

Sec. 10101. Definitions.
Sec. 10102. Prohibited practices.
Sec. 10103. Enforcement.
Sec. 10104. Rules and regulations.

Subtitle C--Packers and Stockyards

Sec. 10201. Special Counsel for Agricultural Competition.
Sec. 10202. Investigation of live poultry dealers.
Sec. 10203. Production contracts.
Sec. 10204. Right to discuss terms of contract.
Sec. 10205. Attorneys' fees.
Sec. 10206. Appointment of outside counsel.
Sec. 10207. Prohibition on packers owning, feeding, or controlling
livestock.
Sec. 10208. Regulations.

Subtitle D--Related Programs

Sec. 10301. Sense of Congress regarding pseudorabies eradication
program.
Sec. 10302. Sense of Congress regarding cattle fever tick eradication
program.
Sec. 10303. National Sheep and Goat Industry Improvement Center.
Sec. 10304. Trichinae certification program.
Sec. 10305. Protection of information in the animal identification
system.
Sec. 10306. Low pathogenic avian influenza.
Sec. 10307. Study on bioenergy operations.
Sec. 10308. Sense of the Senate on indemnification of livestock
producers.

TITLE XI--MISCELLANEOUS

Subtitle A--Agricultural Security

Sec. 11011. Definitions.

PART I--General Authority and Interagency Coordination

Sec. 11021. Policy.
Sec. 11022. Interagency coordination.
Sec. 11023. Submission of integrated food defense plan.
Sec. 11024. Transfer of certain agricultural inspection functions of
Department.

[[Page S14868]]

PART II--Agricultural Quarantine Inspection Program Improvement

Sec. 11031. Definitions.
Sec. 11032. Joint Task Force.
Sec. 11033. Advisory Board.
Sec. 11034. Reports to Congress.
Sec. 11035. Port risk committees.
Sec. 11036. Emergency response planning at ports of entry.
Sec. 11037. Plant pest identification joint plan.
Sec. 11038. Liaison officer positions.

PART III--Miscellaneous

Sec. 11041. Designation and expedited review and approval of qualified
agricultural countermeasures.
Sec. 11042. Agricultural disease emergency detection and response.
Sec. 11043. National plant disease recovery system and national
veterinary stockpile.
Sec. 11044. Research and development of agricultural countermeasures.
Sec. 11045. Veterinary workforce grant program.
Sec. 11046. Assistance to build local capacity in agricultural
biosecurity planning, preparedness, and response.
Sec. 11047. Border inspections of agricultural products.
Sec. 11048. Live virus of foot and mouth disease research.

Subtitle B--Other Programs

Sec. 11051. Foreclosure.
Sec. 11052. Outreach and technical assistance for socially
disadvantaged farmers and ranchers.
Sec. 11053. Additional contracting authority.
Sec. 11054. Improved program delivery by the Department of Agriculture
on Indian reservations.
Sec. 11055. Accurate documentation in the census of agriculture and
certain studies.
Sec. 11056. Improved data requirements.
Sec. 11057. Receipt for service or denial of service.
Sec. 11058. National Appeals Division.
Sec. 11059. Farmworker Coordinator.
Sec. 11060. Congressional Bipartisan Food Safety Commission.
Sec. 11061. Emergency grants to assist low-income migrant and seasonal
farmworkers.
Sec. 11062. Grants to reduce production of methamphetamines from
anhydrous ammonia.
Sec. 11063. Invasive species management, Hawaii.
Sec. 11064. Oversight and compliance.
Sec. 11065. Report of civil rights complaints, resolutions, and
actions.
Sec. 11066. Grants to improve supply, stability, safety, and training
of agricultural labor force.
Sec. 11067. Interstate shipment of meat and poultry inspected by
Federal and State agencies for certain small
establishments.
Sec. 11068. Prevention and investigation of payment and fraud and
error.
Sec. 11069. Elimination of statute of limitations applicable to
collection of debt by administrative offset.
Sec. 11070. Stored quantities of propane.
Sec. 11071. Closure of certain county FSA offices.

TITLE XII--TRADE AND TAX PROVISIONS

Sec. 12001. Short title; etc.

Subtitle A--Supplemental Agricultural Disaster Assistance From the
Agriculture Disaster Relief Trust Fund

Sec. 12101. Supplemental agriculture disaster assistance.

Subtitle B--Conservation Provisions

PART I--Land and Species Preservation Provisions

Sec. 12201. Conservation reserve tax credit.
Sec. 12202. Exclusion of Conservation Reserve Program payments from
SECA tax for certain individuals.
Sec. 12203. Permanent extension of special rule encouraging
contributions of capital gain real property for
conservation purposes.
Sec. 12204. Tax credit for recovery and restoration of endangered
species.
Sec. 12205. Deduction for endangered species recovery expenditures.
Sec. 12206. Exclusion for certain payments and programs relating to
fish and wildlife.
Sec. 12207. Credit for easements granted under certain Department of
Agriculture conservation programs.

PART II--Timber Provisions

Sec. 12211. Forest conservation bonds.
Sec. 12212. Deduction for qualified timber gain.
Sec. 12213. Excise tax not applicable to section 1203 deduction of real
estate investment trusts.
Sec. 12214. Timber REIT modernization.
Sec. 12215. Mineral royalty income qualifying income for timber REITs.
Sec. 12216. Modification of taxable REIT subsidiary asset test for
timber REITs.
Sec. 12217. Safe harbor for timber property.

Subtitle C--Energy Provisions

PART I--Electricity Generation

Sec. 12301. Credit for residential and business wind property.
Sec. 12302. Landowner incentive to encourage electric transmission
build-out.
Sec. 12303. Exception to reduction of renewable electricity credit.

PART II--Alcohol Fuel

Sec. 12311. Expansion of special allowance to cellulosic biomass
alcohol fuel plant property.
Sec. 12312. Credit for production of cellulosic biomass alcohol.
Sec. 12313. Extension of small ethanol producer credit.
Sec. 12314. Credit for producers of fossil free alcohol.
Sec. 12315. Modification of alcohol credit.
Sec. 12316. Calculation of volume of alcohol for fuel credits.
Sec. 12317. Ethanol tariff extension.
Sec. 12318. Limitations on, and reductions of, duty drawback on certain
imported ethanol.

PART III--Biodiesel and Renewable Diesel Fuel

Sec. 12321. Extension and modification of credit for biodiesel and
renewable diesel used as fuel.
Sec. 12322. Treatment of qualified alcohol fuel mixtures and qualified
biodiesel fuel mixtures as taxable fuels.

PART IV--Alternative Fuel

Sec. 12331. Extension and modification of alternative fuel credit.
Sec. 12332. Extension of alternative fuel vehicle refueling property
credit.

Subtitle D--Agricultural Provisions

Sec. 12401. Increase in loan limits on agricultural bonds.
Sec. 12402. Modification of installment sale rules for certain farm
property.
Sec. 12403. Allowance of section 1031 treatment for exchanges involving
certain mutual ditch, reservoir, or irrigation company
stock.
Sec. 12404. Credit to holders of rural renaissance bonds.
Sec. 12405. Agricultural chemicals security credit.
Sec. 12406. Credit for drug safety and effectiveness testing for minor
animal species.
Sec. 12407. Certain farming business machinery and equipment treated as
5-year property.
Sec. 12408. Expensing of broadband Internet access expenditures.
Sec. 12409. Credit for energy efficient motors.

Subtitle E--Revenue Provisions

PART I--Miscellaneous Revenue Provisions

Sec. 12501. Limitation on farming losses of certain taxpayers.
Sec. 12502. Modification to optional method of computing net earnings
from self-employment.
Sec. 12503. Information reporting for Commodity Credit Corporation
transactions.
Sec. 12504. Modification of section 1031 treatment for certain real
estate.
Sec. 12505. Modification of effective date of leasing provisions of the
American Jobs Creation Act of 2004.
Sec. 12506. Time for payment of corporate estimated taxes.
Sec. 12507. Ineligibility of collectibles for nontaxable like kind
exchange treatment.
Sec. 12508. Denial of deduction for certain fines, penalties, and other
amounts.
Sec. 12509. Increase in information return penalties.

PART II--Economic Substance Doctrine

Sec. 12511. Clarification of economic substance doctrine.
Sec. 12512. Penalty for understatements attributable to transactions
lacking economic substance, etc.
Sec. 12513. Denial of deduction for interest on
underpayments attributable to noneconomic substance
transactions.

Subtitle F--Protection of Social Security

Sec. 12601. Protection of Social Security.

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ``Secretary'' means the Secretary of
Agriculture.

TITLE I--PRODUCER INCOME PROTECTION PROGRAMS

Subtitle A--Traditional Payments and Loans

SEC. 1001. COMMODITY PROGRAMS.

(a) Repeals.--Subtitles A through C of title I of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7901 et
seq.) (other than sections 1001, 1101, 1102, 1103, 1104, and
1106) are repealed.
(b) Base Acres and Payment Acres.--Section 1101 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7911) is
amended--
(1) in subsections (a)(1) and (e)(2), by striking ``and
counter-cyclical payments'' each place it appears; and
(2) by adding at the end the following:
``(i) Production of Fruits or Vegetables for Processing.--
``(1) In general.--Subject to paragraphs (2) and (3), the
producers on a farm, with the consent of the owner of and any
other producers on the farm, may reduce the base acres for a
covered commodity for the farm if the reduced acres are used
for the planting and production of fruits or vegetables for
processing.
``(2) Reversion to base acres for covered commodity.--Any
reduced acres on a farm devoted to the planting and
production of fruits or vegetables during a crop year under

[[Page S14869]]

paragraph (1) shall be included in base acres for the covered
commodity for the subsequent crop year, unless the producers
on the farm make the election described in paragraph (1) for
the subsequent crop year.
``(3) Recalculation of base acres.--
``(A) In general.--Subject to subparagraph (B), if the
Secretary recalculates base acres for a farm, the planting
and production of fruits or vegetables for processing under
paragraph (1) shall be considered to be the same as the
planting, prevented planting, or production of the covered
commodity.
``(B) Authority.--Nothing in this subsection provides
authority for the Secretary to recalculate base acres for a
farm.''.
(c) Payment Yields.--Section 1102 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7912) is amended--
(1) in subsection (a), by striking ``and counter-cyclical
payments'';
(2) in subsection (b), by striking ``2007'' and inserting
``2012'';
(3) in subsection (c), by striking ``, but before'' and all
that follows through ``subsection (e)''; and
(4) by striking subsection (e).
(d) Recourse Loan Program.--Subtitle F of title I of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7991
et seq.) is amended by adding at the end the following:

``SEC. 1619. RECOURSE LOAN PROGRAM.

``For each of the 2008 through 2012 crop years, the
Secretary shall establish a recourse loan program for each
loan commodity at a rate of interest to be determined by the
Secretary.''.
(e) Administration.--
(1) Suspension of permanent price support authority.--
Section 1602 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7992) is amended by striking ``2007'' each
place it appears and inserting ``2012''.
(2) Adjusted gross income limitation.--Section 1001D(e) of
the Food Security Act of 1985 (7 U.S.C. 1308-3a(e)) is
amended by striking ``2007'' and inserting ``2012''.
(f) Availability of Counter-Cyclical Payments.--Section
1104 of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7914) is amended--
(1) by striking ``2007'' each place it appears (other than
paragraphs (3)(B) and (4)(B) of subsection (f)) and inserting
``2008''; and
(2) in subsection (f)--
(A) in paragraph (3)(B)--
(i) in the subparagraph heading, by striking ``2007 crop
year'' and inserting ``2007 and 2008 crop years''; and
(ii) by striking ``the 2007 crop year'' and inserting
``each of the 2007 and 2008 crop years''; and
(B) in paragraph (4)(B)--
(i) in the subparagraph heading, by striking ``2007 crop
year'' and inserting ``2007 and 2008 crop years''; and
(ii) by striking ``the 2007 crop year'' each place it
appears and inserting ``each of the 2007 and 2008 crop
years''.
(g) Availability of Direct Payments.--Section 1103 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7913) is amended--
(1) in subsection (a), by striking ``For each of the 2002
through 2007'' and inserting ``For each of the 2008 through
2012''; and
(2) in subsection (c), by adding at the end the following:
``(4)(A) In each of crop years 2008 and 2009, 25 percent.
``(B) In each of crop years 2010 and 2011, 20 percent.
``(C) In crop year 2012, 0 percent.''.

Subtitle B--Risk Management Accounts

SEC. 1101. DEFINITIONS.

In this subtitle:
(1) Adjusted gross revenue.--The term ``adjusted gross
revenue'', with respect to a farm of an operator or producer,
means the adjusted gross income of the farm, as determined by
the Secretary, from the sale or transfer of eligible
commodities of the farm, as calculated--
(A) taking into consideration the gross receipts (including
insurance indemnities) from each sale;
(B) including all farm payments received by the operator or
producer from any Federal, State, or local government agency
relating to the eligible commodities;
(C) by deducting the cost or basis of any eligible
livestock or other item purchased for resale, such as feeder
livestock, by the farm;
(D) excluding any revenue that does not arise from the sale
of eligible commodities of the farm, such as revenue
associated with the packaging, merchandising, marketing, or
reprocessing beyond what is typically carried out by a
producer of the eligible commodity, as determined by the
Secretary; and
(E) using such adjustments, additions, and additional
documentation as the Secretary determines to be appropriate,
as presented on--
(i) a schedule F form of the Federal income tax returns of
the operator or producer; or
(ii) a comparable tax form relating to the farm, as
approved by the Secretary.
(2) Applicable year.--The term ``applicable year'' means a
fiscal year covered by a risk management account contract.
(3) Average adjusted gross revenue.--The term ``average
adjusted gross revenue'' means--
(A) the rolling average of the adjusted gross revenue of an
operator or producer for each of the 5 preceding taxable
years; or
(B) in the case of a beginning farmer or rancher, or
another agricultural operation that does not have adjusted
gross revenue for each of the 5 preceding taxable years, the
estimated income of the operation for the applicable year, as
determined by the Secretary.
(4) Eligible commodity.--The term ``eligible commodity''
means any annual or perennial crop raised or produced by an
operator or producer.
(5) Farm.--
(A) In general.--The term ``farm'' means any parcel of land
used for the raising or production of an eligible commodity
that is considered to be a separate operation, as determined
by the Secretary.
(B) Inclusions.--The term ``farm'' includes--
(i) any parcel of land and related agricultural production
facilities on which an operator or producer has more than de
minimis operational control; and
(ii) any parcel of land subject to more than de minimis
common ownership, as determined by the Secretary, unless the
common owners of the parcel--

(I) except with respect to a conservation condition
established in an applicable rental agreement, do not have
operational control regarding any portion of the parcel; and
(II) do not share in the proceeds of the parcel, other than
cash rent.

(C) Exclusion.--The term ``farm'' does not include a parcel
that is not a portion of a farm subject to a risk management
account contract.
(D) Applicability of cfr.--Except as otherwise provided in
this subtitle or by the Secretary, by regulation, part 718 of
title 7, Code of Federal Regulations (or successor
regulations), shall apply to the definition, constitution,
and reconstitution of a farm for purposes of this paragraph.
(6) Operator.--The term ``operator'' means a producer who
controls an agricultural operation on a farm, as determined
by the Secretary.
(7) Producer.--The term ``producer'' means a person that,
as determined by the Secretary, for an applicable year--
(A) shares in the risk of producing, or provides a material
contribution in producing, an eligible commodity;
(B) has a substantial beneficial interest in the farm on
which the eligible commodity is produced;
(C)(i) for each of the 5 preceding taxable years, has
filed--
(I) a schedule F form of the Federal income tax return
relating to the eligible commodity; or
(II) a comparable tax form related to the eligible
commodity, as approved by the Secretary; or
(ii) is a beginning farmer or rancher, or another producer
that does not have adjusted gross revenue for each of the 5
preceding taxable years, as determined by the Secretary; and
(D)(i) during the 5 preceding taxable years, has earned at
least $10,000 in average adjusted gross revenue;
(ii) is a limited resource farmer or rancher, as determined
by the Secretary; or
(iii) in the case of a beginning farmer or rancher, or
another producer that does not have adjusted gross revenue
for each of the 5 preceding taxable years, has at least
$10,000 in estimated income from all farms for the applicable
year, as determined by the Secretary.
(8) Risk management account.--The term ``risk management
account'' means a farm income stabilization assistance
account maintained at a qualified financial institution in
accordance with such terms as the Secretary may establish.

SEC. 1102. RISK MANAGEMENT ACCOUNT CONTRACTS.

(a) Establishment of Program.--The Secretary shall
establish and carry out a program under which the Secretary
shall offer to enter into contracts with eligible operators
and producers in accordance with this section--
(1) to provide to the operators and producers a reserve to
assist in the stabilization of farm income during low-revenue
years;
(2) to assist operators and producers to invest in value-
added farms; and
(3) to recognize high levels of environmental stewardship.
(b) Eligibility.--
(1) In general.--Any operator that has participated in a
commodity program under title I of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.), and
that otherwise meets each eligibility requirement under this
subtitle, shall be eligible to enter into a risk management
account contract for agricultural production during each of
fiscal years 2008 through 2012.
(2) Other producers.--A producer that is not an operator
described in paragraph (1) shall be eligible to enter into a
risk management account contract for agricultural production
during each of fiscal years 2008 through 2012.
(3) Limitations.--
(A) In general.--No farm or portion of a farm shall be
subject to more than 1 risk management account contract
during any fiscal year.
(B) Multiple risk management account contracts.--
(i) In general.--Except as provided in clause (ii), no
operator or producer shall participate or have a beneficial
interest in more than 1 risk management account contract
during any fiscal year.
(ii) Exception.--Notwithstanding clause (i), an operator
that is eligible to receive a transition payment during a
fiscal year, and that participates or has a beneficial
interest

[[Page S14870]]

in a risk management account contract during that fiscal
year, may enter into an additional risk management account
contract during the fiscal year if--

(I) the additional risk management account contract is
entered into solely for the purpose of receiving the
transition payment; and
(II) the operator is not otherwise eligible to participate
or have a beneficial interest in the additional risk
management account contract.

(c) Risk Management Accounts.--
(1) In general.--Each risk management account contract
entered into under this section shall establish, in the name
of the farm of the operator or producer, as applicable, in an
appropriate financial institution and subject to such
investment rules and other procedures as the Secretary, on
approval of the Secretary of the Treasury, determines to be
necessary to provide reasonable assurance of the viability
and stability of the account, a risk management account, to
consist of--
(A) such amounts as are transferred to the risk management
account by the Secretary during an applicable year in
accordance with paragraph (2) (including the amendments made
by that paragraph); and
(B) such amounts as are voluntarily contributed by the
operator or producer during the applicable year in accordance
with paragraph (6).
(2) Transfers.--Section 1103 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7913) is amended by adding
at the end the following:
``(e) Risk Management Accounts.--Of the total amount of
direct payments made to producers, payments in excess of
$10,000 for a crop year shall be deposited into risk
management accounts established under section 1102 of the
Food and Energy Security Act of 2007.''.
(3) Operator and producer contributions.--During any
applicable year, an operator or producer may voluntarily
contribute to the risk management account of the operator or
producer.
(4) Withdrawals.--
(A) In general.--An operator or producer may withdraw
amounts in the risk management account of the operator or
producer only--
(i) for an applicable year during which the adjusted gross
revenue of the operator or producer is equal to less than 95
percent of the average adjusted gross revenue of the operator
or producer, in an amount that is equal to the lesser of--

(I) the difference between--

(aa) the average adjusted gross revenue of the operator or
producer; and
(bb) the adjusted gross revenue of the operator or
producer; and

(II) the amount of coverage that could be purchased under
an adjusted gross revenue product available to the operator
or producer through the Federal crop insurance program;

(ii) for investment in a value-added agricultural operation
that contributes to the agricultural economy, as determined
by the Secretary, and is not farmland or equipment used to
produce raw agricultural products, an amount equal to the
product obtained by multiplying--

(I) the total amount in the risk management account of the
operator or producer on September 30 of the preceding
applicable year; and
(II) 10 percent;

(iii) as the Secretary determines to be necessary to
protect the solvency of a farm of the operator or producer;
or
(iv) to purchase revenue insurance or crop insurance.
(B) Transfer to ira account.--In any calendar year, an
individual operator or producer aged 65 years or older who is
the holder of a risk management account in existence for at
least 5 years may elect to rollover not more than 15 percent
of the balance of the risk management account into an
individual retirement account pursuant to section 408 of the
Internal Revenue Code of 1986.
(5) Limitations.--
(A) Attribution requirement.--The Secretary shall ensure
that each payment transferred to a risk management account
under this subsection is attributed to an individual operator
or producer that is a party to the applicable risk management
account contract.
(B) No individual benefit.--
(i) In general.--The Secretary shall ensure that no
individual operator or producer receives a direct benefit
from more than 1 risk management account.
(ii) Proportional reduction.--The Secretary shall reduce
the amount of a standard payment under this subsection in an
amount equal to the proportion that--

(I) the amount of each direct or indirect benefit received
by the applicable individual operator or producer under the
applicable risk management account contract; bears to
(II) the amount of any direct or indirect benefit received
by the individual operator or producer under any other risk
management account contract under which a standard payment is
transferred to a risk management account.

(6) Conservation compliance.--Each operator, and each
holder of a beneficial interest in a farm subject to a risk
management account contract, shall comply with--
(A) applicable highly erodible land conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.); and
(B) applicable wetland conservation requirements under
subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
(7) Regulations.--The Secretary shall promulgate such
regulations as the Secretary determines to be necessary to
carry out this subsection.

SEC. 1103. TREATMENT OF RISK MANAGEMENT ACCOUNT ACCOUNTS ON
TRANSFER.

(a) In General.--In transferring, by sale or other means,
any interest in a farm subject to a risk management account,
an operator or producer may elect--
(1) to transfer the risk management account to another farm
in which the operator or producer--
(A) has a controlling ownership interest; or
(B) not later than 2 years after the date of the transfer,
will acquire a controlling ownership interest;
(2) to transfer the risk management account to the
purchaser of the interest in the farm, if the purchaser is
not already a holder of a risk management account; or
(3)(A) if the operator or producer is an individual, to
rollover amounts in the risk management account into an
individual retirement account of the operator or producer
pursuant to section 408 of the Internal Revenue Code of 1986;
or
(B) if the operator or producer is not an individual, to
transfer amounts in the risk management account into an
account of any individual who has a substantial beneficial
interest in the farm (including a substantial beneficiary of
a trust that holds at least a 50 percent ownership interest
in the farm).
(b) Transfer or Acquisition of Land or Portion of
Operation.--The Secretary shall promulgate such regulations
as the Secretary determines to be appropriate to require
reformulation, reaffirmation, or abandonment of a risk
management account contract--
(1) on transfer of all or part of a farm under this
section; or
(2) on any other major change to the farm, as determined by
the Secretary.

SEC. 1104. ADMINISTRATION OF RISK MANAGEMENT ACCOUNTS.

(a) Implementation.--The Secretary shall carry out this
subtitle through the Farm Service Agency.
(b) Compliance.--The Secretary shall conduct random audits
of operators and producers subject to risk management account
contracts under this subtitle as the Secretary determines to
be necessary to ensure compliance with the risk management
account contracts.
(c) Violations.--If the Secretary determines that an
operator or producer is in violation of the terms of an
applicable risk management account contract--
(1) the operator or producer shall refund to the Secretary
an amount equal to the amount transferred by the Secretary
under section 1103(e) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7913(e)) to the affected
risk management account during the applicable year in which
the violation occurred; and
(2) for a serious or deliberate violation, as determined by
the Secretary--
(A) the risk management account contract shall be
terminated; and
(B) amounts remaining in each applicable risk management
account as the result of a transfer by the Secretary under
section 1103(e) of that Act shall be refunded to the
Secretary.
(d) Regulations.--The Secretary shall promulgate such
regulations as the Secretary determines to be necessary to
carry out this subtitle.
(e) Adjusted Gross Income Limitation.--The adjusted gross
income limitation under section 1001D of the Food Security
Act of 1985 (7 U.S.C. 1308-3a) shall apply to participation
in the farm income stabilization assistance program under
this subtitle.
(f) Commodity Credit Corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this subtitle.

Subtitle C--Sugar

SEC. 1201. SUGAR PROGRAM.

Section 156 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272) is amended to read as
follows:

``SEC. 156. SUGAR PROGRAM.

``(a) Sugarcane.--The Secretary shall make loans available
to processors of domestically grown sugarcane at a rate equal
to--
``(1) 18.00 cents per pound for raw cane sugar for the 2008
crop year;
``(2) 18.25 cents per pound for raw cane sugar for the 2009
crop year;
``(3) 18.50 cents per pound for raw cane sugar for the 2010
crop year;
``(4) 18.75 cents per pound for raw cane sugar for the 2011
crop year; and
``(5) 19.00 cents per pound for raw cane sugar for the 2012
crop year.
``(b) Sugar Beets.--The Secretary shall make loans
available to processors of domestically grown sugar beets at
a rate per pound for refined beet sugar that is equal to
128.5 percent of the loan rate per pound of raw cane sugar
for the applicable crop year under subsection (a).
``(c) Term of Loans.--
``(1) In general.--A loan under this section during any
fiscal year shall be made available not earlier than the
beginning of the fiscal year and shall mature at the earlier
of--
``(A) the end of the 9-month period beginning on the first
day of the first month after the month in which the loan is
made; or
``(B) the end of the fiscal year in which the loan is made.
``(2) Supplemental loans.--In the case of a loan made under
this section in the last 3

[[Page S14871]]

months of a fiscal year, the processor may repledge the sugar
as collateral for a second loan in the subsequent fiscal
year, except that the second loan shall--
``(A) be made at the loan rate in effect at the time the
second loan is made; and
``(B) mature in 9 months less the quantity of time that the
first loan was in effect.
``(d) Loan Type; Processor Assurances.--
``(1) Nonrecourse loans.--The Secretary shall carry out
this section through the use of nonrecourse loans.
``(2) Processor assurances.--
``(A) In general.--The Secretary shall obtain from each
processor that receives a loan under this section such
assurances as the Secretary considers adequate to ensure that
the processor will provide payments to producers that are
proportional to the value of the loan received by the
processor for the sugar beets and sugarcane delivered by
producers to the processor.
``(B) Minimum payments.--
``(i) In general.--Subject to clause (ii), the Secretary
may establish appropriate minimum payments for purposes of
this paragraph.
``(ii) Limitation.--In the case of sugar beets, the minimum
payment established under clause (i) shall not exceed the
rate of payment provided for under the applicable contract
between a sugar beet producer and a sugar beet processor.
``(3) Administration.--The Secretary may not impose or
enforce any prenotification requirement, or similar
administrative requirement not otherwise in effect on the
date of enactment of the Food and Energy Security Act of
2007, that has the effect of preventing a processor from
electing to forfeit the loan collateral (of an acceptable
grade and quality) on the maturity of the loan.
``(e) Loans for In-Process Sugar.--
``(1) Definition of in-process sugars and syrups.--In this
subsection, the term `in-process sugars and syrups' does not
include raw sugar, liquid sugar, invert sugar, invert syrup,
or other finished product that is otherwise eligible for a
loan under subsection (a) or (b).
``(2) Availability.--The Secretary shall make nonrecourse
loans available to processors of a crop of domestically grown
sugarcane and sugar beets for in-process sugars and syrups
derived from the crop.
``(3) Loan rate.--The loan rate shall be equal to 80
percent of the loan rate applicable to raw cane sugar or
refined beet sugar, as determined by the Secretary on the
basis of the source material for the in-process sugars and
syrups.
``(4) Further processing on forfeiture.--
``(A) In general.--As a condition of the forfeiture of in-
process sugars and syrups serving as collateral for a loan
under paragraph (2), the processor shall, within such
reasonable time period as the Secretary may prescribe and at
no cost to the Commodity Credit Corporation, convert the in-
process sugars and syrups into raw cane sugar or refined beet
sugar of acceptable grade and quality for sugars eligible for
loans under subsection (a) or (b).
``(B) Transfer to corporation.--Once the in-process sugars
and syrups are fully processed into raw cane sugar or refined
beet sugar, the processor shall transfer the sugar to the
Commodity Credit Corporation.
``(C) Payment to processor.--On transfer of the sugar, the
Secretary shall make a payment to the processor in an amount
equal to the amount obtained by multiplying--
``(i) the difference between--

``(I) the loan rate for raw cane sugar or refined beet
sugar, as appropriate; and
``(II) the loan rate the processor received under paragraph
(3); by

``(ii) the quantity of sugar transferred to the Secretary.
``(5) Loan conversion.--If the processor does not forfeit
the collateral as described in paragraph (4), but instead
further processes the in-process sugars and syrups into raw
cane sugar or refined beet sugar and repays the loan on the
in-process sugars and syrups, the processor may obtain a loan
under subsection (a) or (b) for the raw cane sugar or refined
beet sugar, as appropriate.
``(6) Term of loan.--The term of a loan made under this
subsection for a quantity of in-process sugars and syrups,
when combined with the term of a loan made with respect to
the raw cane sugar or refined beet sugar derived from the in-
process sugars and syrups, may not exceed 9 months,
consistent with subsection (d).
``(f) Feedstock Flexibility Program for Bioenergy
Producers.--
``(1) Definitions.--In this subsection:
``(A) Bioenergy.--The term `bioenergy' means fuel grade
ethanol and other biofuel.
``(B) Bioenergy producer.--The term `bioenergy producer'
means a producer of bioenergy that uses an eligible commodity
to produce bioenergy under this subsection.
``(C) Eligible commodity.--The term `eligible commodity'
means a form of raw or refined sugar or in-process sugar that
is eligible--
``(i) to be marketed in the United States for human
consumption; or
``(ii) to be used for the extraction of sugar for human
consumption.
``(D) Eligible entity.--The term `eligible entity' means an
entity located in the United States that markets an eligible
commodity in the United States.
``(2) Feedstock flexibility program.--
``(A) Purchases and sales.--For each of fiscal years 2008
through 2012, the Secretary shall purchase eligible
commodities from eligible entities and sell such commodities
to bioenergy producers for the purpose of producing bioenergy
in a manner that ensures that this section is operated at no
cost to the Federal Government and avoids forfeitures to the
Commodity Credit Corporation.
``(B) Competitive procedures.--In carrying out the
purchases and sales required under subparagraph (A), the
Secretary shall, to the maximum extent practicable, use
competitive procedures, including the receiving, offering,
and accepting of bids, when entering into contracts with
eligible entities and bioenergy producers, provided that the
procedures are consistent with the purposes of subparagraph
(A).
``(C) Limitation.--The purchase and sale of eligible
commodities under subparagraph (A) shall only be made for a
fiscal year for which the purchases and sales are necessary
to ensure that the program under this section is operated at
no cost to the Federal Government by avoiding forfeitures to
the Commodity Credit Corporation.
``(3) Notice.--
``(A) In general.--As soon as practicable after the date of
enactment of the Food and Energy Security Act of 2007, and
each September 1 thereafter through fiscal year 2012, the
Secretary shall provide notice to eligible entities and
bioenergy producers of the quantity of eligible commodities
that shall be made available for purchase and sale for the
subsequent fiscal year under this subsection.
``(B) Reestimates.--Not later than the first day of each of
the second through fourth quarters of each of fiscal years
2008 through 2012, the Secretary shall reestimate the
quantity of eligible commodities determined under
subparagraph (A), and provide notice and make purchases and
sales based on the reestimates.
``(4) Commodity credit corporation inventory.--To the
extent that an eligible commodity is owned and held in
inventory by the Commodity Credit Corporation (accumulated
pursuant to the program under this section), the Secretary
shall sell the eligible commodity to bioenergy producers
under this subsection.
``(5) Transfer rule; storage fees.--
``(A) General transfer rule.--Except as provided in
subparagraph (C), the Secretary shall ensure that bioenergy
producers that purchase eligible commodities pursuant to this
subsection take possession of the eligible commodities not
later than 30 calendar days after the date of the purchase
from the Commodity Credit Corporation.
``(B) Payment of storage fees prohibited.--
``(i) In general.--The Secretary shall, to the maximum
extent practicable, carry out this subsection in a manner
that ensures no storage fees are paid by the Commodity Credit
Corporation in the administration of this subsection.
``(ii) Exception.--Clause (i) shall not apply with respect
to any commodities owned and held in inventory by the
Commodity Credit Corporation (accumulated pursuant to the
program under this section).
``(C) Option to prevent storage fees.--
``(i) In general.--The Secretary may enter into contracts
with bioenergy producers to sell eligible commodities to the
bioenergy producers prior in time to entering into contracts
with eligible entities to purchase the eligible commodities
to be used to satisfy the contracts entered into with the
bioenergy producers.
``(ii) Special transfer rule.--If the Secretary makes a
sale and purchase referred to in clause (i), the Secretary
shall ensure that the bioenergy producer that purchased
eligible commodities takes possession of the eligible
commodities not later than 30 calendar days after the date on
which the Commodity Credit Corporation purchases the eligible
commodities.
``(6) Relation to other laws.--If sugar that is subject to
a marketing allotment under part VII of subtitle B of title
III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359aa et seq.) is the subject of a payment under this
subsection, the sugar shall be considered marketed and shall
count against the allocation of a processor of an allotment
under that part, as applicable.
``(7) Funding.--The Secretary shall use the funds,
facilities, and authorities of the Commodity Credit
Corporation, including the use of such sums as are necessary,
to carry out this subsection.
``(g) Avoiding Forfeitures; Corporation Inventory
Disposition.--
``(1) In general.--Subject to subsection (d)(3), to the
maximum extent practicable, the Secretary shall operate the
program established under this section at no cost to the
Federal Government by avoiding the forfeiture of sugar to the
Commodity Credit Corporation.
``(2) Inventory disposition.--
``(A) In general.--To carry out paragraph (1), the
Commodity Credit Corporation may accept bids to obtain raw
cane sugar or refined beet sugar in the inventory of the
Commodity Credit Corporation from (or otherwise make
available such commodities, on appropriate terms and
conditions, to) processors of sugarcane and processors of
sugar beets (acting in conjunction with the producers of the
sugarcane or sugar beets processed by the processors) in
return for the reduction of production of raw cane sugar or
refined beet sugar, as appropriate.
``(B) Bioenergy feedstock.--Sugar beets or sugarcane
planted on acreage diverted from production to achieve any
reduction required under subparagraph (A) may not be

[[Page S14872]]

used for any commercial purpose other than as a bioenergy
feedstock.
``(C) Additional authority.--The authority provided under
this paragraph is in addition to any authority of the
Commodity Credit Corporation under any other law.
``(h) Information Reporting.--
``(1) Duty of processors and refiners to report.--A
sugarcane processor, cane sugar refiner, and sugar beet
processor shall furnish the Secretary, on a monthly basis,
such information as the Secretary may require to administer
sugar programs, including the quantity of purchases of
sugarcane, sugar beets, and sugar, and production,
importation, distribution, and stock levels of sugar.
``(2) Duty of producers to report.--
``(A) Proportionate share states.--As a condition of a loan
made to a processor for the benefit of a producer, the
Secretary shall require each producer of sugarcane located in
a State (other than the Commonwealth of Puerto Rico) in which
there are in excess of 250 producers of sugarcane to report,
in the manner prescribed by the Secretary, the sugarcane
yields and acres planted to sugarcane of the producer.
``(B) Other states.--The Secretary may require each
producer of sugarcane or sugar beets not covered by
subparagraph (A) to report, in a manner prescribed by the
Secretary, the yields of, and acres planted to, sugarcane or
sugar beets, respectively, of the producer.
``(3) Duty of importers to report.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall require an importer of sugars, syrups, or
molasses to be used for human consumption or to be used for
the extraction of sugar for human consumption to report, in
the manner prescribed by the Secretary, the quantities of the
products imported by the importer and the sugar content or
equivalent of the products.
``(B) Tariff-rate quotas.--Subparagraph (A) shall not apply
to sugars, syrups, or molasses that are within the quantities
of tariff-rate quotas that are subject to the lower rate of
duties.
``(4) Information on mexico.--
``(A) Collection.--The Secretary shall collect--
``(i) information of the production, consumption, stocks,
and trade of sugar in Mexico, including United States exports
of sugar to Mexico; and
``(ii) publicly-available information on Mexican
production, consumption, and trade of high fructose corn
syrups to Mexico.
``(B) Publication.--The date collected under subparagraph
(A) shall be published in each edition of the World
Agricultural Supply and Demand Estimates.
``(5) Penalty.--Any person willfully failing or refusing to
furnish the information required under paragraph (1), (2), or
(3), or furnishing willfully any false information, shall be
subject to a civil penalty of not more than $10,000 for each
such violation.
``(6) Monthly reports.--Taking into consideration the
information received under this subsection, the Secretary
shall publish on a monthly basis composite data on
production, imports, distribution, and stock levels of sugar.
``(i) Substitution of Refined Sugar.--For purposes of
Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff
Schedule of the United States and the reexport programs and
polyhydric alcohol program administered by the Secretary, all
refined sugars (whether derived from sugar beets or
sugarcane) produced by cane sugar refineries and beet sugar
processors shall be fully substitutable for the export of
sugar and sugar-containing products under those programs.
``(j) Effective Period.--
``(1) In general.--This section shall be effective only for
the 2008 through 2012 crops of sugar beets and sugarcane.
``(2) Transition.--The Secretary shall make loans for raw
cane sugar and refined beet sugar available for the 2007 crop
year on the terms and conditions provided in this section as
in effect on the day before the date of enactment of the Food
and Energy Security Act of 2007.''.

SEC. 1202. STORAGE FACILITY LOANS.

Section 1402(c) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7971(c)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3);
(3) by inserting after paragraph (1) the following:
``(2) not include any penalty for prepayment''; and
(4) in paragraph (3) (as redesignated by paragraph (2)), by
inserting ``other'' after ``on such''.

SEC. 1203. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

Subtitle E of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7281 et seq.) is amended by
adding at the end the following:

``SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

``(a) Initial Crop Years.--Notwithstanding any other
provision of law, for each of the 2008 through 2011 crop
years, the Commodity Credit Corporation shall establish rates
for the storage of forfeited sugar in an amount that is not
less than--
``(1) in the case of refined sugar, 15 cents per
hundredweight of refined sugar per month; and
``(2) in the case of raw cane sugar, 10 cents per
hundredweight of raw cane sugar per month.
``(b) Subsequent Crop Years.--For each of the 2012 and
subsequent crop years, the Commodity Credit Corporation shall
establish rates for the storage of forfeited sugar in the
same manner as was used on the day before the date of
enactment of this section.''.

SEC. 1204. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

(a) Definitions.--Section 359a of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended--
(1) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively; and
(2) by inserting after paragraph (1) the following:
``(2) Market.--
``(A) In general.--The term `market' means to sell or
otherwise dispose of in commerce in the United States.
``(B) Inclusions.--The term `market' includes--
``(i) the forfeiture of sugar under the loan program for
sugar established under section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272); and
``(ii) with respect to any integrated processor and
refiner, the movement of raw cane sugar into the refining
process.
``(C) Marketing year.--Forfeited sugar described in
subparagraph (B)(i) shall be considered to have been marketed
during the crop year for which a loan is made under the loan
program described in that subparagraph.''.
(b) Flexible Marketing Allotments for Sugar.--Section 359b
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb)
is amended to read as follows:

``SEC. 359. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

``(a) In General.--
``(1) In general.--By the beginning of each crop year, the
Secretary shall establish for that crop year appropriate
allotments under section 359c for the marketing by processors
of sugar processed from sugar cane, sugar beets, or in-
process sugar (whether produced domestically or imported) at
a level that is--
``(A) sufficient to maintain raw and refined sugar prices
at a level that will result in no forfeitures of sugar to the
Commodity Credit Corporation under the loan program for sugar
established under section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272); but
``(B) not less than 85 percent of the estimated quantity of
sugar consumption for domestic food use for the crop year.
``(2) Products.--The Secretary may include sugar products,
the majority content of which is sucrose for human
consumption, derived from sugarcane, sugar beets, molasses,
or sugar in the allotments under paragraph (1) if the
Secretary determines it to be appropriate for purposes of
this part.
``(b) Coverage of Allotments.--
``(1) In general.--Marketing allotments under this part
shall apply to the marketing by processors of sugar intended
for domestic human food use that has been processed from
sugar cane, sugar beets, or in-process sugar, whether
produced domestically or imported.
``(2) Exceptions.--Marketing allotments under this part
shall not apply to sugar sold--
``(A) to facilitate the exportation of the sugar to a
foreign country;
``(B) to enable another processor to fulfill an allocation
established for that processor; or
``(C) for uses other than domestic human food use.
``(3) Requirement.--The sale of sugar described in
paragraph (2)(B) shall be--
``(A) made prior to May 1; and
``(B) reported to the Secretary.
``(c) Prohibitions.--
``(1) In general.--During all or part of any crop year for
which marketing allotments have been established, no
processor of sugar beets or sugarcane shall market for
domestic human food use a quantity of sugar in excess of the
allocation established for the processor, except--
``(A) to enable another processor to fulfill an allocation
established for that other processor; or
``(B) to facilitate the exportation of the sugar.
``(2) Civil penalty.--Any processor who knowingly violates
paragraph (1) shall be liable to the Commodity Credit
Corporation for a civil penalty in an amount equal to 3 times
the United States market value, at the time of the commission
of the violation, of that quantity of sugar involved in the
violation.''.
(c) Establishment of Flexible Marketing Allotments.--
Section 359c of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359cc) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Overall Allotment Quantity.--
``(1) In general.--The Secretary shall establish the
overall quantity of sugar to be allotted for the crop year
(referred to in this part as the `overall allotment
quantity') at a level that is--
``(A) sufficient to maintain raw and refined sugar prices
above the level that will result in no forfeiture of sugar to
the Commodity Credit Corporation; but
``(B) not less than a quantity equal to 85 percent of the
estimated sugar consumption for domestic food use for the
crop year.
``(2) Adjustment.--Subject to paragraph (1), the Secretary
shall adjust the overall allotment quantity to maintain--

[[Page S14873]]

``(A) raw and refined sugar prices above forfeiture levels
to avoid the forfeiture of sugar to the Commodity Credit
Corporation; and
``(B) adequate supplies of raw and refined sugar in the
domestic market.''; and
(2) by striking subsection (h).
(d) Allocation of Marketing Allotments.--Section 359d(b) of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b))
is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``subparagraphs (C)
and (D)'' and inserting ``subparagraph (C)'';
(B) by striking subparagraph (C);
(C) by redesignating subparagraphs (D) through (F) as
subparagraphs (C) through (E), respectively;
(D) in subparagraph (D) (as so redesignated)--
(i) in clause (i), by striking ``subparagraphs (B) and
(D)'' and inserting ``subparagraphs (B) and (C)''; and
(ii) in clause (iii)(II), by striking ``subparagraph (B) or
(D)'' as ``subparagraph (B) or (C)''; and
(E) in subparagraph (E) (as so redesignated), by striking
``Except as otherwise provided in section 359f(c)(8), if''
and inserting ``If''; and
(2) in paragraph (2), by striking subparagraphs (H) and (I)
and inserting the following:
``(H) New entrants starting production or reopening
factories.--
``(i) Definition of new entrant.--

``(I) In general.--In this subparagraph, the term `new
entrant' means an individual, corporation, or other entity
that--

``(aa) does not have an allocation of the beet sugar
allotment under this part;
``(bb) is not affiliated with any other individual,
corporation, or entity that has an allocation of beet sugar
under this part (referred to in this clause as a `third
party'); and
``(cc) will process sugar beets produced by sugar beet
growers under contract with the new entrant for the
production of sugar at the new or re-opened factory that is
the basis for the new entrant allocation.

``(II) Affiliation.--For purposes of subclause (I)(bb), a
new entrant and a third party shall be considered to be
affiliated if--

``(aa) the third party has an ownership interest in the new
entrant;
``(bb) the new entrant and the third party have owners in
common;
``(cc) the third party has the ability to exercise control
over the new entrant by organizational rights, contractual
rights, or any other means;
``(dd) the third party has a contractual relationship with
the new entrant by which the new entrant will make use of the
facilities or assets of the third party; or
``(ee) there are any other similar circumstances by which
the Secretary determines that the new entrant and the third
party are affiliated.
``(ii) Allocation for a new entrant that has constructed a
new factory or reopened a factory that was not operated since
before 1998.--If a new entrant constructs a new sugar beet
processing factory, or acquires and reopens a sugar beet
processing factory that last processed sugar beets prior to
the 1998 crop year and there is no allocation currently
associated with the factory, the Secretary shall--

``(I) assign an allocation for beet sugar to the new
entrant that provides a fair and equitable distribution of
the allocations for beet sugar so as to enable the new
entrant to achieve a factory utilization rate comparable to
the factory utilization rates of other similarly-situated
processors; and
``(II) reduce the allocations for beet sugar of all other
processors on a pro rata basis to reflect the allocation to
the new entrant.

``(iii) Allocation for a new entrant that has acquired an
existing factory with a production history.--

``(I) In general.--If a new entrant acquires an existing
factory that has processed sugar beets from the 1998 or
subsequent crop year and has a production history, on the
mutual agreement of the new entrant and the company currently
holding the allocation associated with the factory, the
Secretary shall transfer to the new entrant a portion of the
allocation of the current allocation holder to reflect the
historical contribution of the production of the acquired
factory to the total allocation of the current allocation
holder.
``(II) Prohibition.--In the absence of a mutual agreement
described in subclause (I), the new entrant shall be
ineligible for a beet sugar allocation.

``(iv) Appeals.--Any decision made under this subsection
may be appealed to the Secretary in accordance with section
359i.''.
(e) Reassignment of Deficits.--Section 359e(b) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is
amended in paragraphs (1)(D) and (2)(C), by inserting ``of
raw cane sugar'' after ``imports'' each place it appears.
(f) Provisions Applicable to Producers.--Section 359f(c) of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c))
is amended--
(1) by striking paragraph (8);
(2) by redesignating paragraphs (1) through (7) as
paragraphs (2) through (8), respectively;
(3) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Definition of seed.--
``(A) In general.--In this subsection, the term `seed'
means only those varieties of seed that are dedicated to the
production of sugarcane from which is produced sugar for
human consumption.
``(B) Exclusion.--The term `seed' does not include seed of
a high-fiber cane variety dedicated to other uses, as
determined by the Secretary'';
(4) in paragraph (3) (as so redesignated)--
(A) in the first sentence--
(i) by striking ``paragraph (1)'' and inserting ``paragraph
(2)''; and
(ii) by inserting ``sugar produced from'' after ``quantity
of''; and
(B) in the second sentence, by striking ``paragraph (7)''
and inserting ``paragraph (8)''; and
(5) in paragraph (8) (as so redesignated), by inserting
``sugar from'' after ``the amount of''.
(g) Special Rules.--Section 359g of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Transfer of Acreage Base History.--
``(1) In general.--For the purpose of establishing
proportionate shares for sugarcane farms under section
359f(c), the Secretary, on application of any producer, with
the written consent of all owners of a farm, may transfer the
acreage base history of the farm to any other parcels of land
of the applicant.
``(2) Converted acreage base.--
``(A) In general.--Sugarcane base acreage established under
section 359f(c) that has been or is converted to
nonagricultural use on or after the date of the enactment of
this paragraph may be transferred to other land suitable for
the production of sugarcane that can be delivered to a
processor in a proportionate share in accordance with this
paragraph.
``(B) Notification.--Not later than 90 days after the date
of the enactment of this paragraph and at the subsequent
conversion of any sugarcane base acreage to a nonagricultural
use, the Administrator of the Farm Service Agency shall
notify the 1 or more affected landowners of the
transferability of the applicable sugarcane base acreage.
``(C) Initial transfer period.--Not later than the end of
the 90-day period beginning on the date of receipt of the
notification under subparagraph (B), the owner of the base
attributable to the acreage at the time of the conversion
shall transfer the base to 1 or more farms owned by the
owner.
``(D) Grower of record.--If a transfer under subparagraph
(C) cannot be accomplished during the period specified in
that subparagraph, the grower of record with regard to the
base acreage on the date on which the acreage was converted
to nonagricultural use shall--
``(i) be notified; and
``(ii) have 90 days from the date of the receipt of the
notification to transfer the base to 1 or more farms operated
by the grower.
``(E) Pool distribution.--
``(i) In general.--If transfers under subparagraphs (B) and
(C) cannot be accomplished during the periods specified in
those subparagraphs, the county committee of the Farm Service
Agency for the applicable county shall place the acreage base
in a pool for possible assignment to other farms.
``(ii) Acceptance of requests.--After providing reasonable
notice to farm owners, operators, and growers of record in
the county, the county committee shall accept requests from
owners, operators, and growers of record in the county.
``(iii) Assignment.--The county committee shall assign the
base acreage to other farms in the county that are eligible
and capable of accepting the base acreage, based on a random
selection from among the requests received under clause (ii).
``(F) Statewide reallocation.--
``(i) In general.--Any base acreage remaining unassigned
after the transfers and processes described in subparagraphs
(A) through (E) shall be made available to the State
committee of the Farm Service Agency for allocation among the
remaining county committees representing counties with farms
eligible for assignment of the base, based on a random
selection.
``(ii) Allocation.--Any county committee receiving base
acreage under this subparagraph shall allocate the base
acreage to eligible farms using the process described in
subparagraph (E).
``(G) Status of reassigned base.--After base acreage has
been reassigned in accordance with this subparagraph, the
base acreage shall--
``(i) remain on the farm; and
``(ii) be subject to the transfer provisions of paragraph
(1).''; and
(2) in subsection (d)--
(A) in paragraph (1)--
(i) by inserting ``affected'' before ``crop-share owners''
each place it appears; and
(ii) by striking ``, and from the processing company
holding the applicable allocation for such shares,''; and
(B) in paragraph (2), by striking ``based on'' and all that
follows through the end of subparagraph (B) and inserting
``based on--
``(A) the number of acres of sugarcane base being
transferred; and
``(B) the pro rata amount of allocation at the processing
company holding the applicable allocation that equals the
contribution of the grower to allocation of the processing
company for the sugarcane base acreage being transferred.''.

[[Page S14874]]

(h) Appeals.--Section 359i of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359ii) is amended--
(1) in subsection (a), by inserting ``or 359g(d)'' after
``359f''; and
(2) by striking subsection (c).
(i) Reallocating Sugar Quota Import Shortfalls.--Section
359k of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359kk) is repealed.
(j) Administration of Tariff Rate Quotas.--Part VII of
subtitle B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359aa) (as amended by subsection (i)) is
amended by adding at the end the following:

``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.

``(a) In General.--Notwithstanding any other provision of
law, at the beginning of the quota year, the Secretary shall
establish the tariff-rate quotas for raw cane sugar and
refined sugars (other than specialty sugar) at the minimum
necessary to comply with obligations under international
trade agreements that have been approved by Congress.
``(b) Adjustment.--
``(1) Before april 1.--Before April 1 of each fiscal year,
if there is an emergency shortage of sugar in the United
States market that is caused by a war, flood, hurricane, or
other natural disaster, or other similar event as determined
by the Secretary--
``(A) the Secretary shall take action to increase the
supply of sugar in accordance with sections 359c(b)(2) and
359e(b); and
``(B) if there is still a shortage of sugar in the United
States market, and marketing of domestic sugar has been
maximized, the Secretary may increase the tariff-rate quota
for refined sugars sufficient to accommodate the supply
increase, if the further increase will not threaten to result
in the forfeiture of sugar pledged as collateral for a loan
under section 156 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272).
``(2) On or after april 1.--On or after April 1 of each
fiscal year--
``(A) the Secretary may take action to increase the supply
of sugar in accordance with sections 359c(b)(2) and 359e(b);
and
``(B) if there is still a shortage of sugar in the United
States market, and marketing of domestic sugar has been
maximized, the Secretary may increase the tariff-rate quota
for raw cane sugar if the further increase will not threaten
to result in the forfeiture of sugar pledged as collateral
for a loan under section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272).''.
(k) Period of Effectiveness.--Part VII of subtitle B of
title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359aa) (as amended by subsection (j)) is amended by
adding at the end the following:

``SEC. 359L. PERIOD OF EFFECTIVENESS.

``(a) In General.--This part shall be effective only for
the 2008 through 2012 crop years for sugar.
``(b) Transition.--The Secretary shall administer flexible
marketing allotments for sugar for the 2007 crop year for
sugar on the terms and conditions provided in this part as in
effect on the day before the date of enactment of this
section.''.
(l) United States Membership in the International Sugar
Organization.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall work with the
Secretary of State to restore, to the maximum extent
practicable, United States membership in the International
Sugar Organization.

SEC. 1205. SENSE OF THE SENATE REGARDING NAFTA SUGAR
COORDINATION.

It is the sense of the Senate that in order to improve the
operations of the North American Free Trade Agreement--
(1) the United States Government and the Government of
Mexico should coordinate the operation of their respective
sugar policies; and
(2) the United States Government should consult with the
Government of Mexico on policies to avoid disruptions of the
United States sugar market and the Mexican sugar market in
order to maximize the benefits of sugar policies for growers,
processors, and consumers of sugar in the United States and
Mexico.

Subtitle D--Dairy

SEC. 1301. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

(a) Support Activities.--During the period beginning on
January 1, 2008, and ending on December 31, 2012, the
Secretary shall support the price of cheddar cheese, butter,
and nonfat dry milk through the purchase of such products
made from milk produced in the United States.
(b) Purchase Price.--To carry out subsection (a), the
Secretary shall purchase cheddar cheese, butter, and nonfat
dry milk at prices that are equivalent to--
(1) in the case of cheddar cheese--
(A) in blocks, not less than $1.13 per pound;
(B) in barrels, not less than $1.10 per pound;
(2) in the case of butter, not less than $1.05 per pound;
and
(3) in the case of nonfat dry milk, not less than $0.80 per
pound.
(c) Uniform Purchase Price.--The prices that the Secretary
pays for cheese, butter, or nonfat dry milk under this
section shall be uniform for all regions of the United
States.
(d) Sales From Inventories.--
(1) In general.--Except as provided in paragraph (2), in
the case of each commodity specified in subsection (b) that
is available for unrestricted use in inventories of the
Commodity Credit Corporation, the Secretary may sell the
commodity at the market prices prevailing for that commodity
at the time of sale.
(2) Minimum amount.--The sale price described in paragraph
(1) may not be less than 110 percent of the minimum purchase
price specified in subsection (b) for that commodity.

SEC. 1302. NATIONAL DAIRY MARKET LOSS PAYMENTS.

(a) Definitions.--In this section:
(1) Class i milk.--The term ``Class I milk'' means milk
(including milk components) classified as Class I milk under
a Federal milk marketing order.
(2) Eligible production.--The term ``eligible production''
means milk produced by a producer in a participating State.
(3) Federal milk marketing order.--The term ``Federal milk
marketing order'' means an order issued under section 8c of
the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement Act
of 1937.
(4) Participating state.--The term ``participating State''
means each State.
(5) Producer.--The term ``producer'' means an individual or
entity that directly or indirectly (as determined by the
Secretary)--
(A) shares in the risk of producing milk; and
(B) makes contributions (including land, labor, management,
equipment, or capital) to the dairy farming operation of the
individual or entity that are at least commensurate with the
share of the individual or entity of the proceeds of the
operation.
(b) Payments.--The Secretary shall offer to enter into
contracts with producers on a dairy farm located in a
participating State under which the producers receive
payments on eligible production.
(c) Amount.--Payments to a producer under this section
shall be calculated by multiplying (as determined by the
Secretary)--
(1) the payment quantity for the producer during the
applicable month established under subsection (d);
(2) the amount equal to--
(A) $16.94 per hundredweight; less
(B) the Class I milk price per hundredweight in Boston
under the applicable Federal milk marketing order; by
(3)(A) for the period beginning October 1, 2007, and ending
September 30, 2008, 34 percent;
(B) for the period beginning October 1, 2008, and ending
August 31, 2012, 45 percent; and
(C) for the period beginning September 1, 2012, and
thereafter, 34 percent.
(d) Payment Quantity.--
(1) In general.--Subject to paragraph (2), the payment
quantity for a producer during the applicable month under
this section shall be equal to the quantity of eligible
production marketed by the producer during the month.
(2) Limitation.--
(A) In general.--The payment quantity for all producers on
a single dairy operation for which the producers receive
payments under subsection (b) shall not exceed--
(i) for the period beginning October 1, 2007, and ending
September 30, 2008, 2,400,000 pounds;
(ii) for the period beginning October 1, 2008, and ending
August 31, 2012, 4,150,000 pounds; and
(iii) effective beginning September 1, 2012, 2,400,000
pounds.
(B) Standards.--For purposes of determining whether
producers are producers on separate dairy operations or a
single dairy operation, the Secretary shall apply the same
standards as were applied in implementing the dairy program
under section 805 of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations
Act, 2001 (as enacted into law by Public Law 106-387; 114
Stat. 1549A-50).
(3) Reconstitution.--The Secretary shall ensure that a
producer does not reconstitute a dairy operation for the sole
purpose of receiving additional payments under this section.
(e) Payments.--A payment under a contract under this
section shall be made on a monthly basis not later than 60
days after the last day of the month for which the payment is
made.
(f) Signup.--The Secretary shall offer to enter into
contracts under this section during the period beginning on
the date that is 90 days after the date of enactment of this
Act and ending on September 30, 2012.
(g) Duration of Contract.--
(1) In general.--Except as provided in paragraph (2), any
contract entered into by producers on a dairy farm under this
section shall cover eligible production marketed by the
producers on the dairy farm during the period starting with
the first day of month the producers on the dairy farm enter
into the contract and ending on September 30, 2012.
(2) Violations.--If a producer violates the contract, the
Secretary may--
(A) terminate the contract and allow the producer to retain
any payments received under the contract; or
(B) allow the contract to remain in effect and require the
producer to repay a portion of the payments received under
the contract based on the severity of the violation.

[[Page S14875]]

SEC. 1303. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY
PROGRAMS.

(a) Dairy Export Incentive Program.--Section 153(a) of the
Food Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended
by striking ``2007'' and inserting ``2012''.
(b) Dairy Indemnity Program.--Section 3 of Public Law 90-
484 (7 U.S.C. 450l) is amended by striking ``2007'' and
inserting ``2012''.

SEC. 1304. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

Section 113(e)(2) of the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking ``2007''
and inserting ``2012''.

SEC. 1305. REVISION OF FEDERAL MARKETING ORDER AMENDMENT
PROCEDURES.

Section 8c of the Agricultural Adjustment Act (7 U.S.C.
608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended by striking
subsection (17) and inserting the following:
``(17) Provisions applicable to amendments.--
``(A) Applicability to amendments.--The provisions of this
section and section 8d applicable to orders shall be
applicable to amendments to orders.
``(B) Supplemental rules of practice.--
``(i) In general.--Not later than 60 days after the date of
enactment of this subparagraph, the Secretary shall issue,
using informal rulemaking, supplemental rules of practice to
define guidelines and timeframes for the rulemaking process
relating to amendments to orders.
``(ii) Issues.--At a minimum, the supplemental rules of
practice shall establish--

``(I) proposal submission requirements;
``(II) pre-hearing information session specifications;
``(III) written testimony and data request requirements;
``(IV) public participation timeframes; and
``(V) electronic document submission standards.

``(iii) Effective date.--The supplemental rules of practice
shall take effect not later than 120 days after the date of
enactment of this subparagraph, as determined by the
Secretary.
``(C) Hearing timeframes.--
``(i) In general.--Not more than 30 days after the receipt
of a proposal for an amendment hearing regarding a milk
marketing order, the Secretary shall--

``(I) issue a notice providing an action plan and expected
timeframes for completion of the hearing not more than 180
days after the date of the issuance of the notice;
``(II)(aa) issue a request for additional information to be
used by the Secretary in making a determination regarding the
proposal; and
``(bb) if the additional information is not provided to the
Secretary within the timeframe requested by the Secretary,
issue a denial of the request; or
``(III) issue a denial of the request.

``(ii) Notice.--A notice issued under clause (i)(I) shall
be individualized for each proceeding and take into
consideration--

``(I) the number of orders affected;
``(II) the complexity of issues involved; and
``(III) the extent of the analyses required by applicable
Executive orders (including Executive orders relating to
civil rights, regulatory flexibility, and economic impact).

``(iii) Recommended decisions.--A recommended decision on a
proposed amendment to an order shall be issued not later than
90 days after the deadline established after the hearing for
the submission of post-hearing briefs, unless otherwise
provided in the initial notice issued under clause (i)(I).
``(iv) Final decisions.--A final decision on a proposed
amendment to an order shall be issued not later than 60 days
after the deadline for submission of comments and exceptions
to the recommended decision issued under clause (ii), unless
otherwise provided in the initial notice issued under clause
(i)(I).
``(D) Industry assessments.--If the Secretary determines it
is necessary to improve or expedite rulemaking under this
subsection, the Secretary may impose an assessment on the
affected industry to supplement appropriated funds for the
procurement of service providers, such as court reporters.
``(E) Use of informal rulemaking.--The Secretary may use
rulemaking under section 553 of title 5, United States Code,
to amend orders, other than provisions of orders that
directly affecting milk prices.
``(F) Monthly feed and fuel costs for make allowances.--As
part of any hearing to adjust make allowances under marketing
orders, the Secretary shall--
``(i) determine the average monthly prices of feed and fuel
incurred by dairy producers in the relevant marketing area;
``(ii) consider the most recent monthly feed and fuel price
data available; and
``(iii) consider those prices in determining whether or not
to adjust make allowances.''.

SEC. 1306. DAIRY FORWARD PRICING PROGRAM.

(a) In General.--Section 23 of the Agricultural Adjustment
Act (7 U.S.C. 627), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, is amended--
(1) in the section heading, by striking ``PILOT'';
(2) by striking subsection (a) and inserting the following:
``(a) Program Required.--The Secretary of Agriculture shall
establish a program under which milk producers and
cooperative associations of producers are authorized to
voluntarily enter into forward price contracts with milk
handlers.'';
(3) in subsection (c)--
(A) in the subsection heading, by striking ``Pilot''; and
(B) in paragraph (1), by striking ``pilot'';
(4) by striking subsections (d) and (e); and
(5) by adding at the end the following:
``(d) Voluntary Program.--
``(1) In general.--A milk handler may not require
participation in a forward price contract as a condition of
the handler receiving milk from a producer or cooperative
association of producers.
``(2) Effect of nonparticipation.--A producer or
cooperative association that does not enter into a forward
price contract may continue to have milk priced under the
minimum payment provisions of the applicable milk marketing
order.
``(3) Complaints.--The Secretary shall--
``(A) investigate complaints made by producers or
cooperative associations of coercion by handlers to enter
into forward price contracts; and
``(B) if the Secretary finds evidence of coercion, take
appropriate action.
``(e) Duration.--No forward price contract under this
section may--
``(1) be entered into after September 30, 2012; or
``(2) may extend beyond September 30, 2015.''.
(b) Conforming Amendments.--Section 23 of the Agricultural
Adjustment Act (7 U.S.C. 627), reenacted with amendments by
the Agricultural Marketing Agreement Act of 1937, is amended
by striking ``cooperatives'' each place it appears in
subsections (b) and (c)(2) and inserting ``cooperative
associations of producers''.

SEC. 1307. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING
PROCEDURES FOR NONFAT DRY MILK.

Not later than 90 days after the date of the enactment of
this Act, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report regarding Department of Agriculture reporting
procedures for nonfat dry milk and the impact of the
procedures on Federal milk marketing order minimum prices
during the period beginning on July 1, 2006, and ending on
the date of the enactment of this Act.

SEC. 1308. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

(a) Definition of ASCARR Institution.--In this section:
(1) In general.--The term ``ASCARR Institution'' means a
public college or university offering a baccalaureate or
higher degree in the study of agriculture.
(2) Exclusions.--The term ``ASCARR Institution'' does not
include an institution eligible to receive funds under--
(A) the Act of July 2, 1862 (commonly known as the ``First
Morrill Act'') (7 U.S.C. 301 et seq.);
(B) the Act of August 30, 1890 (commonly known as the
``Second Morrill Act'') (7 U.S.C. 321 et seq.); or
(C) the Equity in Educational Land-Grant Status Act of 1994
(Public Law 103-382; 7 U.S.C. 301 note).
(b) Establishment.--Subject to the availability of funds
appropriated to carry out this section, the Secretary shall
establish a commission to be known as the ``Federal Milk
Marketing Order Review Commission'' (referred to in this
section as the ``Commission''), which shall conduct a
comprehensive review and evaluation of--
(1) the Federal milk marketing order system in effect on
the date of enactment of this Act; and
(2) non-Federal milk marketing order systems.
(c) Elements of Review and Evaluation.--As part of the
review and evaluation under subsection (b), the Commission
shall consider legislative and regulatory options for--
(1) ensuring that the competitiveness of dairy products
with other competing products in the marketplace is preserved
and enhanced;
(2) enhancing the competitiveness of United States dairy
producers in world markets;
(3) increasing the responsiveness of the Federal milk
marketing order system to market forces;
(4) streamlining and expediting the process by which
amendments to Federal milk market orders are adopted;
(5) simplifying the Federal milk marketing order system;
(6) evaluating whether the Federal milk marketing order
system, established during the Great Depression, continues to
serve the interests of the public, dairy processors, and
dairy producers;
(7) evaluating whether Federal milk marketing orders are
operating in a manner to minimize costs to taxpayers and
consumers;
(8) evaluating the nutritional composition of milk,
including the potential benefits and costs of adjusting the
milk content standards;
(9) evaluating the economic benefits to milk producers of
establishing a 2-class system of classifying milk consisting
of a fluid milk class and a manufacturing grade milk class,
with the price of both classes determined using the component
prices of butterfat, protein, and other solids; and
(10) evaluating a change in advance pricing that is used to
calculate the advance price of Class II skim milk under
Federal milk marketing orders using the 4-week component
prices that are used to calculate prices for Class III and
Class IV milk.

[[Page S14876]]

(d) Membership.--
(1) Composition.--The Commission shall consist of 18
members.
(2) Members.--As soon as practicable after the date on
which funds are first made available to carry out this
section--
(A) 2 members of the Commission shall be appointed by the
Chairman of the Committee on Agriculture of the House of
Representatives, in consultation with the ranking member of
the Committee on Agriculture of the House of Representatives;
(B) 2 members of the Commission shall be appointed by the
Chairman of the Committee on Agriculture, Nutrition, and
Forestry of the Senate, in consultation with the ranking
member of the Committee on Agriculture, Nutrition and
Forestry of the Senate; and
(C) 14 members of the Commission shall be appointed by the
Secretary.
(3) Special appointment requirements.--In the case of
members of the Commission appointed under paragraph (2)(C),
the Secretary shall ensure that--
(A) at least 1 member represents a national consumer
organization;
(B) at least 4 members represent land-grant colleges or
universities (as defined in section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)) or ASCARR institutions with accredited
dairy economic programs, with at least 2 of those members
being experts in the field of economics;
(C) at least 1 member represents the food and beverage
retail sector; and
(D) 4 dairy producers and 4 dairy processors are appointed
in a manner that will--
(i) balance geographical distribution of milk production
and dairy processing;
(ii) reflect all segments of dairy processing; and
(iii) represent all regions of the United States equitably,
including States that operate outside of a Federal milk
marketing order.
(4) Chair.--The Commission shall elect 1 of the members of
the Commission to serve as chairperson for the duration of
the proceedings of the Commission.
(5) Vacancy.--Any vacancy occurring before the termination
of the Commission shall be filled in the same manner as the
original appointment.
(6) Compensation.--A member of the Commission shall serve
without compensation, but shall be reimbursed by the
Secretary from existing budget authority for necessary and
reasonable expenses incurred in the performance of the duties
of the Commission.
(e) Report.--
(1) In general.--Not later than 2 years after the date of
the first meeting of the Commission, the Commission shall
submit to Congress and the Secretary a report describing the
results of the review and evaluation conducted under this
section, including such recommendations regarding the
legislative and regulatory options considered under
subsection (c) as the Commission considers to be appropriate.
(2) Support.--The report findings shall reflect, to the
maximum extent practicable, a consensus opinion of the
Commission members, but the report may include majority and
minority findings regarding those matters for which consensus
was not reached.
(f) Advisory Nature.--The Commission is wholly advisory in
nature and the recommendations of the Commission are
nonbinding.
(g) No Effect on Existing Programs.--The Secretary shall
not allow the existence of the Commission to impede, delay,
or otherwise affect any decisionmaking process of the
Department of Agriculture, including any rulemaking
procedures planned, proposed, or near completion.
(h) Administrative Assistance.--The Secretary shall provide
such administrative support to the Commission, and expend
such funds as necessary from budget authority available to
the Secretary, as is necessary to carry out this section.
(i) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
(j) Termination of Effectiveness.--The authority provided
by this section terminates effective on the date of the
submission of the report under subsection (e).

SEC. 1309. MANDATORY REPORTING OF DAIRY COMMODITIES.

Section 273 of the Agricultural Marketing Act of 1946 (7
U.S.C. 1637b) is amended--
(1) by striking subsections (a) and (b) and inserting the
following:
``(a) Daily Reporting.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Food and Energy Security Act of 2007, the
Secretary shall require corporate officers or officially-
designated representatives of each dairy processor to report
to the Secretary on each daily reporting day designated by
the Secretary, not later than 10:00 a.m. Central Time, for
each sales transaction involving a dairy commodity,
information concerning--
``(A) the sales price;
``(B) the quantity sold;
``(C) the location of the sales transaction; and
``(D) product characteristics, including--
``(i) moisture level;
``(ii) packaging size;
``(iii) grade;
``(iv) if appropriate, fat, protein, or other component
level;
``(v) heat level for dried products; and
``(vi) other defining product characteristics used in
transactions.
``(2) Publication.--The Secretary shall make the
information reported under paragraph (1) available to the
public not less frequently than once each reporting day,
categorized by location and product characteristics.
``(3) Federal order prices.--If the Secretary uses dairy
product prices to establish minimum prices in accordance with
section 8c(5) of the Agricultural Adjustment Act (7 U.S.C.
608c(5)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, the Secretary shall use
daily prices published under paragraph (2) to determine such
prices.
``(4) Exemption for small processors.--A processor that
processes 1,000,000 pounds of milk or less per year shall be
exempt from daily reporting requirements under this
subsection.''; and
(2) by redesignating subsections (c) and (d) as subsections
(b) and (c), respectively.

Subtitle E--Administration

SEC. 1401. ADMINISTRATION GENERALLY.

(a) Use of Commodity Credit Corporation.--Except as
otherwise provided in subtitles A through D and this
subtitle, the Secretary shall use the funds, facilities, and
authorities of the Commodity Credit Corporation to carry out
subtitles A through D and this subtitle.
(b) Determinations by Secretary.--A determination made by
the Secretary under this title shall be final and conclusive.
(c) Regulations.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary and the Commodity
Credit Corporation, as appropriate, shall promulgate such
regulations as are necessary to implement this title and the
amendments made by this title.
(2) Procedure.--The promulgation of the regulations and
administration of this title and the amendments made by this
title shall be made without regard to--
(A) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'');
(B) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(C) the notice and comment provisions of section 553 of
title 5, United States Code.
(3) Congressional review of agency rulemaking.--In carrying
out this subsection, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(d) Adjustment Authority Related to Trade Agreements
Compliance.--
(1) Required determination; adjustment.--If the Secretary
determines that expenditures under subtitles A through D and
this subtitle that are subject to the total allowable
domestic support levels under the Uruguay Round Agreements
(as defined in section 2 of the Uruguay Round Agreements Act
(19 U.S.C. 3501)) will exceed such allowable levels for any
applicable reporting period, the Secretary shall, to the
maximum extent practicable, make adjustments in the amount of
such expenditures during that period to ensure that such
expenditures do not exceed such allowable levels.
(2) Congressional notification.--Before making any
adjustment under paragraph (1), the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
or the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report describing the determination made under
that paragraph and the extent of the adjustment to be made.
(e) Treatment of Advance Payment Option.--Section 1601(d)
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7991(d)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) the advance payment of direct payments and counter-
cyclical payments under title I of the Food and Energy
Security Act of 2007.''.

SEC. 1402. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

(a) Agricultural Adjustment Act of 1938.--The following
provisions of the Agricultural Adjustment Act of 1938 shall
not be applicable to the 2008 through 2012 crops of covered
commodities and sugar and shall not be applicable to milk
during the period beginning on the date of enactment of this
Act through December 31, 2012:
(1) Parts II through V of subtitle B of title III (7 U.S.C.
1326 et seq.).
(2) In the case of upland cotton, section 377 (7 U.S.C.
1377).
(3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
(4) Title IV (7 U.S.C. 1401 et seq.).
(b) Agricultural Act of 1949.--The following provisions of
the Agricultural Act of 1949 shall not be applicable to the
2008 through 2012 crops of covered commodities and sugar and
shall not be applicable to milk during the period beginning
on the date of enactment of this Act and through December 31,
2012:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).

[[Page S14877]]

(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).
(c) Suspension of Certain Quota Provisions.--The joint
resolution entitled ``A joint resolution relating to corn and
wheat marketing quotas under the Agricultural Adjustment Act
of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330
and 1340), shall not be applicable to the crops of wheat
planted for harvest in the calendar years 2008 through 2012.

SEC. 1403. PAYMENT LIMITATIONS.

(a) Extension of Limitations.--Sections 1001 and 1001C(a)
of the Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a))
are amended by striking ``Farm Security and Rural Investment
Act of 2002'' each place it appears and inserting ``Food and
Energy Security Act of 2007''.
(b) Revision of Limitations.--
(1) Definitions.--Section 1001(a) of the Food Security Act
of 1985 (7 U.S.C. 1308) is amended--
(A) in the matter preceding paragraph (1), by inserting
``and section 1001A'' after ``section'';
(B) by striking paragraph (2) and redesignating paragraph
(3) as paragraph (5); and
(C) by inserting after paragraph (1) the following:
``(2) Family member.--The term `family member' means an
individual to whom a member in the farming operation is
related as lineal ancestor, lineal descendant, sibling, or
spouse.
``(3) Legal entity.--The term `legal entity' means an
entity that is created under Federal or State law and that--
``(A) owns land or an agricultural commodity; or
``(B) produces an agricultural commodity.
``(4) Person.--The term `person' means a natural person,
and does not include a legal entity.''.
(2) Limitation on direct payments and counter-cyclical
payments.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended by striking subsections (b), (c) and
(d) and inserting the following:
``(b) Limitation on Direct and Counter-Cyclical Payments
for Covered Commodities (other Than Peanuts).--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or legal entity
(except a joint venture or a general partnership) for any
crop year under subtitle A of title I of the Farm Security
and Rural Investment Act of 2002 for 1 or more covered
commodities (except for peanuts) may not exceed $40,000.
``(2) Counter-cyclical payments.--The total amount of
counter-cyclical payments received, directly or indirectly,
by a person or legal entity (except a joint venture or a
general partnership) for any crop year under subtitle A of
title I of the Farm Security and Rural Investment Act of 2002
for 1 or more covered commodities (except for peanuts) may
not exceed $60,000.
``(c) Limitation on Direct Payments and Counter-Cyclical
Payments for Peanuts.--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or legal entity
(except a joint venture or a general partnership) for any
crop year under subtitle C of title I of the Farm Security
and Rural Investment Act of 2002 for peanuts may not exceed
$40,000.
``(2) Counter-cyclical payments.--The total amount of
counter-cyclical payments received, directly or indirectly,
by a person or legal entity (except a joint venture or a
general partnership) for any crop year under subtitle C of
title I of the Farm Security and Rural Investment Act of 2002
for peanuts, may not exceed $60,000.''.
``(d) Limitation on Applicability.--Nothing in this section
authorizes any limitation on any benefit associated with the
marketing assistance loan program or the loan deficiency
payment program under title I of the Farm Security and Rural
Investment Act of 2002.''.
(3) Direct attribution.--Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended by striking subsection
(e) and redesignating subsections (f) and (g) as (g) and (h),
respectively, and inserting the following:
``(e) Attribution of Payments.--
``(1) In general.--In implementing subsections (b) and (c)
and a program described in section 1001D(b)(2)(C), the
Secretary shall issue such regulations as are necessary to
ensure that the total amount of payments are attributed to a
person by taking into account the direct and indirect
ownership interests of the person in a legal entity that is
eligible to receive the payments.
``(2) Payments to a person.--Each payment made directly to
a person shall be combined with the pro rata interest of the
person in payments received by a legal entity in which the
person has a direct or indirect ownership interest unless the
payments of the legal entity have been reduced by the pro
rata share of the person.
``(3) Payments to a legal entity.--
``(A) In general.--Each payment made to a legal entity
shall be attributed to those persons who have a direct or
indirect ownership interest in the legal entity unless the
payment to the legal entity has been reduced by the pro rata
share of the person.
``(B) Attribution of payments.--
``(i) Payment limits.--Except as provided in clause (ii),
payments made to a legal entity shall not exceed the amounts
specified in subsections (b) and (c).
``(ii) Exception for joint ventures and general
partnerships.--Payments made to a joint venture or a general
partnership shall not exceed, for each payment specified in
subsections (b) and (c), the amount determined by multiplying
the maximum payment amount specified in subsections (b) and
(c) by the number of persons and legal entities (other than
joint ventures and general partnerships) that comprise the
ownership of the joint venture or general partnership.
``(iii) Reduction.--Payments made to a legal entity shall
be reduced proportionately by an amount that represents the
direct or indirect ownership in the legal entity by any
individual or legal entity that has otherwise exceeded the
applicable maximum payment limitation.
``(4) 4 levels of attribution for embedded legal
entities.--
``(A) In general.--Attribution of payments made to legal
entities shall be traced through 4 levels of ownership in
legal entities.
``(B) First level.--Any payments made to a legal entity (a
first-tier legal entity) that is owned in whole or in part by
a person shall be attributed to the person in an amount that
represents the direct ownership in the first-tier legal
entity by the person.
``(C) Second level.--
``(i) In general.--Any payments made to a first-tier legal
entity that is owned (in whole or in part) by another legal
entity (a second-tier legal entity) shall be attributed to
the second-tier legal entity in proportion to the ownership
of the second-tier legal entity in the first-tier legal
entity.
``(ii) Ownership by a person.--If the second-tier legal
entity is owned (in whole or in part) by a person, the amount
of the payment made to the first-tier legal entity shall be
attributed to the person in the amount that represents the
indirect ownership in the first-tier legal entity by the
person.
``(D) Third and fourth levels.--
``(i) In general.--Except as provided in clause (ii), the
Secretary shall attribute payments at the third and fourth
tiers of ownership in the same manner as specified in
subparagraph (C).
``(ii) Fourth-tier ownership.--If the fourth-tier of
ownership is that of a fourth-tier legal entity and not that
of a person, the Secretary shall reduce the amount of the
payment to be made to the first-tier legal entity in the
amount that represents the indirect ownership in the first-
tier legal entity by the fourth-tier legal entity.
``(f) Special Rules.--
``(1) Minor children.--
``(A) In general.--Except as provided in subparagraph (B),
payments received by a child under the age of 18 shall be
attributed to the parents of the child.
``(B) Regulations.--The Secretary shall issue regulations
specifying the conditions under which payments received by a
child under the age of 18 will not be attributed to the
parents of the child.
``(2) Marketing cooperatives.--Subsections (b) and (c)
shall not apply to a cooperative association of producers
with respect to commodities produced by the members of the
association that are marketed by the association on behalf of
the members of the association but shall apply to the
producers as persons.
``(3) Trusts and estates.--
``(A) In general.--With respect to irrevocable trusts and
estates, the Secretary shall administer this section through
section 1001F in such manner as the Secretary determines will
ensure the fair and equitable treatment of the beneficiaries
of the trusts and estates.
``(B) Irrevocable trust.--
``(i) In general.--In order for a trust to be considered an
irrevocable trust, the terms of the trust agreement shall
not--

``(I) allow for modification or termination of the trust by
the grantor;
``(II) allow for the grantor to have any future,
contingent, or remainder interest in the corpus of the trust;
or
``(III) except as provided in clause (ii), provide for the
transfer of the corpus of the trust to the remainder
beneficiary in less than 20 years beginning on the date the
trust is established.

``(ii) Exception.--Clause (i)(III) shall not apply in a
case in which the transfer is--

``(I) contingent on the remainder beneficiary achieving at
least the age of majority; or
``(II) is contingent on the death of the grantor or income
beneficiary.

``(C) Revocable trust.--For the purposes of this section
through section 1001F, a revocable trust shall be considered
to be the same person as the grantor of the trust.
``(4) Cash rent tenants.--
``(A) Definition.--In this paragraph, the term `cash rent
tenant' means a person or legal entity that rents land--
``(i) for cash; or
``(ii) for a crop share guaranteed as to the amount of the
commodity to be paid in rent.
``(B) Restriction.--A cash rent tenant who makes a
significant contribution of active personal management, but
not of personal labor, with respect to a farming operation
shall be eligible to receive a payment described in
subsection (b) or (c) only if the tenant makes a significant
contribution of equipment to the farming operation.
``(5) Federal agencies.--

[[Page S14878]]

``(A) In general.--A Federal agency shall not be eligible
to receive any payment described in subsection (b) or (c).
``(B) Land rental.--A lessee of land owned by a Federal
agency may receive a payment described in subsection (b) or
(c) if the lessee otherwise meets all applicable criteria.
``(6) State and local governments.--
``(A) In general.--Except as provided in subsection (g), a
State or local government, or political subdivision or agency
of the government, shall not be eligible to receive a payment
described in subsection (b) or (c).
``(B) Tenants.--A lessee of land owned by a State or local
government, or political subdivision or agency of the
government, may receive payments described in subsections (b)
and (c) if the lessee otherwise meet all applicable criteria.
``(7) Changes in farming operations.--
``(A) In general.--In the administration of this section
through section 1001F, the Secretary may not approve any
change in a farming operation that otherwise will increase
the number of persons to which the limitations under this
section are applied unless the Secretary determines that the
change is bona fide and substantive.
``(B) Family members.--The addition of a family member to a
farming operation under the criteria set out in section 1001A
shall be considered a bona fide and substantive change in the
farming operation.
``(8) Death of owner.--
``(A) In general.--If any ownership interest in land or a
commodity is transferred as the result of the death of a
program participant, the new owner of the land or commodity
may, if the person is otherwise eligible to participate in
the applicable program, succeed to the contract of the prior
owner and receive payments subject to this section without
regard to the amount of payments received by the new owner.
``(B) Limitations on prior owner.--Payments made under this
paragraph shall not exceed the amount to which the previous
owner was entitled to receive under the terms of the contract
at the time of the death of the prior owner.''.
(c) Repeal of 3-Entity Rule.--Section 1001A of the Food
Security Act of 1985 (7 U.S.C. 1308-1) is amended--
(1) in the section heading, by striking ``prevention of
creation of entities to qualify as separate persons'' and
inserting ``notification of interests''; and
(2) by striking subsection (a) and inserting the following:
``(a) Notification of Interests.--To facilitate
administration of section 1001 and this section, each person
or legal entity receiving payments described in subsections
(b) and (c) of section 1001 as a separate person or legal
entity shall separately provide to the Secretary, at such
times and in such manner as prescribed by the Secretary--
``(1) the name and social security number of each
individual, or the name and taxpayer identification number of
each legal entity, that holds or acquires an ownership
interest in the separate person or legal entity; and
``(2) the name and taxpayer identification number of each
legal entity in which the person or legal entity holds an
ownership interest.''.
(d) Amendment for Consistency.--Section 1001A of the Food
Security Act of 1985 (7 U.S.C. 1308-1) is amended by striking
subsection (b) and inserting the following:
``(b) Actively Engaged.--
``(1) In general.--To be eligible to receive a payment
described in subsection (b) or (c) of section 1001, a person
or legal entity shall be actively engaged in farming with
respect to a farming operation as provided in this subsection
or subsection (c).
``(2) Classes actively engaged.--Except as provided in
subsections (c) and (d)--
``(A) a person (including a person participating in a
farming operation as a partner in a general partnership, a
participant in a joint venture, a grantor of a revocable
trust, or a participant in a similar entity, as determined by
the Secretary) shall be considered to be actively engaged in
farming with respect to a farming operation if--
``(i) the person makes a significant contribution (based on
the total value of the farming operation) to the farming
operation of--

``(I) capital, equipment, or land; and
``(II) personal labor or active personal management;

``(ii) the person's share of the profits or losses from the
farming operation is commensurate with the contributions of
the person to the farming operation; and
``(iii) the contributions of the person are at risk;
``(B) a legal entity that is a corporation, joint stock
company, association, limited partnership, charitable
organization, or other similar entity determined by the
Secretary (including any such legal entity participating in
the farming operation as a partner in a general partnership,
a participant in a joint venture, a grantor of a revocable
trust, or as a participant in a similar legal entity as
determined by the Secretary) shall be considered as actively
engaged in farming with respect to a farming operation if--
``(i) the legal entity separately makes a significant
contribution (based on the total value of the farming
operation) of capital, equipment, or land;
``(ii) the stockholders or members collectively make a
significant contribution of personal labor or active personal
management to the operation; and
``(iii) the standards provided in clauses (ii) and (iii) of
subparagraph (A), as applied to the legal entity, are met by
the legal entity;
``(C) if a legal entity that is a general partnership,
joint venture, or similar entity, as determined by the
Secretary, separately makes a significant contribution (based
on the total value of the farming operation involved) of
capital, equipment, or land, and the standards provided in
clauses (ii) and (iii) of subparagraph (A), as applied to the
legal entity, are met by the legal entity, the partners or
members making a significant contribution of personal labor
or active personal management shall be considered to be
actively engaged in farming with respect to the farming
operation involved; and
``(D) in making determinations under this subsection
regarding equipment and personal labor, the Secretary shall
take into consideration the equipment and personal labor
normally and customarily provided by farm operators in the
area involved to produce program crops.
``(c) Special Classes Actively Engaged.--
``(1) Landowner.--A person or legal entity that is a
landowner contributing the owned land to a farming operation
shall be considered to be actively engaged in farming with
respect to the farming operation if--
``(A) the landowner receives rent or income for the use of
the land based on the production on the land or the operating
results of the operation; and
``(B) the person or legal entity meets the standards
provided in clauses (ii) and (iii) of subsection (b)(2)(A).
``(2) Adult family member.--If a majority of the
participants in a farming operation are family members, an
adult family member shall be considered to be actively
engaged in farming with respect to the farming operation if
the person--
``(A) makes a significant contribution, based on the total
value of the farming operation, of active personal management
or personal labor; and
``(B) with respect to such contribution, meets the
standards provided in clauses (ii) and (iii) of subsection
(b)(2)(A).
``(3) Sharecropper.--A sharecropper who makes a significant
contribution of personal labor to a farming operation shall
be considered to be actively engaged in farming with respect
to the farming operation if the contribution meets the
standards provided in clauses (ii) and (iii) of subsection
(b)(2)(A).
``(4) Growers of hybrid seed.--In determining whether a
person or legal entity growing hybrid seed under contract
shall be considered to be actively engaged in farming, the
Secretary shall not take into consideration the existence of
a hybrid seed contract.
``(5) Custom farming services.--
``(A) In general.--A person or legal entity receiving
custom farming services shall be considered separately
eligible for payment limitation purposes if the person or
legal entity is actively engaged in farming based on
subsection (b)(2) or paragraphs (1) through (4) of this
subsection.
``(B) Prohibition.--No other rules with respect to custom
farming shall apply.
``(6) Spouse.--If 1 spouse (or estate of a deceased spouse)
is determined to be actively engaged, the other spouse shall
be determined to have met the requirements of subsection
(b)(2)(A)(i)(II).
``(d) Classes Not Actively Engaged.--
``(1) Cash rent landlord.--A landlord contributing land to
a farming operation shall not be considered to be actively
engaged in farming with respect to the farming operation if
the landlord receives cash rent, or a crop share guaranteed
as to the amount of the commodity to be paid in rent, for the
use of the land.
``(2) Other persons and legal entities.--Any other person
or legal entity that the Secretary determines does not meet
the standards described in subsections (b)(2) and (c) shall
not be considered to be actively engaged in farming with
respect to a farming operation.''.
(e) Denial of Program Benefits.--Section 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308-2) is amended to read as
follows:

``SEC. 1001B. DENIAL OF PROGRAM BENEFITS.

``(a) 2-Year Denial of Program Benefits.--A person or legal
entity shall be ineligible to receive payments specified in
subsections (b) and (c) of section 1001 for the crop year,
and the succeeding crop year, in which the Secretary
determines that the person or legal entity--
``(1) failed to comply with section 1001A(b) and adopted or
participated in adopting a scheme or device to evade the
application of section 1001, 1001A, or 1001C; or
``(2) intentionally concealed the interest of the person or
legal entity in any farm or legal entity engaged in farming.
``(b) Extended Ineligibility.--If the Secretary determines
that a person or legal entity, for the benefit of the person
or legal entity or the benefit of any other person or legal
entity, has knowingly engaged in, or aided in the creation of
a fraudulent document, presented false information that was
material and relevant to the administration of sections 1001
through 1001F, or committed other equally serious actions (as
identified in regulations issued by the Secretary), the
Secretary may for a period not to exceed 5 crop years deny
the issuance of payments to the person or legal entity.
``(c) Pro Rata Denial.--
``(1) In general.--Payments otherwise owed to a person or
legal entity described in subsections (a) or (b) shall be
denied in a pro rata manner based on the ownership interest
of the person or legal entity in a farm.

[[Page S14879]]

``(2) Cash rent tenant.--Payments otherwise payable to the
person or legal entity described in subsection (a) or (b) who
is a cash rent tenant on a farm owned or under the control of
the person or legal entity shall be denied.
``(d) Joint and Several Liability.--Any member of any legal
entity (including partnerships and joint ventures) determined
to have knowingly participated in a scheme or device to
evade, or that has the purpose of evading, sections 1001,
1001A, or 1001C shall be jointly and severally liable for any
amounts that are payable to the Secretary as the result of
the scheme or device (including amounts necessary to recover
those amounts).
``(e) Release.--The Secretary may partially or fully
release from liability any person or legal entity who
cooperates with the Secretary in enforcing sections 1001,
1001A, and 1001C, and this section.''.
(f Transition.--Section 1001, 1001A, and 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in
effect on the day before the date of the enactment of this
Act, shall continue to apply with respect to the 2007 crop of
any covered commodity or peanuts.

SEC. 1404. ADJUSTED GROSS INCOME LIMITATION.

(a) Extension of Adjusted Gross Income Limitation.--Section
1001D(e) of the Food Security Act of 1985 (7 U.S.C. 1308-
3a(e)) is amended by striking ``2007'' and inserting
``2012''.
(b) Allocation of Income.--Section 1001D(a) of the Food
Security Act of 1985 (7 U.S.C. 1308-3a(a)) is amended by
adding at the end the following:
``(3) Allocation of income.--On the request of any
individual filing a joint tax return, the Secretary shall
provide for the allocation of adjusted gross income among the
individuals filing the return based on a certified statement
provided by a certified public accountant or attorney
specifying the manner in which the income would have been
declared and reported if the individuals had filed 2 separate
returns, if the Secretary determines that the calculation is
consistent with the information supporting the filed joint
return.''.
(c) Modification of Limitation.--Section 1001D of the Food
Security Act of 1985 (7 U.S.C. 1308-3a) is amended by
striking subsection (b) and inserting the following:
``(b) Limitation.--
``(1) Crop years.--
``(A) 2009 crop year.--Notwithstanding any other provision
of law, an individual or entity shall not be eligible to
receive any benefit described in paragraph (2)(A) during the
2009 crop year if the average adjusted gross income of the
individual or entity exceeds $1,000,000, unless not less than
66.66 percent of the average adjusted gross income of the
individual or entity is derived from farming, ranching, or
forestry operations, as determined by the Secretary.
``(B) 2010 and subsequent crop years.--Notwithstanding any
other provision of law, an individual or entity shall not be
eligible to receive any benefit described in paragraph (2)(A)
during any of the 2010 and subsequent crop years if the
average adjusted gross income of the individual or entity
exceeds $750,000, unless not less than 66.66 percent of the
average adjusted gross income of the individual or entity is
derived from farming, ranching, or forestry operations, as
determined by the Secretary.
``(C) Conservation programs.--Notwithstanding any other
provision of law, an individual or entity shall not be
eligible to receive any benefit described in paragraph (2)(B)
during a crop year if the average adjusted gross income of
the individual or entity exceeds $2,500,000, unless not less
than 75 percent of the average adjusted gross income of the
individual or entity is derived from farming, ranching, or
forestry operations, as determined by the Secretary.
``(2) Covered benefits.--
``(A) In general.--Subparagraphs (A) and (B) of paragraph
(1) apply with respect to the following:
``(i) A direct payment or counter-cyclical payment under
subtitle A of title I of the Farm Security and Rural
Investment Act of 2002.
``(ii) A marketing loan gain or loan deficiency payment
under subtitle B of title I of the Farm Security and Rural
Investment Act of 2002
``(B) Conservation programs.--Paragraph (1)(C) applies with
respect to a payment under any program under--
``(i) title XII of this Act;
``(ii) title II of the Farm Security and Rural Investment
Act of 2002 (Public Law 107-171; 116 Stat. 223); or
``(iii) title II of the Food and Energy Security Act of
2007.
``(3) Income derived from farming, ranching or forestry
operations.--In determining what portion of the average
adjusted gross income of an individual or entity is derived
from farming, ranching, or forestry operations, the Secretary
shall include income derived from--
``(A) the production of crops, livestock, or unfinished raw
forestry products;
``(B) the sale, including the sale of easements and
development rights, of farm, ranch, or forestry land or water
or hunting rights;
``(C) the sale of equipment to conduct farm, ranch, or
forestry operations;
``(D) the rental or lease of land used for farming,
ranching, or forestry operations, including water or hunting
rights;
``(E) the provision of production inputs and services to
farmers, ranchers, and foresters;
``(F) the processing (including packing), storing
(including shedding), and transporting of farm, ranch, and
forestry commodities;
``(G) the sale of land that has been used for agriculture;
and
``(H) payments or other income attributable to benefits
received under any program authorized under title I or II of
the Food and Energy Security Act of 2007.''.
(d) Transition.--Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308-3a), as in effect on the day before the
date of the enactment of this Act, shall continue to apply
with respect to the 2007 and 2008 crops of any covered
commodity or peanuts.

SEC. 1405. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR
CERTAIN PRODUCERS.

(a) Incentive Payments Required.--Subject to subsection
(b), the Secretary shall use funds made available under
subsection (f) to provide quality incentive payments for the
production of oilseeds with specialized traits that enhance
human health, as determined by the Secretary.
(b) Covered Oilseeds.--The Secretary shall make payments
under this section only for the production of an oilseed
variety that has, as determined by the Secretary--
(1) been demonstrated to improve the health profile of the
oilseed for use in human consumption by--
(A) reducing or eliminating the need to partially
hydrogenate the oil derived from the oilseed for use in human
consumption; or
(B) adopting new technology traits; and
(2) 1 or more impediments to commercialization.
(c) Request for Proposals.--
(1) Issuance.--If funds are made available to carry out
this section for a crop year, the Secretary shall issue a
request for proposals for payments under this section.
(2) Multiyear proposals.--An entity may submit a multiyear
proposal for payments under this section.
(3) Content of proposals.--A proposal for payments under
this section shall include a description of--
(A) each oilseed variety described in subsection (b) and
the value of the oilseed variety as a matter of public
policy;
(B) a range for the amount of total per bushel or
hundredweight premiums to be paid to producers;
(C) a per bushel or hundredweight amount of incentive
payments requested for each year under this section that does
not exceed \1/3\ of the total premium offered for any year;
(D) the period of time, not to exceed 4 years, during which
incentive payments are to be provided to producers; and
(E) the targeted total quantity of production and estimated
acres needed to produce the targeted quantity for each year
under this section.
(d) Contracts for Production.--
(1) In general.--The Secretary shall approve successful
proposals submitted under subsection (c) on a timely basis so
as to allow production contracts to be entered into with
producers in advance of the spring planting season for the
2009 crop year.
(2) Timing of payments.--The Secretary shall make payments
to producers under this section after the Secretary receives
documentation that the premium required under a contract has
been made to covered producers.
(e) Administration.--If funding provided for a crop year is
not fully allocated under the initial request for proposals
under subsection (c), the Secretary shall issue additional
requests for proposals for subsequent crop years under this
section.
(f) Proprietary Information.--The Secretary shall protect
proprietary information provided to the Secretary for the
purpose of administering this section.
(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $400,000,000 for
the period of fiscal years 2008 through 2012.

SEC. 1406. HARD WHITE WHEAT DEVELOPMENT PROGRAM.

(a) Definitions.--In this section:
(1) Eligible hard white wheat seed.--The term ``eligible
hard white wheat seed'' means hard white wheat seed that, as
determined by the Secretary, is--
(A) certified;
(B) of a variety that is suitable for the State in which
the seed will be planted;
(C) rated at least superior with respect to quality; and
(D) specifically approved under a seed establishment
program established by the State Department of Agriculture
and the State Wheat Commission of the 1 or more States in
which the seed will be planted.
(2) Program.--The term ``program'' means the hard white
wheat development program established under subsection
(b)(1).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, in consultation with the State Departments of
Agriculture and the State Wheat Commissions of the States in
regions in which hard white wheat is produced, as determined
by the Secretary.
(b) Establishment.--
(1) In general.--The Secretary shall establish a hard white
wheat development program in accordance with paragraph (2) to
promote the establishment of hard white wheat as a viable
market class of wheat in the United States by encouraging
production of at least 240,000,000 bushels of hard white
wheat by 2012.

[[Page S14880]]

(2) Payments.--
(A) In general.--Subject to subparagraphs (B) and (C) and
subsection (c), the Secretary shall make available incentive
payments to producers of each of the 2008 through 2012 crops
of hard white wheat.
(B) Acreage limitation.--The Secretary shall carry out
subparagraph (A) subject to a regional limitation determined
by the Secretary on the number of acres for which payments
may be received that takes into account planting history and
potential planting, but does not exceed a total of 2,900,000
acres or the equivalent volume of production based on a yield
of 50 bushels per acre.
(C) Payment limitations.--Payments to producers on a farm
described in subparagraph (A) shall be--
(i) in an amount that is not less than $0.20 per bushel;
and
(ii) in an amount that is not less than $2.00 per acre for
planting eligible hard white wheat seed.
(c) Funding.--The Secretary shall make available
$35,000,000 of funds of the Commodity Credit Corporation
during the period of crop years 2008 through 2012 to provide
incentive payments to producers of hard white wheat under
this section.

SEC. 1407. DURUM WHEAT QUALITY PROGRAM.

(a) In General.--Subject to the availability of funds under
subsection (c), the Secretary shall provide compensation to
producers of durum wheat in an amount not to exceed 50
percent of the actual cost of fungicides applied to a crop of
durum wheat of the producers to control Fusarium head blight
(wheat scab) on acres certified to have been planted to Durum
wheat in a crop year.
(b) Insufficient Funds.--If the total amount of funds
appropriated for a fiscal year under subsection (c) are
insufficient to fulfill all eligible requests for
compensation under this section, the Secretary shall prorate
the compensation payments in a manner determined by the
Secretary to be equitable.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2008 through 2012.

SEC. 1408. STORAGE FACILITY LOANS.

(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish a
storage facility loan program to provide funds for producers
of grains, oilseeds, pulse crops, hay, renewable biomass, and
other storable commodities (other than sugar), as determined
by the Secretary, to construct or upgrade storage and
handling facilities for the commodities.
(b) Eligible Producers.--A storage facility loan under this
section shall be made available to any producer described in
subsection (a) that, as determined by the Secretary--
(1) has a satisfactory credit history;
(2) has a need for increased storage capacity; and
(3) demonstrates an ability to repay the loan.
(c) Term of Loans.--A storage facility loan under this
section shall have a maximum term of 12 years.
(d) Loan Amount.--The maximum principal amount of a storage
facility loan under this section shall be $500,000.
(e) Loan Disbursements.--The Secretary shall provide for
partial disbursements of loan principal, as determined to be
appropriate and subject to acceptable documentation, to
facilitate the purchase and construction of eligible
facilities.
(f) Loan Security.--Approval of a storage facility loan
under this section shall--
(1) for loan amounts of less than $150,000, not require a
lien on the real estate parcel on which the storage facility
is locate;
(2) for loan amounts equal to or more than $150,000, not
require a severance agreement from the holder of any prior
lien on the real estate parcel on which the storage facility
is located, if the borrower--
(A) agrees to increase the down payment on the storage
facility loan by an amount determined appropriate by the
Secretary; or
(B) provides other security acceptable to the Secretary;
and
(3) allow a borrower, upon the approval of the Secretary,
to define a subparcel of real estate as security for the
storage facility loan if the subparcel is--
(A) of adequate size and value to adequately secure the
loan; and
(B) not subject to any other liens or mortgages that are
superior to the lien interest of the Commodity Credit
Corporation.

SEC. 1409. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

Section 164 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7284) is amended by striking
``and title I of the Farm Security and Rural Investment Act
of 2002'' each place it appears and inserting ``title I of
the Farm Security and Rural Investment Act of 2002, and title
I of the Food and Energy Security Act of 2007''.

SEC. 1410. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY
REGARDING LOANS.

Section 166 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7286) is amended in subsections
(a) and (c)(1) by striking ``and subtitle B and C of title I
of the Farm Security and Rural Investment Act of 2002'' each
place it appears and inserting ``title I of the Farm Security
and Rural Investment Act of 2002, and title I of the Food and
Energy Security Act of 2007''.

SEC. 1411. ASSIGNMENT OF PAYMENTS.

(a) In General.--The provisions of section 8(g) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)),
relating to assignment of payments, shall apply to payments
made under the authority of subtitles A through E and this
subtitle.
(b) Notice.--The producer making the assignment, or the
assignee, shall provide the Secretary with notice, in such
manner as the Secretary may require, of any assignment made
under this section.

SEC. 1412. COTTON CLASSIFICATION SERVICES.

Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is
amended to read as follows:

``SEC. 3A. COTTON CLASSIFICATION SERVICES.

``(a) In General.--The Secretary of Agriculture (referred
to in this section as the `Secretary') shall--
``(1) make cotton classification services available to
producers of cotton; and
``(2) provide for the collection of classification fees
from participating producers or agents that voluntarily agree
to collect and remit the fees on behalf of producers.
``(b) Use of Fees.--Classification fees collected under
subsection (a)(2) and the proceeds from the sales of samples
submitted under this section shall, to the maximum extent
practicable, be used to pay the cost of the services provided
under this section, including administrative and supervisory
costs.
``(c) Consultation.--
``(1) In general.--In establishing the amount of fees under
this section, the Secretary shall consult with
representatives of the United States cotton industry.
``(2) Exemption.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to consultations with
representatives of the United States cotton industry under
this section.
``(d) Crediting of Fees.--Any fees collected under this
section and under section 3d, late payment penalties, the
proceeds from the sales of samples, and interest earned from
the investment of such funds shall--
``(1) be credited to the current appropriation account that
incurs the cost of services provided under this section and
section 3d; and
``(2) remain available without fiscal year limitation to
pay the expenses of the Secretary in providing those
services.
``(e) Investment of Funds.--Funds described in subsection
(d) may be invested--
``(1) by the Secretary in insured or fully collateralized,
interest-bearing accounts; or
``(2) at the discretion of the Secretary, by the Secretary
of the Treasury in United States Government debt instruments.
``(f) Lease Agreements.--Notwithstanding any other
provision of law, the Secretary may enter into long-term
lease agreements that exceed 5 years or may take title to
property (including through purchase agreements) for the
purpose of obtaining offices to be used for the
classification of cotton in accordance with this Act, if the
Secretary determines that action would best effectuate the
purposes of this Act.
``(g) Authorization of Appropriations.--To the extent that
financing is not available from fees and the proceeds from
the sales of samples, there are authorized to be appropriated
such sums as are necessary to carry out this section.''.

SEC. 1413. DESIGNATION OF STATES FOR COTTON RESEARCH AND
PROMOTION.

Section 17(f) of the Cotton Research and Promotion Act (7
U.S.C. 2116(f)) is amended--
(1) by striking ``(f) The term'' and inserting the
following:
``(f) Cotton-Producing State.--
``(1) In general.--The term'';
(2) by striking ``more, and the term'' and all that follows
through the end of the subsection and inserting the
following: ``more.
``(2) Inclusions.--The term `cotton-producing State'
includes--
``(A) any combination of States described in paragraph (1);
and
``(B) effective beginning with the 2008 crop of cotton, the
States of Kansas, Virginia, and Florida.''.

SEC. 1414. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.

Section 15 of the Agricultural Marketing Act (12 U.S.C.
1141j) is amended--
(1) by striking subsection (d); and
(2) by redesignating subsections (e) through (g) as
subsections (d) through (f), respectively.

SEC. 1415. STATE, COUNTY, AND AREA COMMITTEES.

Section 8(b)(5)(B)(ii) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is
amended--
(1) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively, and indenting appropriately;
(2) in the matter preceding item (aa) (as redesignated by
paragraph (1)), by striking ``A committee established'' and
inserting the following:

``(I) In general.--Except as provided in subclause (II), a
committee established''; and

(3) by adding at the end the following:

``(II) Combination or consolidation of areas.--A committee
established by combining or consolidating 2 or more county or
area committees shall consist of not fewer than 3 nor more
than 11 members that--

``(aa) are fairly representative of the agricultural
producers within the area covered by the county, area, or
local committee; and
``(bb) are elected by the agricultural producers that
participate or cooperate in programs administered within the
area under the jurisdiction of the county, area, or local
committee.

[[Page S14881]]

``(III) Representation of socially disadvantaged farmers
and ranchers.--The Secretary shall ensure, to the extent
practicable, that representation of socially disadvantaged
farmers and ranchers is maintained on combined or
consolidated committees.
``(IV) Eligibility for membership.--Notwithstanding any
other producer eligibility requirements for service on county
or area committees, if a county or area is consolidated or
combined, a producer shall be eligible to serve only as a
member of the county or area committee that the producer
elects to administer the farm records of the producer.''.

SEC. 1416. PROHIBITION ON CHARGING CERTAIN FEES.

Public Law 108-470 (7 U.S.C. 7416a) is amended--
(1) in subsection (a), by striking ``may'' and inserting
``shall''; and
(2) by adding at the end the following:
``(c) Prohibition on Charging Certain Fees.--The Secretary
may not charge any fees or related costs for the collection
of commodity assessments pursuant to this Act.''.

SEC. 1417. SIGNATURE AUTHORITY.

In carrying out this title and title II and amendments made
by those titles, if the Secretary approves a document
containing signatures of program applicants, the Secretary
shall not subsequently determine the document is inadequate
or invalid because of the lack of authority of any applicant
signing the document on behalf of the applicant or any other
individual, entity, general partnership, or joint venture, or
the documents relied upon were determined inadequate or
invalid, unless the applicant knowingly and willfully
falsified the evidence of signature authority or a signature.

SEC. 1418. MODERNIZATION OF FARM SERVICE AGENCY.

The Secretary shall modernize the Farm Service Agency
information technology and communication systems to ensure
timely and efficient program delivery at national, State, and
County offices.

SEC. 1419. GEOSPATIAL SYSTEMS.

(a) In General.--The Secretary shall ensure that all
agencies of the Department of Agriculture consolidate the
geospatial systems of the agencies into a single enterprise
system that ensures that geospatial data is shareable,
portable, and standardized.
(b) Requirements.--In carrying out subsection (a), the
Secretary shall--
(1) identify common datasets;
(2) give responsibility for managing each identified
dataset to the agency best suited for collecting and
maintaining that data, as determined by the Secretary; and
(3) make every effort to minimize the duplication of
efforts.
(c) Availability of Data.--The Secretary shall ensure, to
the maximum extent practicable, that data is readily
available to all agencies beginning not later than 2 years
after the date of enactment of this Act.

SEC. 1420. LEASING OFFICE SPACE.

The Secretary may use the funds, facilities, and
authorities of the Commodity Credit Corporation to lease
space for use by agencies of the Department of Agriculture in
cases in which office space would be jointly occupied by the
agencies.

SEC. 1421. REPEALS.

(a) Commission on Application of Payment Limitations.--
Section 1605 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7993) is repealed.
(b) Renewed Availability of Market Loss Assistance and
Certain Emergency Assistance to Persons That Failed to
Receive Assistance Under Earlier Authorities.--Section 1617
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8000) is repealed.

Subtitle F--Specialty Crop Programs

SEC. 1501. DEFINITIONS.

In this subtitle:
(1) Specialty crop.--The term ``specialty crop'' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108-465).
(2) State.--The term ``State'' means each of the several
States of the United States.
(3) State department of agriculture.--The term ``State
department of agriculture'' means the agency, commission, or
department of a State government responsible for protecting
and promoting agriculture in the State.

PART I--MARKETING, INFORMATION, AND EDUCATION

SEC. 1511. FRUIT AND VEGETABLE MARKET NEWS ALLOCATION.

(a) In General.--The Secretary, acting through the
Administrator of the Agricultural Marketing Service, shall
carry out market news activities to provide timely price
information of United States fruits and vegetables in the
United States.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $9,000,000 for
each of fiscal years 2008 through 2012, to remain available
until expended.

SEC. 1512. FARMERS' MARKET PROMOTION PROGRAM.

Section 6 of the Farmer-to-Consumer Direct Marketing Act of
1976 (7 U.S.C. 3005) is amended--
(1) in subsection (a), by inserting ``and to promote direct
producer-to-consumer marketing'' before the period at the
end;
(2) in subsection (b)(1)(B), by striking ``infrastructure''
and inserting ``marketing opportunities'';
(3) in subsection (c)(1), by inserting ``or a producer
network or association'' after ``cooperative''; and
(4) by striking subsection (e) and inserting the following:
``(e) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $1,000,000 for each of fiscal years 2008 through
2012.

SEC. 1513. FOOD SAFETY INITIATIVES.

(a) Initiative Authorized.--The Secretary may carry out a
food safety education program to educate the public and
persons in the fresh produce industry about--
(1) scientifically proven practices for reducing microbial
pathogens on fresh produce; and
(2) methods of reducing the threat of cross-contamination
of fresh produce through unsanitary handling practices.
(b) Cooperation.--The Secretary may carry out the education
program in cooperation with public and private partners.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$1,000,000.

SEC. 1514. CENSUS OF SPECIALTY CROPS.

(a) Establishment.--Not later than September 30, 2008, and
each 5 years thereafter, the Secretary shall conduct a census
of specialty crops to assist in the regularly development and
dissemination of information relative to specialty crops.
(b) Relation to Other Census.--The Secretary may include
the census of specialty crops in the census on agriculture.

PART II--ORGANIC PRODUCTION

SEC. 1521. ORGANIC DATA COLLECTION AND PRICE REPORTING.

Section 2104 of the Organic Foods Production Act of 1990 (7
U.S.C. 6503) is amended by adding at the end the following:
``(e) Data Collection and Price Reporting.--Of the funds of
the Commodity Credit Corporation, the Secretary shall use
$5,000,000 for the period of fiscal years 2008 through 2012--
``(1) to collect data relating to organic agriculture;
``(2) to identify and publish organic production and market
data initiatives and surveys;
``(3) to expand, collect, and publish organic census data
analyses;
``(4) to fund comprehensive reporting of prices relating to
organically-produced agricultural products;
``(5) to conduct analysis relating to organic production,
handling, distribution, retail, and trend studies;
``(6) to study and perform periodic updates on the effects
of organic standards on consumer behavior; and
``(7) to conduct analyses for organic agriculture using the
national crop table.''.

SEC. 1522. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM
ASSESSMENTS.

Section 501(e) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7401(e)) is amended by striking
paragraph (1) and inserting the following:
``(1) In general.--Notwithstanding any provision of a
commodity promotion law, a person that produces and markets
organic products shall be exempt from the payment of an
assessment under a commodity promotion law with respect to
that portion of agricultural commodities that the person--
``(A) produces on a certified organic farm (as defined in
section 2103 of the Organic Foods Production Act of 1990 (7
U.S.C. 6502); and
``(B) produces or markets as organically produced (as so
defined).''.

SEC. 1523. NATIONAL ORGANIC CERTIFICATION COST SHARE PROGRAM.

Section 10606 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 6523) is amended to read as follows:

``SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST-SHARE
PROGRAM.

``(a) Definitions.--In this section:
``(1) Program.--The term `program' means the national
certification cost-share program established under subsection
(b).
``(2) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Agricultural Marketing
Service.
``(b) Establishment.--The Secretary shall use amounts made
available under subsection (f) to establish a national
organic certification cost-share program under which the
Secretary shall make payments to States to assist producers
and handlers of agricultural products in obtaining
certification under the national organic production program
established under the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et seq.).
``(c) Federal Share.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall pay under this section not more than 75 percent of the
costs incurred by a producer or handler in obtaining
certification under the national organic production program,
as certified to and approved by the Secretary.
``(2) Maximum amount.--The maximum amount of a payment made
to a producer or handler under this section shall be $750.
``(d) Recordkeeping Requirements.--
``(1) In general.--The Secretary shall--
``(A) keep accurate, up-to-date records of requests and
disbursements from the program; and
``(B) require accurate and consistent recordkeeping from
each State and entity that receives program payments.
``(2) Federal requirements.--Not later than 30 days after
the last day on which a

[[Page S14882]]

State may request funding under the program, the Secretary
shall--
``(A) determine the number of States requesting funding and
the amount of each request; and
``(B) distribute the funding to the States.
``(3) State requirements.--An annual funding request from a
State shall include data from the program during the
preceding year, including--
``(A) a description of--
``(i) the entities that requested reimbursement;
``(ii) the amount of each reimbursement request; and
``(iii) any discrepancies between the amount requested and
the amount provided;
``(B) data to support increases in requests expected in the
coming year, including information from certifiers or other
data showing growth projections; and
``(C) an explanation of any case in which an annual request
is lower than the request of the preceding year.
``(e) Reporting.--Not later than March 1 of each year, the
Secretary shall submit to Congress a report that describes
the expenditures for each State under the program during the
previous fiscal year, including the number of producers and
handlers served by the program in the previous fiscal year.
``(f) Funding.--
``(1) In general.--Not later than 30 days after the date of
enactment of the Food and Energy Security Act of 2007, out of
any funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the Secretary of
Agriculture to carry out this section $22,000,000, to remain
available until expended.
``(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.''.

SEC. 1524. NATIONAL ORGANIC PROGRAM.

Section 2123 of the Organic Foods Production Act of 1990 (7
U.S.C. 6522) is amended--
(1) by striking ``There are'' and inserting the following:
``(a) In General.--There are''; and
(2) by adding at the end the following:
``(b) National Organic Program.--Notwithstanding any other
provision of law, in order to carry out the activities of the
Agricultural Marketing Service under the national organic
program established under this title, there are authorized to
be appropriated--
``(1) $5,000,000 for fiscal year 2008;
``(2) $6,500,000 for fiscal year 2009;
``(3) $8,000,000 for fiscal year 2010;
``(4) $9,500,000 for fiscal year 2011; and
``(5) $11,000,000 for fiscal year 2012.''.

PART III--INTERNATIONAL TRADE

SEC. 1531. FOREIGN MARKET ACCESS STUDY AND STRATEGY PLAN.

(a) Definition of Uruguay Round Agreements.--In this
section, the term ``Uruguay Round Agreements'' includes any
agreement described in section 101(d) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)).
(b) Study.--The Comptroller General of the United States
shall study--
(1) the extent to which United States specialty crops have
or have not benefitted from any reductions of foreign trade
barriers, as provided for in the Uruguay Round Agreements;
and
(2) the reasons why United States specialty crops have or
have not benefitted from such trade-barrier reductions.
(c) Strategy Plan.--The Secretary shall prepare a foreign
market access strategy plan based on the study in subsection
(b), to increase exports of specialty crops, including an
assessment of the foreign trade barriers that are
incompatible with the Uruguay Round Agreements and a strategy
for removing those barriers.
(d) Report.--Not later than 18 months after the date of
enactment of this Act--
(1) the Comptroller General shall submit to Congress a
report that contains the results of the study; and
(2) the Secretary shall submit to Congress the strategy
plan.

SEC. 1532. MARKET ACCESS PROGRAM.

Section 211(c) of the Agricultural Trade Act of 1978 (7
U.S.C. 5641(c)) is amended by adding at the end the
following:
``(3) Minimum allocation for sale and export proposal.--
``(A) In general.--In providing funds under paragraph (2),
to the maximum extent practicable, the Secretary shall use
not less than 50 percent of any of the funds made available
in excess of $200,000,000 to carry out the market access
program each fiscal year to provide assistance for proposals
submitted by eligible trade organizations to promote the sale
and export of specialty crops.
``(B) Unallocated funds.--If, by March 31 of any fiscal
year, the Secretary determines that the total amount of funds
made available to carry out the market access program are in
excess of the amounts necessary to promote the sale and
export of specialty crops during the fiscal year, the
Secretary may use the excess funds to provide assistance for
any other proposals submitted by eligible trade organizations
consistent with the priorities described in paragraph (2).''.

SEC. 1533. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

Section 3205 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 5680) is amended by striking subsection (d)
and inserting the following:
``(d) Petition.--A participant in the program may petition
the Secretary for an extension of a project carried out under
this section that exceeds, or will exceed, applicable time
restrictions.
``(e) Funding.--
``(1) In general.--The Secretary shall make available to
carry out the program under this section--
``(A) $6,800,000 of funds of, or an equal value of
commodities owned by, the Commodity Credit Corporation for
each of fiscal years 2008 through 2011; and
``(B) $2,000,000 of funds of, or an equal value of
commodities owned by, the Commodity Credit Corporation for
fiscal year 2012 and each subsequent fiscal year.
``(2) Carryover of unobligated funds.--In a case in which
the total amount of funds or commodities made available under
paragraph (1) for a fiscal year is not obligated in that
fiscal year, the Secretary shall make available in the
subsequent fiscal year an amount equal to--
``(A) the amount made available for the fiscal year under
paragraph (1); plus
``(B) the amount not obligated in the previous fiscal
year.''

SEC. 1534. CONSULTATIONS ON SANITARY AND PHYTOSANITARY
RESTRICTIONS FOR FRUITS AND VEGETABLES.

(a) Consultations on Sanitary and Phytosanitary
Restrictions for Fruits and Vegetables.--To the maximum
extent practicable, the Secretary and the United States Trade
Representative shall consult with interested persons, and
conduct annual briefings, on sanitary and phytosanitary trade
issues, including--
(1) the development of a strategic risk management
framework; and
(2) as appropriate, implementation of peer review for risk
analysis.
(b) Special Consultations on Import-Sensitive Products.--
Section 2104(b)(2)(A)(ii)(II) of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C.
3804(b)(2)(A)(ii)(II)) is amended--
(1) by striking ``whether the products so identified'' and
inserting ``whether--
``(aa) the products so identified''; and
(2) by adding at the end the following:
``(bb) any fruits or vegetables so identified are subject
to or likely to be subject to unjustified sanitary or
phytosanitary restrictions, including restrictions not based
on scientific principles in contravention of the Uruguay
Round Agreements, as determined by the United States Trade
Representative Technical Advisory Committee for Trade in
Fruits and Vegetables of the Department of Agriculture;
and''.
(c) Effective Date.--The amendments made by subsection (b)
apply with respect to the initiation of negotiations to enter
into any trade agreement that is subject to section 2103(b)
of the Bipartisan Trade Promotion Authority Act of 2002 (19
U.S.C. 3803(b)) on or after the date of the enactment of this
Act.

PART IV--SPECIALTY CROPS COMPETITIVENESS

SEC. 1541. SPECIALTY CROP BLOCK GRANTS.

(a) Extension of Program.--Section 101(a) of the Specialty
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
Law 108-465) is amended by striking ``2009'' and inserting
``2012''.
(b) Availability of Funds.--Section 101 of the Specialty
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
Law 108-465) is amended by striking subsection (i) and
inserting the following:
``(i) Funding.--
``(1) In general.--Subject to paragraph (2), of the funds
of the Commodity Credit Corporation, the Secretary of
Agriculture shall make grants under this section, using--
``(A) $135,000,000 for fiscal year 2008;
``(B) $140,000,000 for fiscal year 2009;
``(C) $145,000,000 for fiscal year 2010;
``(D) $150,000,000 for fiscal year 2011; and
``(E) $0 for fiscal year 2012.
``(2) Aquaculture and seafood products.--Of the amount made
available under subparagraphs (A) through (D) of paragraph
(1), the Secretary shall ensure that at least $50,000 is used
each fiscal year to promote the competitiveness of
aquacultural and seafood products.''.
(c) Conforming Amendments.--Section 101 of the Specialty
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
Law 108-465) is amended--
(1) in subsection (a), by striking ``Subject to the
appropriation of funds to carry out this section'' and
inserting ``Using the funds made available under subsection
(i)'';
(2) in subsection (b), by striking ``appropriated pursuant
to the authorization of appropriations in'' and inserting
``made available under'';
(3) by striking subsection (c) and inserting the following:
``(c) Minimum Grant Amount.--Notwithstanding subsection
(b), each State shall receive a grant under this section for
each fiscal year in an amount that is at least \1/2\ of 1
percent of the total amount of funding made available to
carry out this section for the fiscal year.'';
(4) by redesignating subsection (i) as subsection (j); and
(5) by inserting after subsection (h) the following:
``(i) Reallocation.--The Secretary may reallocate to other
States any amounts made available under this section that are
not obligated or expended by a date determined by the
Secretary.''.
(d) Definition of Specialty Crop.--Section 3 of the
Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621
note; Public

[[Page S14883]]

Law 108-465) is amended by striking paragraph (1) and
inserting the following:
``(1) Specialty crop.--The term `specialty crop' means
fruits, vegetables, tree nuts, dried fruits, nursery crops,
floriculture, seafood products, aquaculture (including
ornamental fish), sea grass, sea oats, and horticulture,
including turfgrass sod and herbal crops.''.
(e) Definition of State.--Section 3(2) of the Specialty
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
Law 108-465) is amended by striking ``and the Commonwealth of
Puerto Rico'' and inserting ``the Commonwealth of Puerto
Rico, Guam, American Samoa, the United States Virgin Islands,
and the Commonwealth of the Northern Mariana Islands''.

SEC. 1542. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY
CROPS.

Title II of the Specialty Crops Competitiveness Act of 2004
(Public Law 108-465; 118 Stat. 3884) is amended by adding at
the end the following:

``SEC. 204. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY
CROPS.

``(a) In General.--The Secretary of Agriculture may make
grants under this section to an eligible entity described in
subsection (b)--
``(1) to improve the cost-effective movement of specialty
crops to local, regional, national, and international
markets; and
``(2) to address regional intermodal transportation
deficiencies that adversely affect the movement of specialty
crops to markets inside or outside the United States.
``(b) Eligible Entities.--Grants may be made under this
section to--
``(1) a State or local government;
``(2) a grower cooperative;
``(3) a State or regional producer or shipper organization;
``(4) a combination of entities described in paragraphs (1)
through (3); or
``(5) other entities, as determined by the Secretary.
``(c) Matching Funds.--As a condition of the receipt of a
grant under this section, the recipient of a grant under this
section shall contribute an amount of non-Federal funds
toward the project for which the grant is provided that is at
least equal to the amount of grant funds received by the
recipient under this section.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.

SEC. 1543. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.

Title II of the Specialty Crops Competitiveness Act of 2004
(Public Law 108-465; 118 Stat. 3884) (as amended by section
1542) is amended by adding at the end the following:

``SEC. 205. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.

``(a) Definitions.--In this section:
``(1) Center.--The term `Center' means the healthy food
enterprise development center established under subsection
(b).
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a nonprofit organization;
``(B) a cooperative;
``(C) a business;
``(D) an agricultural producer;
``(E) an academic institution;
``(F) an individual; and
``(G) such other entities as the Secretary may designate.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(4) Underserved community.--The term `underserved
community' means a community (including an urban or rural
community and an Indian tribal community) that, as determined
by the Secretary, has--
``(A) limited access to affordable, healthy foods,
including fresh fruits and vegetables;
``(B) a high incidence of a diet-related disease (including
obesity) as compared to the national average;
``(C) a high rate of hunger or food insecurity; or
``(D) severe or persistent poverty.
``(b) Center.--The Secretary, acting through the
Agricultural Marketing Service, shall offer to enter into a
contract with a nonprofit organization to establish and
support a healthy food enterprise development center to
increase access to healthy, affordable foods, such as fresh
fruit and vegetables, particularly for school-aged children
and individuals in low-income communities.
``(c) Activities.--
``(1) Purpose.--The purpose of the Center is to increase
access to healthy affordable foods, including locally
produced agricultural products, to underserved communities.
``(2) Technical assistance and information.--The Center
shall collect, develop, and provide technical assistance and
information to small and mid-sized agricultural producers,
food wholesalers and retailers, schools, and other
individuals and entities regarding best practices and the
availability of assistance for aggregating, storing,
processing, and marketing locally produced agricultural
products and increasing the availability of the products in
underserved communities.
``(d) Authority to Subgrant.--The Center may provide
subgrants to eligible entities to carry out feasibility
studies to establish businesses to carry out the purposes of
this section.
``(e) Priority.--In providing technical assistance and
grants under subsections (c)(2) and (d), the Center shall
give priority to applications that have components that
will--
``(1) benefit underserved communities; and
``(2) develop market opportunities for small and mid-sized
farm and ranch operations.
``(f) Report.--For each fiscal year for which the nonprofit
organization described in subsection (b) receives funds, the
organization shall submit to the Secretary a report
describing the activities carried out in the previous fiscal
year, including--
``(1) a description of technical assistance provided;
``(2) the total number and a description of the subgrants
provided under subsection (d);
``(3) a complete listing of cases in which the activities
of the Center have resulted in increased access to healthy,
affordable foods, such as fresh fruit and vegetables,
particularly for school-aged children and individuals in low-
income communities; and
``(4) a determination of whether the activities identified
in paragraph (3) are sustained in the years following the
initial provision of technical assistance and subgrants under
this section.
``(g) Competitive Award Process.--The Secretary shall use a
competitive process to award funds to establish the Center.
``(h) Funding.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section--
``(1) $1,000,000 for fiscal year 2009; and
``(2) $2,000,000 for each of fiscal years 2010 through
2012.''.

PART V--MISCELLANEOUS

SEC. 1551. CLEAN PLANT NETWORK.

(a) In General.--The Secretary shall establish a program to
be known as the ``National Clean Plant Network'' (referred to
in this section as the ``Program'').
(b) Requirements.--Under the Program, the Secretary shall
establish a network of clean plant centers for diagnostic and
pathogen elimination services to--
(1) produce clean propagative plant material; and
(2) maintain blocks of pathogen-tested plant material in
sites located throughout the United States.
(c) Availability of Clean Plant Source Material.--Clean
plant source material may be made available to--
(1) a State for a certified plant program of the State; and
(2) private nurseries and producers.
(d) Consultation and Collaboration.--In carrying out the
Program, the Secretary shall--
(1) consult with State departments of agriculture and land
grant universities; and
(2) to the extent practicable and with input from the
appropriate State officials and industry representatives, use
existing Federal or State facilities to serve as clean plant
centers.
(e) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out the Program
$4,000,000 for each of fiscal years 2008 through 2012.

SEC. 1552. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.

(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall make payments to
producers of the 2007 crop of asparagus for market loss
resulting from imports during the 2004 through 2007 crop
years.
(b) Payment Rate.--The payment rate for a payment under
this section shall be based on the reduction in revenue
received by asparagus producers associated with imports
during the 2004 through 2007 crop years.
(c) Payment Quantity.--The payment quantity for asparagus
for which the producers on a farm are eligible for payments
under this section shall be equal to the average quantity of
the 2003 crop of asparagus produced by producers on the farm.
(d) Funding.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make available $15,000,000 of the funds of the
Commodity Credit Corporation to carry out a program to
provide market loss payments to producers of asparagus under
this section.
(2) Allocation.--Of the amount made available under
paragraph (1), the Secretary shall use--
(A) $7,500,000 to make payments to producers of asparagus
for the fresh market; and
(B) $7,500,000 to make payments to producers of asparagus
for the processed or frozen market.

SEC. 1553. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER
INFORMATION.

(a) Regions and Members.--Section 1925(b)(2) of the
Mushroom Promotion, Research, and Consumer Information Act of
1990 (7 U.S.C. 6104(b)(2)) is amended--
(1) in subparagraph (B), by striking ``4 regions'' and
inserting ``3 regions'';
(2) in subparagraph (D), by striking ``35,000,000 pounds''
and inserting ``50,000,000 pounds''; and
(3) by striking subparagraph (E), and inserting the
following:
``(E) Additional members.--In addition to the members
appointed pursuant to paragraph (1), and subject to the 9-
member limitation on members on the Council provided in that
paragraph, the Secretary shall appoint additional members to
the Council from a region that attains additional pounds of
production of mushrooms as follows:
``(i) If the annual production of the region is greater
than 110,000,000 pounds, but not more than 180,000,000
pounds, the region shall be represented by 1 additional
member.
``(ii) If the annual production of the region is greater
than 180,000,000 pounds, but not

[[Page S14884]]

more than 260,000,000 pounds, the region shall be represented
by 2 additional members.
``(iii) If the annual production of the region is greater
than 260,000,000 pounds, the region shall be represented by 3
additional members.''.
(b) Powers and Duties of Council.--Section 1925(c) of the
Mushroom Promotion, Research, and Consumer Information Act of
1990 (7 U.S.C. 6104(c)) is amended--
(1) by redesignating paragraphs (6), (7), and (8) as
paragraphs (7), (8), and (9), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) to develop food safety programs, including good
agricultural practices and good handling practices or related
activities for mushrooms;''.

SEC. 1554. NATIONAL HONEY BOARD.

Section 7(c) of the Honey Research, Promotion, and Consumer
Information Act (7 U.S.C. 4606(c)) is amended by adding at
the end the following:
``(12) Referendum requirement.--
``(A) In general.--Notwithstanding any other provision of
law, subject to subparagraph (B), the order providing for the
establishment and operation of the Honey Board in effect on
the date of enactment of this paragraph shall continue in
force, and the Secretary shall not schedule or conduct any
referendum on the continuation or termination of the order,
until the Secretary first conducts, at the earliest
practicable date, concurrent referenda among all eligible
producers, importers, packers, and handlers of honey for the
purpose of ascertaining whether eligible producers,
importers, packers, and handlers of honey approve of 1 or
more orders to establish successor marketing boards for
honey.
``(B) Requirements.--In conducting concurrent referenda
under subparagraph (A), the Secretary shall ensure that--
``(i) a referendum of United States honey producers for the
establishment of a marketing board solely for United States
honey producers is included in the process; and
``(ii) the rights and interests of honey producers,
importers, packers, and handlers of honey are protected in
the transition to any new marketing board.''.

SEC. 1555. IDENTIFICATION OF HONEY.

Section 203(h) of the Agricultural Marketing Act of 1946 (7
U.S.C. 1622(h)) is amended--
(1) by designating the first through sixth sentences as
paragraphs (1), (2)(A), (2)(B), (3), (4), and (5),
respectively; and
(2) by adding at the end the following:
``(6) Identification of honey.--The use of a label or
advertising material on, or in conjunction with, packaged
honey that bears any official certificate of quality, grade
mark or statement, continuous inspection mark or statement,
sampling mark or statement, or any combination of the
certificates, marks, or statements of the Department of
Agriculture shall be considered a deceptive practice that is
prohibited under this Act unless there appears legibly and
permanently in close proximity to the certificate, mark, or
statement, and in at least a comparable size, the 1 or more
names of the 1 or more countries of origin of the lot or
container of honey, preceded by `Product of' or other words
of similar meaning.''.

SEC. 1556. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR
GRADES AND STANDARDS AND OTHER PURPOSES.

(a) In General.--The Secretary shall initiate procedures
under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, to determine whether it would be
appropriate to establish a Federal marketing order for Hass
avocados relating to grades and standards and for other
purposes under that Act.
(b) Expedited Procedures.--
(1) Proposal for an order.--An organization of domestic
avocado producers in existence on the date of enactment of
this Act may request the issuance of, and submit to the
Secretary a proposal for, an order described in subsection
(a).
(2) Publication of proposal.--Not later than 60 days after
the date on which the Secretary receives a proposed order
under paragraph (1), the Secretary shall initiate procedures
described in subsection (a) to determine whether the proposed
order should proceed.
(c) Effective Date.--Any order issued under this section
shall become effective not later than 15 months after the
date on which the Secretary initiates procedures under the
Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted
with amendments by the Agricultural Marketing Agreement Act
of 1937.

Subtitle G--Risk Management

SEC. 1601. DEFINITION OF ORGANIC CROP.

Section 502(b) of the Federal Crop Insurance Act (7 U.S.C.
1502(b)) is amended--
(1) by redesignating paragraphs (7) and (8) as paragraphs
(8) and (9), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) Organic crop.--The term `organic crop' means an
agricultural commodity that is organically produced
consistent with section 2103 of the Organic Foods Production
Act of 1990 (7 U.S.C. 6502).''.

SEC. 1602. GENERAL POWERS.

(a) In General.--Section 506 of the Federal Crop Insurance
Act (7 U.S.C. 1506) is amended--
(1) in the first sentence of subsection (d), by striking
``The Corporation'' and inserting ``Subject to section
508(j)(2)(A), the Corporation''; and
(2) by striking subsection (n).
(b) Conforming Amendments.--
(1) Section 506 of the Federal Crop Insurance Act (7 U.S.C.
1506) is amended by redesignating subsections (o), (p), and
(q) as subsections (n), (o), and (p), respectively.
(2) Section 521 of the Federal Crop Insurance Act (7 U.S.C.
1521) is amended by striking the last sentence.

SEC. 1603. REDUCTION IN LOSS RATIO.

(a) Projected Loss Ratio.--Subsection (n)(2) of section 506
of the Federal Crop Insurance Act (7 U.S.C. 1506) (as
redesignated by section 1902(b)(1)) is amended--
(1) in the paragraph heading, by striking ``as of october
1, 1998'';
(2) by striking ``, on and after October 1, 1998,''; and
(3) by striking ``1.075'' and inserting ``1.0''.
(b) Premiums Required.--Section 508(d)(1) of the Federal
Crop Insurance Act (7 U.S.C. 1508(d)(1)) is amended by
striking ``not greater than'' and all that follows and
inserting ``not greater than--
``(A) 1.1 through September 30, 1998;
``(B) 1.075 for the period beginning October 1, 1998, and
ending on the date of enactment of the Food and Energy
Security Act of 2007; and
``(C) 1.0 on and after the date of enactment of that
Act.''.

SEC. 1604. CONTROLLED BUSINESS INSURANCE.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a) is amended by adding at the end the following:
``(9) Commissions.--
``(A) Definition of immediate family.--In this paragraph,
the term `immediate family' means a person's father, mother,
stepfather, stepmother, brother, sister, stepbrother,
stepsister, son, daughter, stepson, stepdaughter,
grandparent, grandson, granddaughter, father-in-law, mother-
in-law, brother-in-law, sister-in-law, son-in-law, daughter-
in-law, the spouse of the foregoing, and the person's spouse.
``(B) Prohibition.--No person may receive a commission or
share of a commission for any policy or plan of insurance
offered under this Act in which the person has a substantial
beneficial interest or in which a member of the person's
immediate family has a substantial beneficial interest if, in
a calendar year, the aggregate of the commissions exceeds 30
percent of the aggregate of all commissions received by the
person for any policy or plan of insurance offered under this
Act.
``(C) Reporting.--On the completion of the reinsurance
year, any person that received a commission or share of a
commission for any policy or plan of insurance offered under
this Act in the prior calendar year shall certify to
applicable approved insurance providers that the person
received the commissions in compliance with this paragraph.
``(D) Sanctions.--The requirements and sanctions prescribed
in section 515(h) shall apply to the prosecution of a
violation of this paragraph.
``(E) Applicability.--
``(i) In general.--Sanctions for violations under this
paragraph shall only apply to the person directly responsible
for the certification required under subparagraph (C) or the
failure to comply with the requirements of this paragraph.
``(ii) Prohibition.--No sanctions shall apply with respect
to the policy or plans of insurance upon which commissions
are received, including the reinsurance for those policies or
plans.''.

SEC. 1605. ADMINISTRATIVE FEE.

Section 508(b)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(b)(5)) is amended--
(1) by striking subparagraph (A) and inserting the
following:
``(A) Basic fee.--
``(i) In general.--Except as provided in clause (ii), each
producer shall pay an administrative fee for catastrophic
risk protection in an amount that is, as determined by the
Corporation, equal to 25 percent of the premium amount for
catastrophic risk protection established under subsection
(d)(2)(A) per crop per county.
``(ii) Maximum amount.--The total amount of administrative
fees for catastrophic risk protection payable by a producer
under clause (i) shall not exceed $5,000 for all crops in all
counties.''; and
(2) in subparagraph (B)--
(A) by striking ``Payment on behalf of producers'' and
inserting ``Payment of catastrophic risk protection fee on
behalf of producers'';
(B) in clause (i)--
(i) by striking ``or other payment''; and
(ii) by striking ``with catastrophic risk protection or
additional coverage'' and inserting ``through the payment of
catastrophic risk protection administrative fees'';
(C) by striking clauses (ii) and (vi);
(D) by redesignating clauses (iii), (iv), and (v) as
clauses (ii), (iii), and (iv), respectively;
(E) in clause (iii) (as so redesignated), by striking ``A
policy or plan of insurance'' and inserting ``Catastrophic
risk protection coverage''; and
(F) in clause (iv) (as so redesignated)--
(i) by striking ``or other arrangement under this
subparagraph''; and
(ii) by striking ``additional''.

SEC. 1606. TIME FOR PAYMENT.

Section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) is amended--
(1) in subsection (d), by adding at the end the following:

[[Page S14885]]

``(4) Time for payment.--Effective beginning with the 2012
reinsurance year, a producer that obtains a policy or plan of
insurance under this title shall submit the required premium
not later than September 30 of the year for which the plan or
policy of insurance was obtained.''; and
(2) in subsection (k)(4), by adding at the end the
following:
``(D) Time for reimbursement.--Effective beginning with the
2012 reinsurance year, the Corporation shall reimburse
approved insurance providers and agents for the allowable
administrative and operating costs of the providers and
agents as soon as practicable after October 1 (but not later
than October 31) of the reinsurance year for which
reimbursements are earned.''.

SEC. 1607. SURCHARGE PROHIBITION.

Section 508(d) of the Federal Crop Insurance Act (7 U.S.C.
1508(d)) (as amended by section 1906(1)) is amended by adding
at the end the following:
``(5) Surcharge prohibition.--
``(A) In general.--Except as provided in subparagraph (B),
the Corporation may not require producers to pay a premium
surcharge for using scientifically-sound sustainable and
organic farming practices and systems.
``(B) Exception.--
``(i) In general.--A surcharge may be required for
individual organic crops on the basis of significant,
consistent, and systemic increased risk factors (including
loss history) demonstrated by published cropping system
research (as applied to crop types and regions) and other
relevant sources of information.
``(ii) Consultation.--The Corporation shall evaluate the
reliability of information described in clause (i) in
consultation with independent experts in the field.''.

SEC. 1608. PREMIUM REDUCTION PLAN.

Section 508(e) of Federal Crop Insurance Act (7 U.S.C.
1508(e)) is amended by striking paragraph (3) and inserting
the following:
``(3) Discount study.--
``(A) In general.--The Secretary shall commission an entity
independent of the crop insurance industry (with expertise
that includes traditional crop insurance) to study the
feasibility of permitting approved insurance providers to
provide discounts to producers purchasing crop insurance
coverage without undermining the viability of the Federal
crop insurance program.
``(B) Components.--The study should include--
``(i) an evaluation of the operation of a premium reduction
plan that examines--

``(I) the clarity, efficiency, and effectiveness of the
statutory language and related regulations;
``(II) whether the regulations frustrated the goal of
offering producers upfront, predictable, and reliable premium
discount payments; and
``(III) whether the regulations provided for reasonable,
cost-effective oversight by the Corporation of premium
discounts offered by approved insurance providers,
including--

``(aa) whether the savings were generated from verifiable
cost efficiencies adequate to offset the cost of discounts
paid; and
``(bb) whether appropriate control was exercised to prevent
approved insurance providers from preferentially offering the
discount to producers of certain agricultural commodities, in
certain regions, or in specific size categories;
``(ii) examination of the impact on producers, the crop
insurance industry, and profitability from offering
discounted crop insurance to producers;
``(iii) examination of implications for industry
concentration from offering discounted crop insurance to
producers;
``(iv) an examination of the desirability and feasibility
of allowing other forms of price competition in the Federal
crop insurance program;
``(v) a review of the history of commissions paid by crop
insurance providers; and
``(vi) recommendations on--

``(I) potential changes to this title that would address
the deficiencies in past efforts to provide discounted crop
insurance to producers,
``(II) whether approved insurance providers should be
allowed to draw on both administrative and operating
reimbursement and underwriting gains to provide discounted
crop insurance to producers; and
``(III) any other action that could increase competition in
the crop insurance industry that will benefit producers but
not undermine the viability of the Federal crop insurance
program.

``(C) Request for proposals.--In developing the request for
proposals for the study, the Secretary shall consult with
parties in the crop insurance industry (including producers
and approved insurance providers and agents, including
providers and agents with experience selling discount crop
insurance products).
``(D) Review of study.--The independent entity selected by
Secretary under subparagraph (A) shall seek comments from
interested stakeholders before finalizing the report of the
entity.
``(E) Report.--Not later than 18 months after the date of
enactment of the Food and Energy Security Act of 2007, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes
the results and recommendations of the study.''.

SEC. 1609. DENIAL OF CLAIMS.

Section 508(j)(2)(A) of the Federal Crop Insurance Act (7
U.S.C. 1508(j)(2)(A)) is amended by inserting ``on behalf of
the Corporation'' after ``approved provider''.

SEC. 1610. MEASUREMENT OF FARM-STORED COMMODITIES.

Section 508(j) of the Federal Crop Insurance Act (7 U.S.C.
1508(j)) is amended by adding at the end the following:
``(5) Measurement of farm-stored commodities.--Beginning
with the 2009 crop year, for the purpose of determining the
amount of any insured production loss sustained by a producer
and the amount of any indemnity to be paid under a plan of
insurance--
``(A) a producer may elect, at the expense of the producer,
to have the Farm Service Agency measure the quantity of the
commodity; and
``(B) the results of the measurement shall be used as the
evidence of the quantity of the commodity that was
produced.''.

SEC. 1611. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)) is amended by adding at the end the following:
``(8) Renegotiation of standard reinsurance agreement.--
``(A) In general.--Notwithstanding section 536 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 1506 note; Public Law 105-185) and section 148
of the Agricultural Risk Protection Act of 2000 (7 U.S.C.
1506 note; Public Law 106-224), the Corporation may
renegotiate the financial terms and conditions of each
Standard Reinsurance Agreement--
``(i) following the reinsurance year ending June 30, 2012;
``(ii) once during each period of 5 reinsurance years
thereafter; and
``(iii) subject to subparagraph (B), in any case in which
the approved insurance providers, as a whole, experience
unexpected adverse circumstances, as determined by the
Secretary.
``(B) Notification requirement.--If the Corporation
renegotiates a Standard Reinsurance Agreement under
subparagraph (A)(iii), the Corporation shall notify the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate of the renegotiation.
``(C) Consultation.--The approved insurance providers may
confer with each other and collectively with the Corporation
during any renegotiation under subparagraph (A).''.

SEC. 1612. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR
UNDERWRITING GAINS.

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)) (as amended by section 1912) is amended by adding at
the end the following:
``(9) Due date for payment of underwriting gains.--
Effective beginning with the 2011 reinsurance year, the
Corporation shall make payments for underwriting gains under
this title on--
``(A) for the 2011 reinsurance year, October 1, 2012; and
``(B) for each reinsurance year thereafter, October 1 of
the following calendar year.''.

SEC. 1613. CONTROLLING CROP INSURANCE PROGRAM COSTS.

(a) Share of Risk.--Section 508(k)(3) of the Federal Crop
Insurance Act (7 U.S.C. 1508(k)(3)) is amended by striking
paragraph (3) and inserting the following:
``(3) Share of risk.--
``(A) In general.--Except as provided in subparagraph (B),
the reinsurance agreements of the Corporation with a
reinsured company shall require the reinsured company to
provide to the Corporation 30 percent of the cumulative
underwriting gain or loss of the reinsured company.
``(B) Livestock.--In the case of a policy or plan of
insurance covering livestock, the reinsurance agreements of
the Corporation with the reinsured companies shall require
the reinsured companies to bear a sufficient share of any
potential loss under the agreement so as to ensure that the
reinsured company will sell and service policies of insurance
in a sound and prudent manner, taking into consideration the
financial condition of the reinsured companies and the
availability of private reinsurance.''.
(b) Reimbursement Rate.--Section 508(k)(4)(A) of the
Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)) is
amended by striking clause (ii) and inserting the following:
``(ii) for each of the 2008 and subsequent reinsurance
years--

``(I) 15 percent of the premium used to define loss ratio;
and
``(II) in the case of a policy or plan of insurance
covering livestock, 27 percent of the premium used to define
loss ratio.''.

SEC. 1614. SUPPLEMENTAL DEDUCTIBLE COVERAGE.

(a) In General.--Section 508(c)(4) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)(4)) is amended--
(1) by striking ``The level of coverage'' and inserting the
following:
``(A) Basic coverage.--The level of coverage''; and
(2) by adding at the end the following:
``(B) Supplemental coverage.--
``(i) In general.--Notwithstanding paragraph (3) and
subparagraph (A), the Corporation may offer supplemental
coverage, based on an area yield and loss basis, to cover
that portion of a crop loss not covered under the

[[Page S14886]]

individual yield and loss basis plan of insurance of a
producer, including any revenue plan of insurance with
coverage based in part on individual yield and loss.
``(ii) Limitation.--The sum of the indemnity paid to the
producer under the individual yield and loss plan of
insurance and the supplemental coverage may not exceed 100
percent of the loss incurred by the producer for the crop.
``(iii) Administrative and operating expense
reimbursement.--Notwithstanding subsection (k)(4), the
reimbursement rate for approved insurance providers for the
supplemental coverage shall equal 6 percent of the premium
used to define the loss ratio.
``(iv) Direct coverage.--If the Corporation determines that
it is in the best interests of producers, the Corporation may
offer supplemental coverage as a Corporation endorsement to
existing plans and policies of crop insurance authorized
under this title.
``(v) Payment of portion of premium by corporation.--
Notwithstanding subsection (e), the amount of the premium to
be paid by the Corporation for supplemental coverage offered
pursuant to this subparagraph shall be determined by the
Corporation, but may not exceed the sum of--

``(I) 50 percent of the amount of premium established under
subsection (d)(2)(C)(i); and
``(II) the amount determined under subsection (d)(2)(C)(ii)
for the coverage level selected to cover operating and
administrative expenses.''.

(b) Conforming Amendments.--Section 508(d)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is amended--
(1) by striking ``additional coverage'' the first place it
appears and inserting ``additional and supplemental
coverages''; and
(2) by adding at the end the following:
``(C) Supplemental coverage.--In the case of supplemental
coverage offered under subsection (c)(4)(B), the amount of
the premium shall--
``(i) be sufficient to cover anticipated losses and a
reasonable reserve; and
``(ii) include an amount for operating and administrative
expenses, as determined by the Corporation on an industry-
wide basis as a percentage of the amount of the premium used
to define loss ratio.''.

SEC. 1615. REVENUE-BASED SAFETY NET.

(a) Establishment.--Section 508(c) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)) is amended by adding at the
end the following:
``(11) Group risk income protection and group risk
protection.--The Corporation shall offer, at no cost to a
producer, revenue and yield coverage plans that allow
producers in a county to qualify for an indemnity if the
actual revenue or yield per acre in the county in which the
producer is located is below 85 percent of the average
revenue or yield per acre for the county, for each
agricultural commodity for which a futures price is
available, or as otherwise approved by the Secretary, to the
extent the coverage is actuarially sound.''.
(b) Premiums.--Section 508(e)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1508(e)(2)) is amended by adding at
the end the following:
``(H) In the case of a group risk income protection and
group risk protection offered under subsection (c)(11)
beginning in fiscal year 2009, and the whole farm insurance
plan offered under subsection (c)(12) beginning in fiscal
year 2010, the entire amount of the premium for the plan
shall be paid by the Corporation.''.

SEC. 1616. WHOLE FARM INSURANCE.

(a) Establishment.--Section 508(c) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)) (as amended by section
19__(a)) is amended by adding at the end the following:
``(12) Whole farm insurance plan.--The Corporation shall
offer, at no cost to a producer described in paragraph (11),
a whole farm insurance plan that allows the producer to
qualify for an indemnity if actual gross farm revenue is
below 80 percent of the average gross farm revenue of the
producer.''.
(b) Adjusted Gross Revenue Insurance Pilot Program.--
Section 523(e) of the Federal Crop Insurance Act (7 U.S.C.
1523(e)) is amended--
(1) in paragraph (1), by striking ``2004'' and inserting
``2012'';
(2) in paragraph (2), by striking subparagraph (A) and
inserting the following:
``(A) In general.--In addition to counties otherwise
included in the pilot program, the Corporation shall include
in the pilot program for each of the 2010 through 2012
reinsurance years all States and counties that meet the
criteria for selection (pending required rating), as
determined by the Corporation.''; and
(3) by adding at the end the following:
``(3) Eligible producers.--The Corporation shall permit the
producer of any type of agricultural commodity (including a
producer of specialty crops, floricultural, ornamental
nursery, and Christmas tree crops, turfgrass sod, seed crops,
aquacultural products (including ornamental fish), sea grass
and sea oats, and industrial crops) to participate in a pilot
program established under this subsection.''.
(c) Prevention of Duplication.--Section 508(c) of the
Federal Crop Insurance Act (7 U.S.C. 1508(c)) (as amended by
subsection (a)) is amended by adding at the end the
following:
``(13) Prevention of duplication.--The Administrator of the
Risk Management Agency and Administrator of the Farm Service
Agency shall cooperate to ensure, to the maximum extent
practicable, that producers on a farm do not receive
duplicative compensation under Federal law for the same loss,
including by reducing crop insurance indemnity payments.''.

SEC. 1617. ACCESS TO DATA MINING INFORMATION.

(a) In General.--Section 515(j)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1515(j)(2)) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(A) In general.--The Secretary''; and
(2) by adding at the end the following:
``(B) Access to data mining information.--
``(i) In general.--The Secretary shall establish a fee-for-
access program under which approved insurance providers pay
to the Secretary a user fee in exchange for access to the
data mining system established under subparagraph (A) for the
purpose of assisting in fraud and abuse detection.
``(ii) Prohibition.--

``(I) In general.--Except as provided in subclause (II),
the Corporation shall not impose a requirement on approved
insurance providers to access the data mining system
established under subparagraph (A).
``(II) Access without fee.--If the Corporation requires
approved insurance providers to access the data mining system
established under subparagraph (A), access will be provided
without charge to the extent necessary to fulfill the
requirements.

``(iii) Access limitation.--In establishing the program
under clause (i), the Secretary shall ensure that an approved
insurance provider has access only to information relating to
the policies or plans of insurance for which the approved
insurance provider provides insurance coverage, including any
information relating to--

``(I) information of agents and adjusters relating to
policies for which the approved insurance provider provides
coverage;
``(II) the other policies or plans of an insured that are
insured through another approved insurance providers; and
``(III) the policies or plans of an insured for prior crop
insurance years.''.

(b) Insurance Fund.--Section 516 of the Federal Crop
Insurance Act (7 U.S.C. 1516) is amended--
(1) in subsection (b), by adding at the end the following:
``(3) Data mining system.--The Corporation shall use
amounts deposited in the insurance fund established under
subsection (c) from fees collected under section 515(j)(2)(B)
to administer and carry out improvements to the data mining
system under that section.''; and
(2) in subsection (c)(1)--
(A) by striking ``and civil'' and inserting ``civil''; and
(B) by inserting ``and fees collected under section
515(j)(2)(B)(i),'' after ``section 515(h),''.

SEC. 1618. PRODUCER ELIGIBILITY.

Section 520(2) of the Federal Crop Insurance Act (7 U.S.C.
1520(2)) is amended by inserting ``or is a person who raises
livestock owned by other persons (that is not covered by
insurance under this title by another person)'' after
``sharecropper''.

SEC. 1619. CONTRACTS FOR ADDITIONAL CROP POLICIES.

Section 522(c) of the Federal Crop Insurance Act (7 U.S.C.
1522) is amended--
(1) by redesignating paragraph (10) as paragraph (14); and
(2) by inserting after paragraph (9) the following:
``(10) Energy crop insurance policy.--
``(A) Definition of dedicated energy crop.--In this
subsection, the term `dedicated energy crop' means an annual
or perennial crop that--
``(i) is grown expressly for the purpose of producing a
feedstock for renewable biofuel, renewable electricity, or
bio-based products; and
``(ii) is not typically used for food, feed, or fiber.
``(B) Authority.--The Corporation shall offer to enter into
1 or more contracts with qualified entities to carry out
research and development regarding a policy to insure
dedicated energy crops.
``(C) Research and development.--Research and development
described in subparagraph (B) shall evaluate the
effectiveness of risk management tools for the production of
dedicated energy crops, including policies and plans of
insurance that--
``(i) are based on market prices and yields;
``(ii) to the extent that insufficient data exist to
develop a policy based on market prices and yields, evaluate
the policies and plans of insurance based on the use of
weather or rainfall indices to protect the interests of crop
producers; and
``(iii) provide protection for production or revenue
losses, or both.
``(11) Aquaculture insurance policy.--
``(A) Definition of aquaculture.--In this subsection:
``(i) In general.--The term `aquaculture' means the
propagation and rearing of aquatic species in controlled or
selected environments, including shellfish cultivation on
grants or leased bottom and ocean ranching.
``(ii) Exclusion.--The term `aquaculture' does not include
the private ocean ranching of Pacific salmon for profit in
any State in which private ocean ranching of Pacific salmon
is prohibited by any law (including regulations).
``(B) Authority.--The Corporation shall offer to enter into
1 or more contracts with

[[Page S14887]]

qualified entities to carry out research and development
regarding a policy to insure aquaculture operations.
``(C) Research and development.--Research and development
described in subparagraph (B) shall evaluate the
effectiveness of risk management tools for the production of
fish and other seafood in aquaculture operations, including
policies and plans of insurance that--
``(i) are based on market prices and yields;
``(ii) to the extent that insufficient data exist to
develop a policy based on market prices and yields, evaluate
how best to incorporate insuring of aquaculture operations
into existing policies covering adjusted gross revenue; and
``(iii) provide protection for production or revenue
losses, or both.
``(12) Organic crop production coverage improvements.--
``(A) In general.--Not later than 180 days after the date
of enactment of this paragraph, the Corporation shall offer
to enter into 1 or more contracts with qualified entities for
the development of improvements in Federal crop insurance
policies covering organic crops.
``(B) Price election.--
``(i) In general.--The contracts under subparagraph (A)
shall include the development of procedures (including any
associated changes in policy terms or materials required for
implementation of the procedures) to offer producers of
organic crops a price election that would reflect the actual
retail or wholesale prices, as appropriate, received by
producers for organic crops, as established using data
collected and maintained by the Agricultural Marketing
Service.
``(ii) Deadline.--The development of the procedures
required under clause (i) shall be completed not later than
the date necessary to allow the Corporation to offer the
price election--

``(I) beginning in the 2009 reinsurance year for organic
crops with adequate data available; and
``(II) subsequently for additional organic crops as data
collection for those organic crops is sufficient, as
determined by the Corporation.

``(13) Skiprow cropping practices.--
``(A) In general.--The Corporation shall offer to enter
into a contract with a qualified entity to carry out research
into needed modifications of policies to insure corn and
sorghum produced in the Central Great Plains (as determined
by the Agricultural Research Service) through use of skiprow
cropping practices.
``(B) Research.--Research described in subparagraph (A)
shall--
``(i) review existing research on skiprow cropping
practices and actual production history of producers using
skiprow cropping practices; and
``(ii) evaluate the effectiveness of risk management tools
for producers using skiprow cropping practices, including--

``(I) the appropriateness of rules in existence as of the
date of enactment of this paragraph relating to the
determination of acreage planted in skiprow patterns; and
``(II) whether policies for crops produced through skiprow
cropping practices reflect actual production capabilities.''.

SEC. 1620. RESEARCH AND DEVELOPMENT.

(a) Reimbursement Authorized.--Section 522(b) of the
Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by
striking paragraph (1) and inserting the following:
``(1) Research and development reimbursement.--The
Corporation shall provide a payment to reimburse an applicant
for research and development costs directly related to a
policy that--
``(A) is submitted to, and approved by, the Board pursuant
to a FCIC reimbursement grant under paragraph (7); or
``(B) is--
``(i) submitted to the Board and approved by the Board
under section 508(h) for reinsurance; and
``(ii) if applicable, offered for sale to producers.''.
(b) FCIC Reimbursement Grants.--Section 522(b) of the
Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by
adding at the end the following:
``(7) FCIC reimbursement grants.--
``(A) Grants authorized.--The Corporation shall provide
FCIC reimbursement grants to persons (referred to in this
paragraph as `submitters') proposing to prepare for
submission to the Board crop insurance policies and
provisions under subparagraphs (A) and (B) of section
508(h)(1), that apply and are approved for the FCIC
reimbursement grants under this paragraph.
``(B) Submission of application.--
``(i) In general.--The Board shall receive and consider
applications for FCIC reimbursement grants at least once each
year.
``(ii) Requirements.--An application to receive a FCIC
reimbursement grant from the Corporation shall consist of
such materials as the Board may require, including--

``(I) a concept paper that describes the proposal in
sufficient detail for the Board to determine whether the
proposal satisfies the requirements of subparagraph (C); and
``(II) a description of --

``(aa) the need for the product, including an assessment of
marketability and expected demand among affected producers;
``(bb) support from producers, producer organizations,
lenders, or other interested parties; and
``(cc) the impact the product would have on producers and
on the crop insurance delivery system; and

``(III) a statement that no products are offered by the
private sector that provide the same benefits and risk
management services as the proposal;
``(IV) a summary of data sources available that demonstrate
that the product can reasonably be developed and properly
rated; and
``(V) an identification of the risks the proposed product
will cover and an explanation of how the identified risks are
insurable under this title.

``(C) Approval conditions.--
``(i) In general.--A majority vote of the Board shall be
required to approve an application for a FCIC reimbursement
grant.
``(ii) Required findings.--The Board shall approve the
application if the Board finds that--

``(I) the proposal contained in the application--

``(aa) provides coverage to a crop or region not
traditionally served by the Federal crop insurance program;
``(bb) provides crop insurance coverage in a significantly
improved form;
``(cc) addresses a recognized flaw or problem in the
Federal crop insurance program or an existing product;
``(dd) introduces a significant new concept or innovation
to the Federal crop insurance program; or
``(ee) provides coverage or benefits not available from the
private sector;

``(II) the submitter demonstrates the necessary
qualifications to complete the project successfully in a
timely manner with high quality;
``(III) the proposal is in the interests of producers and
can reasonably be expected to be actuarially appropriate and
function as intended;
``(IV) the Board determines that the Corporation has
sufficient available funding to award the FCIC reimbursement
grant; and
``(V) the proposed budget and timetable are reasonable.

``(D) Participation.--
``(i) In general.--In reviewing proposals under this
paragraph, the Board may use the services of persons that the
Board determines appropriate to carry out expert review in
accordance with section 508(h).
``(ii) Confidentiality.--All proposals submitted under this
paragraph shall be treated as confidential in accordance with
section 508(h)(4).
``(E) Entering into agreement.--Upon approval of an
application, the Board shall offer to enter into an agreement
with the submitter for the development of a formal submission
that meets the requirements for a complete submission
established by the Board under section 508(h).
``(F) Feasibility studies.--
``(i) In general.--In appropriate cases, the Corporation
may structure the FCIC reimbursement grant to require, as an
initial step within the overall process, the submitter to
complete a feasibility study, and report the results of the
study to the Corporation, prior to proceeding with further
development.
``(ii) Monitoring.--The Corporation may require such other
reports as the Corporation determines necessary to monitor
the development efforts.
``(G) Rates.--Payment for work performed by the submitter
under this paragraph shall be based on rates determined by
the Corporation for products--
``(i) submitted under section 508(h); or
``(ii) contracted by the Corporation under subsection (c).
``(H) Termination.--
``(i) In general.--The Corporation or the submitter may
terminate any FCIC reimbursement grant at any time for just
cause.
``(ii) Reimbursement.--If the Corporation or the submitter
terminates the FCIC reimbursement grant before final approval
of the product covered by the grant, the submitter shall be
entitled to--

``(I) reimbursement of all eligible costs incurred to that
point; or
``(II) in the case of a fixed rate agreement, payment of an
appropriate percentage, as determined by the Corporation.

``(iii) Denial.--If the submitter terminates development
without just cause, the Corporation may deny reimbursement or
recover any reimbursement already made.
``(I) Consideration of products.--The Board shall consider
any product developed under this paragraph and submitted to
the Board under the rules the Board has established for
products submitted under section 508(h).''.
(c) Conforming Amendment.--Section 523(b)(10) of the
Federal Crop Insurance Act (7 U.S.C. 1523(b)(10)) is amended
by striking ``(other than research and development costs
covered by section 522)''.

SEC. 1621. FUNDING FROM INSURANCE FUND.

Section 522(e) of the Federal Crop Insurance Act (7 U.S.C.
1522(e)) is amended--
(1) in paragraph (1), by striking ``$10,000,000'' and all
that follows through the end of the paragraph and inserting
``$7,500,000 for fiscal year 2008 and each subsequent fiscal
year'';
(2) in paragraph (2)(A), by striking ``$20,000,000 for''
and all that follows through ``year 2004'' and inserting
``$12,500,000 for fiscal year 2008''; and
(3) in paragraph (3), by striking ``the Corporation may
use'' and all that follows through the end of the paragraph
and inserting ``the Corporation may use--

[[Page S14888]]

``(A) not more than $5,000,000 for each fiscal year to
improve program integrity, including by--
``(i) increasing compliance-related training;
``(ii) improving analysis tools and technology regarding
compliance;
``(iii) use of information technology, as determined by the
Corporation;
``(iv) identifying and using innovative compliance
strategies; and
``(B) any excess amounts to carry out other activities
authorized under this section.''.

SEC. 1622. CAMELINA PILOT PROGRAM.

(a) In General.--Section 523 of the Federal Crop Insurance
Act (7 U.S.C. 1523) is amended by adding at the end the
following:
``(f) Camelina Pilot Program.--
``(1) In general.--Beginning with the 2008 crop year, the
Corporation shall establish a pilot program under which
producers or processors of camelina may propose for approval
by the Board policies or plans of insurance for camelina, in
accordance with section 508(h).
``(2) Determination by board.--The Board shall approve a
policy or plan of insurance proposed under paragraph (1) if,
as determined by the Board, the policy or plan of insurance--
``(A) protects the interests of producers;
``(B) is actuarially sound; and
``(C) meets the requirements of this title.''.
(b) Noninsured Crop Assistance Program.--Section 196(a)(2)
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333(a)(2)) is amended by adding at the end the
following:
``(D) Camelina.--
``(i) In general.--For each of crop years 2008 through
2011, the Secretary shall consider camelina to be an eligible
crop for purposes of the noninsured crop disaster assistance
program under this section.
``(ii) Limitation.--Producers that are eligible to purchase
camelina crop insurance, including camelina crop insurance
under a pilot program, shall not be eligible for assistance
under this section.''.

SEC. 1623. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS OR
RANCHERS.

Section 524(a) of the Federal Crop Insurance Act (7 U.S.C.
1524(a)) is amended--
(1) in paragraph (1), by striking ``paragraph (4)'' and
inserting ``paragraph (5)'';
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
``(4) Requirements.--In carrying out the programs
established under paragraphs (2) and (3), the Secretary shall
place special emphasis on risk management strategies,
education, and outreach specifically targeted at--
``(A) beginning farmers or ranchers;
``(B) immigrant farmers or ranchers that are attempting to
become established producers in the United States;
``(C) socially disadvantaged farmers or ranchers;
``(D) farmers or ranchers that--
``(i) are preparing to retire; and
``(ii) are using transition strategies to help new farmers
or ranchers get started; and
``(E) new or established farmers or ranchers that are
converting production and marketing systems to pursue new
markets.''.

SEC. 1624. CROP INSURANCE EDUCATION ASSISTANCE.

(a) Partnerships for Risk Management Education.--Section
524(a)(3) of the Federal Crop Insurance Act (7 U.S.C.
1524(a)(3)) is amended--
(1) in subparagraph (B), by striking ``A grant'' and
inserting ``Subject to subparagraph (E), a grant''; and
(2) by adding at the end the following:
``(E) Allocation to states.--The Secretary shall allocate
funds made available to carry out this subsection for each
fiscal year in a manner that ensures that grants are provided
to eligible entities in States based on the ratio that the
value of agricultural production of each State bears to the
total value of agricultural production in all States, as
determined by the Secretary.''.
(b) Funding.--Paragraph (5) of section 524(a) of the
Federal Crop Insurance Act (7 U.S.C. 1524(a)) (as
redesignated by section 1920(2)) is amended by striking
subparagraph (B) and inserting the following:
``(B) for the partnerships for risk management education
program established under paragraph (3)--
``(i) $20,000,000 for fiscal year 2008, of which not less
than $15,000,000 shall be used to provide educational
assistance with respect to whole farm and adjusted gross
revenue insurance plans;
``(ii) $15,000,000 for fiscal year 2009, of which not less
than $10,000,000 shall be used to provide educational
assistance described in clause (i);
``(iii) $10,000,000 for fiscal year 2010, of which not less
than $5,000,000 shall be used to provide educational
assistance described in clause (i); and
``(iv) $5,000,000 for fiscal year 2011 and each fiscal year
thereafter.''.

SEC. 1625. AGRICULTURAL MANAGEMENT ASSISTANCE.

Section 524(b)(4) of the Federal Crop Insurance Act (7
U.S.C. 1524(b)(4)) is amended by adding at end the following:
``(C) Cost-sharing.--The Secretary may provide matching
funds to any State described in paragraph (1) that
appropriates a portion of the budget of the State to provide
financial assistance for producer-paid premiums for crop
insurance policies reinsured by the Corporation.''.

SEC. 1626. CROP INSURANCE MEDIATION.

Section 275 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6995) is amended--
(1) by striking ``If an officer'' and inserting the
following:
``(a) In General.--If an officer'';
(2) by striking ``With respect to'' and inserting the
following:
``(b) Farm Service Agency.--With respect to'';
(3) by striking ``If a mediation''; and inserting the
following:
``(c) Mediation.--If a mediation''; and
(4) in subsection (c) (as so designated)--
(A) by striking ``participant shall be offered'' and
inserting ``participant shall--
``(1) be offered''; and
(B) by striking the period at the end and inserting the
following: ``; and
``(2) to the maximum extent practicable, be allowed to use
both informal agency review and mediation to resolve disputes
under that title.''.

SEC. 1627. DROUGHT COVERAGE FOR AQUACULTURE UNDER NONINSURED
CROP ASSISTANCE PROGRAM.

Section 196(c)(2) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333(c)(2)) is amended--
(1) by striking ``On making'' and inserting the following:
``(A) In general.--On making''; and
(2) by adding at the end the following:
``(B) Aquaculture producers.--On making a determination
described in subsection (a)(3) for aquaculture producers, the
Secretary shall provide assistance under this section to
aquaculture producers from all losses related to drought.''.

SEC. 1628. INCREASE IN SERVICE FEES FOR NONINSURED CROP
ASSISTANCE PROGRAM.

Section 196(k)(1) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is amended--
(1) in subparagraph (A), by striking ``$100'' and inserting
``$200''; and
(2) in subparagraph (B)--
(A) by striking ``$300'' and inserting ``$600''; and
(B) by striking ``$900'' and inserting ``$1,500''.

SEC. 1629. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.

Section 9001(d) of the U.S. Troop Readiness, Veterans'
Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007 (Public Law 110-28; 121 Stat. 211)
is amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
``(8) Sweet potatoes.--
``(A) Data.--In the case of sweet potatoes, any data
obtained under a pilot program carried out by the Risk
Management Agency shall not be considered for the purpose of
determining the quantity of production under the crop
disaster assistance program established under this section.
``(B) Extension of deadline.--If this paragraph is not
implemented before the sign-up deadline for the crop disaster
assistance program established under this section, the
Secretary shall extend the deadline for producers of sweet
potatoes to permit sign-up for the program in accordance
with this paragraph.''.

SEC. 1630. PERENNIAL CROP REPORT.

Not later than 180 days after the date of enactment of this
Act, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report containing details about activities and administrative
options of the Federal Crop Insurance Corporation and Risk
Management Agency that address issues relating to--
(1) declining yields on the actual production histories of
producers; and
(2) declining and variable yields for perennial crops,
including pecans.

TITLE II--CONSERVATION

Subtitle A--Definitions

SEC. 2001. DEFINITIONS.

Section 1201(a) of the Food Security Act of 1985 (16 U.S.C.
3801(a)) is amended--
(1) by redesignating paragraphs (2) through (11), (12)
through (15), and (16), (17), and (18) as paragraphs (3)
through (12), (15) through (18), and (20), (22), and (23),
respectively;
(2) by inserting after paragraph (1) the following:
``(2) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has, to the maximum extent practicable,
the meaning given the term in section 343(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)), except that the Secretary may include in the
definition of the term--
``(A) a fair and reasonable test of net worth; and
``(B) such other criteria as the Secretary determines to be
appropriate.'';
(3) by inserting after paragraph (12) (as redesignated by
paragraph (1)) the following:
``(13) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(14) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land, as
determined by the Secretary, that--

[[Page S14889]]

``(A) has existing tree cover or is suitable for growing
trees; and
``(B) is owned by any nonindustrial private individual,
group, association, corporation, Indian tribe, or other
private legal entity that has definitive decisionmaking
authority over the land.'';
(4) by inserting after paragraph (18) (as redesignated by
paragraph (1)) the following:
``(19) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 355(e) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)).''; and
(5) by inserting after paragraph (20) (as redesignated by
paragraph (1)) the following:
``(21) Technical assistance.--
``(A) In general.--The term `technical assistance' means
technical expertise, information, and tools necessary for the
conservation of natural resources on land active in
agricultural, forestry, or related uses.
``(B) Inclusions.--The term `technical assistance'
includes--
``(i) technical services provided directly to farmers,
ranchers, and other eligible entities, such as conservation
planning, technical consultation, and assistance with design
and implementation of conservation practices; and
``(ii) technical infrastructure, including activities,
processes, tools, and agency functions needed to support
delivery of technical services, such as technical standards,
resource inventories, training, data, technology, monitoring,
and effects analyses.''.

Subtitle B--Highly Erodible Land Conservation

SEC. 2101. REVIEW OF GOOD FAITH DETERMINATIONS; EXEMPTIONS.

Section 1212 of the Food Security Act of 1985 (16 U.S.C.
3812) is amended by striking subsection (f) and inserting the
following:
``(f) Graduated Penalties.--
``(1) Ineligibility.--No person shall become ineligible
under section 1211 for program loans, payments, and benefits
as a result of the failure of the person to actively apply a
conservation plan, if the Secretary determines that the
person has acted in good faith and without an intent to
violate this subtitle.
``(2) Eligible reviewers.--A determination of the
Secretary, or a designee of the Secretary, under paragraph
(1) shall be reviewed by the applicable--
``(A) State Executive Director, with the technical
concurrence of the State Conservationist; or
``(B) district director, with the technical concurrence of
the area conservationist.
``(3) Period for implementation.--A person who meets the
requirements of paragraph (1) shall be allowed a reasonable
period of time, as determined by the Secretary, but not to
exceed 1 year, during which to implement the measures and
practices necessary to be considered to be actively applying
the conservation plan of the person.
``(4) Penalties.--
``(A) Application.--This paragraph applies if the Secretary
determines that--
``(i) a person who has failed to comply with section 1211
with respect to highly erodible cropland, and has acted in
good faith and without an intent to violate section 1211; or
``(ii) the violation--

``(I) is technical and minor in nature; and
``(II) has a minimal effect on the erosion control purposes
of the conservation plan applicable to the land on which the
violation has occurred.

``(B) Reduction.--If this paragraph applies under
subparagraph (A), the Secretary shall, in lieu of applying
the ineligibility provisions of section 1211, reduce program
benefits described in section 1211 that the producer would
otherwise be eligible to receive in a crop year by an amount
commensurate with the seriousness of the violation, as
determined by the Secretary.
``(5) Subsequent crop years.--Any person whose benefits are
reduced for any crop year under this subsection shall
continue to be eligible for all of the benefits described in
section 1211 for any subsequent crop year if, prior to the
beginning of the subsequent crop year, the Secretary
determines that the person is actively applying a
conservation plan according to the schedule specified in the
plan.''.

Subtitle C--Wetland Conservation

SEC. 2201. REVIEW OF GOOD FAITH DETERMINATIONS.

Section 1222(h) of the Food Security Act of 1985 (16 U.S.C.
3822(h)) is amended--
(1) by redesignating paragraph (2) as paragraph (3);
(2) by inserting after paragraph (1) the following:
``(2) Eligible reviewers.--A determination of the
Secretary, or a designee of the Secretary, under paragraph
(1) shall be reviewed by the applicable--
``(A) State Executive Director, with the technical
concurrence of the State Conservationist; or
``(B) district director, with the technical concurrence of
the area conservationist.''; and
(3) in paragraph (3) (as redesignated by paragraph (1)), by
inserting ``be'' before ``actively''.

Subtitle D--Agricultural Resources Conservation Program

CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT

Subchapter A--Comprehensive Conservation Enhancement Program

SEC. 2301. REAUTHORIZATION AND EXPANSION OF PROGRAMS COVERED.

(a) In General.--Section 1230 of the Food Security Act of
1985 (16 U.S.C. 3830) is amended to read as follows:

``SEC. 1230. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

``(a) Establishment.--
``(1) In general.--During the 1996 through 2012 fiscal
years, the Secretary shall establish a comprehensive
conservation enhancement program (referred to in this section
as `CCEP') to be implemented through contracts and the
acquisition of easements to assist owners and operators of
farms, ranches, and nonindustrial private forestland to
conserve and enhance soil, water, and related natural
resources, including grazing land, wetland, and wildlife
habitat.
``(2) Means.--The Secretary shall carry out the CCEP by--
``(A) providing for the long-term protection of
environmentally-sensitive land; and
``(B) providing technical and financial assistance to
farmers, ranchers, and nonindustrial private forest
landowners--
``(i) to improve the management and operation of the farms,
ranches, and private nonindustrial forest land; and
``(ii) to reconcile productivity and profitability with
protection and enhancement of the environment;
``(C) reducing administrative burdens and streamlining
application and planning procedures to encourage producer
participation; and
``(D) providing opportunities to leverage Federal
conservation investments through innovative partnerships with
governmental agencies, education institutions, producer
groups, and other nongovernmental organizations.
``(3) Programs.--The CCEP shall consist of--
``(A) the conservation reserve program established under
subchapter B;
``(B) the wetlands reserve program established under
subchapter C; and
``(C) the healthy forests reserve program established under
subchapter D.
``(b) Contracts and Enrollments.--
``(1) In general.--In carrying out the CCEP, the Secretary
shall enter into contracts with owners and operators and
acquire interests in land through easements from owners, as
provided in this chapter.
``(2) Prior enrollments.--Acreage enrolled in the
conservation reserve program, wetlands reserve program, or
healthy forests reserve program prior to the date of
enactment of the Food and Energy Security Act of 2007 shall
be considered to be placed into the CCEP.
``(c) Administration.--
``(1) Limitations.--
``(A) In general.--The Secretary shall not enroll more than
25 percent of the cropland in any county in the programs
administered under subchapters B and C of this chapter.
``(B) Easements.--Within the limit described in
subparagraph (A), not more than 10 percent of the land
described in that subparagraph may be subject to an easement
acquired under subchapter C of this chapter.
``(C) Exclusion.--Subparagraphs (A) and (B) shall not apply
to acres enrolled in the special conservation reserve
enhancement program described in section 1234(f)(3).
``(D) Exceptions.--The Secretary may exceed the limitation
in subparagraph (A) if the Secretary determines that--
``(i)(I) the action would not adversely affect the local
economy of a county; and
``(II) operators in the county are having difficulties
complying with conservation plans implemented under section
1212; or
``(ii)(I) the acreage to be enrolled could not be used for
an agricultural purpose as a result of a State or local law,
order, or regulation prohibiting water use for agricultural
production; and
``(II) enrollment in the program would benefit the acreage
enrolled or land adjacent to the acreage enrolled.
``(E) Shelterbelts and windbreaks.--The limitations
established under this paragraph shall not apply to cropland
that is subject to an easement under chapter 1 or 3 that is
used for the establishment of shelterbelts and windbreaks.
``(F) Enrollment.--Not later than 180 days after the date
of a request from a landowner to enroll acreage described in
subparagraph (D)(ii) in the program, the Secretary shall
enroll the acreage.
``(2) Tenant protection.--Except for a person who is a
tenant on land that is subject to a conservation reserve
contract that has been extended by the Secretary, the
Secretary shall provide adequate safeguards to protect the
interests of tenants and sharecroppers, including provisions
for sharing, on a fair and equitable basis, in payments under
the programs established under this subtitle and subtitles B
and C.
``(3) Provision of technical assistance by other sources.--
``(A) In general.--In the preparation and application of a
conservation compliance plan under subtitle B or similar plan
required as a condition for assistance from the Department of
Agriculture, the Secretary shall permit persons to secure
technical assistance from approved sources, as determined by
the Secretary, other than the Natural Resources Conservation
Service.
``(B) Rejection.--If the Secretary rejects a technical
determination made by a source described in subparagraph (A),
the basis of the determination of the Secretary shall be
supported by documented evidence.

[[Page S14890]]

``(4) Regulations.--Not later than 90 days after the date
of enactment of the Food and Energy Security Act of 2007, the
Secretary shall promulgate regulations to implement the
conservation reserve and wetlands reserve programs
established under this chapter.''.
(b) Conforming Amendments.--
(1) Section 1243 of the Food Security Act of 1985 (16
U.S.C. 3843) is repealed.
(2) Section 1222(g) of the Food Security Act of 1985 (16
U.S.C. 3822(g)) is amended by striking ``1243'' and inserting
``1230(c)''.
(3) Section 1231(k)(3)(C)(i) of the Food Security Act of
1985 (16 U.S.C. 3831(k)(3)(C)(i)) is amended by striking
``1243(b)'' and inserting ``1230(c)(1)''.

Subchapter B--Conservation Reserve

SEC. 2311. CONSERVATION RESERVE PROGRAM.

(a) In General.--Section 1231(a) of the Food Security Act
of 1985 (16 U.S.C. 3831(a)) is amended--
(1) by striking ``2007'' and inserting ``2012''; and
(2) by striking ``and wildlife'' and inserting ``wildlife,
and pollinator habitat''.
(b) Eligible Land.--Section 1231(b) of the Food Security
Act of 1985 (16 U.S.C. 3831(b)) is amended--
(1) in paragraph (1)(B), by striking the period at the end
and inserting a semicolon;
(2) in paragraph (4)--
(A) in subparagraph (C), by striking ``; or'' and inserting
a semicolon;
(B) in subparagraph (D), by striking ``and'' at the end and
inserting ``or''; and
(C) in subparagraph (E), by inserting ``in the case of
alfalfa or other forage crops,'' before ``enrollment'';
(3) in paragraph (5), by striking the period at the end and
inserting a semicolon; and
(4) by adding at the end the following:
``(6) marginal pasture land or hay land that is otherwise
ineligible, if the land--
``(A) is to be devoted to native vegetation appropriate to
the ecological site; and
``(B) would contribute to the restoration of a long-leaf
pine forest or other declining forest ecosystem, as defined
by the Secretary; or
``(7) land that is enrolled in the flooded farmland program
established under section 1235B.''.
(c) Enrollment.--Section 1231(d) of the Food Security Act
of 1985 (16 U.S.C. 3831(d)) is amended by striking ``up to''
and all that follows through ``2007'' and inserting ``up to
39,200,000 acres in the conservation reserve at any 1 time
during the 2008 through 2012''.
(d) Conservation Priority Areas.--Section 1231(f)(1) of the
Food Security Act of 1985 (16 U.S.C. 3831(f)(1)) is amended--
(1) by striking ``(Pennsylvania, Maryland, and Virginia)'';
and
(2) by inserting ``the Prairie Pothole Region, the Grand
Lake St. Mary's Watershed, the Eastern Snake Plain Aquifer,''
after ``Sound Region,''.
(e) Pilot Program for Enrollment of Wetland and Buffer
Acreage in Conservation Reserve.--Section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended by striking
subsection (h) and inserting the following:
``(h) Pilot Program for Enrollment of Wetland, Shallow
Water Areas, and Buffer Acreage in Conservation Reserve.--
``(1) Program.--
``(A) In general.--During the 2008 through 2012 calendar
years, the Secretary shall carry out a program in each State
under which the Secretary shall enroll eligible acreage
described in paragraph (2).
``(B) Participation among states.--The Secretary shall
ensure, to the maximum extent practicable, that owners and
operators in each State have an equitable opportunity to
participate in the pilot program established under this
subsection.
``(2) Eligible acreage.--
``(A) In general.--Subject to subparagraphs (B) through
(E), an owner or operator may enroll in the conservation
reserve under this subsection--
``(i)(I) a wetland (including a converted wetland described
in section 1222(b)(1)(A)) that had a cropping history during
at least 4 of the immediately preceding 6 crop years; or
``(II) a shallow water area that was devoted to a
commercial pond-raised aquaculture operation any year during
the period of calendar years 2002 through 2007; and
``(ii) buffer acreage that--

``(I) is contiguous to a wetland or shallow water area
described in clause (i);
``(II) is used to protect the wetland or shallow water area
described in clause (i); and
``(III) is of such width as the Secretary determines is
necessary to protect the wetland or shallow water area
described in clause (i) or to enhance the wildlife benefits,
taking into consideration and accommodating the farming
practices (including the straightening of boundaries to
accommodate machinery) used with respect to the cropland that
surrounds the wetland or shallow water area.

``(B) Exclusions.--Except for a shallow water area
described in paragraph (2)(A)(i), an owner or operator may
not enroll in the conservation reserve under this
subsection--
``(i) any wetland, or land on a floodplain, that is, or is
adjacent to, a perennial riverine system wetland identified
on the final national wetland inventory map of the Secretary
of the Interior; or
``(ii) in the case of an area that is not covered by the
final national inventory map, any wetland, or land on a
floodplain, that is adjacent to a perennial stream identified
on a 1-24,000 scale map of the United States Geological
Survey.
``(C) Program limitations.--
``(i) In general.--The Secretary may enroll in the
conservation reserve under this subsection not more than--

``(I) 100,000 acres in any 1 State referred to in paragraph
(1); and
``(II) not more than a total of 1,000,000 acres.

``(ii) Relationship to program maximum.--Subject to clause
(iii), for the purposes of subsection (d), any acreage
enrolled in the conservation reserve under this subsection
shall be considered acres maintained in the conservation
reserve.
``(iii) Relationship to other enrolled acreage.--Acreage
enrolled under this subsection shall not affect for any
fiscal year the quantity of--

``(I) acreage enrolled to establish conservation buffers as
part of the program announced on March 24, 1998 (63 Fed. Reg.
14109); or
``(II) acreage enrolled into the conservation reserve
enhancement program announced on May 27, 1998 (63 Fed. Reg.
28965).

``(iv) Review; potential increase in enrollment acreage.--
Not later than 3 years after the date of enactment of the
Food and Energy Security Act of 2007, the Secretary shall--

``(I) conduct a review of the program under this subsection
with respect to each State that has enrolled land in the
program; and
``(II) notwithstanding clause (i)(I), increase the number
of acres that may be enrolled by a State under clause (i)(I)
to not more than 150,000 acres, as determined by the
Secretary.

``(D) Owner or operator limitations.--
``(i) Wetland.--

``(I) In general.--Except for a shallow water area
described in paragraph (2)(A)(i), the maximum size of any
wetland described in subparagraph (A)(i) of an owner or
operator enrolled in the conservation reserve under this
subsection shall be 40 contiguous acres.
``(II) Coverage.--All acres described in subclause (I)
(including acres that are ineligible for payment) shall be
covered by the conservation contract.

``(ii) Buffer acreage.--The maximum size of any buffer
acreage described in subparagraph (A)(ii) of an owner or
operator enrolled in the conservation reserve under this
subsection shall be determined by the Secretary in
consultation with the State Technical Committee.
``(iii) Tracts.--Except for a shallow water area described
in paragraph (2)(A)(i), the maximum size of any eligible
acreage described in subparagraph (A) in a tract (as
determined by the Secretary) of an owner or operator enrolled
in the conservation reserve under this subsection shall be 40
acres.
``(3) Duties of owners and operators.--Under a contract
entered into under this subsection, during the term of the
contract, an owner or operator of a farm or ranch shall
agree--
``(A) to restore the hydrology of the wetland within the
eligible acreage to the maximum extent practicable, as
determined by the Secretary;
``(B) to establish vegetative cover (which may include
emerging vegetation in water) on the eligible acreage, as
determined by the Secretary;
``(C) to a general prohibition of commercial use of the
enrolled land; and
``(D) to carry out other duties described in section 1232.
``(4) Duties of the secretary.--
``(A) In general.--Except as provided in subparagraphs (B)
and (C), in return for a contract entered into by an owner or
operator under this subsection, the Secretary shall make
payments based on rental rates for cropland and provide
assistance to the owner or operator in accordance with
sections 1233 and 1234.
``(B) Continuous signup.--The Secretary shall use
continuous signup under section 1234(c)(2)(B) to determine
the acceptability of contract offers and the amount of rental
payments under this subsection.
``(C) Incentives.--The amounts payable to owners and
operators in the form of rental payments under contracts
entered into under this subsection shall reflect incentives
that are provided to owners and operators to enroll
filterstrips in the conservation reserve under section
1234.''.
(f) Balance of Natural Resource Purposes.--Section 1231(j)
of the Food Security Act of 1985 (16 U.S.C. 3831(j)) is
amended by striking ``and wildlife'' and inserting
``wildlife, and pollinator''.
(g) Duties of Participants.--Section 1232(a) of the Food
Security Act of 1985 (16 U.S.C. 3832(a)) is amended--
(1) in paragraph (4)--
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(B) by inserting before subparagraph (B) (as so
redesignated) the following:
``(A) approved vegetative cover shall encourage the
planting of native species and restoration of
biodiversity;'';
(2) by redesignating paragraphs (5) through (10) as
paragraphs (6) through (11), respectively; and
(3) by inserting after paragraph (4) the following:
``(5) to undertake active management on the land as needed
throughout the term of the contract to implement the
conservation plan;''.

[[Page S14891]]

(h) Managed Harvesting and Grazing.--Section 1232(a)(7) of
the Food Security Act of 1985 (16 U.S.C. 3832(a)(7)) is
amended--
(1) in the matter preceding subparagraph (A), by inserting
``and brood rearing'' after ``habitat during nesting''; and
(2) in subparagraph (A), by striking ``biomass)'' and
inserting ``biomass and prescribed grazing for the control of
invasive species), if such activity is permitted and
consistent with the conservation plan described in subsection
(b)(1)(A))''; and
(i) Conservation Plans.--Section 1232(b)(1)(A) of the Food
Security Act of 1985 (16 U.S.C. 3832(b)(1)(A)) is amended by
striking ``contract; and'' and inserting the following:
``contract that are--
``(i) compatible with the conservation and improvement of
soil, water, and wildlife and wildlife habitat;
``(ii) clearly described and apply throughout the duration
of the contract;
``(iii) actively managed by the owner or operator that
entered into the contract; and
``(iv) consistent with local active management conservation
measures and practices, as determined by the Secretary;
and''.
(j) Acceptance of Contract Offers.--Section 1234(c) of the
Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) Acceptance of contract offers.--
``(A) Evaluation of offers.--In determining the
acceptability of contract offers, the Secretary may take into
consideration the extent to which enrollment of the land that
is the subject of the contract offer would improve soil
resources, water quality, pollinator, fish, or wildlife
habitat, or provide other environmental benefits.
``(B) Local preference.--In determining the acceptability
of contract offers for new enrollments if, as determined by
the Secretary, the land would provide at least equivalent
conservation benefits to land under competing offers, the
Secretary shall, to the maximum extent practicable, accept an
offer from an owner or operator that is a resident of the
county in which the land is located or of a contiguous
county.''; and
(2) by adding at the end the following:
``(5) Rental rates.--
``(A) Annual estimates.--Not later than 1 year after the
date of enactment of this paragraph, the Secretary (acting
through the National Agricultural Statistics Service) shall
conduct an annual survey of per acre estimates of county
average market dryland and irrigated cash rental rates for
cropland and pastureland in all counties or equivalent
subdivisions within each State that have 20,000 acres or more
of cropland and pastureland.
``(B) Public availability of estimates.--The estimates
derived from the annual survey conducted under subparagraph
(A) shall be maintained on a website of the Department of
Agriculture for use by the general public.''.
(k) Early Termination by Owner or Operator.--Section
1235(e)(1) of the Food Security Act of 1985 (16 U.S.C.
3835(e)(1)) is amended by striking subparagraph (A) and
inserting the following:
``(A) In general.--The Secretary shall allow a participant
to terminate a conservation reserve contract at any time if,
as determined by the Secretary--
``(i) the participant entered into a contract under this
subchapter before January 1, 1995, and the contract has been
in effect for at least 5 years; or
``(ii) in the case of a participant who is disabled (as
defined in section 72(m)(7) of the Internal Revenue Code of
1986) or retired from farming or ranching, the participant
has endured financial hardship as a result of the taxation of
rental payments received.''.

SEC. 2312. FLOODED FARMLAND PROGRAM.

Subchapter B of chapter 1 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3831a et seq.) is
amended by adding at the end the following:

``SEC. 1235B. FLOODED FARMLAND PROGRAM.

``(a) Definitions.--In this section:
``(1) Closed basin lake or pothole.--The term `closed basin
lake or pothole' means a naturally occurring lake, pond,
pothole, or group of potholes within a tract that--
``(A) covered, on average, at least 5 acres in surface area
during the preceding 3 crop years, as determined by the
Secretary; and
``(B) has no natural outlet.
``(2) Tract.--The term `tract' has the meaning given the
term by the Secretary.
``(b) Program.--
``(1) In general.--Notwithstanding any other provision of
law (including regulations), as part of the conservation
reserve program established under this subchapter, the
Secretary shall offer to enter into contracts under which the
Secretary shall permit the enrollment in the conservation
reserve of eligible cropland and grazing land that has been
flooded by the natural overflow of a closed basin lake or
pothole located within the Prairie Pothole Region of the
northern Great Plains priority area (as determined by the
Secretary, by regulation).
``(2) Extensions.--The Secretary may offer to extend a
contract entered into under paragraph (1) if the Secretary
determines that conditions persist that make cropland or
grazing land covered by the contract and eligible for entry
into the program under this section.
``(c) Continuous Signup.--The Secretary shall offer the
program under this section through continuous signup under
this subchapter.
``(d) Eligibility.--
``(1) In general.--To be eligible to enter into a contract
under subsection (b), the owner shall own land that, as
determined by the Secretary--
``(A) during the 3 crop years preceding entry into the
contract, was rendered incapable of use for the production of
an agricultural commodity or for grazing purposes; and
``(B) prior to the natural overflow of a closed basin lake
or pothole caused by a period of precipitation in excess of
historical patterns, had been consistently used for the
production of crops or as grazing land.
``(2) Inclusions.--Land described in paragraph (1) shall
include--
``(A) land that has been flooded as the result of the
natural overflow of a closed basin lake or pothole;
``(B) land that has been rendered inaccessible due to
flooding as the result of the natural overflow of a closed
basin lake or pothole; and
``(C) a reasonable quantity of additional land adjoining
the flooded land that would enhance the conservation or
wildlife value of the tract, as determined by the Secretary.
``(3) Administration.--The Secretary may establish--
``(A) reasonable minimum acreage levels for individual
parcels of land that may be included in a contract entered
into under this section; and
``(B) the location and area of adjoining flooded land that
may be included in a contract entered into under this
section.
``(e) Payments.--
``(1) In general.--Subject to paragraph (2), the rate of an
annual rental payment under this section, as determined by
the Secretary--
``(A) shall be based on the rental rate under this
subchapter for cropland, and an appropriate rental rate for
pastureland; and
``(B) may be reduced by up to 25 percent, based on the
ratio of upland associated with the enrollment of the flooded
land.
``(2) Exclusions.--During the term of a contract entered
into under this section, an owner shall not be eligible to
participate in or receive benefits for land that is included
in the contract under--
``(A) the Federal crop insurance program established under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);
``(B) the noninsured crop assistance program established
under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333); or
``(C) any Federal agricultural crop disaster assistance
program.
``(f) Relationship to Agricultural Commodity Programs.--
``(1) In general.--Subject to paragraph (2), the Secretary,
by regulation, shall provide for the preservation of cropland
base, allotment history, and payment yields applicable to
land that was rendered incapable of use for the production of
an agricultural commodity or for grazing purposes as the
result of the natural overflow of a closed basin lake or
pothole.
``(2) Termination of contract.--On termination of a
contract under this section, the Secretary shall adjust the
cropland base, allotment history, and payment yields for land
covered by the contract to ensure equitable treatment of the
land relative to program payment yields of comparable land in
the county that was not flooded as a result of the natural
overflow of a closed basin lake or pothole and was capable of
remaining in agricultural production.
``(g) Use of Land.--An owner that has entered into a
contract with the Secretary under this section shall take
such actions as are necessary to avoid degrading any wildlife
habitat on land covered by the contract that has naturally
developed as a result of the natural overflow of a closed
basin lake or pothole.''.

SEC. 2313. WILDLIFE HABITAT PROGRAM.

Subchapter B of chapter 1 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3831a et seq.) (as
amended by section 2312) is amended by adding at the end the
following:

``SEC. 1235C. WILDLIFE HABITAT PROGRAM.

``(a) In General.--As part of the conservation reserve
program established under this subchapter, the Secretary
shall carry out a program to provide to owners and operators
who have entered into contracts under this subchapter and
established softwood pine stands, for each of fiscal years
2008 through 2012, assistance to carry out, on the acreage of
the owner or operator enrolled in the program under this
subchapter, activities that improve the condition of the
enrolled land for the benefit of wildlife.
``(b) Scope of Program.--In carrying out the program under
this section, the Secretary shall determine--
``(1) the amount and rate of payments (including incentive
payments and cost-sharing payments) to be made to owners and
operators who participate in the program to ensure the
participation of those owners and operators;
``(2) the areas in each of the States in which owners and
operators referred to in subsection (a) are located that
should be given priority under the program, based on the need
in those areas for changes in the condition of land to
benefit wildlife; and
``(3) the management strategies and practices (including
thinning, burning, seeding, establishing wildlife food plots,
and such

[[Page S14892]]

other practices that have benefits for wildlife as are
approved by the Secretary) that may be carried out by owners
and operators under the program.
``(c) Agreements.--
``(1) In general.--An owner or operator described in
subsection (a) that seeks to receive assistance under this
section shall enter into an agreement with the Secretary
that--
``(A) describes the management strategies and practices
referred to in subsection (b)(3) that will be carried out by
the owner or operator under the agreement;
``(B) describes measures to be taken by the owner or
operator to ensure active but flexible management of acreage
covered by the agreement;
``(C) requires the owner or operator to submit to periodic
monitoring and evaluation by wildlife or forestry agencies of
the State in which land covered by the agreement is located;
and
``(D) contains such other terms or conditions as the
Secretary may require.
``(2) Term; inclusion in contract.--An agreement entered
into under this section shall have a term of not more than 5
years.
``(d) Partnerships.--In carrying out this section, the
Secretary may establish or identify and, as appropriate,
require owners and operators participating in the program
under this section to work cooperatively with, partnerships
among the Secretary and State, local, and nongovernmental
organizations.
``(e) Technical Assistance and Cost Sharing.--The Secretary
may provide to owners and operators participating in the
program under this section, and members of partnerships
described in subsection (d)--
``(1) technical assistance for use in carrying out an
activity covered by an agreement described in subsection (c);
and
``(2) a payment for use in covering a percentage of the
costs of carrying out each such activity that does not exceed
the applicable amount and rate determined by the Secretary
under subsection (b)(1).
``(f) Termination of Program.--The program under this
section shall terminate on September 30, 2011.''.

Subchapter C--Wetlands Reserve Program

SEC. 2321. WETLANDS RESERVE PROGRAM.

Section 1237 of the Food Security Act of 1985 (16 U.S.C.
3837) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Enrollment Conditions.--
``(1) Annual enrollment.--To the maximum extent
practicable, the Secretary shall enroll 250,000 acres in each
fiscal year, with no enrollments beginning in fiscal year
2013.
``(2) Methods of enrollment.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall enroll acreage into the wetlands reserve
program through the use of--
``(i) permanent easements;
``(ii) 30-year easements;
``(iii) restoration cost-share agreements; or
``(iv) any combination of the options described in clauses
(i) through (iii).
``(B) Acreage owned by indian tribes.--In the case of
acreage owned by an Indian tribe, the Secretary shall enroll
acreage into the wetlands reserve program through the use
of--
``(i) a 30-year contract (the value of which shall be
equivalent to the value of a 30-year easement);
``(ii) restoration cost-share agreements; or
``(iii) any combination of the options described in clauses
(i) and (ii).''; and
(2) in subsection (c), by striking ``2007 calendar'' and
inserting ``2012 fiscal''.

SEC. 2322. EASEMENTS AND AGREEMENTS.

(a) Terms of Easement.--Section 1237A(b)(2)(B) of the Food
Security Act of 1985 (16 U.S.C. 3837a(b)(2)(B)) is amended--
(1) in clause (i), by striking ``or'' at the end;
(2) in clause (ii), by striking ``; and'' and inserting ``;
or''; and
(3) by adding at the end the following:
``(iii) to meet habitat needs of specific wildlife species;
and''.
(b) Compensation.--Section 1237A(f) of the Food Security
Act of 1985 (16 U.S.C. 3837a(f)) is amended--
(1) in the first sentence--
(A) by striking ``Compensation'' and inserting the
following:
``(1) In general.--Compensation''; and
(B) by striking ``agreed to'' and all that follows through
``encumbered by the easement'' and inserting ``determined
under paragraph (4)'';
(2) in the second sentence, by striking ``Lands'' and
inserting the following:
``(2) Bids.--Land'';
(3) by striking the third sentence and inserting the
following:
``(3) Payments.--Compensation may be provided in not more
than 30 annual payments of equal or unequal size, as agreed
to by the owner and the Secretary''; and
(4) by adding at the end the following:
``(4) Method for determination of amount of compensation.--
Effective on the date of enactment of this paragraph, the
Secretary shall pay the lowest amount of compensation for a
conservation easement, as determined by comparison of--
``(A) the fair market value of the land based on--
``(i) the Uniform Standards of Professional Appraisal
Practices; or
``(ii) an area-wide market analysis or survey, as
determined by the Secretary;
``(B) a geographical cap, as established through a process
prescribed in regulations promulgated by the Secretary; and
``(C) the offer made by the landowner.''.
(c) Wetlands Reserve Enhancement Program.--Section 1237A of
the Food Security Act of 1985 (16 U.S.C. 3837a) is amended by
adding at the end the following:
``(h) Wetlands Reserve Enhancement Program.--
``(1) In general.--The Secretary may enter into 1 or more
agreements with a State (including a political subdivision or
agency of a State), nongovernmental organization, or Indian
tribe to carry out a special wetlands reserve enhancement
program that the Secretary determines would advance the
purposes of this subchapter.
``(2) Reserved rights.--Under the wetlands reserve
enhancement program, the Secretary may use unique wetlands
reserve agreements that may include certain compatible uses
as reserved rights in the warranty easement deed restriction,
if using those agreements is determined by the Secretary to
be--
``(A) consistent with the long-term wetland protection and
enhancement goals for which the easement was established; and
``(B) in accordance with a conservation plan.''.
(d) Report.--
(1) In general.--Not later than January 1, 2010, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that evaluates
the implications of the long-term nature of conservation
easements granted under section 1237A of the Food Security
Act of 1985 (16 U.S.C. 3837a) on resources of the Department
of Agriculture.
(2) Inclusions.--The report shall include--
(A) data relating to the number and location of
conservation easements granted under that section that the
Secretary holds or has a significant role in monitoring or
managing;
(B) an assessment of the extent to which the oversight of
the conservation easement agreements impacts the availability
of resources, including technical assistance;
(C) an assessment of the uses and value of agreements with
partner organizations; and
(D) any other relevant information relating to costs or
other effects that would be helpful to the Committees.

SEC. 2323. PAYMENTS.

Section 1237D(c) of the Food Security Act of 1985 (16
U.S.C. 3837d(c)) is amended--
(1) in paragraph (1)--
(A) by striking ``The total'' and inserting ``Subject to
section 1244(i), the total''
(B) by striking ``easement payments'' and inserting
``payments'';
(C) by striking ``person'' and inserting ``individual'';
and
(D) by inserting ``or under 30-year contracts or
restoration agreements'' before the period at the end; and
(2) in paragraph (3)--
(A) by striking ``Easement payments'' and inserting
``Payments''; and
(B) by striking ``the Food, Agriculture, Conservation, and
Trade Act of 1990, or the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.)'' and inserting ``the Federal Agriculture
Improvement and Reform Act of 1996 (Public Law 104-127; 110
Stat. 888), or the Farm Security and Rural Investment Act of
2002 (Public Law 107-171; 116 Stat. 134)''.

Subchapter D--Healthy Forests Reserve Program

SEC. 2331. HEALTHY FORESTS RESERVE PROGRAM.

(a) In General.--Chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) is
amended by adding at the end the following:

``Subchapter D--Healthy Forests Reserve Program

``SEC. 1237M. ESTABLISHMENT OF HEALTHY FORESTS RESERVE
PROGRAM.

``(a) Establishment.--The Secretary shall establish the
healthy forests reserve program for the purpose of restoring
and enhancing forest ecosystems--
``(1) to promote the recovery of threatened and endangered
species;
``(2) to improve biodiversity; and
``(3) to enhance carbon sequestration.
``(b) Coordination.--The Secretary shall carry out the
healthy forests reserve program in coordination with the
Secretary of the Interior and the Secretary of Commerce.

``SEC. 1237N. ELIGIBILITY AND ENROLLMENT OF LANDS IN PROGRAM.

``(a) In General.--The Secretary, in coordination with the
Secretary of the Interior and the Secretary of Commerce,
shall describe and define forest ecosystems that are eligible
for enrollment in the healthy forests reserve program.
``(b) Eligibility.--To be eligible for enrollment in the
healthy forests reserve program, land shall be--
``(1) private land the enrollment of which will restore,
enhance, or otherwise measurably increase the likelihood of
recovery of a species listed as endangered or threatened
under section 4 of the Endangered Species Act of 1973 (16
U.S.C. 1533); and
``(2) private land the enrollment of which will restore,
enhance, or otherwise measurably improve the well-being of
species that--
``(A) are not listed as endangered or threatened under
section 4 of the Endangered Species Act of 1973 (16 U.S.C.
1533); but
``(B) are candidates for such listing, State-listed
species, or special concern species.

[[Page S14893]]

``(c) Other Considerations.--In enrolling land that
satisfies the criteria under subsection (b), the Secretary
shall give additional consideration to land the enrollment of
which will--
``(1) improve biological diversity; and
``(2) increase carbon sequestration.
``(d) Enrollment by Willing Owners.--The Secretary shall
enroll land in the healthy forests reserve program only with
the consent of the owner of the land.
``(e) Methods of Enrollment.--
``(1) In general.--Land may be enrolled in the healthy
forests reserve program in accordance with--
``(A) a 10-year cost-share agreement;
``(B) a 30-year easement; or
``(C) a permanent easement.
``(2) Proportion.--The extent to which each enrollment
method is used shall be based on the approximate proportion
of owner interest expressed in that method in comparison to
the other methods.
``(3) Acreage owned by indian tribes.--In the case of
acreage owned by an Indian tribe, the Secretary may enroll
acreage into the healthy forests reserve program through the
use of--
``(A) a 30-year contract (the value of which shall be
equivalent to the value of a 30-year easement);
``(B) a 10-year cost-share agreement; or
``(C) any combination of the options described in
subparagraphs (A) and (B).
``(f) Enrollment Priority.--
``(1) Species.--The Secretary shall give priority to the
enrollment of land that provides the greatest conservation
benefit to--
``(A) primarily, species listed as endangered or threatened
under section 4 of the Endangered Species Act of 1973 (16
U.S.C. 1533); and
``(B) secondarily, species that--
``(i) are not listed as endangered or threatened under
section 4 of the Endangered Species Act of 1973 (16 U.S.C.
1533); but
``(ii) are candidates for such listing, State-listed
species, or special concern species.
``(2) Cost-effectiveness.--The Secretary shall also
consider the cost-effectiveness of each agreement or
easement, and associated restoration plans, so as to maximize
the environmental benefits per dollar expended.

``SEC. 1237O. RESTORATION PLANS.

``(a) In General.--Land enrolled in the healthy forests
reserve program shall be subject to a restoration plan, to be
developed jointly by the landowner and the Secretary, in
coordination with the Secretary of Interior.
``(b) Practices.--The restoration plan shall require such
restoration practices as are necessary to restore and enhance
habitat for--
``(1) species listed as endangered or threatened under
section 4 of the Endangered Species Act of 1973 (16 U.S.C.
1533); and
``(2) animal or plant species before the species reach
threatened or endangered status, such as candidate, State-
listed species, and special concern species.

``SEC. 1237P. FINANCIAL ASSISTANCE.

``(a) Permanent Easements.--In the case of land enrolled in
the healthy forests reserve program using a permanent
easement, the Secretary shall pay to the owner of the land an
amount equal to not less than 75 percent, nor more than 100
percent, of (as determined by the Secretary)--
``(1) the fair market value of the enrolled land during the
period the land is subject to the easement, less the fair
market value of the land encumbered by the easement; and
``(2) the actual costs of the approved conservation
practices or the average cost of approved practices carried
out on the land during the period in which the land is
subject to the easement.
``(b) 30-Year Easement or Contract.--In the case of land
enrolled in the healthy forests reserve program using a 30-
year easement or contract, the Secretary shall pay the owner
of the land an amount equal to not more than (as determined
by the Secretary)--
``(1) 75 percent of the fair market value of the land, less
the fair market value of the land encumbered by the easement
or contract; and
``(2) 75 percent of the actual costs of the approved
conservation practices or 75 percent of the average cost of
approved practices.
``(c) 10-Year Agreement.--In the case of land enrolled in
the healthy forests reserve program using a 10-year cost-
share agreement, the Secretary shall pay the owner of the
land an amount equal to not more than (as determined by the
Secretary)--
``(1) 50 percent of the actual costs of the approved
conservation practices; or
``(2) 50 percent of the average cost of approved practices.
``(d) Acceptance of Contributions.--The Secretary may
accept and use contributions of non-Federal funds to make
payments under this section.

``SEC. 1237Q. TECHNICAL ASSISTANCE.

``(a) In General.--The Secretary shall provide landowners
with technical assistance to assist the owners in complying
with the terms of plans (as included in agreements or
easements) under the healthy forests reserve program.
``(b) Technical Service Providers.--The Secretary may
request the services of, and enter into cooperative
agreements with, individuals or entities certified as
technical service providers under section 1242, to assist the
Secretary in providing technical assistance necessary to
develop and implement the healthy forests reserve program.

``SEC. 1237R. PROTECTIONS AND MEASURES.

``(a) Protections.--In the case of a landowner that enrolls
land in the program and whose conservation activities result
in a net conservation benefit for listed, candidate, or other
species, the Secretary shall make available to the landowner
safe harbor or similar assurances and protection under--
``(1) section 7(b)(4) of the Endangered Species Act of 1973
(16 U.S.C. 1536(b)(4)); or
``(2) section 10(a)(1) of that Act (16 U.S.C. 1539(a)(1)).
``(b) Measures.--If protection under subsection (a)
requires the taking of measures that are in addition to the
measures covered by the applicable restoration plan agreed to
under section 1237O, the cost of the additional measures, as
well as the cost of any permit, shall be considered part of
the restoration plan for purposes of financial assistance
under section 1237P.

``SEC. 1237S. INVOLVEMENT BY OTHER AGENCIES AND
ORGANIZATIONS.

``In carrying out this subchapter, the Secretary may
consult with--
``(1) nonindustrial private forest landowners;
``(2) other Federal agencies;
``(3) State fish and wildlife agencies;
``(4) State forestry agencies;
``(5) State environmental quality agencies;
``(6) other State conservation agencies; and
``(7) nonprofit conservation organizations.

``SEC. 1237T. FUNDING.

``Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this subchapter $70,000,000
for each of the fiscal years 2008 through 2012.''.
(b) Conforming Amendments.--The Healthy Forests Restoration
Act of 2003 (16 U.S.C. 6501 et seq.) is amended--
(1) by striking title V (16 U.S.C. 6571 et seq.); and
(2) by redesignating title VI and section 601 (16 U.S.C.
6591) as title V and section 501, respectively.

CHAPTER 2--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM

Subchapter A--General Provisions

SEC. 2341. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.

Subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.) is amended by adding at the end the
following:

``CHAPTER 6--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM

``Subchapter A--Comprehensive Stewardship Incentives Program

``SEC. 1240T. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.

``(a) Establishment.--
``(1) In general.--The Secretary shall establish a
comprehensive stewardship incentives program (referred to in
this chapter as `CSIP') to--
``(A) promote coordinated efforts within conservation
programs in this chapter to address resources of concern, as
identified at the local level;
``(B) encourage the adoption of conservation practices,
activities and management measures; and
``(C) promote agricultural production and environmental
quality as compatible goals.
``(2) Means.--The Secretary shall carry out CSIP by--
``(A) identifying resources of concern at a local level as
described in subsection (b)(4);
``(B) entering into contracts with owners and operators of
agricultural and nonindustrial private forest land to--
``(i) address natural resource concerns;
``(ii) meet regulatory requirements; or
``(iii) achieve and maintain new conservation practices,
activities and management measures; and
``(C) providing technical assistance.
``(3) Programs.--CSIP shall consist of--
``(A) the conservation stewardship program; and
``(B) the environmental quality incentives program.
``(4) Definition of resource of concern.--In this chapter,
the term `resource of concern' means--
``(A) a specific resource concern on agricultural or
nonindustrial private forest land that--
``(i) is identified by the Secretary in accordance with
subsection (b)(4);
``(ii) represents a significant conservation concern in the
State to which agricultural activities are contributing; and
``(iii) is likely to be addressed successfully through the
implementation of conservation practices, activities, and
management measures by owners and operators of agricultural
and nonindustrial private forest land; or
``(B) a specific resource concern on agricultural or
nonindustrial private forest land that is the subject of
mandatory environmental requirements that apply to a producer
under Federal, State, or local law.
``(b) Administration.--
``(1) In general.--In carrying out CSIP, the Secretary
shall ensure that the conservation programs under this
chapter are managed in a coordinated manner.
``(2) Plans.--The Secretary shall, to the maximum extent
practicable, avoid duplication in the conservation plans
required under this chapter and comparable conservation and
regulatory programs, including a permit acquired under an
approved water or air quality regulatory program.
``(3) Tenant protection.--The Secretary shall provide
adequate safeguards to protect the interests of tenants and
sharecroppers, including provision for sharing, on a fair and

[[Page S14894]]

equitable basis, in payments under the programs established
under this chapter.
``(4) Identification of resources of concern.--
``(A) In general.--The Secretary shall ensure that
resources of concern are identified at the State level in
consultation with the State Technical Committee.
``(B) Limitation.--The Secretary shall identify not more
than 5 resources of concern in a particular watershed or
other appropriate region or area within a State.
``(5) Regulations.--Not later than 180 days after the date
of enactment of the Food and Energy Security Act of 2007 the
Secretary shall issue regulations to implement the programs
established under this chapter.

``Subchapter B--Conservation Stewardship Program

``SEC. 1240U. PURPOSES.

``The purpose of the conservation stewardship program is to
promote agricultural production and environmental quality as
compatible goals, and to optimize environmental benefits, by
assisting producers--
``(1) in promoting conservation and improving resources of
concern (including soil, water, and energy conservation,
soil, water, and air quality, biodiversity, fish, wildlife
and pollinator habitat, and related resources of concern, as
defined by the Secretary) by providing flexible assistance to
install, improve, and maintain conservation systems,
practices, activities, and management measures on
agricultural land (including cropland, grazing land, and
wetland) while sustaining production of food and fiber;
``(2) in making beneficial, cost-effective changes to
conservation systems, practices, activities, and management
measures carried out on agricultural and forest land relating
to--
``(A) cropping systems;
``(B) grazing management systems;
``(C) nutrient management associated with livestock and
crops;
``(D) forest management;
``(E) fuels management;
``(F) integrated pest management;
``(G) irrigation management;
``(H) invasive species management;
``(I) energy conservation; or
``(J) other management-intensive issues;
``(3) in complying with Federal, State, tribal, and local
requirements concerning--
``(A) soil, water, and air quality;
``(B) fish, wildlife, and pollinator habitat; and
``(C) surface water and groundwater conservation;
``(4) in avoiding, to the maximum extent practicable, the
need for resource and regulatory programs by protecting
resources of concern and meeting environmental quality
criteria established by Federal, State, tribal, and local
agencies; and
``(5) by encouraging, consolidating, and streamlining
conservation planning and regulatory compliance processes to
reduce administrative burdens on producers and the cost of
achieving environmental goals.

``SEC. 1240V. DEFINITIONS.

``In this chapter:
``(1) Comprehensive conservation plan.--The term
`comprehensive conservation plan' means a plan produced by
following the planning process outlined in the applicable
National Planning Procedures Handbook of the Department of
Agriculture with regard to all applicable resources of
concern.
``(2) Contract offer.--The term `contract offer' means an
application submitted by a producer that seeks to address 1
or more resources of concern with the assistance of the
program.
``(3) Enhancement payment.--The term `enhancement payment'
means a payment described in section 1240X(d).
``(4) Eligible land.--The term `eligible land' means land
described in section 1240X(b).
``(5) Livestock.--The term `livestock' means dairy cattle,
beef cattle, laying hens, broilers, turkeys, swine, sheep,
goats, ducks, ratites, shellfish, alpacas, bison, catfish,
managed pollinators, and such other animals and fish as are
determined by the Secretary.
``(6) Management intensity.--The term `management
intensity' means the degree, scope, and comprehensiveness of
conservation systems, practices, activities, or management
measures adopted by a producer to improve and sustain the
condition of a resource of concern.
``(7) Payment.--The term `payment' means financial
assistance provided to a producer under the program to
compensate the producers for incurred costs associated with
planning, materials, installation, labor, management,
maintenance, technical assistance, and training, the value of
risk, and income forgone by the producer, as applicable,
including--
``(A) enhancement payments;
``(B) CSP supplemental payments; and
``(C) other payments provided under this chapter.
``(8) Practice.--
``(A) In general.--The term `practice' means 1 or more
measures that improve or sustain a resource of concern.
``(B) Inclusions.--The term `practice' includes--
``(i) structural measures, vegetative measures, and land
management measures, as determined by the Secretary; and
``(ii) planning activities needed to improve or sustain a
resource of concern, including implementation of--

``(I) a comprehensive conservation plan; and
``(II) a comprehensive nutrient management plan.

``(9) Producer.--The term `producer' means an individual
who is an owner, operator, landlord, tenant, or sharecropper
that--
``(A) derives income from, and controls, the production or
management of an agricultural commodity, livestock, or
nonindustrial forest land regardless of ownership;
``(B) shares in the risk of producing any crop or
livestock; and
``(C)(i) is entitled to share in the crop or livestock
available for marketing from a farm (or would have shared had
the crop or livestock been produced); or
``(ii) is a custom feeder or contract grower.
``(10) Program.--The term `program' means the conservation
stewardship program established under this chapter.
``(11) Resource-conserving crop.--The term `resource-
conserving crop' means--
``(A) a perennial grass;
``(B) a legume grown for use as forage, seed for planting,
or green manure;
``(C) a legume-grass mixture;
``(D) a small grain grown in combination with a grass or
legume, whether interseeded or planted in succession;
``(E) a winter annual oilseed crop that provides soil
protection; and
``(F) such other plantings as the Secretary determines to
be appropriate for a particular area.
``(12) Resource-conserving crop rotation.--The term
`resource-conserving crop rotation' means a crop rotation
that--
``(A) includes at least 1 resource-conserving crop;
``(B) reduces erosion;
``(C) improves soil fertility and tilth;
``(D) interrupts pest cycles; and
``(E) in applicable areas, reduces depletion of soil
moisture (or otherwise reduces the need for irrigation).
``(13) Resource-specific indices.--The term `resource-
specific indices' means indices developed by the Secretary
that measure or estimate the expected level of resource and
environmental outcomes of the conservation systems,
practices, activities, and management measures employed by a
producer to address a resource of concern on an agricultural
operation.
``(14) Stewardship contract.--The term `stewardship
contract' means a contract entered into under the
conservation stewardship program to carry out the programs
and activities described in this chapter.
``(15) Stewardship threshold.--The term `stewardship
threshold' means the level of natural resource conservation
and environmental management required, as determined by the
Secretary--
``(A) to maintain, conserve, and improve the quality or
quantity of a resource of concern reflecting at a minimum,
the resource management system quality criteria described in
the handbooks of the Natural Resource Conservation Service,
if available and appropriate; or
``(B) in the case of a resource of concern that is the
subject of a Federal, State, or local regulatory requirement,
to meet the higher of--
``(i) the standards that are established by the requirement
for the resource of concern; or
``(ii) standards reflecting the resource management system
quality criteria described in the handbooks of the Natural
Resource Conservation Service, if available and appropriate.

``SEC. 1240W. ESTABLISHMENT OF PROGRAM.

``The Secretary shall establish and, for each of fiscal
years 2008 through 2012, carry out a conservation stewardship
program to assist producers in improving environmental
quality by addressing resources of concern in a comprehensive
manner through--
``(1) the addition of conservation systems, practices,
activities, and management measures; and
``(2) the active management, maintenance, and improvement
of existing, and adoption of new, conservation systems,
practices, activities, and management measures.

``SEC. 1240X. ELIGIBILITY.

``(a) Eligible Producers.--
``(1) General program eligibility.--To be eligible to
participate in the conservation stewardship program, a
producer shall--
``(A) submit to the Secretary for approval a contract offer
to participate in the program;
``(B) agree to receive technical services, either directly
from the Secretary or, at the option of the producer, from an
approved third party under section 1242(b)(3);
``(C) enter into a contract with the Secretary, as
described in subsection (c); and
``(D) demonstrate to the satisfaction of the Secretary that
the producer--
``(i) is addressing resources of concern relating to both
soil and water to at least the stewardship threshold; and
``(ii) is adequately addressing other resources of concern
applicable to the agricultural operation, as determined by
the Secretary.
``(b) Eligible Land.--
``(1) In general.--Except as provided in paragraph (2),
private agricultural land that is eligible for enrollment in
the program includes--
``(A) cropland (including vineyards and orchards);
``(B) pasture land;
``(C) rangeland;

[[Page S14895]]

``(D) other agricultural land used for the production of
livestock;
``(E) land used for agroforestry;
``(F) land used for aquaculture;
``(G) riparian areas adjacent to otherwise eligible land;
``(H) land under the jurisdiction of an Indian tribe (as
determined by the Secretary);
``(I) public land, if failure to enroll the land in the
program would defeat the purposes of the program on private
land that is an integral part of the operation enrolled or
offered to be enrolled in the program by the producer;
``(J) State and school owned land that is under the
effective control of a producer; and
``(K) other agricultural land (including cropped woodland
and marshes) that the Secretary determines is vulnerable to
serious threats to resources of concern.
``(2) Exclusions.--
``(A) Land enrolled in other conservation programs.--The
following land is not eligible for enrollment in the program:
``(i) Land enrolled in the conservation reserve program
under subchapter B of chapter 1.
``(ii) Land enrolled in the wetlands reserve program
established under subchapter C of chapter 1.
``(B) Conversion to cropland.--With regard to the program,
land used for crop production after May 13, 2002, that had
not been planted, considered to be planted, or devoted to
crop production for at least 4 of the 6 years preceding that
date (except for land enrolled in the conservation reserve
program or that has been maintained using long-term crop
rotation practices, as determined by the Secretary) shall not
be the basis for any payment under the program.
``(3) Economic uses.--The Secretary shall not restrict
economic uses of land covered by a program contract
(including buffers and other partial field conservation
practices) that comply with the agreement and comprehensive
conservation plan, or other applicable law.
``(c) Contract Requirements and Provisions.--
``(1) In general.--After a determination by the Secretary
that a producer is eligible to participate in the program,
and on acceptance of the contract offer of the producer, the
Secretary shall enter into a contract with the producer to
enroll the land to be covered by the contract.
``(2) Agricultural operations.--All acres of all
agricultural operations, whether or not contiguous, that are
under the effective control of a producer within a particular
watershed or region (or in a contiguous watershed or region)
of a State and constitute a cohesive management unit, as
determined by the Secretary, at the time the producer enters
into a stewardship contract shall be covered by the
stewardship contract, other than land the producer has
enrolled in the conservation reserve program or the wetlands
reserve program.
``(3) Resources of concern.--Each stewardship contract
shall, at a minimum, meet or exceed the stewardship threshold
for at least 1 additional resource of concern by the end of
the stewardship contract through--
``(A) the installation and adoption of additional
conservation systems, practices, activities, or management
measures; and
``(B) the active management and improvement of conservation
systems, practices, activities, and management measures in
place at the operation of the producer at the time the
contract offer is accepted by the Secretary.
``(4) Terms.--A contract entered into under paragraph (1)
shall--
``(A) describe the land covered by the contract;
``(B) describe the practices or technical services from an
approved third party, to be implemented on eligible land of
the producer;
``(C) state the amount of payments (determined in
accordance with subsection (f)) the Secretary agrees to make
to the producer each year of the contract;
``(D) describe existing conservation systems, practices,
activities, and management measures the producer agrees to
maintain, manage, and improve during the term of the
stewardship contract in order to meet and exceed the
appropriate stewardship threshold for the resources of
concern;
``(E) describe the additional conservation systems,
practices, activities, and management measures the producer
agrees to plan, install, maintain, and manage during the term
of the stewardship contract in order to meet and exceed the
appropriate stewardship threshold for the appropriate
resource or resources of concern;
``(F) if applicable, describe the on-farm conservation
research, demonstration, training, or pilot project
activities the producer agrees to undertake during the term
of the contract;
``(G) if applicable, describe the on-farm monitoring and
evaluation activities the producer agrees to undertake during
the term of the contract relating to--
``(i) a comprehensive conservation plan; or
``(ii) conservation systems, practices, activities, and
management measures; and
``(H) include such other provisions as the Secretary
determines are necessary to ensure that the purposes of the
program are achieved.
``(5) On-farm research, demonstration, training, or pilot
projects.--The Secretary may approve a stewardship contract
that includes--
``(A) on-farm conservation research, demonstration, and
training activities; and
``(B) pilot projects for evaluation of new technologies or
innovative conservation practices.
``(6) Duration.--A contract under this chapter shall have a
term of 5 years.
``(7) Evaluation of contract offers.--In evaluating
contract offers made by producers to enter into contracts
under the program, the Secretary shall--
``(A) prioritize applications based on--
``(i) the level of conservation treatment on all resources
of concern at the time of application, based on the initial
scores received by the producer on applicable resource-
specific indices;
``(ii) the degree to which the proposed conservation
treatment effectively increases the level of performance on
applicable resource-specific indices or the level of
management intensity with which the producer addresses the
designated resources of concern;
``(iii) the extent to which all resources of concern will
exceed the stewardship threshold level by the end of the
contract period;
``(iv) the extent to which resources of concern in addition
to resources of concern will be addressed to meet and exceed
the stewardship threshold level by the end of the contract
period;
``(v) the extent to which the producer proposes to address
the goals and objectives of State, regional, and national
fish and wildlife conservation plans and initiatives;
``(vi) whether the proposed conservation treatment reflects
the multiple natural resource and environmental benefits of
conservation-based farming systems, including resource-
conserving crop rotations, advanced integrated pest
management, and managed rotational grazing; and
``(vii) whether the application includes land transitioning
out of the conservation reserve program, on the condition
that the land is maintained in a grass-based system and would
help meet habitat needs for fish and wildlife;
``(B) evaluate the extent to which the anticipated
environmental benefits from the contract would be provided in
the most cost-effective manner, relative to other similarly
beneficial contract offers;
``(C) reward higher levels of environmental performance and
management intensity;
``(D) develop criteria for use in evaluating applications
that will ensure that national, State, and local conservation
priorities are effectively addressed;
``(E) evaluate the extent to which the environmental
benefits expected to result from the contract complement
other conservation efforts in the watershed or region; and
``(F) provide opportunities to agricultural producers that
have not previously participated in Federal conservation
programs, including beginning farmers and ranchers and
socially disadvantaged farmers and ranchers.
``(8) Termination of contracts.--
``(A) In general.--
``(i) Voluntary termination.--The producer may terminate a
contract entered into with the Secretary under this chapter
if the Secretary determines that the termination is in the
public interest.
``(ii) Involuntary termination.--The Secretary may
terminate a contract under this chapter if the Secretary
determines that the producer violated the contract.
``(B) Repayment.--If a contract is terminated, the
Secretary may--
``(i) allow the producer to retain payments already
received under the contract if--

``(I) the producer has complied with the terms and
conditions of the contract; and
``(II) the Secretary determines that allowing the producer
to retain the payments is consistent with the purposes of the
program;

``(ii) require repayment, in whole or in part, of payments
already received; and
``(iii) assess liquidated damages, if doing so is
consistent with the purposes of the program.
``(C) Transfer or change of interest in land subject to a
contract.--
``(i) In general.--Except as provided in clause (ii), the
transfer, or change in the interest, of a producer in land
subject to a contract under this chapter shall result in the
termination of the contract.
``(ii) Transfer of duties and rights.--Clause (i) shall not
apply if--

``(I) within a reasonable period of time (as determined by
the Secretary) after the date of the transfer or change in
the interest in land, the transferee of the land provides
written notice to the Secretary that all duties and rights
under the contract have been transferred to, and assumed by,
the transferee; and
``(II) the transferee meets the eligibility requirements of
this subchapter.

``(9) Modification.--
``(A) In general.--The Secretary may allow a producer to
modify a contract before the expiration of the contract if
the Secretary determines that failure to modify the contract
would significantly interfere with achieving the purposes of
the program.
``(B) Participation in other programs.--If appropriate
payment reductions and other adjustments (as determined by
the Secretary) are made to the contract of a producer, the
producer may remove land enrolled in the conservation
stewardship program for enrollment in the conservation
reserve program, wetlands reserve program, or other
conservation programs, as determined by the Secretary.
``(C) Changes in size of operation.--The Secretary shall
allow a producer to modify a stewardship contract before the
expiration of the stewardship contract if the agricultural

[[Page S14896]]

operation of the producer has reduced or enlarged in size to
reflect the new acreage total.
``(D) New acreage.--With respect to acreage added to the
agricultural operation of a producer after entering into a
stewardship contract, a producer may elect to not add the
acreage to the stewardship contract during the term of the
current stewardship contract, except that such additional
acreage shall be included in any contract renewal.
``(E) Changes in production.--The Secretary shall allow a
producer to modify a stewardship contract before the
expiration of the stewardship contract if--
``(i) the producer has a change in production that requires
a change to scheduled conservation practices and activities;
and
``(ii) the Secretary determines that--

``(I) all relevant conservation standards will be
maintained or improved; and
``(II) there is no increase in total payment under the
stewardship contract.

``(10) Effect of noncompliance due to circumstances beyond
the control of producer.--The Secretary shall include in each
contract a provision to ensure that a producer shall not be
considered in violation of the contract for failure to comply
with the contract due to circumstances beyond the control of
the producer, including a disaster or related weather, pest,
disease, or other similar condition, as determined by the
Secretary.
``(11) Coordination with organic certification.--
``(A) In general.--Not later than 180 days after the date
of enactment of this chapter, the Secretary shall establish a
transparent and producer-friendly means by which producers
may coordinate and simultaneously certify eligibility under--
``(i) a stewardship contract; and
``(ii) the national organic production program established
under the Organic Foods Production Act of 1990 (7 U.S.C. 6501
et seq.).
``(B) Programmatic considerations.--The Secretary shall
identify and implement programmatic considerations, including
conservation systems, practices, activities, and management
measures, technical assistance, evaluation of contract
offers, enhancement payments, on-farm research,
demonstration, training, and pilot projects, and data
management, through which to maximize the purposes of the
program by enrolling producers who are certified under the
national organic production program established under the
Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).
``(12) Renewal.--At the end of a stewardship contract of a
producer, the Secretary shall allow the producer to renew the
stewardship contract for an additional 5-year period if the
producer--
``(A) demonstrates compliance with the terms of the
existing contract, including a demonstration that the
producer has complied with the schedule for the
implementation of additional conservation systems, practices,
activities, and management measures included in the
stewardship contract and is addressing the designated
resources of concern to a level that meets and exceeds the
stewardship threshold; and
``(B) agrees to implement and maintain such additional
conservation practices and activities as the Secretary
determines to be necessary and feasible to achieve higher
levels of performance on applicable resource-specific indices
or higher levels of management intensity with which the
producer addresses the resources of concern.
``(d) Enhancement Payments.--
``(1) Lower payments.--In evaluating applications and
making payments under this chapter, the Secretary shall not
assign a higher priority to any application because the
applicant is willing to accept a lower payment than the
applicant would otherwise be entitled to receive.
``(2) Evaluation of contract offers.--Nothing in this
subsection relieves the Secretary of the obligation, in
evaluating applications for payments, to evaluate and
prioritize the applications in accordance with subsection
(e)(4)), including the requirement for contracts to be cost-
effective.
``(3) Lowest-cost alternatives.--In determining the
eligibility of a conservation system, practice, activity, or
management measure for a payment under this subsection, the
Secretary shall require, to the maximum extent practicable,
that the lowest-cost alternatives be used to achieve the
purposes of the contract, as determined by the Secretary.
``(4) Method of payment.--Payments under this subsection
shall be made in such amounts and in accordance with such
time schedule as is agreed on and specified in the contract.
``(5) Activities qualifying for payments.--
``(A) In general.--To receive an enhancement payment under
this subsection, a producer shall agree--
``(i) to implement additional conservation systems,
practices, activities, and management measures and maintain,
manage, and improve existing conservation systems, practices,
activities, and management measures in order to maintain and
improve the level of performance of the producer, as
determined by applicable resource-specific indices, or the
level of management intensity of the producer with respect to
resources of concern in order to meet and exceed the
stewardship threshold for resources of concern; and
``(ii) to maintain, and make available to the Secretary at
such times as the Secretary may request, appropriate records
demonstrating the effective and timely implementation of the
stewardship contract.
``(B) Compensation.--Subject to subparagraph (C), the
Secretary shall provide an enhancement payment to a producer
to compensate the producer for--
``(i) ongoing implementation, active management, and
maintenance of conservation systems, practices, activities,
and management measures in place on the operation of the
producer at the time the contract offer of the producer is
accepted; and
``(ii) installation and adoption of additional conservation
systems, practices, activities, and management measures or
improvements to conservation systems, practices, activities,
and management measures in place on the operation of the
producer at the time the contract offer is accepted.
``(C) Adjustments.--A payment under subparagraph (B) shall
be adjusted to reflect--
``(i) management intensity; or
``(ii) resource-specific indices, in a case in which those
indices have been developed and implemented.
``(D) On-farm research, demonstration, training, and pilot
project payments.--The Secretary shall provide an additional
enhancement payment to a producer who opts to participate as
part of the stewardship contract in an on-farm conservation
research, demonstration, training or pilot project certified
by the Secretary to compensate the producer for the cost of
participation.
``(E) Restriction on structural practices.--For purposes of
the conservation stewardship program, structural practices
shall be eligible for payment only if the structural
practices are integrated with and essential to support site-
specific management activities that are part of an
implemented management system designed to address 1 or more
resources of concern.
``(6) Exclusions.--An enhancement payment to a producer
under this subsection shall not be provided for the design,
construction, or maintenance of animal waste storage or
treatment facilities or associated waste transport or
transfer devices for animal feeding operations.
``(7) Timing of payments.--
``(A) In general.--The Secretary shall make enhancement
payments as soon as practicable after October 1 of each
fiscal year.
``(B) Additional systems, practices, activities, and
management measures.--The Secretary shall make enhancement
payments to compensate producers for installation and
adoption of additional conservation systems, practices,
activities, and management measures or improvements to
existing conservation systems, practices, activities, and
management measures at the time at which the systems,
practices, activities, and measures or improvements are
installed and adopted.
``(8) Research, demonstration, training, and pilot project
payment limitations.--An enhancement payment for research,
demonstration, training and pilot projects may not exceed
$25,000 for each 5-year term of the stewardship contract
(excluding funding arrangements with federally recognized
Indian tribes or Alaska Native Corporations).
``(e) CSP Supplemental Payments.--
``(1) In general.--The Secretary shall provide additional
payments to producers that, in participating in the
conservation stewardship program, agree to adopt resource-
conserving crop rotations to achieve optimal crop rotations
as appropriate for the land of the producers.
``(2) Optimal crop rotations.--The Secretary shall
determine whether a resource-conserving crop rotation is an
optimal crop rotation eligible for additional payments under
paragraph (1), based on whether the resource-conserving crop
rotation is designed to optimize natural resource
conservation and production benefits, including--
``(A) increased efficiencies in pesticide, fertilizer, and
energy use; and
``(B) improved disease management.
``(3) Eligibility.--To be eligible to receive a payment
described in paragraph (1), a producer shall agree to adopt
and maintain optimal resource-conserving crop rotations for
the term of the contract.
``(4) Rate.--The Secretary shall provide payments under
this subsection at a rate that encourages producers to adopt
optimal resource-conserving crop rotations.
``(f) Limitation on Payments.--Subject to section 1244(i),
an individual or entity may not receive, directly or
indirectly, payments under this subchapter that, in the
aggregate, exceed $240,000 for all contracts entered into
under the conservation stewardship program during any 6-year
period.
``(g) Duties of Producers.--In order to receive assistance
under this chapter, a producer shall--
``(1) implement the terms of the contract approved by the
Secretary;
``(2) not conduct any practices on the covered land that
would defeat the purposes of the program;
``(3) on the violation of a term or condition of the
contract at any time the producer has control of the land--
``(A) if the Secretary determines that the violation
warrants termination of the contract--
``(i) forfeit all rights to receive payments under the
contract; and
``(ii) refund to the Secretary all or a portion of the
payments received by the owner or operator under the
contract, including any interest on the payments or
liquidated damages, as determined by the Secretary;

[[Page S14897]]

``(B) if the Secretary determines that the violation does
not warrant termination of the contract, refund to the
Secretary, or accept adjustments to, the payments provided to
the owner or operator, as the Secretary determines to be
appropriate; or
``(C) comply with a combination of the remedies authorized
by subparagraphs (A) and (B), as the Secretary determines to
be appropriate;
``(4) on the transfer of the right and interest of the
producer in land subject to the contract (unless the
transferee of the right and interest agrees with the
Secretary to assume all obligations of the contract) refund
any cost-share payments, incentive payments, and stewardship
payments received under the program, as determined by the
Secretary;
``(5) supply information as required by the Secretary to
determine compliance with the contract and requirements of
the program; and
``(6) comply with such additional provisions as the
Secretary determines are necessary to carry out the contract.
``(h) Duties of Secretary.--
``(1) In general.--To achieve the conservation and
environmental goals of a contract under this chapter, to the
extent appropriate, the Secretary shall--
``(A) provide to a producer information and training to aid
in implementation of the conservation systems, practices,
activities, and management measures covered by the contract;
``(B) develop agreements with governmental agencies,
nonprofit organizations, and private entities to facilitate
the provision of technical and administrative assistance and
services;
``(C) make the program available to eligible producers on a
continuous enrollment basis;
``(D) when identifying biodiversity or fish and wildlife as
a resource of concern for a particular watershed or other
appropriate region or area within a State, ensure that the
identification--
``(i) is specific with respect to particular species or
habitat; and
``(ii) would further the goals and objectives of State,
regional, and national fish and wildlife conservation plans
and initiatives;
``(E) provide technical assistance and payments for each of
fiscal years 2008 through 2012;
``(F) maintain contract and payment data relating to the
conservation stewardship program in a manner that provides
detailed and segmented data and allows for quantification of
the amount of payments made to producers for--
``(i) the installation and adoption of additional
conservation systems, practices, activities, or management
measures;
``(ii) participating in research, demonstration, training,
and pilot projects;
``(iii) the development, monitoring, and evaluation of
comprehensive conservation plans; and
``(iv) the maintenance and active management of
conservation systems, practices, activities, and management
measures, and the improvement of conservation practices, in
place on the operation of the producer on the date on which
the contract offer is accepted by the Secretary;
``(G) develop resource-specific indices for purposes of
determining eligibility and payments; and
``(H) establish and publicize design protocols and
application procedures for individual producer and
collaborative on-farm research, demonstration, training, and
pilot projects.
``(2) Specialty crop producers.--The Secretary shall ensure
that outreach and technical assistance are available and
program specifications are appropriate to enable specialty
crop producers to participate in the conservation stewardship
program.
``(3) Additional requirements.--For the period beginning on
the date of enactment of this chapter and ending on September
30, 2017, with respect to eligible land of producers
participating in the program, the Secretary shall--
``(A) to the maximum extent practicable, enroll an
additional 13,273,000 acres for each fiscal year, but not to
exceed 79,638,000 acres;
``(B) implement the program nationwide to make the program
available to producers meeting the eligibility requirements
in each county;
``(C) to the maximum extent practicable, manage the program
to achieve a national average annual cost per acre of $19,
which shall include the costs of all financial assistance,
technical assistance, and any other expenses associated with
enrollment or participation in the program of those acres;
and
``(D) establish a minimum contract value, to ensure equity
for small acreage farms, including specialty crop and organic
producers.
``(i) Acre Allocation.--
``(1) Initial allocations to states.--In making allocations
of acres to States to enroll in the conservation stewardship
program, to the maximum extent practicable, the Secretary
shall allocate to each State a number of acres equal to the
proportion that--
``(A) the number of acres of eligible land in the State;
bears to
``(B) the number of acres of eligible land in all States.
``(2) Minimum acre allocation.--Of the acres allocated for
each fiscal year, no State shall have allocated fewer than
the lesser of--
``(A) 20,000 acres; or
``(B) 2.2 percent of the number of acres of eligible land
in the State.
``(3) Reallocation to states.--For any fiscal year, acres
not obligated under this subsection by a date determined by
the Secretary through rulemaking shall be reallocated to each
State that--
``(A) has obligated 100 percent of the initial allocation
of the State; and
``(B) requests additional acres.

``SEC. 1240Y. REGULATIONS.

``Not later than 180 days after the date of enactment of
this chapter, the Secretary shall promulgate such regulations
as are necessary to carry out the program, including
regulations that--
``(1) provide for adequate safeguards to protect the
interests of tenants and sharecroppers, including provision
for sharing payments, on a fair and equitable basis;
``(2) prescribe such other rules as the Secretary
determines to be necessary to ensure a fair and reasonable
application of the program; and
``(3) to the maximum extent practicable, eliminate
duplication of planning activities under the program and
comparable conservation programs.''.

Subchapter B--Environmental Quality Incentives Program

SEC. 2351. PURPOSES.

Section 1240 of the Food Security Act of 1985 (16 U.S.C.
3839aa) is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
forest management,'' after ``agricultural production'';
(2) in paragraph (3)--
(A) by inserting ``, forest land,'' after ``grazing land'';
and
(B) by inserting ``pollinators,'' after ``wetland),''; and
(3) in paragraph (4)--
(A) by inserting ``fuels management, forest management,''
after ``grazing management,''; and
(B) by inserting ``and forested'' after ``agricultural''.

SEC. 2352. DEFINITIONS.

(a) Eligible Land.--Section 1240A(2) of the Food Security
Act of 1985 (16 U.S.C. 3838aa-1(2)) is amended--
(1) in subparagraph (A), by striking ``commodities or
livestock'' and inserting ``commodities, livestock, or
forest-related products''; and
(2) in subparagraph (B)--
(A) by striking clause (v) and inserting the following:
``(v) nonindustrial private forest land;'';
(B) by redesignating clause (vi) as clause (vii); and
(C) by inserting after clause (v) the following:
``(vi) land used for pond-raised aquaculture production;
and''.
(b) Land Management Practice.--Section 1240A(3) of the Food
Security Act of 1985 (16 U.S.C. 3838aa-1(3)) is amended--
(1) by striking ``The term'' and inserting the following:
``(A) In general.--The term'';
(2) by inserting ``fuels management, forest management,''
after ``grazing management''; and
(3) by adding at the end the following:
``(B) Forest management.--For purposes of subparagraph (A),
forest management practices may include activities that the
Secretary determines are necessary--
``(i) to improve water, soil, or air quality;
``(ii) to restore forest biodiversity;
``(iii) to control invasive species;
``(iv) to improve wildlife habitat; or
``(v) to achieve conservation priorities identified in an
applicable forest resource assessment and plan.''.
(c) Practice.--Section 1240A(5) of the Food Security Act of
1985 (16 U.S.C. 3838aa-1(5)) is amended by inserting
``conservation planning practices,'' after ``land management
practices,''.
(d) Custom Feeding Business.--Section 1240A of the Food
Security Act of 1985 (16 U.S.C. 3838aa-1) is amended--
(1) by redesignating paragraph (6) as paragraph (7); and
(2) by inserting after paragraph (5) the following:
``(6) Producer.--The term `producer' includes a custom
feeding business and a contract grower or finisher.''.
(e) Structural Practice.--Paragraph (7)(A) of section 1240A
of the Food Security Act of 1985 (16 U.S.C. 3838aa-1) (as
redesignated by subsection (d)(1)) is amended by inserting
``firebreak, fuelbreak,'' after ``constructed wetland,''.

SEC. 2353. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL
QUALITY INCENTIVES PROGRAM.

(a) Establishment.--Section 1240B(a) of the Food Security
Act of 1985 (16 U.S.C. 3839aa-2(a)) is amended--
(1) in paragraph (1), by striking ``2010'' and inserting
``2012''; and
(2) in paragraph (2)(B), by inserting ``conservation plan
or'' after ``develops a''.
(b) Practices and Term.--Section 1240B(b) of the Food
Security Act of 1985 (16 U.S.C. 3839aa-2(b)) is amended--
(1) in paragraph (1), by inserting ``conservation planning
practices,'' after ``land management practices,''; and
(2) in paragraph (2)(B), by striking ``10'' and inserting
``5''.
(c) Establishment and Administration.--Section 1240B of the
Food Security Act of 1985 (16 U.S.C. 3839aa-2) is amended--
(1) by striking subsection (c);

[[Page S14898]]

(2) in subsection (d)--
(A) in paragraph (2), by striking subparagraph (A) and
inserting the following:
``(A) Socially disadvantaged farmers or ranchers and
beginning farmers or ranchers.--
``(i) In general.--In the case of a producer that is a
socially disadvantaged farmer or rancher or a beginning
farmer or rancher, the Secretary may increase the amount that
would otherwise be provided to the producer under paragraph
(1) to--

``(I) not more than 90 percent; and
``(II) not less than 15 percent above the otherwise
applicable rate.

``(ii) Advance payments.--Not more than 30 percent of the
amount determined under clause (i) may be provided in advance
for the purpose of purchasing materials or contracting.'';
(B) by striking paragraph (3) and inserting the following:
``(3) Other payments.--A producer shall not be eligible for
cost-share payments for practices on eligible land under the
program if the producer receives cost-share payments or other
benefits for the same practice on the same land under another
program.''; and
(C) by adding at the end the following:
``(4) Guaranteed loan eligibility.--Notwithstanding section
333(1) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983(1)), with respect to the cost of a loan, a
producer with an application that meets the standards for a
cost-share payment under this subsection but that is not
approved by the Secretary shall receive priority
consideration for a guaranteed loan under section 304 of that
Act (7 U.S.C. 1924).'';
(3) in subsection (e), by striking paragraph (2) and
inserting the following:
``(2) Special rule.--In determining the amount and rate of
incentive payments, the Secretary may accord great
significance to a practice that promotes residue, nutrient,
air quality, pest, or predator deterrence, including
practices to deter predator species protected under the
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), gray
wolves, grizzly bears, and black bears.'';
(4) in subsection (g), by striking ``2007'' and inserting
``2012'';
(5) by redesignating subsections (d) through (h) as
subsections (c) through (g), respectively; and
(6) by adding at the end the following:
``(h) Water Conservation or Irrigation Efficiency
Practice.--
``(1) In general.--The Secretary may provide technical
assistance, cost-share payments, and incentive payments to a
producer for a water conservation or irrigation practice.
``(2) Priority.--In providing assistance and payments to
producers for a water conservation or irrigation practice,
the Secretary may give priority to applications in which--
``(A) there is an improvement in surface flows or a
reduction in the use of groundwater in the agricultural
operation of the producer, consistent with the law of the
State in which the operation of the producer is located; or
``(B) the producer agrees not to use any associated water
savings to bring new land, other than incidental land needed
for efficient operations, under irrigated production, unless
the producer is participating in a watershed-wide project
that will effectively conserve water, as determined by the
Secretary.''.

SEC. 2354. EVALUATION OF OFFERS AND PAYMENTS.

Section 1240C of the Food Security Act of 1985 (16 U.S.C.
3839aa-3) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) improve conservation practices in place on the
operation of the producer at the time the contract offer is
accepted; and''.

SEC. 2355. DUTIES OF PRODUCERS.

Section 1240D(2) of the Food Security Act of 1985 (16
U.S.C. 3839aa-4(2)) is amended by striking ``farm or ranch''
and inserting ``farm, ranch, or forest land''.

SEC. 2356. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

Section 1240E(a) of the Food Security Act of 1985 (16
U.S.C. 3839aa-5(a)) is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
or an entity described in section 1244(e) acting on behalf of
producers,'' after ``producer'';
(2) in paragraph (2), by striking ``and'' after the
semicolon at the end;
(3) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(4) in the case of forest land, is consistent with a
forest management plan that is approved by the Secretary,
which may include--
``(A) a forest stewardship plan described in section 5 of
the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103a);
``(B) another practice plan approved by the State forester;
or
``(C) another plan determined appropriate by the
Secretary.''.

SEC. 2357. LIMITATION ON PAYMENTS.

Section 1240G of the Food Security Act of 1985 (16 U.S.C.
3839aa-7) is amended--
(1) by striking ``An individual'' and inserting ``(a) In
General.--Subject to section 1244(i), an individual''; and
(2) by adding at the end the following:
``(b) Producer Organizations.--In the case of an entity
described in section 1244(e), the limitation established
under this section shall apply to each participating producer
and not to the entity described in section 1244(e).''.

SEC. 2358. CONSERVATION INNOVATION GRANTS.

Section 1240H of the Food Security Act of 1985 (16 U.S.C.
3839aa-8) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--The Secretary may pay the cost of
competitive grants that leverage Federal investment in
environmental enhancement and protection through the program
by--
``(1) stimulating the development of innovative
technologies; and
``(2) transferring those technologies to agricultural and
nonindustrial private forest land in production.''; and
(2) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2)(A) implement innovative conservation technologies,
such as market systems for pollution reduction and practices
for the storing of carbon in the soil;
``(B) provide a mechanism for transferring those
technologies to agricultural and nonindustrial private forest
land in production; and
``(C) increase environmental and resource conservation
benefits through specialty crop production; and''.

SEC. 2359. GROUND AND SURFACE WATER CONSERVATION.

Section 1240I of the Food Security Act of 1985 (16 U.S.C.
3839aa-9) is amended to read as follows:

``SEC. 1240I. GROUND AND SURFACE WATER CONSERVATION.

``(a) Purposes.--The purposes of this section are--
``(1) to improve irrigation systems;
``(2) to enhance irrigation efficiencies;
``(3) to assist producers in converting to--
``(A) the production of less water-intensive agricultural
commodities; or
``(B) dryland farming;
``(4) to improve water storage capabilities through
measures such as water banking and groundwater recharge and
other related activities;
``(5) to mitigate the effects of drought;
``(6) to enhance fish and wildlife habitat associated with
irrigation systems, including pivot corners and areas with
irregular boundaries;
``(7) to conduct resource condition assessment and modeling
relating to water conservation;
``(8) to assist producers in developing water conservation
plans; and
``(9) to promote any other measures that improve
groundwater and surface water conservation, as determined by
the Secretary.
``(b) Definitions.--In this section:
``(1) Partner.--
``(A) In general.--The term `partner' means an entity that
enters into a partnership agreement with the Secretary to
carry out water conservation activities on a regional scale.
``(B) Inclusions.--The term `partner' includes--
``(i) an agricultural or silvicultural producer association
or other group of producers;
``(ii) a State or unit of local government, including an
irrigation company and a water district and canal company; or
``(iii) a federally recognized Indian tribe.
``(2) Partnership agreement.--The term `partnership
agreement' means a cooperative or contribution agreement
entered into between the Secretary and a partner.
``(3) Regional water conservation activity.--The term
`regional water conservation activity' means a water
conservation activity carried out on a regional or other
appropriate level, as determined by the Secretary, to benefit
agricultural land.
``(c) Establishment.--In carrying out the program under
this chapter, the Secretary shall promote ground and surface
water conservation--
``(1) by providing cost-share assistance and incentive
payments to producers to carry out water conservation
activities with respect to the agricultural operations of
producers; and
``(2) by working cooperatively with partners, in accordance
with subsection (d), on a regional level to benefit working
agricultural land.
``(d) Partnership Agreements.--
``(1) In general.--The Secretary may enter into partnership
agreements to meet the objectives of the program under this
chapter.
``(2) Applications.--An application to the Secretary to
enter into an agreement under paragraph (1) shall include--
``(A) a description of--
``(i) the geographical area;
``(ii) the current conditions;
``(iii) the water conservation objectives to be achieved;
and
``(iv) the expected level of participation by producers;
``(B) a description of the partners collaborating to
achieve the project objectives and the roles,
responsibilities, and capabilities of each partner;
``(C) a description of--
``(i) the program resources requested from the Secretary;
and
``(ii) the non-Federal resources that will be leveraged by
the Federal contribution; and
``(D) other such elements as the Secretary considers
necessary to adequately evaluate and competitively select
applications for award.

[[Page S14899]]

``(e) Duties of the Secretary.--
``(1) Water conservation activities by producers.--The
Secretary shall select water conservation projects proposed
by producers according to applicable requirements under the
environmental quality incentives program established under
this chapter.
``(2) Regional water conservation activities.--
``(A) Competitive process.--The Secretary shall conduct a
competitive process to select the regional water conservation
activities for funding under this section.
``(B) Public availability.--In carrying out the process,
the Secretary shall make public the criteria used in
evaluating applications.
``(C) Priority.--The Secretary may give a higher priority
to proposals from partners that--
``(i) include high percentages of agricultural land and
producers in a region or other appropriate area;
``(ii) result in high levels of on-the-ground water
conservation activities;
``(iii) significantly enhance agricultural activity and
related economic development;
``(iv) allow for monitoring and evaluation; and
``(v) assist producers in meeting Federal, State and local
regulatory requirements.
``(D) Administration.--The Secretary shall ensure that
resources made available for regional water conservation
activities under this section are delivered in accordance
with applicable program rules.
``(f) Eastern Snake Plain Aquifer Pilot.--
``(1) In general.--Of amounts made available under
subsection (h), the Secretary shall reserve $2,000,000, to
remain available until expended, for regional water
conservation activities in the Eastern Snake Aquifer Region.
``(2) Approval.--The Secretary may approve regional water
conservation activities under this subsection that address,
in whole or in part, water quality issues.
``(g) Consistency With State Law.--Any water conservation
activity conducted under this section shall be consistent
with applicable State water law.
``(h) Funding.--
``(1) Availability of funds.--Of the funds of the Commodity
Credit Corporation, in addition to amounts made available
under section 1241(a) to carry out this chapter, the
Secretary shall use $60,000,000 for each of fiscal years 2008
through 2012.
``(2) Limitation.--None of the funds made available for
regional water conservation activities under this section may
be used to pay for the administrative expenses of
partners.''.

SEC. 2360. ORGANIC CONVERSION.

The Food Security Act of 1985 is amended by inserting after
section 1240I (16 U.S.C. 3839aa-9) the following:

``SEC. 1240J. ORGANIC CONVERSION.

``(a) Definitions.--In this section:
``(1) National organic program.--The term `national organic
program' means the national organic program established under
the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et.
seq.).
``(2) Organic system plan.--The term `organic system plan'
means an organic plan approved under the national organic
program.
``(b) Establishment.--Under the environmental quality
incentives program established under this chapter, not later
than 180 days after the date of enactment of this section,
the Secretary shall establish a program under which the
Secretary shall provide cost-share and incentive payments to
producers to promote conservation practices and activities
for production systems undergoing conversion on some or all
of the operations of the producer to organic production in
accordance with the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et seq.).
``(c) Organic Conversion Cost-Share and Incentive
Payments.--The Secretary shall provide organic conversion
cost-share and incentive payments to producers that--
``(1) are converting to organic production systems,
including producers with existing certified organic
production for conversion to organic production of land and
livestock not previously certified organic; and
``(2) enter into contracts with the Secretary for eligible
practices and activities described in subsection (d).
``(d) Eligible Practices and Activities.--Producers may use
funds made available under subsection (c) for--
``(1) practices and activities during conversion to
certified organic production that--
``(A) are required by, or consistent with, an approved
organic system plan; and
``(B) protect resources of concern, as identified by the
Secretary;
``(2) technical services, including the costs of developing
an approved organic system plan; and
``(3) such other measures as the Secretary determines to be
appropriate and consistent with an approved organic system
plan.
``(e) Eligible Producers.--To be eligible to receive cost-
share and incentive payments under this section, a producer
shall agree--
``(1) to develop and carry out conservation and
environmental activities that--
``(A) are required by, or consistent with, an approved
organic system plan; and
``(B) protect resources of concern, as identified by the
Secretary;
``(2) to receive technical and educational assistance from
the Secretary or from an organization, institute, or
consultant with a cooperative agreement with the Secretary
relating to--
``(A) the development of an organic system plan and the
implementation of conservation practices and activities that
are part of an organic system plan; or
``(B) other aspects of an organic system plan, including
marketing, credit, business, and risk management plans; and
``(3) to submit annual verification by a certifying entity
accredited by the Secretary to determine the compliance of
the producer with organic certification requirements.
``(f) Term.--A contract under this section shall have a
term of--
``(1) not less than 3 years; and
``(2) not more than 4 years.
``(g) Limitations on Payments.--As part of the payment
limitation described in section 1240G, an individual or
entity may not receive, directly or indirectly, cost-share or
incentive payments under this section--
``(1) for a period of more than 4 years; or
``(2) that, in the aggregate and exclusive of technical
assistance, exceed--
``(A) $20,000 per year; or
``(B) a total amount of $80,000.
``(h) Termination of Contracts.--The Secretary may cancel
or otherwise nullify a contract entered into under this
section if the Secretary determines the producers are not
pursuing organic certification.''.

SEC. 2361. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.

The Food Security Act of 1985 is amended by inserting after
section 1240J (as added by section 2360) the following:

``SEC. 1240K. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.

``(a) Definition of Chesapeake Bay Watershed.--In this
section, the term `Chesapeake Bay watershed' includes all
tributaries, backwaters, and side channels (including
watersheds) draining into the Chesapeake Bay.
``(b) Establishment.--The Secretary shall use the
authorities granted under the environmental quality
incentives program established under this chapter to address
natural resource concerns relating to agricultural and
nonindustrial private forest land in the Chesapeake Bay
watershed.
``(c) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use $265,000,000 to carry
out this section for the period of fiscal years 2008 through
2012.''.

CHAPTER 3--FARMLAND PROTECTION

Subchapter A--Farmland Protection Program

SEC. 2371. FARMLAND PROTECTION PROGRAM.

(a) Definitions.--Section 1238H of the Food Security Act of
1985 (16 U.S.C. 3838h) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any agency of any State or local government or an
Indian tribe (including a farmland protection board or land
resource council established under State law); or
``(B) any organization that--
``(i) is organized for, and at all times since the
formation of the organization has been operated principally
for, 1 or more of the conservation purposes specified in
clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of
the Internal Revenue Code of 1986;
``(ii) is an organization described in section 501(c)(3) of
that Code that is exempt from taxation under section 501(a)
of that Code; and
``(iii) is--

``(I) described in paragraph (1) or (2) of section 509(a)
of that Code; or
``(II) described in section 509(a)(3), and is controlled by
an organization described in section 509(a)(2), of that
Code.''; and

(2) in paragraph (2)--
(A) in subparagraph (A), by striking clauses (i) and (ii)
and inserting the following:
``(i) has prime, unique, or other productive soil;
``(ii) contains historical or archaeological resources; or
``(iii) furthers a State or local policy consistent with
the purposes of the program.''; and
(B) in subparagraph (B)--
(i) in clause (iv), by striking ``and'' at the end;
(ii) by striking clause (v) and inserting the following:
``(v) forest land that--

``(I) contributes to the economic viability of an
agricultural operation; or
``(II) serves as a buffer to protect an agricultural
operation from development; and

``(vi) land that is incidental to land described in clauses
(i) through (v), if the incidental land is determined by the
Secretary to be necessary for the efficient administration of
a conservation easement.''.
(b) Farmland Protection.--Section 1238I of the Food
Security Act of 1985 (16 U.S.C. 3838i) is amended--
(1) in subsection (a), by striking ``purchase conservation
easements'' and all the follows through the end of the
subsection and inserting ``enter into cooperative agreements
with eligible entities for the eligible entities to purchase
permanent conservation easements or other interests in
eligible land for the purpose of protecting the agricultural
use and related conservation values of the land by limiting
incompatible nonagricultural uses of the land.'';
(2) by redesignating subsections (b) and (c) as subsections
(e) and (f), respectively;
(3) by inserting after subsection (a) the following:

[[Page S14900]]

``(b) Terms and Conditions for Cooperative Agreements.--
``(1) In general.--The Secretary shall establish the terms
and conditions of any cooperative agreement entered into
under this subchapter under which the eligible entity shall
use funds provided by the Secretary.
``(2) Minimum requirements.--A cooperative agreement shall,
at a minimum--
``(A) specify the qualifications of the eligible entity to
carry out the responsibilities of the eligible entity under
the program, including acquisition and management policies
and procedures that ensure the long-term integrity of the
conservation easement protections;
``(B) subject to subparagraph (C), identify a specific
project or a range of projects funded under the agreement;
``(C) allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified at the
time of substitution;
``(D) specify the manner in which the eligible entity will
evaluate and report the use of funds to the Secretary;
``(E) allow the eligible entity flexibility to use the
terms and conditions of the eligible entity for conservation
easements and other purchases of interests in land, except
that--
``(i) subject to clause (ii), each easement shall include a
limitation on the total quantity of impervious surface of not
more than--

``(I) 20 percent of the first 10 acres;
``(II) 5 percent of the next 90 acres; and
``(III) 1 percent of any additional acres; and

``(ii) the Secretary may waive a limitation under clause
(i) after a determination by the Secretary that the eligible
entity has in place a requirement that provides
substantially-similar protection consistent with agricultural
activities regarding the impervious surfaces to be allowed
for any conservation easement or other interest in land
purchases using funds provided under the program;
``(F) require appraisals of acquired interests in eligible
land that comply with, at the option of the eligible entity--
``(i) the Uniform Standards of Professional Appraisal
Practice; or
``(ii) other industry-approved standard, as determined by
the Secretary; and
``(G) allow as part of the share of the eligible entity of
the cost to purchase a conservation easement or other
interest in eligible land described in subsection (a), that
an eligible entity may include a charitable donation or
qualified conservation contribution (as defined by section
170(h) of the Internal Revenue Code of 1986), from the
private landowner from which the conservation easement will
be purchased.
``(c) Cost Sharing.--
``(1) In general.--Subject to paragraphs (2) and (3), the
Secretary may provide a share of the purchase price of a
conservation easement or other interest in land acquired by
an eligible entity under the program.
``(2) Maximum amount of fair market value.--The Secretary
shall not pay more than 50 percent of the appraised fair
market value of the acquisition under this subsection.
``(3) Minimum share by eligible entity.--The eligible
entity shall be required to provide a share of the cost under
this subsection in an amount that is not less than the lesser
of--
``(A) \1/2\ of the purchase price of the acquisition;
``(B) if the landowner has made a donation of 25 percent or
less of the appraised fair market value of the acquisition,
an amount that, when combined with the donation, equals the
amount of the payment by the Secretary; or
``(C) if the landowner has made a donation of more than 25
percent of the appraised fair market value of the
acquisition, \1/3\ of the purchase price of the acquisition.
``(d) Protection of Federal Investment.--
``(1) In general.--The Secretary shall ensure that the
terms of an easement acquired by the eligible entity provides
protection for the Federal investment through an executory
limitation by the Federal Government.
``(2) Relationship to federal acquisition of real
property.--The inclusion of a Federal executory limitation
described in paragraph (1) shall--
``(A) not be considered the Federal acquisition of real
property; and
``(B) not trigger any Federal appraisal or other real
property requirements, including the Federal standards and
procedures for land acquisition.''; and
(4) in subsection (f) (as redesignated by paragraph (2)),
by striking ``Cost Sharing.--'' and all that follows through
``Bidding down.--'' and inserting ``Bidding Down.--''.

Subchapter B--Grassland Reserve Program

SEC. 2381. GRASSLAND RESERVE PROGRAM.

Subchapter C of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838n et seq.) is
amended to read as follows:

``Subchapter C--Grassland Reserve Program

``SEC. 1238N. DEFINITIONS.

``In this subchapter:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any agency of any State or local government or an
Indian tribe (including a farmland protection board or land
resource council established under State law); or
``(B) any organization that--
``(i) is organized for, and at all times since the
formation of the organization has been operated principally
for, 1 or more of the conservation purposes specified in
clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of
the Internal Revenue Code of 1986;
``(ii) is an organization described in section 501(c)(3) of
that Code that is exempt from taxation under section 501(a)
of that Code; and
``(iii) is--

``(I) described in paragraph (1) or (2) of section 509(a)
of that Code; or
``(II) described in section 509(a)(3), and is controlled by
an organization described in section 509(a)(2), of that Code.

``(2) Eligible land.--The term `eligible land' means
private land that--
``(A) is grassland, rangeland, land that contains forbs, or
shrub land (including improved rangeland and pastureland) for
which grazing is the predominant use;
``(B) is located in an area that has been historically
dominated by grassland, forbs, or shrub land, and the land
potentially could provide habitat for animal or plant
populations of significant ecological value if the land--
``(i) is retained in the current use of the land;
``(ii) is restored to a natural condition;
``(iii) contains historical or archeological resources;
``(iv) would further the goals and objectives of State,
regional, and national fish, and wildlife conservation plans
and initiatives; or
``(v) is incidental to land described in clauses (i)
through (iv), if the incidental land is determined by the
Secretary to be necessary for the efficient administration of
an agreement or conservation easement.
``(3) Permanent conservation easement.--The term `permanent
conservation easement' means a conservation easement that
is--
``(A) a permanent easement; or
``(B) in a State that imposes a maximum duration for
easements, an easement for the maximum duration allowed under
State law.

``SEC. 1238O. GRASSLAND RESERVE PROGRAM.

``(a) Establishment.--The Secretary shall establish and
carry out a grassland reserve program through which the
Secretary shall provide payments and technical assistance to
landowners to assist in restoring and conserving eligible
land described in section 1238N(2).
``(b) Enrollment of Land.--
``(1) In general.--The Secretary may enroll eligible land
in the program through--
``(A) an easement or contract described in paragraph (2);
or
``(B) a cooperative agreement with an eligible entity.
``(2) Options.--Eligible land enrolled in the program shall
be subject to--
``(A) a 30-year contract;
``(B) a 30-year conservation easement; or
``(C) a permanent conservation easement.
``(3) Enrollment of conservation reserve acreage.--
``(A) In general.--Eligible land enrolled in the
conservation reserve program established under subchapter B
of chapter 1 may be enrolled into permanent conservation
easements under this subchapter if--
``(i) the Secretary determines that the eligible land--

``(I) is of high ecological value; and
``(II) would be under significant threat of conversion to
other uses if the conservation reserve program contract were
terminated; and

``(ii) the landowner agrees to the enrollment.
``(B) Maximum enrollment.--The number of acres of
conservation reserve program land enrolled under this
paragraph in a calendar year shall not exceed the number of
acres that could be funded by 10 percent of the total amount
of funds available for this section for a fiscal year.
``(C) Prohibition on duplicate payments.--Eligible land
enrolled in the program shall no longer be eligible for
payments under the conservation reserve program.
``(c) Restoration Agreements.--The Secretary may enter into
a restoration agreement with a landowner, as determined
appropriate by the Secretary.
``(d) Conservation Easement Title.--The title holder of a
conservation easement obtained under this subchapter may be--
``(1) the Secretary; or
``(2) an eligible entity.

``SEC. 1238P. DUTIES.

``(a) Duties of Landowners.--
``(1) In general.--To become eligible to enroll eligible
land through the grant of a conservation easement, the
landowner shall--
``(A) create and record an appropriate deed restriction in
accordance with applicable State law;
``(B) provide proof of clear title to the underlying fee
interest in the eligible land that is subject of the
conservation easement;
``(C) provide a written statement of consent to the
easement signed by persons holding a security interest or any
vested interest in the land;
``(D) grant the conservation easement to the Secretary or
an eligible entity; and
``(E) comply with the terms of the conservation easement
and any associated restoration agreement.
``(2) Restoration agreement.--If a restoration agreement is
required by the Secretary, the landowner shall develop and
implement a restoration plan.
``(b) Duties of Secretary.--
``(1) Evaluation of offers.--

[[Page S14901]]

``(A) In general.--The Secretary shall establish criteria
to evaluate and rank applications for easements and contracts
under this subchapter.
``(B) Considerations.--In establishing the criteria, the
Secretary shall emphasize support for--
``(i) grazing operations;
``(ii) plant and animal biodiversity;
``(iii) grassland, land that contains forbs, and shrubland
under the greatest threat of conversion; and
``(iv) other considerations, as determined by the
Secretary.
``(C) Priority.--In evaluating offers under this
subchapter, the Secretary may give priority to applications
that--
``(i) include a cash contribution from the eligible entity
submitting the application; or
``(ii) leverage resources from other sources.
``(2) Compensation.--
``(A) In general.--
``(i) Easements and contracts.--In return for the granting
of an easement, the Secretary shall provide to the landowner
an amount that is equal to--

``(I) in the case of a permanent easement, the fair market
value of the land less the grazing value of the land
encumbered by the easement; and
``(II) in the case of a 30-year easement or 30-year
contract, 30 percent of the fair market value of the land
less the grazing value of the land for the period during
which the land is encumbered by the easement.

``(ii) Restoration agreements.--In making cost-share
payments for restoration agreements, the Secretary shall make
payments to the landowner--

``(I) in the case of a permanent easement, in an amount
that is not less than 90, but not more than 100, percent of
the eligible costs; and
``(II) in the case of a 30-year easement or 30-year
contract, in an amount that is not less than 50, but not more
than 75, percent of the eligible costs.

``(B) Delivery of payments.--
``(i) Payment schedule.--Except as otherwise provided in
this subchapter, payments may be provided pursuant to an
easement, contract, or other agreement, in not more than 30
annual payments, and in an equal or unequal amounts, as
agreed to by the Secretary and the landowner.
``(ii) Payments to others.--If an owner that is entitled to
a payment under this subchapter dies, becomes incompetent, is
otherwise unable to receive the payment, or is succeeded by
another person who renders or completes the required
performance, the Secretary shall make the payment, in
accordance with regulations promulgated by the Secretary and
without regard to any other provision of law, in such manner
as the Secretary determines is fair and reasonable after
considering all the circumstances.
``(3) Technical assistance.--If a restoration agreement is
required by the Secretary, the Secretary shall provide
technical assistance to comply with the terms and conditions
of the restoration agreement.

``SEC. 1238Q. TERMS AND CONDITIONS.

``(a) Terms and Conditions of Easement or Contracts.--An
easement or contract under this subchapter shall--
``(1) permit--
``(A) common grazing practices, including maintenance and
necessary cultural practices, on the land in a manner that is
consistent with maintaining the viability of grassland, forb,
and shrub species appropriate to that locality;
``(B) haying, mowing, or harvesting for seed production,
subject to appropriate restrictions during the nesting season
for birds in the local area that are in significant decline
or are conserved in accordance with Federal or State law, as
determined by the State Conservationist; and
``(C) fire presuppression, rehabilitation, and construction
of fire breaks and fences (including placement of the posts
necessary for fences);
``(2) prohibit--
``(A) the production of crops (other than hay), fruit
trees, vineyards, or any other agricultural commodity that is
inconsistent with maintaining grazing land; and
``(B) except as permitted under a restoration plan, the
conduct of any other activity that would be inconsistent with
maintaining grazing land covered by the easement or
agreement; and
``(3) include such additional provisions as the Secretary
determines are appropriate to carry out or facilitate the
administration of this subchapter.
``(b) Terms and Conditions of Cooperative Agreements.--
``(1) In general.--The Secretary shall establish the terms
and conditions of any cooperative agreement entered into
under this subchapter under which the eligible entity shall
use funds provided by the Secretary.
``(2) Minimum requirements.--A cooperative agreement shall,
at a minimum--
``(A) specify the qualification of the eligible entity to
carry out the responsibilities of the eligible entity under
the program, including acquisition, monitoring, enforcement,
and management policies and procedures that ensure the long-
term integrity of the conservation easement protections;
``(B) subject to subparagraph (C), identify a specific
project or a range of projects funded under the agreement;
``(C) allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified at the
time of substitution;
``(D) specify the manner in which the eligible entity will
evaluate and report the use of funds to the Secretary;
``(E) allow the eligible entity flexibility to develop and
use terms and conditions for conservation easements and other
purchases of interest in eligible land, if the Secretary
finds the terms and conditions consistent with the purposes
of the program and adequate to achieve and permit effective
enforcement of the conservation purposes of the conservation
easements or other interests;
``(F) require appraisals of acquired interests in eligible
land that comply with a method approved by industry;
``(G) if applicable, allow as part of the share of the
eligible entity of the cost to purchase a conservation
easement or other interest in eligible land described in
section 1238O(b), that an eligible entity may include a
charitable donation or qualified conservation contribution
(as defined by section 170(h) of the Internal Revenue Code of
1986), from the private landowner for which the conservation
easement will be purchased; and
``(H) provide for a schedule of payments to an eligible
entity, as agreed to by the Secretary and the eligible
entity, over a term of not to exceed 30 years.
``(3) Protection of federal investment.--
``(A) In general.--The Secretary shall ensure that the
terms of an easement acquired by the eligible entity provides
protection for the Federal investment through an executory
limitation by the Federal government.
``(B) Relationship to federal acquisition of real
property.--The inclusion of an executory limitation described
in subparagraph (A) shall--
``(i) not be considered the Federal acquisition of real
property; and
``(ii) not trigger any Federal appraisal or other real
property requirements, including the Federal standards and
procedures for land acquisition.
``(C) Terms of restoration agreement.--A restoration
agreement shall contain--
``(i) a statement of the conservation measures and
practices that will be undertaken in regard to the eligible
land subject to the conservation easement;
``(ii) restrictions on the use of the eligible land subject
to the conservation easement; and
``(iii) a statement of the respective duties of the
Secretary, landowner, and eligible entity, as appropriate.
``(c) Violation.--If a violation occurs of the terms or
conditions of a conservation easement, contract, cooperative
agreement or restoration agreement entered into under this
section--
``(1) the conservation easement, contract, cooperative
agreement, or restoration agreement shall remain in force;
and
``(2) the Secretary may require the owner or entity to
refund all or part of any payments received by the owner
under this subchapter, with interest on the payments as
determined appropriate by the Secretary.''.

CHAPTER 4--OTHER CONSERVATION PROGRAMS

SEC. 2391. CONSERVATION SECURITY PROGRAM.

Subchapter A of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 is amended by adding after section
1238C (16 U.S.C. 3838c) the following:

``SEC. 1238D. PERIOD OF EFFECTIVENESS.

``(a) In General.--This subchapter, and the terms and
conditions of the conservation security program, shall
continue to apply to conservation security contracts entered
into as of the date before the date of enactment of this
section.
``(b) Payments.--The Secretary shall make payments under
this subchapter with respect to conservation security
contracts described in subsection (a) during the term of the
contracts.
``(c) Prohibition on New Contracts.--A conservation
security contract may not be entered into or renewed under
this subchapter as of the date of enactment of this section.
``(d) Limitation.--A contract described in subsection (a)
may not be administered under the regulations issued under
section 1240Y.''.

SEC. 2392. CONSERVATION OF PRIVATE GRAZING LAND.

Section 1240M(e) of the Food Security Act of 1985 (16
U.S.C. 3839bb(e)) is amended by striking ``2007'' and
inserting ``2012''.

SEC. 2393. REAUTHORIZATION OF WILDLIFE HABITAT INCENTIVE
PROGRAM.

Section 1240N of the Food Security Act of 1985 (16 U.S.C.
3839bb-1) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking ``Cost-Share'';
(B) in paragraph (1), by inserting ``and incentive'' after
``cost-share''; and
(C) in paragraph (2)(B), by striking ``15 percent'' and
inserting ``25 percent''; and
(2) by adding at the end the following:
``(d) Fish and Wildlife Conservation Plans and
Initiatives.--In carrying out this section, the Secretary
shall give priority to projects that would further the goals
and objectives of State, regional, and national fish and
wildlife conservation plans and initiatives.
``(e) Duration of Program.--Using funds made available
under section 1241(a)(7), the Secretary shall carry out the
program during each of fiscal years 2008 through 2012.''.

[[Page S14902]]

SEC. 2394. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

Section 1240O of the Food Security Act of 1985 (16 U.S.C.
3839bb-2) is amended by striking subsection (b) and inserting
the following:
``(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2008 through 2012.''.

SEC. 2395. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND
SEDIMENT CONTROL.

Section 1240P(c) of the Food Security Act of 1985 (16
U.S.C. 3839bb-3(c)) is amended by striking ``2007'' and
inserting ``2012''.

SEC. 2396. FARM VIABILITY PROGRAM.

Section 1238J(b) of the Food Security Act of 1985 (16
U.S.C. 3838j(b)) is amended by striking ``2007'' and
inserting ``2012''.

SEC. 2397. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.

Chapter 5 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by adding
at the end the following:

``SEC. 1240Q. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.

``(a) Establishment.--The Secretary shall establish and
carry out a demonstration program in not less than 30 small
watersheds in States of the Upper Mississippi River basin to
identify and promote the most cost-effective and efficient
approaches to reducing the loss of nutrients to surface
waters.
``(b) Purpose.--The demonstration program shall demonstrate
in small watersheds performance-based and market-based
approaches--
``(1) to reduce the loss of nutrients to surface waters
from agricultural land; and
``(2) to monitor the cost-effectiveness of management
practices designed to reduce the loss of nutrients to surface
waters from agricultural land.
``(c) Partnerships.--In carrying out this section, the
Secretary may establish or identify, as appropriate,
partnerships to select the watersheds and to encourage
cooperative effort among the Secretary and State, local, and
nongovernmental organizations.
``(d) Selection of Small Watersheds.--In selecting small
watersheds for participation in the program, the Secretary
shall consider the extent to which--
``(1) reducing nutrient losses to surface water in the
small watershed would be likely to result in measurable
improvements in water quality in the small watershed;
``(2) a demonstration project would use innovative
approaches to attract a high level of producer participation
in the small watershed to ensure success;
``(3) a demonstration project could be implemented through
a third party, including a producer organization, farmer
cooperative, conservation district, water utility, agency of
State or local government, conservation organization, or
other organization with appropriate expertise;
``(4) a demonstration project would leverage funding from
State, local, and private sources;
``(5) a demonstration project would demonstrate market-
based approaches to nutrient losses to surface waters;
``(6) baseline data related to water quality and
agricultural practices and contributions from nonagricultural
sources as relevant in the small watershed has been collected
or could be readily collected; and
``(7) water quality monitoring infrastructure is in place
or could reasonably be put in place in the small watershed.
``(e) Use of Funds.--
``(1) In general.--Funding provided for the program under
subsection(f) shall be used in not less than 30 small
watersheds--
``(A) to provide technical assistance;
``(B) to provide and assess financial incentives to
agricultural producers implementing conservation practices
that reduce nutrient losses to surface waters;
``(C) to monitor the performance and costs of alternative
nutrient management techniques, including soil tests, stalk
tests, cover crops, soil amendments, buffers, and tillage
practices; and
``(D) to share the cost of data collection, monitoring, and
analysis.
``(2) Prohibition.--None of the funds made available to
carry out the program for each fiscal year may be used for
administrative expenses.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.

SEC. 2398. EMERGENCY LANDSCAPE RESTORATION PROGRAM.

(a) In General.--Chapter 5 of subtitle D of the Food
Security Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended
by section 2386) is amended by adding at the end the
following:

``SEC. 1240R. EMERGENCY LANDSCAPE RESTORATION PROGRAM.

``(a) Definition of Eligible Recipient.--In this section,
the term `eligible recipient' means--
``(1) an organization that is eligible for technical
assistance and cost-share payments under this section and
assists working agricultural land and nonindustrial private
forest land, including--
``(A) a community-based association; and
``(B) a city, county, or regional government, including a
watershed council and a conservation district; and
``(2) an individual who is eligible for technical
assistance and cost-share payments under this section,
including--
``(A) a producer;
``(B) a rancher;
``(C) an operator;
``(D) a nonindustrial private forest landowner; and
``(E) a landlord on working agricultural land.
``(b) Purpose.--The purpose of the emergency landscape
restoration program is to rehabilitate watersheds,
nonindustrial private forest land, and working agricultural
land adversely affected by natural catastrophic events, by--
``(1) providing a source of assistance for restoration of
the land back to a productive state;
``(2) preventing further impairment of land and water,
including prevention through the purchase of floodplain
easements; and
``(3) providing further protection of natural resources.
``(c) Establishment.--The Secretary, acting through the
Natural Resources Conservation Service, shall carry out an
emergency landscape restoration program under which technical
assistance and cost-share payments are made available to
eligible recipients to carry out remedial activities to
restore landscapes damaged by--
``(1) fire;
``(2) drought;
``(3) flood;
``(4) hurricane force or excessive winds;
``(5) ice storms or blizzards; or
``(6) other resource-impacting natural events, as
determined by the Secretary.
``(d) Prioritization.--The Secretary shall provide the
highest priority for those activities that protect human
health and safety.
``(e) Technical Assistance and Cost-Share Payments.--
``(1) In general.--The Secretary shall provide technical
assistance and cost-share payments in amounts of up to 75
percent of the cost of remedial activities described in
paragraph (2) to rehabilitate watersheds, nonindustrial
private forest land, and working agricultural land.
``(2) Remedial activities.--Remedial activities that are
eligible for technical assistance and cost-share payments
under this section include--
``(A) removal of debris from streams, agricultural land,
and nonindustrial forest land, including--
``(i) the restoration of natural hydrology; and
``(ii) the removal of barriers for aquatic species;;
``(B) restoration of destabilized streambanks;
``(C) establishment of cover on critically eroding land;
``(D) restoration of fences;
``(E) construction of conservation structures;
``(F) provision of water for livestock in drought
situations;
``(G) rehabilitation of farm or ranch land;
``(H) restoration of damaged nonindustrial private forest
land, including--
``(i) the removal of damaged standing trees and downed
timber; and
``(ii) site preparation, tree planting, direct seeding, and
firebreaks;
``(I) the carrying out of emergency water conservation
measures;
``(J) restoration of wildlife habitat and corridors;
``(K) livestock carcass removal and disposal; and
``(L) such other remedial activities as are determined by
the Secretary.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this section such sums as are necessary for each of fiscal
years 2008 through 2012, to remain available until expended.
``(g) Temporary Administration of Emergency Landscape
Restoration Program.--
``(1) In general.--During the period beginning on the date
of enactment of this section and ending on the termination
date described in paragraph (2), to ensure that technical
assistance, cost-share payments, and other payments continue
to be administered in an orderly manner until the date on
which final regulations are promulgated to implement the
emergency landscape restoration program, the Secretary shall,
to the extent the terms and conditions of the programs
described in clauses (i) and (ii) of subparagraph (A) are
consistent with the emergency landscape restoration program,
continue to--
``(A) provide technical assistance, cost-share payments,
and other payments under the terms and conditions of--
``(i) the emergency conservation program established under
title IV of the Agricultural Credit Act of 1978 (16 U.S.C.
2201 et seq.); and
``(ii) the emergency watershed protection program
established under section 403 of the Agricultural Credit Act
of 1978 (16 U.S.C. 2203); and
``(B) use for those purposes--
``(i) any funds made available under those programs; and
``(ii) as the Secretary determines to be necessary, any
funds made available to carry out the emergency landscape
restoration program.
``(2) Termination of authority.--The authority of the
Secretary to carry out paragraph (1) shall terminate on the
effective date of final regulations to implement the
emergency landscape restoration program.''.
(b) Conforming Amendments.--
(1) Effective on the effective date of final regulations to
implement the emergency landscape restoration program under
section 1240R of the Food Security Act of 1985 (as

[[Page S14903]]

added by subsection (a)), title IV of the Agricultural Credit
Act of 1978 (16 U.S.C. 2201 et seq.) is repealed.
(2) Section 1211(a)(3)(C) of the Food Security Act of 1985
(16 U.S.C. 3811(a)(3)(C)) is amended by inserting ``section
1240R or'' after ``a payment under''.
(3) Section 1221(b)(3)(C) of the Food Security Act of 1985
(16 U.S.C. 3821(b)(3)(C)) is amended by inserting ``section
1240R or'' after ``A payment under''.

SEC. 2399. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE
PROGRAM.

Chapter 5 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended by section
2387(a)) is amended by adding at the end the following:

``SEC. 1240S. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE
PROGRAM.

``(a) In General.--The Secretary shall establish a
voluntary public access program under which States and tribal
governments may apply for grants to encourage owners and
operators of privately-held farm, ranch, and forest land to
voluntarily make that land available for access by the public
for wildlife-dependent recreation, including hunting or
fishing under programs administered by the States and tribal
governments.
``(b) Applications.--In submitting applications for a grant
under the program, a State or tribal government shall
describe--
``(1) the benefits that the State or tribal government
intends to achieve by encouraging public access to private
farm and ranch land for--
``(A) hunting and fishing; and
``(B) to the maximum extent practicable, other recreational
purposes; and
``(2) the methods that will be used to achieve those
benefits.
``(c) Priority.--In approving applications and awarding
grants under the program, the Secretary shall give priority
to States and tribal governments that propose--
``(1) to maximize participation by offering a program the
terms of which are likely to meet with widespread acceptance
among landowners;
``(2) to ensure that land enrolled under the State or
tribal government program has appropriate wildlife habitat;
``(3) to strengthen wildlife habitat improvement efforts on
land enrolled in a special conservation reserve enhancement
program described in section 1234(f)(3) by providing
incentives to increase public hunting and other recreational
access on that land;
``(4) to use additional Federal, State, tribal government,
or private resources in carrying out the program; and
``(5) to make available to the public the location of land
enrolled.
``(d) Relationship to Other Laws.--Nothing in this section
preempts a State or tribal government law (including any
State or tribal government liability law).
``(e) Regulations.--The Secretary shall promulgate such
regulations as are necessary to carry out this section.''.

SEC. 2399A. MIGRATORY BIRD HABITAT CONSERVATION SECURITY
PROGRAM.

Chapter 5 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3839bb et seq.) (as amended by section
2399) is amended by adding at the end the following:

``SEC. 1240S-1. MIGRATORY BIRD HABITAT CONSERVATION SECURITY
PROGRAM.

``(a) In General.--The Secretary, acting through the
Natural Resources Conservation Service, shall establish a
migratory bird habitat conservation program under which the
Secretary shall provide payments and technical assistance to
rice producers to promote the conservation of migratory bird
habitat.
``(b) Eligibility.--To be eligible for payments and
technical assistance under this section, an eligible producer
shall maintain on rice acreage of the producer (as determined
by the Secretary)--
``(1) straw residue on a minimum of 50 percent of the rice
acreage by flooding, rolling, or stomping, and maintaining,
water depths of at least 4 inches from November through
February in a manner that benefits migratory waterfowl; or
``(2) if supplemental water is not available, planting a
winter cover crop (such as vetch) on the rice acreage.
``(c) Administration.--In carrying out this section, the
Secretary shall--
``(1) enroll not more than 100,000 acres of irrigated rice;
and
``(2) provide payments to a participating rice producer for
the value of the ecological benefit, but not less than $25
per acre.
``(d) Review.--In cooperation with a national, State, or
regional association of rice producers, the Secretary shall
periodically review--
``(1) the value of the ecological benefit of practices for
which assistance is provided under this section on a per acre
basis; and
``(2) the practices for which assistance is provided under
this section to maximize the wildlife benefit to migratory
bird populations on land in rice production.
``(e) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $13,000,000 for the period of fiscal years 2008
through 2012.''.

Subtitle E--Funding and Administration

SEC. 2401. FUNDING AND ADMINISTRATION.

Section 1241(a) of the Food Security Act of 1985 (16 U.S.C.
3841(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``2007'' and inserting ``2012''; and
(2) by striking paragraphs (3) through (7) and inserting
the following:
``(3) The conservation security program under subchapter A
of chapter 2, using $2,317,000,000 to administer contracts
entered into as of the day before the date of enactment of
the Food and Energy Security Act of 2007, to remain available
until expended.
``(4) The conservation stewardship program under subchapter
B of chapter 6.
``(5) The farmland protection program under subchapter B of
chapter 2, using, to the maximum extent practicable,
$120,000,000 for each of fiscal years 2008 through 2012.
``(6) The grassland reserve program under subchapter C of
chapter 2, using, to the maximum extent practicable,
$400,000,000 for the period of fiscal years 2008 through
2012.
``(7) The environmental quality incentives program under
chapter 4, using, to the maximum extent practicable--
``(A) $1,410,000,000 for each of fiscal years 2008 and
2009; and
``(B) $1,420,000,000 for each of fiscal years 2010 through
2012.
``(8) The wildlife habitat incentives program under section
1240N, using, to the maximum extent practicable, $100,000,000
for each of fiscal years 2008 through 2012.
``(9) The voluntary public access program under section
1240S, using, to the maximum extent practicable, $20,000,000
in each of fiscal years 2008 through 2012.''.

SEC. 2402. REGIONAL EQUITY.

Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by striking subsection (d) and inserting the
following:
``(d) Regional Equity.--
``(1) In general.--Before April 1 of each fiscal year, the
Secretary shall give priority for funding under the
conservation programs under subtitle D and the agricultural
management assistance program under section 524(b) of the
Federal Crop Insurance Act (7 U.S.C. 1524(b)) (excluding the
conservation reserve program under subchapter B of chapter 1
and the wetlands reserve program under subchapter C of
chapter 1) to approved applications in any State that has not
received, for the fiscal year, an aggregate amount of at
least $15,000,000 for those conservation programs.
``(e) Specific Funding Allocations.--In determining the
specific funding allocations for each State under paragraph
(1), the Secretary shall consider the respective demand for
each program in each State.
``(f) Allocations Review and Update.--
``(1) Review.--Not later than January 1, 2012, the
Secretary shall conduct a review of conservation program
allocation formulas to determine the sufficiency of the
formulas in accounting for State-level economic factors,
level of agricultural infrastructure, or related factors that
affect conservation program costs.
``(2) Update.--The Secretary shall improve conservation
program allocation formulas as necessary to ensure that the
formulas adequately reflect the costs of carrying out the
conservation programs.''.

SEC. 2403. CONSERVATION ACCESS.

Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) (as amended by section 2402) is amended by adding at
the end the following:
``(g) Conservation Access.--
``(1) Assistance to eligible farmers or ranchers.--
``(A) Definition of eligible farmer or rancher.--In this
paragraph, the term `eligible farmer or rancher' means a
farmer or rancher that, as determined by the Secretary--
``(i) derives or expects to derive more than 50 percent of
the annual income of the farmer or rancher from agriculture
(not including payments under the conservation reserve
program established under subchapter B of chapter 1 of
subtitle D); and
``(ii) is--

``(I) a beginning farmer or rancher (as defined in section
343 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991)), except that in determining whether the farmer
or rancher qualifies as a beginning farmer or rancher, the
Secretary may--

``(aa) employ a fair and reasonable test of net worth; and
``(bb) use such other criteria as the Secretary determines
to be appropriate; or

``(II) a socially disadvantaged farmer or rancher (as
defined in section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e)).

``(B) Assistance.--In the case of each program described in
subsection (a), except as provided in paragraph (2), for each
fiscal year in which funding is made available for the
program, 10 percent of the funds available for the fiscal
year shall be used by the Secretary to assist eligible
farmers or ranchers.
``(2) Acreage programs.--In the case of the conservation
reserve and wetlands reserve programs, 10 percent of the
acreage authorized to be enrolled in any fiscal year shall be
used to assist eligible farmers or ranchers.
``(3) Repooling.--In any fiscal year, amounts not obligated
under this subsection by a date determined by the Secretary
shall be available for payments and technical assistance to
all persons eligible for payments or technical assistance in
that fiscal year under the program for which the amounts were
originally made available under this title.
``(4) Conservation innovation grants.--Funding under
paragraph (1) for conservation innovation grants under
section 1240H may, in addition to purposes described in
subsection (b) of that section, be used for--
``(A) technology transfer;

[[Page S14904]]

``(B) farmer-to-farmer workshops; and
``(C) demonstrations of innovative conservation practices.
``(5) Technical assistance.--The Secretary shall offer, to
the maximum extent practicable, higher levels of technical
assistance to beginning farmers or ranchers and socially
disadvantaged farmers or ranchers than are otherwise made
available to producers participating in programs under this
title.
``(6) Cooperative agreements.--The Secretary may develop
and implement cooperative agreements with entities (including
government agencies, extension entities, nongovernmental and
community-based organizations, and educational institutions)
with expertise in addressing the needs of beginning farmers
or ranchers and socially disadvantaged farmers or ranchers to
provide technical assistance, comprehensive conservation
planning education, and sustainable agriculture training.''.

SEC. 2404. DELIVERY OF TECHNICAL ASSISTANCE.

Section 1242 of the Food Security Act of 1985 (16 U.S.C.
3842) is amended to read as follows:

``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

``(a) Definition of Eligible Participant.--In this section,
the term `eligible participant' means--
``(1) an agricultural producer;
``(2) an eligible entity;
``(3) an eligible landowner; and
``(4) an interested organization.
``(b) Purpose.--The purpose of technical assistance
authorized by this title is to provide eligible participants
with consistent, science-based, site-specific practices
designed to achieve conservation objectives on land active in
agricultural, forestry, or related uses.
``(c) Provision of Technical Assistance.--The Secretary
shall provide technical assistance under this title to an
eligible participant--
``(1) directly;
``(2) through a contract or agreement with a third-party
provider; or
``(3) at the option of the eligible participant, through a
payment, as determined by the Secretary, to the eligible
participant for an approved third-party provider, if
available.
``(d) Certification of Third-Party Providers.--
``(1) In general.--The Secretary shall continue to carry
out the technical service provider program established under
regulations promulgated under subsection (b)(1) (as in
existence on the day before the date of enactment of this
subsection).
``(2) Purpose.--The purpose of the technical service
provider program shall be to increase the availability and
range of technical expertise available to farmers, ranchers,
and eligible landowners to plan and implement conservation
measures.
``(3) Expertise.--In promulgating regulations to carry out
this subsection, the Secretary shall--
``(A) ensure that persons with expertise in the technical
aspects of conservation planning, watershed planning, and
environmental engineering (including commercial entities,
nonprofit entities, State or local governments or agencies,
and other Federal agencies) are eligible to become approved
providers of the technical assistance; and
``(B) to the maximum extent practicable--
``(i) provide national criteria for the certification of
technical service providers; and
``(ii) approve any unique certification standards
established at the State level.
``(4) System administration.--
``(A) Funding.--Effective for fiscal year 2008 and each
subsequent fiscal year, funds of the Commodity Credit
Corporation that are made available to carry out each of the
programs specified in section 1241 shall be available for the
provision of technical assistance from third-party providers
under this section.
``(B) Contract term.--A contract under this section shall
have a term that--
``(i) at a minimum, is equal to the period--

``(I) beginning on the date on which the contract is
entered into; and
``(II) ending on the date that is 1 year after the date on
which all activities in the contract have been completed;

``(ii) does not exceed 3 years; and
``(iii) can be renewed, as determined by the Secretary.
``(C) Review of certification requirements.--Not later than
1 year after the date of enactment of this subsection, the
Secretary shall--
``(i) review certification requirements for third-party
providers; and
``(ii) make any adjustments considered necessary by the
Secretary to improve participation.
``(D) Eligible activities.--The Secretary may include in
activities eligible for payment to a third-party provider--
``(i) education and outreach to eligible participants; and
``(ii) administrative services necessary to support
conservation program implementation.
``(e) Availability of Technical Services.--
``(1) Availability.--
``(A) In general.--In carrying out the programs under this
title and the agricultural management assistance program
under section 524 of the Federal Crop Insurance Act (7 U.S.C.
1524), the Secretary shall make technical services available
to all eligible participants who are installing an eligible
practice.
``(B) Technical service contracts.--In any case in which
financial assistance is not requested or is not provided
under subparagraph (A), the Secretary may enter into a
technical service contract with the applicable eligible
participant for the purposes of assisting in the planning,
design, or installation of an eligible practice.
``(2) Review of conservation practice standards.--
``(A) In general.--The Secretary shall--
``(i) review conservation practice standards, including
engineering design specifications, in effect on the date of
enactment of this subsection;
``(ii) ensure, to the maximum extent practicable, the
completeness and relevance of the standards to local
agricultural, forestry, and natural resource needs, including
specialty crops, native and managed pollinators, bioenergy
crop production, forestry, and such other needs as are
determined by the Secretary; and
``(iii) ensure that the standards provide for the optimal
balance between meeting site-specific conservation needs and
minimizing risks of design failure and associated costs of
construction and installation.
``(B) Consultation.--In conducting the assessment under
subparagraph (A), the Secretary shall consult with
agricultural producers, crop consultants, cooperative
extension and land grant universities, nongovernmental
organizations, and other qualified entities.
``(C) Expedited revision of standards.--If the Secretary
determines under subparagraph (A) that revisions to the
conservation practice standards, including engineering design
specifications, are necessary, the Secretary shall establish
an administrative process for expediting the revisions.
``(3) Addressing concerns of speciality crop, organic, and
precision agriculture producers.--
``(A) In general.--The Secretary shall--
``(i) to the maximum extent practicable, fully incorporate
specialty crop production, organic crop production, and
precision agriculture into the conservation practice
standards; and
``(ii) provide for the appropriate range of conservation
practices and resource mitigation measures available to
specialty crop, organic, and precision agriculture producers.
``(B) Availability of adequate technical assistance.--
``(i) In general.--The Secretary shall ensure that adequate
technical assistance is available for the implementation of
conservation practices by specialty crop, organic, and
precision agriculture producers through Federal conservation
programs.
``(ii) Requirements.--In carrying out clause (i), the
Secretary shall develop--

``(I) programs that meet specific needs of specialty crop,
organic, and precision agriculture producers through
cooperative agreements with other agencies and
nongovernmental organizations; and
``(II) program specifications that allow for innovative
approaches to engage local resources in providing technical
assistance for planning and implementation of conservation
practices.''.

SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION
PROGRAMS.

(a) Streamlined Application Process.--Section 1244 of the
Food Security Act of 1985 (16 U.S.C. 3844) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Streamlined Application Process.--
``(1) In general.--In carrying out each conservation
program under this title, the Secretary shall ensure that the
application process used by producers and landowners is
streamlined to minimize complexity and eliminate redundancy.
``(2) Review and streamlining.--
``(A) Review.--The Secretary shall carry out a review of
the application forms and processes for each conservation
program covered by this subsection.
``(B) Streamlining.--On completion of the review the
Secretary shall revise application forms and processes, as
necessary, to ensure that--
``(i) all required application information is essential for
the efficient, effective, and accountable implementation of
conservation programs;
``(ii) conservation program applicants are not required to
provide information that is readily available to the
Secretary through existing information systems of the
Department of Agriculture;
``(iii) information provided by the applicant is managed
and delivered efficiently for use in all stages of the
application process, or for multiple applications; and
``(iv) information technology is used effectively to
minimize data and information input requirements.
``(3) Implementation and notification.--Not later than 1
year after the date of enactment of the Food and Energy
Security Act of 2007, the Secretary shall submit to Congress
a written notification of completion of the requirements of
this subsection.''.
(b) Administration.--Section 1244 of the Food Security Act
of 1985 (16 U.S.C. 3844) (as amended by subsection (a)) is
amended by adding at the end the following:
``(d) Cooperation Regarding Protection.--In the case of a
landowner who enrolls

[[Page S14905]]

land in a conservation program authorized under this title
that results in a net conservation benefit for a listed,
candidate, or other species, the Secretary shall cooperate at
the request of the landowner with the Secretary of the
Interior and the Secretary of Commerce, as appropriate, to
make available to the landowner safe harbor or similar
assurances and protections under sections 7(b)(4) and 10(a),
as applicable, of the Endangered Species Act of 1973 (16
U.S.C. 1536(b)(4), 1539(a)).
``(e) Eligibility of Producer Organizations.--
``(1) In general.--In carrying out a conservation program
administered by the Secretary, the Secretary shall accept
applications from, and shall provide cost-share and incentive
payments and other assistance to, producers who elect to
apply through an organization that represents producers and
of which producers make up a majority of the governing body,
if the Secretary determines that--
``(A) the full objective of the proposed activity,
practice, or plan cannot be realized without the
participation of all or substantially all of the producers in
the affected area; and
``(B) the benefits achieved through the proposed activity,
practice, or plan are likely to be greater and to be
delivered more cost-effectively if provided through a single
organization with related conservation expertise and
management experience.
``(2) Limitation.--Any applicable payment limitation shall
apply to each participating producer and not to the
organization described in paragraph (1).
``(f) Partnerships and Cooperation.--
``(1) In general.--In carrying out a program under subtitle
D, the Secretary may designate special projects, as
recommended if appropriate by the State Executive Director of
the Conservationist, after consultation with the State
technical committee, to enhance assistance provided to
multiple producers to address conservation issues relating to
agricultural and nonindustrial private forest management and
production.
``(2) Purposes.--The purposes of special projects carried
out under this subsection shall be to achieve statewide or
regional conservation objectives by--
``(A) encouraging producers to cooperate in the
installation and maintenance of conservation practices that
affect multiple agricultural operations;
``(B) encouraging producers to cooperate in meeting
applicable Federal, State, and local regulatory requirements
regarding natural resources and the environment;
``(C) encouraging producers to share information and
technical and financial resources;
``(D) facilitating cumulative conservation benefits in
geographic areas; and
``(E) promoting the development and demonstration of
innovative conservation methods.
``(3) Eligible partners.--State and local government
entities (including irrigation and water districts and canal
companies), Indian tribes, farmer cooperatives, institutions
of higher education, nongovernmental organizations, and
producer associations shall be eligible to apply under this
subsection.
``(4) Special project application.--To apply for
designation under paragraph (1), partners shall submit an
application to the Secretary that includes--
``(A) a description of the geographic area, the current
conditions, the conservation objectives to be achieved
through the special project, and the expected level of
participation by agricultural and nonindustrial private
forest landowners;
``(B) a description of the partners collaborating to
achieve the project objectives and the roles,
responsibilities, and capabilities of the partners;
``(C) a description of the program resources requested from
the Secretary, in relevant units, and the non-Federal
resources that will be leveraged by the Federal contribution;
and
``(D) such other information as the Secretary considers
necessary.
``(5) Duties of the secretary.--
``(A) In general.--The Secretary shall enter into multiyear
agreements with partners to facilitate the delivery of
conservation program resources in a manner to achieve the
purposes described in paragraph (2).
``(B) Project selection.--
``(i) In general.--The Secretary shall conduct a
competitive process to select projects funded under this
subsection.
``(ii) Factors considered.--In conducting the process
described in clause (i), the Secretary shall make public
factors to be considered in evaluating applications.
``(iii) Priority.--The Secretary may give priority to
applications based on the highest percentage of--

``(I) producers involved;
``(II) on-the-ground conservation to be implemented;
``(III) non-Federal resources to be leveraged; and
``(IV) other factors, as determined by the Secretary.

``(C) Technical and financial assistance.--The Secretary
and partners shall provide appropriate technical and
financial assistance to producers participating in a special
project in an amount determined by the Secretary to be
necessary to achieve the purposes described in paragraph (2).
``(D) Flexibility.--The Secretary may adjust elements of
the programs under this title to better reflect unique local
circumstances and purposes, if the Secretary determines that
such adjustments are necessary to achieve the purposes of
this subsection.
``(E) Administration.--
``(i) In general.--The Secretary shall ensure that
resources made available under this subsection are delivered
in accordance with applicable program rules.
``(ii) Additional requirements.--The Secretary may
establish additional requirements beyond applicable program
rules in order to effectively implement this subsection.
``(6) Special rules applicable to regional water
enhancement projects.--
``(A) Definitions.--In this paragraph:
``(i) Eligible partner.--The term `eligible partner'
means--

``(I) an eligible partner identified in paragraph (3); and
``(II) a water or wastewater agency of a State.

``(ii) Eligible project.--

``(I) In general.--The term `eligible project' means a
project that is specifically targeted to improve water
quality or quantity in an area.
``(II) Inclusions.--The term `eligible project' includes a
project that involves--

``(aa) resource condition assessment and modeling;
``(bb) water quality, water quantity, or water conservation
plan development;
``(cc) management system and environmental monitoring and
evaluation;
``(dd) cost-share restoration or enhancement;
``(ee) incentive payments for land management practices;
``(ff) easement purchases;
``(gg) conservation contracts with landowners;
``(hh) improved irrigation systems;
``(ii) water banking and other forms of water transactions;
``(jj) groundwater recharge;
``(kk) stormwater capture; and
``(ll) other water-related activities that the Secretary
determines will help to achieve the water quality or water
quantity benefits identified in the agreement in subparagraph
(E) on land described in paragraph (1).
``(B) Regional water enhancement procedures.--With respect
to proposals for eligible projects by eligible partners, the
Secretary shall establish specific procedures (to be known
collectively as `regional water enhancement procedures') in
accordance with this paragraph.
``(C) Means.--Regional water enhancement activities in a
particular region shall be carried out through a combination
of--
``(i) multiyear agreements between the Secretary and
eligible partners;
``(ii) other regional water enhancement activities carried
out by the Secretary; and
``(iii) regional water enhancement activities carried out
by eligible partners through other means.
``(D) Multiyear agreements with eligible partners.--
``(i) Solicitation of proposals.--Not later than 90 days
after the date of enactment of this subsection, the Secretary
shall invite prospective eligible partners to submit
proposals for regional water enhancement projects.
``(ii) Elements of proposals.--To be eligible for
consideration for participation in the program, a proposal
submitted by an eligible partner shall include--

``(I) identification of the exact geographic area for which
the partnership is proposed, which may be based on--

``(aa) a watershed (or portion of a watershed);
``(bb) an irrigation, water, or drainage district;
``(cc) the service area of an irrigation water delivery
entity; or
``(dd) some other geographic area with characteristics that
make the area suitable for landscape-wide program
implementation;

``(II) identification of the water quality or water
quantity issues that are of concern in the area;
``(III) a method for determining a baseline assessment of
water quality, water quantity, and other related resource
conditions in the region;
``(IV) a detailed description of the proposed water quality
or water quantity improvement activities to be undertaken in
the area, including an estimated timeline and program
resources for every activity; and
``(V) a description of the performance measures to be used
to gauge the effectiveness of the water quality or water
quantity improvement activities.

``(iii) Selection of proposals.--The Secretary shall award
multiyear agreements competitively, with priority given, as
determined by the Secretary, to selecting proposals that--

``(I) have the highest likelihood of improving the water
quality or quantity issues of concern for the area;
``(II) involve multiple stakeholders and will ensure the
highest level of participation by producers and landowners in
the area through performance incentives to encourage adoption
of specific practices in specific locations;
``(III) will result in the inclusion of the highest
percentage of working agricultural land in the area;

[[Page S14906]]

``(IV) will result in the highest percentage of on-the-
ground activities as compared to administrative costs;
``(V) will provide the greatest contribution to sustaining
or enhancing agricultural or silvicultural production in the
area; and
``(VI) include performance measures that will allow post-
activity conditions to be satisfactorily measured to gauge
overall effectiveness.

``(iv) Duration.--

``(I) In general.--Multiyear agreements under this
subsection shall be for a period not to exceed 5 years.
``(II) Early termination.--The Secretary may terminate a
multiyear agreement before the end of the agreement if the
Secretary determines that performance measures are not being
met.

``(E) Agreements.--Not later than 30 days after the date on
which the Secretary awards an agreement under subparagraph
(D), the Secretary shall enter into an agreement with the
eligible partner that, at a minimum, contains--
``(i) a description of the respective duties and
responsibilities of the Secretary and the eligible partner in
carrying out the activities in the area; and
``(ii) the criteria that the Secretary will use to evaluate
the overall effectiveness of the regional water enhancement
activities funded by the multiyear agreement in improving the
water quality or quantity conditions of the region relative
to the performance measures in the proposal.
``(F) Contracts with other parties.--An agreement awarded
under subparagraph (D) may provide for the use of third-party
providers (including other eligible partners) to undertake
specific regional water enhancement activities in a region on
a contractual basis with the Secretary or the eligible
partner.
``(G) Consultation with other agencies.--With respect to
areas in which a Federal or State agency is, or will be,
undertaking other water quality or quantity-related
activities, the Secretary and the eligible partner may
consult with the Federal or State agency in order to--
``(i) coordinate activities;
``(ii) avoid duplication; and
``(iii) ensure that water quality or quantity improvements
attributable to the other activities are taken into account
in the evaluation of the Secretary under subparagraph
(E)(ii).
``(H) Relationship to other programs.--The Secretary shall
ensure that, to the extent that producers and landowners are
individually participating in other programs under subtitle D
in a region in which a regional water enhancement project is
in effect, any improvements to water quality or water
quantity attributable to the individual participation are
included in the evaluation criteria developed under
subparagraph (E)(ii).
``(I) Consistency with state law.--Any water quality or
water quantity improvement activity undertaken under this
paragraph shall be consistent with State water laws.
``(7) Funding.--
``(A) In general.--The Secretary shall use not more than 5
percent of the funds made available for conservation programs
under subtitle D for each fiscal year under section 1241(a)
to carry out activities that are authorized under this
subsection.
``(B) Partners.--Overhead or administrative costs of
partners may not be covered by funds provided through this
subsection.
``(C) Unused funding.--Any funds made available for a
fiscal year under subparagraph (A) that are not obligated by
April 1 of the fiscal year may be used to carry out other
activities under conservation programs under subtitle D
during the fiscal year in which the funding becomes
available.
``(g) Accuracy of Payments.--Immediately after the date of
enactment of this subsection, the Secretary shall implement
policies and procedures to ensure proper payment of farm
program benefits to producers participating in conservation
easement programs and correct other management deficiencies
identified in Report No. 50099-11-SF issued by the Department
of Agriculture Office of Inspector General in August 2007.
``(h) Compliance and Performance.--For each conservation
program under this title, the Secretary shall develop
procedures--
``(1) to monitor compliance with program requirements by
landowners and eligible entities;
``(2) to measure program performance;
``(3) to demonstrate whether the long-term conservation
benefits of the program are being achieved; and
``(4) to coordinate activities described in this subsection
with the national conservation program authorized under
section 5 of the Soil and Water Resources Conservation Act of
1977 (16 U.S.C. 2004).
``(i) Direct Attribution of Payments.--In implementing
payment limitations for any program under this title, the
Secretary shall issue such regulations as are necessary to
ensure that the total amount of payments are attributed to an
individual by taking into account the direct and indirect
ownership interests of the individual in an entity that is
eligible to receive the payments.''.
(c) Conforming Amendments.--Section 1234 of the Food
Security Act of 1985 (16 U.S.C. 3834) is amended--
(1) in subsection (d)(3)(B), by striking ``(f)(4)'' and
inserting ``(f)(3)''; and
(2) in subsection (f)--
(A) in paragraph (1)--
(i) by striking ``The total'' and inserting ``Subject to
section 1244(i), the total''; and
(ii) by striking ``a person'' and inserting ``an
individual'';
(B) by striking paragraph (2); and
(C) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively.

SEC. 2406. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES
MARKETS.

Subtitle E of the Food Security Act of 1985 (16 U.S.C. 3841
et seq.) is amended by adding at the end the following:

``SEC. 1245. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES
MARKETS.

``(a) Framework.--
``(1) In general.--The Secretary shall establish a
framework to facilitate the participation of farmers,
ranchers, and forest landowners in emerging environmental
services markets.
``(2) Process.--In carrying out paragraph (1), the
Secretary shall use a collaborative process that includes
representatives of--
``(A) farm, ranch, and forestry interests;
``(B) financial institutions involved in environmental
services trading;
``(C) institutions of higher education with relevant
expertise or experience;
``(D) nongovernmental organizations with relevant expertise
or experience;
``(E) government agencies of relevant jurisdiction,
including--
``(i) the Department of Commerce;
``(ii) the Department of Energy;
``(iii) the Department of the Interior;
``(iv) the Department of Transportation;
``(v) the Environmental Protection Agency; and
``(vi) the Corps of Engineers; and
``(F) other appropriate interests, as determined by the
Secretary.
``(3) Requirements.--
``(A) Definition of standard.--In this paragraph, the term
`standard' means a technical guideline that outlines
accepted, science-based methods to quantify the environmental
services benefits from agricultural and forest conservation
and land management practices, as determined by the
Secretary.
``(B) Framework requirements.--In establishing the
framework under paragraph (1), the Secretary shall--
``(i) establish uniform standards;
``(ii) design accounting procedures to quantify
environmental services benefits that would assist farmers,
ranchers, and forest landowners in using the uniform
standards to establish certifications, as defined in emerging
environmental services markets;
``(iii) establish--

``(I) a protocol to report environmental services benefits;
and
``(II) a registry to report and maintain the benefits for
future use in emerging environmental services markets; and

``(iv) establish a process to verify that a farmer,
rancher, or forest landowner that reports and maintains an
environmental services benefit in the registry described in
clause (iii)(II) has implemented the reported conservation or
land management activity.
``(C) Third-party service providers.--In developing the
process described in subparagraph (B)(iv), the Secretary
shall consider the role of third-party service providers.
``(4) Coordination.--The Secretary shall coordinate and
leverage activities in existence on the date of enactment of
this section in agriculture and forestry relating to emerging
environmental services markets.
``(5) Priority.--In establishing the framework under this
subsection, the Secretary shall give priority to providing
assistance to farmers, ranchers, and forest landowners
participating in carbon markets.
``(b) Authority to Delegate.--The Secretary may delegate
any responsibility under this section to a relevant agency or
office, as determined by the Secretary.
``(c) Reports to Congress.--
``(1) Status of collaborative process.--Not later than 90
days after the date of enactment of this section, the
Secretary shall provide to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate
information on the status of the collaborative process under
subsection (a)(2).
``(2) Interim report.--Not later than 180 days after the
date of enactment of this section, the Secretary shall submit
to the committees of Congress described in paragraph (1) an
interim report that--
``(A) describes the adequacy of existing research and
methods to quantify environmental services benefits;
``(B) proposes methods--
``(i) to establish technical guidelines, accounting
procedures, and reporting protocols; and
``(ii) to structure the registry; and
``(C) includes recommendations for actions to remove
barriers for farmers, ranchers, and forest landowners to
participation, reporting, registration, and verification
relating to environmental services markets.
``(3) Final report.--Not later than 18 months after the
date of enactment of this section, the Secretary shall submit
to the committees of Congress described in paragraph (1) a
report that describes--
``(A) the progress of the Secretary in meeting the
requirements described in subsection (a)(3)(B);
``(B) the rates of participation of farmers, ranchers, and
forest landowners in emerging environmental services markets;
and
``(C) any recommendations of the Secretary relating to
reauthorization of this section.

[[Page S14907]]

``(d) Funding.--There are authorized to be appropriated to
the Secretary to carry out this section such sums as are
necessary for each of fiscal years 2008 through 2012.''.

Subtitle F--State Technical Committees

SEC. 2501. STATE TECHNICAL COMMITTEES.

(a) Standards.--Section 1261 of the Food Security Act of
1985 (16 U.S.C. 3861(c)) is amended by striking subsection
(b) and inserting the following:
``(b) Standards.--Not later than 180 days after the date of
enactment of the Food and Energy Security Act of 2007, the
Secretary shall develop--
``(1) standard operating procedures to standardize the
operations of State technical committees; and
``(2) standards to be used by the State technical
committees in the development of technical guidelines under
section 1262(b) for the implementation of the conservation
provisions of this title.''.
(b) Composition.--Section 1261(c) of the Food Security Act
of 1985 (16 U.S.C. 3861(c)) is amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(1) the Natural Resources Conservation Service;
``(2) the Farm Service Agency;'';
(2) by striking paragraph (5) and inserting the following:
``(5) Rural Development agencies;'';
(3) in paragraph (11), by striking ``and'' at the end;
(4) in paragraph (12), by striking the period at the end
and inserting ``; and''; and
(5) by adding at the end the following:
``(13) nonindustrial private forest land owners.''.
(c) FACA Requirements.--Section 1262(e) of the Food
Security Act of 1985 (16 U.S.C. 3862(e)) is amended--
(1) by striking ``The committees'' and inserting the
following:
``(1) In general.--The committees''; and
(2) by adding at the end the following:
``(2) Local working groups.--For purposes of the Federal
Advisory Committee Act (5 U.S.C. App.), any local working
group established under this subtitle shall be considered to
be a subcommittee of the applicable State technical
committee.''.

Subtitle G--Other Authorities

SEC. 2601. AGRICULTURAL MANAGEMENT ASSISTANCE.

Section 524(b) of the Federal Crop Insurance Act (7 U.S.C.
1524(b)) is amended--
(1) in paragraph (1), by inserting ``Idaho'' after
``Delaware''; and
(2) in paragraph (4)(B), by striking ``2007'' each place it
appears and inserting ``2012''.

SEC. 2602. AGRICULTURE CONSERVATION EXPERIENCED SERVICES
PROGRAM.

The Department of Agriculture Reorganization Act of 1994 (7
U.S.C. 6901 et seq.) is amended by adding at the end the
following:

``SEC. 307. AGRICULTURE CONSERVATION EXPERIENCED SERVICES
PROGRAM.

``(a) Establishment.--
``(1) In general.--Notwithstanding any other provision of
law relating to Federal grants, cooperative agreements, or
contracts, there is established in the Department the
agriculture conservation experienced services program
(referred to in this section as the `ACE program').
``(2) Authorization.--Under the ACE program, the Secretary
may offer to enter into agreements with nonprofit private
agencies and organizations eligible to receive grants for the
applicable fiscal year under title V of the Older Americans
Act of 1965 (42 U.S.C. 3056 et seq.) to use the talents of
individuals who are age 55 or older, to provide conservation
technical assistance in support of the administration of
conservation-related programs and authorities administered by
the Secretary.
``(3) Funding.--Agreements described in paragraph (2) may
be carried out using funds made available to carry out--
``(A) the environmental quality incentives program of the
comprehensive stewardship incentives program established
under subchapter A of chapter 6 of subtitle D of title XII of
the Food Security Act of 1985;
``(B) the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590a et seq.); or
``(C) title V of the Older Americans Act of 1965 (42 U.S.C.
3056).
``(b) Determination.--Prior to entering into an agreement
described in subsection (a)(2), the Secretary shall determine
that the agreement would not--
``(1) result in the displacement of individuals employed by
the Department, including partial displacement through
reduction of nonovertime hours, wages, or employment
benefits;
``(2) result in the use of an individual covered by this
section for a job or function in a case in which a Federal
employee is in a layoff status from the same or a
substantially-equivalent job or function with the Department;
or
``(3) affect existing contracts for services.
``(c) Technical Assistance.--The Secretary may make
available to individuals providing technical assistance under
an agreement authorized by this section appropriate
conservation technical tools, including the use of agency
vehicles necessary to carry out technical assistance in
support of the conservation-related programs affected by the
ACE program.''.

SEC. 2603. TECHNICAL ASSISTANCE.

(a) Soil Conservation and Domestic Allotment Act.--
(1) Prevention of soil erosion.--
(A) In general.--The first section of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590a) is amended--
(i) by striking ``That it'' and inserting the following:

``SECTION 1. PURPOSE.

``It''; and
(ii) in the matter preceding paragraph (1), by striking
``and thereby to preserve natural resources,'' and inserting
``to preserve soil, water, and related resources, promote
soil and water quality,''.
(B) Policies and purposes.--Section 7(a)(1) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590g(a)(1)) is amended by striking ``fertility'' and
inserting ``and water quality and related resources''.
(2) Definitions.--Section 10 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590j) is amended to read as
follows:

``SEC. 10. DEFINITIONS.

``In this Act:
``(1) Agricultural commodity.--The term `agricultural
commodity' means--
``(A) an agricultural commodity; and
``(B) any regional or market classification, type, or grade
of an agricultural commodity.
``(2) Technical assistance.--
``(A) In general.--The term `technical assistance' means
technical expertise, information, and tools necessary for the
conservation of natural resources on land active in
agricultural, forestry, or related uses.
``(B) Inclusions.--The term `technical assistance'
includes--
``(i) technical services provided directly to farmers,
ranchers, and other eligible entities, such as conservation
planning, technical consultation, and assistance with design
and implementation of conservation practices; and
``(ii) technical infrastructure, including activities,
processes, tools, and agency functions needed to support
delivery of technical services, such as technical standards,
resource inventories, training, data, technology, monitoring,
and effects analyses.''.
(b) Soil and Water Resources Conservation Act of 1977.--
(1) Congressional findings.--Section 2 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is
amended--
(A) in paragraph (2), by striking ``base, of the'' and
inserting ``base of the''; and
(B) in paragraph (3), by striking ``(3)'' and all that
follows through ``Since individual'' and inserting the
following:
``(3) Appraisal and inventory of resources, assessment and
inventory of conservation needs, evaluation of the effects of
conservation practices, and analyses of alternative
conservation programs are basic to effective soil, water, and
related natural resource conservation.
``(4) Since individual''.
(2) Continuing appraisal of soil, water, and related
resources.--Section 5 of the Soil and Water Resources
Conservation Act of 1977 (16 U.S.C. 2004) is amended--
(A) in subsection (a)--
(i) in paragraph (5), by striking ``and'' at the end;
(ii) in paragraph (6), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(7) data on conservation plans, conservation practices
planned or implemented, environmental outcomes, economic
costs, and related matters under conservation programs
administered by the Secretary.'';
(B) by redesignating subsection (d) as subsection (e);
(C) by inserting after subsection (c) the following:
``(d) Evaluation of Appraisal.--In conducting the appraisal
described in subsection (a), the Secretary shall concurrently
solicit and evaluate recommendations for improving the
appraisal, including the content, scope, process,
participation in, and other elements of the appraisal, as
determined by the Secretary.''; and
(D) in subsection (e) (as redesignated by subparagraph
(B)), by striking ``December 31, 1979'' and all that follows
through ``December 31, 2005'' and inserting ``December 31,
2010, December 31, 2015, December 31, 2020, and December 31,
2025''.
(3) Soil and water conservation program.--Section 6 of the
Soil and Water Resources Conservation Act of 1977 (16 U.S.C.
2005) is amended--
(A) by redesignating subsection (b) as subsection (d);
(B) by inserting after subsection (a) the following:
``(b) Evaluation of Existing Conservation Programs.--In
evaluating existing conservation programs, the Secretary
shall emphasize demonstration, innovation, and monitoring of
specific program components in order to encourage further
development and adoption of practices and performance-based
standards.
``(c) Improvement to Program.--In developing a national
soil and water conservation program under subsection (a), the
Secretary shall solicit and evaluate recommendations for
improving the program, including the content, scope, process,
participation in, and other elements of the program, as
determined by the Secretary.''; and
(C) in subsection (d) (as redesignated by subparagraph
(A)), by striking ``December 31, 1979'' and all that follows
through ``December 31, 2007'' and inserting ``December 31,
2011, December 31, 2016, December 31, 2021, and December 31,
2026''.
(4) Reports to congress.--Section 7 of the Soil and Water
Resources Conservation Act

[[Page S14908]]

of 1977 (16 U.S.C. 2006) is amended to read as follows:

``SEC. 7. REPORTS TO CONGRESS.

``(a) Appraisal.--Not later than the date on which Congress
convenes in 2011, 2016, 2021, and 2026, the President shall
transmit to the Speaker of the House of Representatives and
the President of the Senate the appraisal developed under
section 5 and completed prior to the end of the previous
year.
``(b) Program and Statement of Policy.--Not later than the
date on which Congress convenes in 2012, 2017, 2022, and
2027, the President shall transmit to the Speaker of the
House of Representatives and the President of the Senate--
``(1) the initial program or updated program developed
under section 6 and completed prior to the end of the
previous year;
``(2) a detailed statement of policy regarding soil and
water conservation activities of the Department of
Agriculture; and
``(3) a special evaluation of the status, conditions, and
trends of soil quality on cropland in the United States that
addresses the challenges and opportunities for reducing soil
erosion to tolerance levels.
``(c) Improvements to Appraisal and Program.--Not later
than the date on which Congress convenes in 2012, the
Secretary shall submit to the Speaker of the House of
Representatives and the President of the Senate a report
describing the plans of the Department of Agriculture for
improving the resource appraisal and national conservation
program required under this Act, based on the recommendations
received under sections 5(d) and 6(c).''.
(5) Termination of program.--Section 10 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is
amended by striking ``2008'' and inserting ``2028''.

SEC. 2604. SMALL WATERSHED REHABILITATION PROGRAM.

Section 14 of the Watershed Protection and Flood Prevention
Act (16 U.S.C. 1012) is amended by striking subsection (h)
and inserting the following:
``(h) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.

SEC. 2605. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

(a) Locally Led Planning Process.--Section 1528 of the
Agriculture and Food Act of 1981 (16 U.S.C. 3451) is
amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``planning process'' and inserting ``locally
led planning process'';
(2) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (8), respectively, and moving those paragraphs so as
to appear in numerical order;
(3) in paragraph (8) (as so redesignated)--
(A) by striking ``(8) Planning process'' and inserting
``(8) Locally led planning process''; and
(B) by striking ``council'' and inserting ``locally led
council''.
(b) Authorized Technical Assistance.--Section 1528(13) of
the Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is
amended by striking subparagraphs (C) and (D) and inserting
the following:
``(C) providing assistance for the implementation of area
plans and projects; and
``(D) providing services that involve the resources of
Department of Agriculture programs in a local community, as
defined in the locally led planning process.''.
(c) Improved Provision of Technical Assistance.--Section
1531 of the Agriculture and Food Act of 1981 (16 U.S.C. 3454)
is amended--
(1) by redesignating paragraphs (1) through (4) as clauses
(i) through (iv), respectively, and indenting appropriately;
(2) by striking ``In carrying'' and inserting the
following:
``(1) In general.--In carrying''; and
(3) by adding at the end the following:
``(b) Coordinator.--
``(1) In general.--To improve the provision of technical
assistance to councils under this subtitle, the Secretary
shall designate for each council an individual to be the
coordinator for the council.
``(2) Responsibility.--A coordinator for a council shall be
directly responsible for the provision of technical
assistance to the council.''.
(d) Program Evaluation.--Section 1534 of the Agriculture
and Food Act of 1981 (16 U.S.C. 3457) is repealed.

SEC. 2606. NATIONAL NATURAL RESOURCES CONSERVATION
FOUNDATION.

(a) Advisory Functions.--Section 353 of the Federal
Agriculture Improvement and Reform Act of 1996 (16 U.S.C.
5802) is amended--
(1) in subsection (b)(3), by striking ``agencies'' and
inserting ``agencies, individuals,''; and
(2) by adding at the end the following:
``(d) Advisory Functions.--Notwithstanding the requirements
of the Federal Advisory Committee Act (5 U.S.C. App.), the
Foundation may provide advice and recommendations to the
Secretary.''.
(b) Gifts, Devises, and Bequests of Personal Property.--
Section 354 of the Federal Agriculture Improvement and Reform
Act of 1996 (16 U.S.C. 5803) is amended by adding at the end
the following:
``(h) Gifts, Devises, and Bequests of Personal Property.--
``(1) In general.--Prior to the appointment and initial
meeting of the members of the Board and after the initial
meeting of the Board, the Secretary may, on behalf of the
Foundation--
``(A) accept, receive, and hold nonmonetary gifts, devises,
or bequests of personal property; and
``(B) accept and receive monetary gifts, devises, or
bequests.
``(2) Held in trust.--Gifts, devises, or bequests of
monetary and nonmonetary personal property shall--
``(A) be held in trust for the Foundation; and
``(B) shall not be--
``(i) considered gifts to the United States; or
``(ii) used for the benefit of the United States.
``(3) Treasury account.--The Secretary shall deposit
monetary gifts, devises, and bequests to the Foundation in a
special interest-bearing account in the Treasury of the
United States.
``(4) Initial gifts, devises, and bequests.--
``(A) In general.--The Secretary may use initial gifts,
devises, or bequests received prior to the first meeting of
the Board for any necessary expenses and activities related
to the first meeting of the Board.
``(B) Transfer.--Except with respect to any amounts
expended under subparagraph (A), the Secretary shall, at the
first meeting of the Board, transfer to the Foundation all
gifts, devises, or bequests received prior to the first
meeting of the Board.''.
(c) Officers and Employees.--Section 355(b)(1) of the
Federal Agriculture Improvement and Reform Act of 1996 (16
U.S.C. 5804(b)(1)) is amended--
(1) by striking ``Foundation--'' and all that follows
through ``shall not,'' in subparagraph (A) and inserting
``Foundation shall not'';
(2) by striking ``employee; and'' and inserting
``employee.''; and
(3) by striking subparagraph (B).
(d) Contracts and Agreements.--Section 356 of the Federal
Agriculture Improvement Reform Act of 1996 (16 U.S.C. 5805)
is amended--
(1) in subsection (c)(7), by striking ``State or local''
and inserting ``Federal, State, or local''; and
(2) in subsection (d)(2)--
(A) by striking ``A gift'' and inserting the following:
``(A) In general.--A gift''; and
(B) by adding at the end the following:
``(B) Tax status.--A gift, devise, or bequest to the
Foundation shall be treated as a gift, devise, or bequest to
an organization exempt from taxation under section 501(c)(3)
of the Internal Revenue Code of 1986.''.
(e) Administrative Services and Support.--Section 356 of
the Federal Agriculture Improvement Reform Act of 1996 (16
U.S.C. 5806) is amended by striking ``1996 through 1998'' and
inserting ``2008 through 2012.''.

SEC. 2607. DESERT TERMINAL LAKES.

Section 2507 of the Farm Security and Rural Investment Act
of 2002 (43 U.S.C. 2211 note; Public Law 107-171) is
amended--
(1) by striking ``(a)'' and all that follows through ``the
Secretary of Agriculture'' and inserting the following:
``Subject to paragraph (1) of section 207 of Public Law 108-7
(117 Stat. 146), notwithstanding paragraph (3) of that
section, on the date of enactment of the Food and Energy
Security Act of 2007, the Secretary of Agriculture''; and
(2) by striking subsection (b).

SEC. 2608. CROP INSURANCE INELIGIBILITY RELATING TO CROP
PRODUCTION ON NATIVE SOD.

(a) Federal Crop Insurance.--Section 508 of the Federal
Crop Insurance Act (7 U.S.C. 1508) is amended by adding at
the end the following:
``(o) Crop Insurance Ineligibility Relating to Crop
Production on Native Sod.--
``(1) Definition of native sod.--In this subsection, the
term `native sod' means land--
``(A) on which the plant cover is composed principally of
native grasses, grasslike plants, forbs, or shrubs suitable
for grazing and browsing; and
``(B) that has never been used for production of an
agricultural commodity.
``(2) Ineligibility.--Native sod acreage on which an
agricultural commodity is planted for which a policy or plan
of insurance is available under this title shall be
ineligible for benefits under this Act.''.
(b) Noninsured Crop Disaster Assistance.--Section 196(a) of
the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333(a)) is amended by adding at the end the
following:
``(4) Program ineligibility relating to crop production on
native sod.--
``(A) Definition of native sod.--In this paragraph, the
term `native sod' means land--
``(i) on which the plant cover is composed principally of
native grasses, grasslike plants, forbs, or shrubs suitable
for grazing and browsing; and
``(ii) that has never been used for production of an
agricultural commodity.
``(B) Ineligibility.--Native sod acreage on which an
agricultural commodity is planted for which a policy or plan
of Federal crop insurance is available shall be ineligible
for benefits under this section.''.
(c) Cropland Report.--
(1) Baseline.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report

[[Page S14909]]

that describes the cropland acreage in each county and State,
and the change in cropland acreage from the preceding year in
each county and State, beginning with calendar year 1995 and
including that information for the most recent year for which
that information is available.
(2) Annual updates.--Not later than January 1, 2008, and
each January 1 thereafter through January 1, 2012, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
describes--
(A) the cropland acreage in each county and State as of the
date of submission of the report; and
(B) the change in cropland acreage from the preceding year
in each county and State.

SEC. 2609. HIGH PLAINS WATER STUDY.

Notwithstanding any other provision of this Act, no person
shall become ineligible for any program benefits under this
Act or an amendment made by this Act solely as a result of
participating in a 1-time study of recharge potential for the
Ogallala Aquifer in the High Plains of the State of Texas.

SEC. 2610. PAYMENT OF EXPENSES.

Section 17(d) of the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. 136o(d)) is amended--
(1) by striking ``The Administrator'' and inserting the
following:
``(1) In general.--The Administrator''; and
(2) by adding at the end the following:
``(2) Department of state expenses.--Any expenses incurred
by an employee of the Environmental Protection Agency who
participates in any international technical, economic, or
policy review board, committee, or other official body that
is meeting in relation to an international treaty shall be
paid by the Department of State.''.

SEC. 2611. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL
ACTIVITIES UPSTREAM OF IMPERIAL DAM.

(a) In General.--Section 202(a) of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding
at the end the following:
``(7) Basin states program.--
``(A) In general.--A Basin States Program that the
Secretary, acting through the Bureau of Reclamation, shall
implement to carry out salinity control activities in the
Colorado River Basin using funds made available under section
205(f).
``(B) Assistance.--The Secretary, in consultation with the
Colorado River Basin Salinity Control Advisory Council, shall
carry out this paragraph using funds described in
subparagraph (A) directly or by providing grants, grant
commitments, or advance funds to Federal or non-Federal
entities under such terms and conditions as the Secretary may
require.
``(C) Activities.--Funds described in subparagraph (A)
shall be used to carry out, as determined by the Secretary--
``(i) cost-effective measures and associated works to
reduce salinity from saline springs, leaking wells,
irrigation sources, industrial sources, erosion of public and
private land, or other sources;
``(ii) operation and maintenance of salinity control
features constructed under the Colorado River Basin salinity
control program; and
``(iii) studies, planning, and administration of salinity
control activities.
``(D) Report.--
``(i) In general.--Not later than 30 days before
implementing the program established under this paragraph,
the Secretary shall submit to the appropriate committees of
Congress a planning report that describes the proposed
implementation of the program.
``(ii) Implementation.--The Secretary may not expend funds
to implement the program established under this paragraph
before the expiration of the 30-day period beginning on the
date on which the Secretary submits the report, or any
revision to the report, under clause (i).''.
(b) Conforming Amendments.--
(1) Section 202 of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1592) is amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by striking ``program'' and inserting ``programs''; and
(B) in subsection (b)(4)--
(i) by striking ``program'' and inserting ``programs''; and
(ii) by striking ``and (6)'' and inserting ``(6), and
(7)''.
(2) Section 205 of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1595) is amended by striking
subsection (f) and inserting the following:
``(f) Upfront Cost Share.--
``(1) In general.--Effective beginning on the date of
enactment of this paragraph, subject to paragraph (3), the
cost share obligations required by this section shall be met
through an upfront cost share from the Basin Funds, in the
same proportions as the cost allocations required under
subsection (a), as provided in paragraph (2).
``(2) Basin states program.--The Secretary shall expend the
required cost share funds described in paragraph (1) through
the Basin States Program for salinity control activities
established under section 202(a)(7).
``(3) Existing salinity control activities.--The cost share
contribution required by this section shall continue to be
met through repayment in a manner consistent with this
section for all salinity control activities for which
repayment was commenced prior to the date of enactment of
this paragraph.''.

SEC. 2612. GREAT LAKES COMMISSION.

(a) In General.--The Secretary, in consultation with the
Great Lakes Commission created by article IV of the Great
Lakes Basin Compact (Public Law 90-419; 82 Stat. 415), and in
cooperation with the Administrator of the Environmental
Protection Agency and the Secretary of the Army, may carry
out the Great Lakes basin program for soil erosion and
sediment control (referred to in this section as the
``program'') to assist in implementing the recommendations of
the Great Lakes Regional Collaboration Strategy to Restore
and Protect the Great Lakes.
(b) Assistance.--In carrying out the program, the Secretary
may--
(1) provide project demonstration grants, provide technical
assistance, and carry out information and education programs
to improve water quality in the Great Lakes basin by reducing
soil erosion and improving sediment control; and
(2) provide a priority for projects and activities that--
(A) directly reduce soil erosion or improve sediment
control;
(B) reduce soil loss in degraded rural watersheds; or
(C) improve hydrologic conditions in urban watersheds.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2007 through 2012.

SEC. 2613. TECHNICAL CORRECTIONS TO THE FEDERAL INSECTICIDE,
FUNGICIDE, AND RODENTICIDE ACT.

(a) Pesticide Registration Service Fees.--Section 33 of the
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
136w-8) is amended--
(1) in subsection (b)(7)--
(A) in subparagraph (D)--
(i) by striking clause (i) and inserting the following:
``(i) In general.--The Administrator may exempt from, or
waive a portion of, the registration service fee for an
application for minor uses for a pesticide.''; and
(ii) in clause (ii), by inserting ``or exemption'' after
``waiver''; and
(B) in subparagraph (E)--
(i) in the paragraph heading, by striking ``Waiver'' and
inserting ``Exemption'';
(ii) by striking ``waive the registration service fee for
an application'' and inserting ``exempt an application from
the registration service fee''; and
(iii) in clause (ii), by striking ``waiver'' and inserting
``exemption''; and
(2) in subsection (m)(2), by striking ``2008'' each place
it appears and inserting ``2012''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on October 1, 2007.

SEC. 2614. CONSERVATION OF GREATER EVERGLADES ECOSYSTEM.

Of the funds of the Commodity Credit Corporation, the
Secretary shall use $7,000,000 for each of fiscal years 2008
through 2012 to provide assistance to 1 or more States to
carry out conservation activities in or for the greater Everglades
ecosystem.

TITLE III--TRADE

Subtitle A--Food for Peace Act

SEC. 3001. SHORT TITLE.

(a) In General.--Section 1 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691 note;
104 Stat. 3633) is amended by striking ``Agricultural Trade
Development and Assistance Act of 1954'' and inserting ``Food
for Peace Act''.
(b) Conforming Amendments.--
(1) In general.--Each provision of law described in
paragraph (2) is amended--
(A) by striking ``Agricultural Trade Development and
Assistance Act of 1954'' each place it appears and inserting
``Food for Peace Act''; and
(B) in each section heading, by striking ``AGRICULTURAL
TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954'' each place it
appears and inserting ``FOOD FOR PEACE ACT''.
(2) Provisions of law.--The provisions of law referred to
in paragraph (1) are the following:
(A) The Agriculture and Food Act of 1981 (Public Law 97-98;
95 Stat. 1213).
(B) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
(C) Section 9(a) of the Military Construction Codification
Act (7 U.S.C. 1704c).
(D) Section 201 of the Africa: Seeds of Hope Act of 1998 (7
U.S.C. 1721 note; Public Law 105-385).
(E) The Bill Emerson Humanitarian Trust Act (7 U.S.C.
1736f-1 et seq.).
(F) The Food for Progress Act of 1985 (7 U.S.C. 1736o).
(G) Section 3107 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 1736o-1).
(H) Sections 605B and 606C of the Act of August 28, 1954
(commonly known as the ``Agricultural Act of 1954'') (7
U.S.C. 1765b, 1766b).
(I) Section 206 of the Agricultural Act of 1956 (7 U.S.C.
1856).
(J) The Agricultural Competitiveness and Trade Act of 1988
(7 U.S.C. 5201 et seq.).
(K) The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et
seq.).
(L) The Export-Import Bank Act of 1945 (12 U.S.C. 635 et
seq.).
(M) Section 301 of title 13, United States Code.
(N) Section 8 of the Endangered Species Act of 1973 (16
U.S.C. 1537).

[[Page S14910]]

(O) Section 604 of the Enterprise for the Americas Act of
1992 (22 U.S.C. 2077).
(P) Section 5 of the International Health Research Act of
1960 (22 U.S.C. 2103).
(Q) The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.).
(R) The Horn of Africa Recovery and Food Security Act (22
U.S.C. 2151 note; Public Law 102-274).
(S) Section 105 of the Mutual Educational and Cultural
Exchange Act of 1961 (22 U.S.C. 2455).
(T) Section 35 of the Foreign Military Sales Act (22 U.S.C.
2775).
(U) The Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5401 et seq.).
(V) Section 1707 of the Cuban Democracy Act of 1992 (22
U.S.C. 6006).
(W) The Cuban Liberty and Democratic Solidarity (LIBERTAD)
Act of 1996 (22 U.S.C. 6021 et seq.).
(X) Section 902 of the Trade Sanctions Reform and Export
Enhancement Act of 2000 (22 U.S.C. 7201).
(Y) Chapter 553 of title 46, United State Code.
(Z) Section 4 of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98c).
(AA) The Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101-624; 104 Stat. 3359).
(BB) Section 738 of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
Appropriations Act, 2001 (Public Law 106-387; 114 Stat 1549A-
34).
(c) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to the
``Agricultural Trade Development and Assistance Act of 1954''
shall be considered to be a reference to the ``Food for Peace
Act''.

SEC. 3002. UNITED STATES POLICY.

Section 2 of the Food for Peace Act (7 U.S.C. 1691) is
amended--
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively.

SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b))
is amended by striking ``(b)'' and all that follows through
paragraph (1) and inserting the following:
``(b) Sense of Congress.--It is the sense of Congress
that--
``(1) in negotiations with other countries at the Food Aid
Convention, the World Trade Organization, the United Nations
Food and Agriculture Organization, and other appropriate
venues, the President shall--
``(A) seek commitments of higher levels of food aid by
donors in order to meet the legitimate needs of developing
countries;
``(B) ensure, to the maximum extent practicable, that
humanitarian nongovernmental organizations, recipient country
governments, charitable bodies, and international
organizations shall continue--
``(i) to be eligible to receive resources based on
assessments of need conducted by those organizations and
entities; and
``(ii) to implement food aid programs in agreements with
donor countries; and
``(C) ensure, to the maximum extent practicable, that
options for providing food aid for emergency and
nonemergency, or chronic, needs shall not be subject to
limitation, including in-kind commodities, provision of funds
for commodity procurement, and monetization of commodities,
on the condition that the provision of those commodities or
funds--
``(i) is based on assessments of need and intended to
benefit the food security of or otherwise assist recipients,
and
``(ii) is provided in a manner that avoids disincentives to
local agricultural production and marketing and with minimal
potential for disruption of commercial markets; and''.

SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

(a) Title I of the Food for Peace Act (7 U.S.C. 1701 et
seq.) is amended in the title heading, by striking ``TRADE
AND DEVELOPMENT ASSISTANCE'' and inserting ``ECONOMIC
ASSISTANCE AND FOOD SECURITY''.
(b) Section 101 of the Food for Peace Act (7 U.S.C. 1701)
is amended in the section heading, by striking ``trade and
development assistance'' and inserting ``ECONOMIC ASSISTANCE
and food security''.

SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND
PRIVATE ENTITIES.

Section 102 of the Food for Peace Act (7 U.S.C. 1702) is
amended--
(1) in subsection (a)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively; and
(2) by striking subsection (c).

SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c))
is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
through agreements with recipient governments, private
voluntary organizations, and cooperatives,'' after
``developing country'';
(2) in paragraph (2)--
(A) in subparagraph (C), by striking ``and'' at the end;
(B) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(E) the improvement of the trade capacity of the
recipient country.'';
(3) by striking paragraphs (1), (3), (4), (5), and (6); and
(4) by redesignating paragraphs (2), (7), (8), and (9) as
paragraphs (1), (2), (3), and (4), respectively.

SEC. 3007. GENERAL AUTHORITY.

Section 201 of the Food for Peace Act (7 U.S.C. 1721) is
amended--
(1) by striking paragraph (1) and inserting the following:
``(1) address famine and respond to emergency food needs
arising from man-made and natural disasters;'';
(2) in paragraph (5), by inserting ``food security and
support'' after ``promote''; and
(3) by striking paragraph (6) and inserting the following:
``(6) protect livelihoods, provide safety nets for food
insecure populations, and encourage participation in
educational, training, and other productive activities.''.

SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

Section 202 of the Food for Peace Act (7 U.S.C. 1722) is
amended--
(1) in subsection (b)(2), by striking ``may not deny a
request for funds'' and inserting ``may not use as a sole
rationale for denying a request for funds'';
(2) in subsection (e)(1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``Of the funds made available in'' and
inserting ``Of the total amount of funds made available from
all sources for''; and
(ii) by striking ``not less than 5 percent nor more than 10
percent'' and inserting ``not less than 7.5 percent'';
(B) in subparagraph (A), by striking ``and'' at the end;
(C) by striking subparagraph (B) and inserting the
following:
``(B) meeting specific administrative, management,
personnel, programmatic, and operational activities, and
internal transportation and distribution costs for carrying
out new and existing programs in foreign countries under this
title; and''
(D) by adding at the end the following:
``(C) improving and implementing methodologies for food aid
programs, including needs assessments, monitoring, and
evaluation.''; and
(3) by striking subsection (h) and inserting the following:
``(h) Food Aid Quality.--
``(1) In general.--The Administrator shall use funds made
available for fiscal year 2008 and subsequent fiscal years to
carry out this title--
``(A) to assess the types and quality of agricultural
commodities and products donated for food aid;
``(B) to adjust products and formulations as necessary to
cost-effectively meet nutrient needs of target populations;
and
``(C) to pretest prototypes.
``(2) Administration.--The Administrator--
``(A) shall carry out this subsection in consultation with
and through an independent entity with proven impartial
expertise in food aid commodity quality enhancements;
``(B) may enter into contracts to obtain the services of
such an entity; and
``(C) shall consult with the Food Aid Consultative Group on
how to carry out this subsection.
``(3) Reports.--The Administrator shall submit to the
Committees on Agriculture and Foreign Affairs of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate--
``(A) a report that describes the activities of the
Administrator in carrying out paragraph (1) for fiscal year
2008; and
``(B) an annual report that describes the progress of the
Administrator in addressing food aid quality issues.''.

SEC. 3009. MICROENTERPRISE ACTIVITIES.

Section 203(d)(2) of the Food for Peace Act (7
U.S.C.1723(d)(2)) is amended by inserting ``, including
activities involving microenterprise and village banking,''
after ``other developmental activities''.

SEC. 3010. LEVELS OF ASSISTANCE.

Section 204(a)(1) of the Food for Peace Act (7 U.S.C.
1724(a)(1)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 3011. FOOD AID CONSULTATIVE GROUP.

Section 205 of the Food for Peace Act (7 U.S.C. 1725) is
amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) in paragraph (6), by striking the period and inserting
``; and''; and
(C) by inserting at the end the following:
``(7) representatives from the maritime transportation
sector involved in transporting agricultural commodities
overseas for programs under this Act.'';
(2) in subsection (d)--
(A) by striking ``In preparing'' and inserting the
following:
``(1) In general.--In preparing'';
(B) by striking ``The Administrator'' and inserting the
following:
``(2) Biannual consultation.--The Administrator''; and
(C) by adding at the end the following:
``(3) Consultation for draft regulations.--In addition to
the meetings required under paragraph (2), the Administrator
shall consult and meet with the Group--
``(A) before issuing the draft regulations to carry out the
program described in section 209; and
``(B) during the public comment period relating to those
draft regulations.''; and

[[Page S14911]]

(3) in subsection (f), by striking ``2007'' and inserting
``2012''.

SEC. 3012. ADMINISTRATION.

Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is
amended--
(1) in subsection (a)(3), by striking ``must be met for the
approval of such proposal'' and inserting ``should be
considered for a proposal in a future fiscal year'';
(2) in subsection (c), by striking paragraph (3);
(3) by striking subsection (d) and inserting the following:
``(d) Timely Provision of Commodities.--The Administrator,
in consultation with the Secretary, shall develop procedures
that ensure expedited processing of commodity call forwards
in order to provide commodities overseas in a timely manner
and to the extent feasible, according to planned delivery
schedules.'';
(4) in subsection (e)(2), by striking ``December 1'' and
inserting ``June 1''; and
(5) by adding at the end the following:
``(f) Program Oversight.--
``(1) In general.--Funds made available to carry out this
title may be used to pay the expenses of the United States
Agency for International Development associated with program
monitoring, evaluation, assessments, food aid data
collection, and food aid information management and commodity
reporting systems.
``(2) Contract authority.--
``(A) In general.--Subject to subparagraphs (B) and (C) and
notwithstanding any other provision of law, in carrying out
administrative and management activities related to the
implementation of programs under this title, the
Administrator may contract with 1 or more individuals for
personal service to be performed in recipient countries or
neighboring countries.
``(B) Prohibition.--Individuals contracting with the
Administrator under subparagraph (A) shall not be considered
to be employees of the United States Government for the
purpose of any law administered by the Office of Personnel
Management.
``(C) Personal service.--Subparagraph (A) does not limit
the ability of the Administrator to contract with individuals
for personal service under section 202(a).
``(g) Indirect Support Costs to the World Food Program of
the United Nations.--
``(1) In general.--Notwithstanding any other provision of
law, in providing assistance under this title, the
Administrator may make contributions to the World Food
Program of the United Nations to the extent that the
contributions are made in accordance with the rules and
regulations of that program for indirect cost rates.
``(2) Report.--The Administrator shall submit the
Committees on Agriculture and Foreign Affairs of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate an annual report on the level of
the contribution and the reasons for the level.
``(h) Indirect Support Costs to Cooperating Sponsors.--
Notwithstanding any other provision of law, the Administrator
may pay to a private voluntary organization or cooperative
indirect costs associated with any funds received or
generated for programs, costs, or activities under this
title, on the condition that the indirect costs are
consistent with Office of Management and Budget cost
principles.
``(i) Project Reporting.--
``(1) In general.--In submitting project reports to the
Administrator, a private voluntary organization or
cooperative shall provide a copy of the report in such form
as is necessary for the report to be displayed for public use
on the website of the United States Agency for International
Development.
``(2) Confidential information.--An organization or
cooperative described in paragraph (1) may omit any
confidential information from the copy of the report
submitted for public display under that paragraph.''.

SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID
TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF
SHELF-STABLE PREPACKAGED FOODS.

Section 208(f) of the Food for Peace Act (7 U.S.C.
1726b(f)) is amended--
(1) by striking ``$3,000,000'' and inserting
``$8,000,000''; and
(2) by striking ``2007'' and inserting ``2012''.

SEC. 3014. PILOT PROGRAM FOR LOCAL PURCHASE.

Title II of the Food for Peace Act (7 U.S.C. 1721 et seq.)
is amended by adding at the end the following:

``SEC. 209. PILOT PROGRAM FOR LOCAL PURCHASE.

``(a) Definitions.--In this section:
``(1) Eligible commodity.--Notwithstanding section 402(2),
the term `eligible commodity' means an agricultural
commodity, or the product of an agricultural commodity, that
is produced in--
``(A) the recipient country;
``(B) a low-income, developing country near the recipient
country; or
``(C) Africa.
``(2) Eligible organization.--The term `eligible
organization' means--
``(A) an organization that is--
``(i) described in section 202(d); and
``(ii) subject to guidelines promulgated to carry out this
section, including United States audit requirements that are
applicable to non-governmental organizations; or
``(B) an intergovernmental organization, if the
organization agrees to be subject to all requirements of this
section, including any regulations promulgated or guidelines
issued by the Administrator to carry out this section.
``(3) Pilot program.--The term `pilot program' means the
pilot program established under subsection (b).
``(b) Establishment.--Notwithstanding section 407(c)(1)(A),
the Administrator, in consultation with the Secretary, shall
establish a field-based pilot program for local and regional
purchases of eligible commodities in accordance with this
section.
``(c) Purposes.--Eligible commodities under the pilot
program shall be used solely--
``(1) to address severe food shortages caused by sudden
events, including--
``(A) earthquakes, floods, and other unforeseen crises; or
``(B) human-made crises, such as conflicts;
``(2) to prevent or anticipate increasing food scarcity as
the result of slow-onset events, such as drought, crop
failures, pests, economic shocks, and diseases that result in
an erosion of the capacity of communities and vulnerable
populations to meet food needs;
``(3) to address recovery, resettlement, and reconstruction
following 1 or more disasters or emergencies described in
paragraph (1) or (2); and
``(4) to protect and improve livelihoods and food security,
provide safety nets for food insecure or undernourished
populations, and encourage participation in education and
other productive activities.
``(d) Procurement.--Subject to subsections (a), (b), (f),
and (h) of section 403, eligible commodities under the pilot
program shall for emergency situations be procured through
the most effective 1 or more approaches or methodologies that
are likely to expedite the provision of food aid to affected
populations.
``(e) Review of Prior Local Cash Purchase Experience.--
``(1) In general.--Not later than 30 days after the date of
enactment of this section, the Administrator shall initiate
the process to commission an external review of local cash
purchase projects conducted before the date of enactment of
this section by other donor countries, private voluntary
organizations, and the World Food Program of the United
Nations.
``(2) Use of review.--The Administrator shall use the
results of the review to develop--
``(A) proposed guidelines under subsection (j); and
``(B) requests for applications under subsection (f).
``(3) Report.--Not later than 270 days after the date of
enactment of this section, the Administrator shall submit to
the Committees on Agriculture and Foreign Affairs of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report containing the
results of the review.
``(f) Grants to Eligible Organizations.--
``(1) In general.--After the promulgation of final
guidelines under subsection (j), the Administrator may seek
applications from and provide grants to eligible
organizations to carry out the pilot program.
``(2) Completion requirement.--As a condition of receiving
a grant under the pilot program, an eligible organization
shall agree--
``(A) to complete all projects funded through the grant not
later than September 30, 2011; and
``(B) to provide information about the results of the
project in accordance with subsection (i).
``(3) Other requirements.--Other requirements for
submission of proposals for consideration under this title
shall apply to the submission of an application for a grant
under this section.
``(g) Project Diversity.--In selecting projects to fund
under the pilot program, the Administrator shall select a
diversity of projects, including--
``(1) at least 1 project for each of the situations
described in subsection (c);
``(2) at least 1 project carried out jointly with a project
using agricultural commodities produced in the United States
under this title;
``(3) at least 1 project carried out jointly with a project
funded through grassroots efforts by agricultural producers
through eligible United States organizations;
``(4) projects in both food surplus and food deficit
regions, using regional procurement for food deficit regions;
and
``(5) projects in diverse geographical regions, with most,
but not all, projects located in Africa.
``(h) Information Required in Applications.--In submitting
an application under this section, an eligible organization
shall--
``(1) request funding for up to 3 years; and
``(2) include in the application--
``(A) a description of the target population through a
needs assessment and sufficient information to demonstrate
that the situation is a situation described in subsection
(c);
``(B) an assurance that the local or regional procurement--
``(i) is likely to expedite the provision of food aid to
the affected population; and
``(ii) would meet the requirements of subsection (d);
``(C) a description of--
``(i) the quantities and types of eligible commodities that
would be procured;

[[Page S14912]]

``(ii) the rationale for selecting those eligible
commodities; and
``(iii) how the eligible commodities could be procured and
delivered in a timely manner;
``(D) an analysis of the potential impact of the purchase
of eligible commodities on the production, pricing, and
marketing of the same and similar agricultural commodities in
the country and localities in which the purchase will take
place;
``(E) a description of food quality and safety assurance
measures; and
``(F) a monitoring and evaluation plan that ensures
collection of sufficient data--
``(i) to determine the full cost of procurement, delivery,
and administration;
``(ii) to report on the agricultural production, marketing,
and price impact of the local or regional purchases,
including the impact on low-income consumers; and
``(iii) to provide sufficient information to support the
completion of the report described in subsection (i).
``(i) Independent Evaluation and Report.--
``(1) In general.--The Administrator shall--
``(A) arrange for an independent evaluation of the pilot
program; and
``(B) provide access to all records and reports for the
completion of the evaluation.
``(2) Report.--Not later than 4 years after the date of
enactment of this section, the Administrator shall submit to
the Committees on Agriculture and Foreign Affairs of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that--
``(A) includes the analysis and findings of the independent
evaluation;
``(B) assesses whether the requirements of this section
have been met;
``(C) describes for each of the relevant markets in which
the commodities were purchased--
``(i) prevailing and historic supply, demand, and price
movements;
``(ii) impact on producer and consumer prices;
``(iii) government market interferences and other donor
activities that may have affected the supply and demand in
the area in which the local or regional purchase took place;
and
``(iv) the quantities and types of eligible commodities
procured in each market, the time frame for procurement, and
the complete costs of the procurement (including procurement,
storage, handling, transportation, and administrative costs);
``(D) assesses the impact of different methodologies and
approaches on local and regional agricultural producers
(including large and small producers), markets, low-income
consumers, and program recipients;
``(E) assesses the time elapsed from initiation of the
procurement process to delivery;
``(F) compares different methodologies used in terms of--
``(i) the benefits to local agriculture;
``(ii) the impact on markets and consumers;
``(iii) the time for procurement and delivery;
``(iv) quality and safety assurances; and
``(v) implementation costs; and
``(G) to the extent adequate information is available,
includes a comparison of the different methodologies used by
other donors to make local and regional purchases, including
purchases conducted through the World Food Program of the
United Nations.
``(j) Guidelines.--Prior to approving projects or the
procurement of eligible commodities under this section, not
later than 1 year after the date of enactment of this
section, the Administrator shall issue guidelines to carry
out this section.
``(k) Authorization of Appropriations.--
``(1) In general.--Subject to paragraph (2), for each of
fiscal years 2008 through 2011, the Administrator may use to
carry out this section not more than $25,000,000 of funds
made available to carry out this title, to remain available
until expended.
``(2) Limitation.--No funds may be made available to carry
out the pilot program unless the minimum tonnage requirements
of section 204(a) are met.''.

SEC. 3015. GENERAL AUTHORITIES AND REQUIREMENTS.

(a) In General.--Section 401 of the Food for Peace Act (7
U.S.C. 1731) is amended--
(1) by striking subsection (a);
(2) redesignating subsections (b) and (c) as subsections
(a) and (b), respectively; and
(3) in subsection (b) (as so redesignated), by striking
``(b)(1)'' and inserting ``(a)(1)''.
(b) Conforming Amendments.--
(1) Section 406(a) of the Food for Peace Act (7 U.S.C.
1736(a)) is amended by striking ``(that have been determined
to be available under section 401(a))''.
(2) Subsection (e)(1) of the Food for Progress Act of 1985
(7 U.S.C. 1736o(e)(1)) is amended by striking ``determined to
be available under section 401 of the Food for Peace Act''.

SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

Section 406(b)(2) of the Food for Peace Act (7 U.S.C.
1736(b)(2)) is amended by inserting ``, including the costs
of carrying out section 415'' before the semicolon.

SEC. 3017. ADMINISTRATIVE PROVISIONS.

Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is
amended--
(1) in subsection (c)(4)--
(A) by striking ``2007'' and inserting ``2012'';
(B) by striking ``$2,000,000'' and inserting
``$4,000,000''; and
(C) by adding at the end the following:
``(5) Nonemergency or multiyear agreements.--Annual
resource requests for ongoing nonemergency or multiyear
agreements under title II shall be finalized not later than
October 1 of the fiscal year in which the agricultural
commodities will be shipped under the agreement.''; and
(2) in subsection (f)--
(A) in paragraph (2)--
(i) in subparagraph (B), by inserting ``, and the amount of
funds, tonnage levels, and types of activities for
nonemergency programs under title II'' before the semicolon;
(ii) in subparagraph (C), by inserting ``, and a general
description of the projects and activities implemented''
before the semicolon; and
(iii) in subparagraph (D), by striking ``achieving food
security'' and inserting ``reducing food insecurity''; and
(B) in paragraph (3)--
(i) by striking ``shall submit'' and inserting the
following: ``shall--
``(A) submit'';
(ii) by striking ``January 15'' and inserting ``April 1'';
and
(iii) by striking ``of the Senate''. and inserting the
following: ``of the Senate; and
``(B) make the reports available to the public by
electronic and other means.''.

SEC. 3018. EXPIRATION DATE.

Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is
amended by striking ``2007'' and inserting ``2012''.

SEC. 3019. AUTHORIZATION OF APPROPRIATIONS.

Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is
amended by striking subsection (b) and inserting the
following:
``(b) Minimum Level of Nonemergency Food Assistance.--For
each of fiscal years 2008 through 2012, of the amounts made
available to carry out emergency and nonemergency food
assistance programs under title II, not less than
$600,000,000 for each of those fiscal years shall be
obligated and expended for nonemergency food assistance
programs under title II.''.

SEC. 3020. MICRONUTRIENT FORTIFICATION PROGRAMS.

Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``Not later than
September 30, 2003, the Administrator, in consultation with
the Secretary'' and inserting ``Not later than September 30,
2008, the Secretary, in consultation with the
Administrator''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by adding ``and'' after the
semicolon at the end; and
(ii) by striking subparagraphs (B) and (C) and inserting
the following:
``(B) assess and apply technologies and systems to improve
and ensure the quality, shelf life, bioavailability, and
safety of fortified food aid agricultural commodities, and
products of those agricultural commodities, that are provided
to developing countries, using recommendations included in
the report entitled `Micronutrient Compliance Review of
Fortified Public Law 480 Commodities', published in October
2001, with implementation by an independent entity with
proven impartial experience and expertise in food aid
commodity quality enhancements.'';
(2) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively; and
(3) in subsection (c) (as redesignated by paragraph (2), by
striking ``2007'' and inserting ``2012''.

SEC. 3021. GERMPLASM CONSERVATION.

Title IV of the Food for Peace Act (7 U.S.C. 1731 et seq.)
is amended by adding at the end the following:

``SEC. 417. GERMPLASM CONSERVATION.

``(a) Contribution.--The Administrator of the United States
Agency for International Development shall contribute funds
to endow the Global Crop Diversity Trust (referred to in this
section as the `Trust') to assist in the conservation of
genetic diversity in food crops through the collection and
storage of the germplasm of food crops in a manner that
provides for--
``(1) the maintenance and storage of seed collections;
``(2) the documentation and cataloguing of the genetics and
characteristics of conserved seeds to ensure efficient
reference for researchers, plant breeders, and the public;
``(3) building the capacity of seed collection in
developing countries;
``(4) making information regarding crop genetic data
publicly available for researchers, plant breeders, and the
public (including through the provision of an accessible
Internet website);
``(5) the operation and maintenance of a back-up facility
in which are stored duplicate samples of seeds, in the case
of natural or man-made disasters; and
``(6) oversight designed to ensure international
coordination of those actions and efficient, public
accessibility to that diversity through a cost-effective
system.
``(b) United States Contribution Limit.--The aggregate
contributions of funds of the Federal Government provided to
the Trust shall not exceed 25 percent of the total of the
funds contributed to the Trust from all sources.
``(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $60,000,000 for
the period of fiscal years 2008 through 2012.''.

[[Page S14913]]

SEC. 3022. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER
PROGRAM.

Section 501 of the Food for Peace Act (7 U.S.C. 1737) is
amended by striking ``2007'' each place it appears and
inserting ``2012''.

Subtitle B--Agricultural Trade Act of 1978 and Related Statutes

SEC. 3101. NONGOVERNMENTAL ORGANIZATION PARTICIPATION IN THE
RESOLUTION OF TRADE DISPUTES.

Section 104 of the Agricultural Trade Act of 1978 (7 U.S.C.
5604) is amended--
(1) by striking ``The Secretary shall'' and inserting the
following:
``(a) In General.--The Secretary shall''; and
(2) by adding at the end the following:
``(b) Nongovernmental Organization Participation in the
Resolution of Trade Disputes.--The Secretary shall permit
United States nongovernmental organizations to participate as
part of the United States delegation attending formal
sessions of dispute resolution panels involving United States
agriculture under the auspices of the World Trade
Organization if--
``(1) the 1 or more other members of the World Trade
Organization involved in the dispute are expected to include
private sector representatives in the delegations of the
members to the sessions;
``(2) the United States nongovernmental organization has
submitted public comments through the Federal Register that
support the position of the United States Government in the
case; and
``(3) the United States nongovernmental organization will
provide for representation at the session a cleared adviser
who is a member of the agricultural policy advisory committee
or an agricultural technical advisory committee established
under the Federal Advisory Committee Act (5 U.S.C. App.).''.

SEC. 3102. EXPORT CREDIT GUARANTEE PROGRAM.

(a) Repeal of Supplier Credit Guarantee Program and
Intermediate Export Credit Guarantee Program.--Section 202 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``The Commodity'' and
inserting ``Subject to paragraph (2), the Commodity''; and
(B) by striking paragraphs (2) and (3) and inserting the
following:
``(2) Tenure.--Beginning with the 2013 fiscal year, credit
terms described in paragraph (1) may not exceed a 180-day
period.'';
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) through (l) as
subsections (b) through (j), respectively; and
(4) by adding at the end the following:
``(k) Administration.--
``(1) Definition of long term.--In this subsection, the
term `long term' means a period of 10 or more years.
``(2) Guarantees.--In administering the export credit
guarantees authorized under this section, the Secretary
shall--
``(A) maximize the export sales of agricultural
commodities;
``(B) maximize the export credit guarantees that are made
available and used during the course of a fiscal year;
``(C) develop an approach to risk evaluation that
facilitates accurate country risk designations and timely
adjustments to the designations (on an ongoing basis) in
response to material changes in country risk conditions, with
ongoing opportunity for input and evaluation from the private
sector;
``(D) adjust risk-based guarantees as necessary to ensure
program effectiveness and United States competitiveness; and
``(E) work with industry to ensure that risk-based fees
associated with the guarantees cover, but do not exceed, the
operating costs and losses over the long term.''.
(b) Conforming Amendments.--The Agricultural Trade Act of
1978 is amended--
(1) in section 202 (7 U.S.C. 5622)--
(A) in subsection (b)(4) (as redesignated by subsection
(a)(3)), by striking ``, consistent with the provisions of
subsection (c)'';
(B) in subsection (d) (as redesignated by subsection
(a)(3))--
(i) by striking ``(1)'' and all that follows through ``The
Commodity'' and inserting ``The Commodity''; and
(ii) by striking paragraph (2); and
(C) in subsection (g)(2) (as redesignated by subsection
(a)(3)), by striking ``subsections (a) and (b)'' and
inserting ``subsection (a)''; and
(2) in section 211, by striking subsection (b) and
inserting the following:
``(b) Export Credit Guarantee Programs.--The Commodity
Credit Corporation shall make available for each of fiscal
years 1996 through 2012 not less than $5,500,000,000 in
credit guarantees under section 202(a).''.

SEC. 3103. MARKET ACCESS PROGRAM.

(a) Organic Commodities.--Section 203(a) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5623(a)) is amended
by inserting after ``agricultural commodities'' the
following: ``(including commodities that are organically
produced (as defined in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502)))''.
(b) Funding.--Section 211(c)(1)(A) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by
striking ``, and $200,000,000 for each of fiscal years 2006
and 2007'' and inserting ``$200,000,000 for each of fiscal
years 2006 and 2007, $210,000,000 for fiscal year 2008,
$220,000,000 for fiscal year 2009, $230,000,000 for fiscal
year 2010, $240,000,000 for fiscal year 2011, and
$200,000,000 for fiscal year 2012 and each subsequent fiscal
year''.

SEC. 3104. EXPORT ENHANCEMENT PROGRAM.

(a) In General.--Section 301 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5651) is repealed.
(b) Conforming Amendments.--The Agricultural Trade Act of
1978 is amended--
(1) in title III, by striking the title heading and
inserting the following:

``TITLE III--BARRIERS TO EXPORTS'';

(2) by redesignating section 302 as section 301;
(3) by striking section 303;
(4) in section 401 (7 U.S.C. 5661)--
(A) in subsection (a), by striking ``section 201, 202, or
301'' and inserting ``section 201 or 202''; and
(B) in subsection (b), by striking ``sections 201, 202, and
301'' and inserting ``sections 201 and 202''; and
(5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking
``sections 201, 202, 203, and 301'' and inserting ``sections
201, 202, and 203''.

SEC. 3105. VOLUNTARY CERTIFICATION OF CHILD LABOR STATUS OF
AGRICULTURAL IMPORTS.

Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C.
5674) is amended by adding at the end the following:
``(d) Reducing Child Labor and Forced Labor.--
``(1) Definitions.--In this subsection:
``(A) Child labor.--The term `child labor' means the worst
forms of child labor as defined in International Labor
Convention 182, the Convention Concerning the Prohibition and
Immediate Action for the Elimination of the Worst Forms of
Child Labor, done at Geneva on June 17, 1999.
``(B) Forced labor.--The term `forced labor' means all work
or service--
``(i) that is exacted from any individual under menace of
any penalty for non-performance of the work or service, and
for which the individual does not offer himself or herself
voluntarily, by coercion, debt bondage, involuntary servitude
(as those terms are defined in section 103 of the Trafficking
Victims Protection Act of 2000 (22 U.S.C. 7102)); and
``(ii) by 1 or more individuals who, at the time of
production, were being subjected to a severe form of
trafficking in persons (as that term is defined in that
section).
``(2) Development of standard set of practices.--
``(A) In general.--The Secretary, in coordination with the
Secretary of Labor, shall develop a standard set of practices
for the production of agricultural commodities that are
imported, sold, or marketed in the United States in order to
reduce the likelihood that the agricultural commodities are
produced with the use of forced labor or child labor.
``(B) Requirement.--The standard set of practices shall be
developed in accordance with the requirements of the
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et
seq.).
``(3) Requirements.--Not later than 3 years after the date
of enactment of this subsection, the Secretary shall, with
respect to the standard set of practices developed under
paragraph (2), promulgate proposed regulations that shall, at
a minimum, establish a voluntary certification program to
enforce this subsection by--
``(A) requiring agricultural commodity traceability and
inspection at all stages of the supply chain;
``(B) allowing for multistakeholder participation in the
certification process;
``(C) providing for annual onsite inspection by a
certifying agent, who shall be certified in accordance with
the International Organization for Standardization Guide 65,
of each affected worksite and handling operation;
``(D) incorporating a comprehensive conflict of interest
policy for certifying agents, in accordance with section
2116(h) of the Organic Foods Production Act of 1990 (7 U.S.C.
6515(h)); and
``(E) providing an anonymous grievance procedure that--
``(i) is accessible by third parties to allow for the
identification of new or continuing violations of the
regulations; and
``(ii) provides protections for whistleblowers.
``(4) Reporting requirement.--Not later than 180 days after
the date of enactment of this subsection, and annually
thereafter, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate, a
report on the development and implementation of the standard
set of practices under this subsection.''.

SEC. 3106. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

Section 703(a) of the Agricultural Trade Act of 1978 (7
U.S.C. 5723(a)) is amended by striking ``amount of
$34,500,000 for each of fiscal years 2002 through 2007'' and
inserting ``amount of--
``(1) $39,500,000 for each of fiscal years 2008 and 2009;
``(2) $44,500,000 for fiscal year 2010; and
``(3) $34,500,000 for fiscal year 2011 and each subsequent
fiscal year.''.

SEC. 3107. FOOD FOR PROGRESS ACT OF 1985.

The Food for Progress Act of 1985 (7 U.S.C. 1736o) is
amended--
(1) by striking ``2007'' each place it appears and
inserting ``2012'';
(2) in subsection (b)(5)--
(A) by striking subparagraphs (A), (B), and (F);

[[Page S14914]]

(B) in subparagraph (D), by inserting ``and'' after the
semicolon;
(C) in subparagraph (E), by striking ``; and'' and
inserting a period; and
(D) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (A), (B), and (C), respectively; and
(3) in subsection (f), by striking paragraph (3) and
inserting the following:
``(3) Funding limitations.--With respect to eligible
commodities made available under section 416(b) of the
Agricultural Act of 1949 (42 U.S.C. 1431(b)), unless
authorized in advance in appropriation Acts--
``(A) for each of fiscal years 2008 through 2010, no funds
of the Corporation in excess of $48,000,000 (exclusive of the
cost of eligible commodities) may be used to carry out this
section; and
``(B) for fiscal year 2011 and each fiscal year thereafter,
no funds of the Corporation in excess of $40,000,000
(exclusive of the cost of eligible commodities) may be used
to carry out this section.''.

SEC. 3108. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND
CHILD NUTRITION PROGRAM.

Section 3107 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 1736o-1) is amended--
(1) in subsection (b), by inserting ``in the Department of
Agriculture'' after ``establish a program'';
(2) in subsections (c)(2)(B), (f)(1), (h), (i), and (l)(1)
by striking ``President'' each place it appears and inserting
``Secretary'';
(3) in subsection (d), by striking ``The President shall
designate 1 or more Federal agencies'' and inserting ``The
Secretary shall'';
(4) in paragraph (f)(2), by striking ``implementing
agency'' and inserting ``Secretary''; and
(5) in subsection (l)--
(A) by striking paragraphs (1) and (2) and inserting the
following:
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the President shall use $450,000,000 for each of
fiscal years 2008 through 2012 to carry out this section.'';
and
(B) by redesignating paragraph (3) as paragraph (2).

Subtitle C--Miscellaneous

SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

Section 302 of the Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f-1) is amended--
(1) in subsection (a), by striking ``a trust stock'' and
all that follows through the end of the subsection and
inserting the following: ``a trust of commodities, for use as
described in subsection (c), to consist of--
``(1) quantities equivalent to not more than 4,000,000
metric tons of commodities; or
``(2) any combination of funds and commodities equivalent
to not more than 4,000,000 metric tons of commodities.'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (B)--

(I) by striking ``replenish'' each place it appears and
inserting ``reimburse''; and
(II) by striking ``replenished'' and inserting
``reimbursed''; and

(ii) by striking subparagraph (D) and inserting the
following:
``(D) funds made available--
``(i) under paragraph (2)(B);
``(ii) as a result of an exchange of any commodity held in
the trust for an equivalent amount of funds from--

``(I) the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1691 et seq.);
``(II) the McGovern-Dole International Food for Education
and Child Nutrition Program established under section 3107 of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
1736o-1); or
``(III) the market, if the Secretary determines that such a
sale of the commodity on the market will not unduly disrupt
domestic markets; and

``(iii) in the course of management of the trust or to
maximize the value of the trust, in accordance with
subsection (d)(3).''; and
(B) in paragraph (2)(B)--
(i) in the matter preceding clause (i), by striking
``replenish'' and inserting ``reimburse'';
(ii) in clause (i)--

(I) by striking ``2007'' each place it appears and
inserting ``2012'';
(II) by striking ``(c)(2)'' and inserting ``(c)(1)''; and
(III) by striking ``and'' at the end;

(iii) in clause (ii), by striking the period at the end and
inserting ``; or''; and
(iv) by adding at the end the following:
``(iii) from funds accrued through the management of the
trust under subsection (d).'';
(3) in subsection (c)--
(A) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Releases for emergency assistance.--
``(A) Definition of emergency.--
``(i) In general.--In this paragraph, the term `emergency'
means an urgent situation--

``(I) in which there is clear evidence that an event or
series of events described in clause (ii) has occurred--

``(aa) that causes human suffering or imminently threatens
human lives or livelihoods; and
``(bb) for which a government concerned has not the means
to remedy; or

``(II) created by a demonstrably abnormal event or series
of events that produces dislocation in the lives of residents
of a country or region of a country on an exceptional scale.

``(ii) Event or series of events.--An event or series of
events referred to in clause (i) includes 1 or more of--

``(I) a sudden calamity, such as an earthquake, flood,
locust infestation, or similar unforeseen disaster;
``(II) a human-made emergency resulting in--

``(aa) a significant influx of refugees;
``(bb) the internal displacement of populations; or
``(cc) the suffering of otherwise affected populations;

``(III) food scarcity conditions caused by slow-onset
events, such as drought, crop failure, pest infestation, and
disease, that result in an erosion of the ability of
communities and vulnerable populations to meet food needs;
and
``(IV) severe food access or availability conditions
resulting from sudden economic shocks, market failure, or
economic collapse, that result in an erosion of the ability
of communities and vulnerable populations to meet food needs.

``(B) Releases.--
``(i) In general.--Any funds or commodities held in the
trust may be released to provide assistance under title II of
the Food for Peace Act (7 U.S.C. 1721 et seq.)--

``(I) to meet emergency needs, including during the period
immediately preceding the emergency;
``(II) to respond to an emergency; or
``(III) for recovery and rehabilitation after an emergency.

``(ii) Procedure.--Subject to subparagraph (B), a release
under clause (i) shall be carried out in the same manner, and
pursuant to the same authority as provided in title II of
that Act.
``(C) Insufficiency of other funds.--The funds and
commodities held in the trust shall be made immediately
available on a determination by the Administrator that funds
available for emergency needs under title II of that Act (7
U.S.C. 1721 et seq.) for a fiscal year are insufficient to
meet emergency needs during the fiscal year.''; and
(B) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (d)--
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and indenting
the subparagraphs appropriately;
(B) by striking the subsection designation and heading and
all that follows through ``provide--'' and inserting the
following:
``(d) Management of Trust.--
``(1) In general.--The Secretary shall provide for the
management of eligible commodities and funds held in the
trust in a manner that is consistent with maximizing the
value of the trust, as determined by the Secretary.
``(2) Eligible commodities.--The Secretary shall provide--
'';
(C) in paragraph (2) (as redesignated by subparagraph
(B))--
(i) in subparagraph (B) (as redesignated by subparagraph
(A)), by striking ``and'' at the end;
(ii) in subparagraph (C) (as redesignated by subparagraph
(A)), by striking the period at the end and inserting ``;
and''; and
(iii) by adding at the end the following:
``(D) for the management of price risks associated with
commodities held or potentially held in the trust.''; and
(D) by adding at the end the following:
``(3) Funds.--
``(A) Requirement.--The Secretary shall maximize the value
of funds held in the trust, to the maximum extent
practicable.
``(B) Releases on emergency.--If any commodity is released
from the trust in the case of an emergency under subsection
(c), the Secretary shall transfer to the trust funds of the
Commodity Credit Corporation in an amount equal to, as
determined by the Secretary, the amount of storage charges
that will be saved by Commodity Credit Corporation due to the
emergency release.
``(C) Exchanges.--If any commodity held in the trust is
exchanged for funds under subsection (b)(1)(D)(ii)--
``(i) the funds shall be held in the trust until the date
on which the funds are released in the case of an emergency
under subsection (c); and
``(ii) the Secretary shall transfer to the trust funds of
the Commodity Credit Corporation in an amount equal to, as
determined by the Secretary, the amount of storage charges
that will be saved by Commodity Credit Corporation due to the
exchange.
``(D) Investment.--The Secretary--
``(i) may invest funds held in the trust in any short-term
obligation of the United States or any other low-risk short-
term instrument or security insured by the Federal Government
in which a regulated insurance company may invest under the
laws of the District of Columbia; and
``(ii) shall not invest any funds held in the trust in real
estate.'';
(5) in subsection (f)(2)(A), by striking ``replenish'' and
inserting ``reimburse''; and
(6) in subsection (h)--
(A) in paragraph (1), by striking ``replenish'' and
inserting ``reimburse''; and
(B) in each of paragraphs (1) and (2), by striking ``2007''
each place it appears and inserting ``2012''.

[[Page S14915]]

SEC. 3202. EMERGING MARKETS AND FACILITY GUARANTEE LOAN
PROGRAM.

Section 1542 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is
amended--
(1) in subsection (a), by striking ``2007'' and inserting
``2012'';
(2) in subsection (b)--
(A) in the first sentence, by redesignating paragraphs (1)
and (2) as subparagraphs (A) and (B), respectively, and
indenting appropriately;
(B) by striking ``A portion'' and inserting the following:
``(1) In general.--A portion'';
(C) in the second sentence, by striking ``The Commodity
Credit Corporation'' and inserting the following:
``(2) Priority.--The Commodity Credit Corporation''; and
(D) by adding at the end the following:
``(3) Construction waiver.--The Secretary may waive any
applicable requirements relating to the use of United States
goods in the construction of a proposed facility, if the
Secretary determines that--
``(A) goods from the United States are not available; or
``(B) the use of goods from the United States is not
practicable.
``(4) Term of guarantee.--A facility payment guarantee
under this subsection shall be for a term that is not more
than the lesser of--
``(A) the term of the depreciation schedule of the facility
assisted; or
``(B) 20 years.''; and
(3) in subsection (d)(1)(A)(i) by striking ``2007'' and
inserting ``2012''.

SEC. 3203. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

Section 1543A(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5679(d)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 3204. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE
DISPUTES.

(a) In General.--The Secretary may provide monitoring,
analytic support, and other technical assistance to limited
resource persons that are involved in trading agricultural
commodities, as determined by the Secretary, to reduce trade
barriers to the persons.
(b) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.

TITLE IV--NUTRITION PROGRAMS

Subtitle A--Food and Nutrition Program

PART I--RENAMING OF FOOD STAMP PROGRAM

SEC. 4001. RENAMING OF FOOD STAMP PROGRAM.

(a) Short Title.--The first section of the Food Stamp Act
of 1977 (7 U.S.C. 2011 note; Public Law 88-525) is amended by
striking ``Food Stamp Act of 1977'' and inserting ``Food and
Nutrition Act of 2007''.
(b) Program.--The Food and Nutrition Act of 2007 (7 U.S.C.
2011 et seq.) (as amended by subsection (a)) is amended by
striking ``food stamp program'' each place it appears and
inserting ``food and nutrition program''.

PART II--IMPROVING PROGRAM BENEFITS

SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM
INCOME.

Section 5(d) of the Food and Nutrition Act of 2007 (7
U.S.C. 2014(d)) is amended--
(1) by striking ``(d) Household'' and inserting ``(d)
Exclusions From Income.--Household'';
(2) by striking ``only (1) any'' and inserting ``only--
``(1) any'';
(3) by indenting each of paragraphs (2) through (18) so as
to align with the margin of paragraph (1) (as amended by
paragraph (1));
(4) by striking the comma at the end of each of paragraphs
(1) through (16) and inserting a semicolon;
(5) in paragraph (3)--
(A) by striking ``like (A) awarded'' and inserting ``like--
``(A) awarded'';
(B) by striking ``thereof, (B) to'' and inserting
``thereof;
``(B) to''; and
(C) by striking ``program, and (C) to'' and inserting
``program; and
``(C) to'';
(6) in paragraph (11), by striking ``)), or (B) a'' and
inserting ``)); or
``(B) a'';
(7) in paragraph (17), by striking ``, and'' at the end and
inserting a semicolon;
(8) in paragraph (18), by striking the period at the end
and inserting ``; and''; and
(9) by adding at the end the following:
``(19) any additional payment under chapter 5 of title 37,
United States Code, or otherwise designated by the Secretary
to be appropriate for exclusion under this paragraph, that is
received by or from a member of the United States Armed
Forces deployed to a designated combat zone, if the
additional pay--
``(A) is the result of deployment to or service in a combat
zone; and
``(B) was not received immediately prior to serving in a
combat zone.''.

SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-
INCOME AMERICANS.

Section 5(e)(1) of the Food and Nutrition Act of 2007 (7
U.S.C. 2014(e)(1)) is amended--
(1) in subparagraph (A)(ii), by striking ``not less than
$134'' and all that follows through the end of the clause and
inserting the following: ``not less than--

``(I) for fiscal year 2008, $145, $248, $205, and $128,
respectively; and
``(II) for fiscal year 2009 and each fiscal year
thereafter, an amount that is equal to the amount from the
previous fiscal year adjusted to the nearest lower dollar
increment to reflect changes for the 12-month period ending
on the preceding June 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor, for items other than food.'';

(2) in subparagraph (B)(ii), by striking ``not less than
$269'' and all that follows through the end of the clause and
inserting the following: ``not less than--

``(I) for fiscal year 2008, $291; and
``(II) for fiscal year 2009 and each fiscal year
thereafter, an amount that is equal to the amount from the
previous fiscal year adjusted to the nearest lower dollar
increment to reflect changes for the 12-month period ending
on the preceding June 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor, for items other than food.''; and

(3) by adding at the end the following:
``(C) Requirement.--Each adjustment under subparagraphs
(A)(ii)(II) and (B)(ii)(II) shall be based on the unrounded
amount for the prior 12-month period.''.

SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE
EXPENSES.

Section 5(e)(3)(A) of the Food and Nutrition Act of 2007 (7
U.S.C. 2014(e)(3)(A)) is amended by striking ``, the maximum
allowable level of which shall be $200 per month for each
dependent child under 2 years of age and $175 per month for
each other dependent,''.

SEC. 4104. ENCOURAGING RETIREMENT AND EDUCATION SAVINGS AMONG
FOOD STAMP RECIPIENTS.

(a) Allowable Financial Resources.--Section 5(g) of the
Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) is
amended--
(1) by striking ``(g)(1) The Secretary'' and inserting the
following:
``(g) Allowable Financial Resources.--
``(1) Total amount.--
``(A) In general.--The Secretary'';
(2) in subparagraph (A) (as designated by paragraph (1))--
(A) by striking ``$2,000'' and inserting ``$3,500 (as
adjusted in accordance with subparagraph (B))''; and
(B) by striking ``$3,000'' and inserting ``$4,500 (as
adjusted in accordance with subparagraph (B))''; and
(3) by adding at the end the following:
``(B) Adjustment for inflation.--
``(i) In general.--Beginning on October 1, 2007, and each
October 1 thereafter, the amounts in subparagraph (A) shall
be adjusted and rounded down to the nearest $250 to reflect
changes for the 12-month period ending the preceding June in
the Consumer Price Index for All Urban Consumers published by
the Bureau of Labor Statistics of the Department of Labor.
``(ii) Requirement.--Each adjustment under clause (i) shall
be based on the unrounded amount for the prior 12-month
period.''.
(b) Exclusion of Retirement Accounts From Allowable
Financial Resources.--
(1) In general.--Section 5(g)(2)(B)(v) of the Food and
Nutrition Act of 2007 (7 U.S.C. 2014(g)(2)(B)(v)) is amended
by striking ``or retirement account (including an individual
account)'' and inserting ``account''.
(2) Mandatory and discretionary exclusions.--Section 5(g)
of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) is
amended by adding at the end the following:
``(7) Exclusion of retirement accounts from allowable
financial resources.--
``(A) Mandatory exclusions.--The Secretary shall exclude
from financial resources under this subsection the value of--
``(i) any funds in a plan, contract, or account, described
in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and
501(c)(18) of the Internal Revenue Code of 1986 and the value
of funds in a Federal Thrift Savings Plan account as provided
in section 8439 of title 5, United States Code; and
``(ii) any retirement program or account included in any
successor or similar provision that may be enacted and
determined to be exempt from tax under the Internal Revenue
Code of 1986.
``(B) Discretionary exclusions.--The Secretary may exclude
from financial resources under this subsection the value of
any other retirement plans, contracts, or accounts (as
determined by the Secretary).''.
(c) Exclusion of Education Accounts From Allowable
Financial Resources.--Section 5(g) of the Food and Nutrition
Act of 2007 (7 U.S.C. 2014(g)) (as amended by subsection (b))
is amended by adding at the end the following:
``(8) Exclusion of education accounts from allowable
financial resources.--
``(A) Mandatory exclusions.--The Secretary shall exclude
from financial resources under this subsection the value of
any funds in a qualified tuition program described in section
529 of the Internal Revenue Code of 1986 or in a Coverdell
education savings account under section 530 of that Code.
``(B) Discretionary exclusions.--The Secretary may exclude
from financial resources under this subsection the value of
any other education programs, contracts, or accounts (as
determined by the Secretary).''.

[[Page S14916]]

SEC. 4105. FACILITATING SIMPLIFIED REPORTING.

Section 6(c)(1)(A) of the Food and Nutrition Act of 2007 (7
U.S.C. 2015(c)(1)(A)) is amended--
(1) by striking ``reporting by'' and inserting
``reporting'';
(2) in clause (i), by inserting ``for periods shorter than
4 months by'' before ``migrant'';
(3) in clause (ii), by inserting ``for periods shorter than
4 months by'' before ``households''; and
(4) in clause (iii), by inserting ``for periods shorter
than 1 year by'' before ``households''.

SEC. 4106. ACCRUAL OF BENEFITS.

Section 7(i) of the Food and Nutrition Act of 2007 (7
U.S.C. 2016(i)) is amended by adding at the end the
following:
``(12) Recovering electronic benefits.--
``(A) In general.--A State agency shall establish a
procedure for recovering electronic benefits from the account
of a household due to inactivity.
``(B) Benefit storage.--A State agency may store recovered
electronic benefits off-line in accordance with subparagraph
(D), if the household has not accessed the account after 6
months.
``(C) Benefit expunging.--A State agency shall expunge
benefits that have not been accessed by a household after a
period of 12 months.
``(D) Notice.--A State agency shall--
``(i) send notice to a household the benefits of which are
stored under subparagraph (B); and
``(ii) not later than 48 hours after request by the
household, make the stored benefits available to the
household.''.

SEC. 4107. ELIGIBILITY FOR UNEMPLOYED ADULTS.

(a) In General.--Section 6(o) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2015(o)) is amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A) by striking ``3 months'' and inserting ``6 months''; and
(2) in paragraph (5), by striking subparagraph (C).
(b) Effective Date.--The amendments made by subsection (a)
take effect on October 1, 2008.

SEC. 4108. TRANSITIONAL BENEFITS OPTION.

Section 11(s)(1) of the Food and Nutrition Act of 2007 (7
U.S.C. 2020(s)(1)) is amended--
(1) by striking ``benefits to a household''; and inserting
``benefits--
``(A) to a household'';
(2) by striking the period at the end and inserting ``;
or''; and
(3) by adding at the end the following:
``(B) at the option of the State, to a household with
children that ceases to receive cash assistance under a
State-funded public assistance program.''.

SEC. 4109. MINIMUM BENEFIT.

(a) In General.--Section 8(a) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2017(a)) is amended by striking ``$10 per
month'' and inserting ``20 percent of the thrifty food plan
for a household containing 1 member''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on October 1, 2008.

SEC. 4110. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
ASSISTANCE PROGRAM.

(a) In General.--Section 27(a) of the Food and Nutrition
Act of 2007 (7 U.S.C. 2036(a)) is amended--
(1) by striking ``(a) Purchase of Commodities'' and all
that follows through ``through 2007'' and inserting the
following:
``(a) Purchase of Commodities.--
``(1) In general.--Subject to paragraph (2), for fiscal
year 2008 and each fiscal year thereafter''; and
(2) by adding at the end the following:
``(2) Amounts.--In addition to the amounts made available
under paragraph (1), from amounts made available to carry out
this Act, the Secretary shall use to carry out this
subsection--
``(A) for fiscal year 2008, $110,000,000; and
``(B) for fiscal year 2009 and each fiscal year thereafter,
an amount that is equal to the amount made available for the
previous fiscal year adjusted to the nearest lower dollar
increment to reflect changes for the 12-month period ending
the preceding June 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of enactment of this Act.

PART III--IMPROVING PROGRAM OPERATIONS

SEC. 4201. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

Section 6(k) of the Food and Nutrition Act of 2007 (7
U.S.C. 2015(k)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(2) by striking ``No member'' and inserting the following:
``(1) In general.--No member''; and
(3) by adding at the end the following:
``(2) Procedures.--The Secretary shall issue consistent
procedures--
``(A) to define the terms `fleeing' and `actively seeking'
for purposes of this subsection; and
``(B) to ensure that State agencies use consistent
procedures that disqualify individuals whom law enforcement
authorities are actively seeking for the purpose of holding
criminal proceedings against the individual.''.

SEC. 4202. ISSUANCE AND USE OF PROGRAM BENEFITS.

(a) In General.--Section 7 of the Food and Nutrition Act of
2007 (7 U.S.C. 2016) is amended--
(1) by striking the section designation and heading and all
that follows through ``subsection (j)) shall be'' and
inserting the following:

``SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.

``(a) In General.--Except as provided in subsection (i),
EBT cards shall be'';
(2) in subsection (b)--
(A) by striking ``(b) Coupons'' and inserting the
following:
``(b) Use.--Benefits''; and
(B) by striking the second proviso;
(3) in subsection (c)--
(A) by striking ``(c) Coupons'' and inserting the
following:
``(c) Design.--
``(1) In general.--EBT cards'';
(B) in the first sentence, by striking ``and define their
denomination''; and
(C) by striking the second sentence and inserting the
following:
``(2) Prohibition.--The name of any public official shall
not appear on any EBT card.'';
(4) by striking subsection (d);
(5) in subsection (e)--
(A) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(B) by striking ``coupon issuers'' each place it appears
and inserting ``benefit issuers'';
(6) in subsection (f)--
(A) by striking ``coupons'' each place it appears and
inserting ``benefits'';
(B) by striking ``coupon issuer'' and inserting ``benefit
issuers'';
(C) by striking ``section 11(e)(20)'' and inserting
``section 11(e)(19).''; and
(D) by striking ``and allotments'';
(7) by striking subsection (g) and inserting the following:
``(g) Alternative Benefit Delivery.--
``(1) In general.--If the Secretary determines, in
consultation with the Inspector General of the Department of
Agriculture, that it would improve the integrity of the food
and nutrition program, the Secretary shall require a State
agency to issue or deliver benefits using alternative
methods.
``(2) No imposition of costs.--The cost of documents or
systems that may be required by this subsection may not be
imposed upon a retail food store participating in the food
and nutrition program.
``(3) Devaluation and termination of issuance of paper
coupons.--
``(A) Coupon issuance.--Effective on the date of enactment
of the Food and Energy Security Act of 2007, no State shall
issue any coupon, stamp, certificate, or authorization card
to a household that receives food and nutrition benefits
under this Act.
``(B) Ebt cards.--Effective beginning on the date that is 1
year after the date of enactment of the Food and Energy
Security Act of 2007, only an EBT card issued under
subsection (i) shall be eligible for exchange at any retail
food store.
``(C) De-obligation of coupons.--Coupons not redeemed
during the 1-year period beginning on the date of enactment
of the Food and Energy Security Act of 2007 shall--
``(i) no longer be an obligation of the Federal Government;
and
``(ii) not be redeemable.'';
(8) in subsection (h)(1), by striking ``coupons'' and
inserting ``benefits'';
(9) in subsection (j)--
(A) in paragraph (2)(A)(ii), by striking ``printing,
shipping, and redeeming coupons'' and inserting ``issuing and
redeeming benefits''; and
(B) in paragraph (5), by striking ``coupon'' and inserting
``benefit'';
(10) in subsection (k)--
(A) by striking ``coupons in the form of'' each place it
appears and inserting ``program benefits in the form of'';
(B) by striking ``a coupon issued in the form of'' each
place it appears and inserting ``program benefits in the form
of''; and
(C) in subparagraph (A), by striking ``subsection
(i)(11)(A)'' and inserting ``subsection (h)(11)(A)''; and
(11) by redesignating subsections (e) through (k) as
subsections (d) through (j), respectively.
(b) Conforming Amendments.--
(1) Section 3 of the Food and Nutrition Act of 2007 (7
U.S.C. 2012) is amended--
(A) in subsection (a), by striking ``coupons'' and
inserting ``benefits'';
(B) by striking subsection (b) and inserting the following:
``(b) Benefit.--The term `benefit' means the value of food
and nutrition assistance provided to a household by means
of--
``(1) an electronic benefit transfer under section 7(i); or
``(2) other means of providing assistance, as determined by
the Secretary.'';
(C) in subsection (c), in the first sentence, by striking
``authorization cards'' and inserting ``benefits'';
(D) in subsection (d), by striking ``or access device'' and
all that follows through the end of the subsection and
inserting a period;
(E) in subsection (e)--
(i) by striking ``(e) `Coupon issuer' means'' and inserting
the following:
``(e) Benefit Issuer.--The term `benefit issuer' means'';
and
(ii) by striking ``coupons'' and inserting ``benefits'';
(F) in subsection (g)(7), by striking ``subsection (r)''
and inserting ``subsection (j)'';
(G) in subsection (i)(5)--

[[Page S14917]]

(i) in subparagraph (B), by striking ``subsection (r)'' and
inserting ``subsection (j)''; and
(ii) in subparagraph (D), by striking ``coupons'' and
inserting ``benefits'';
(H) in subsection (j), by striking ``(as that term is
defined in subsection (p))'';
(I) in subsection (k)--
(i) in paragraph (1)(A), by striking ``subsection (u)(1)''
and inserting ``subsection (r)(1)'';
(ii) in paragraph (2), by striking ``subsections (g)(3),
(4), (5), (7), (8), and (9) of this section'' and inserting
``paragraphs (3), (4), (5), (7), (8), and (9) of subsection
(k)''; and
(iii) in paragraph (3), by striking ``subsection (g)(6) of
this section'' and inserting ``subsection (k)(6)'';
(J) in subsection (t), by inserting ``, including point of
sale devices,'' after ``other means of access'';
(K) in subsection (u), by striking ``(as defined in
subsection (g))''; and
(L) by adding at the end the following:
``(v) EBT Card.--The term `EBT card' means an electronic
benefit transfer card issued under section 7(i).''; and
(M) by redesignating subsections (a) through (v) as
subsections (b), (d), (f), (g), (e), (h), (k), (l), (n), (o),
(p), (q), (s), (t), (u), (v), (c), (j), (m), (a), (r), and
(i), respectively, and moving so as to appear in alphabetical
order.
(2) Section 4(a) of the Food and Nutrition Act of 2007 (7
U.S.C. 2013(a)) is amended--
(A) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(B) by striking ``Coupons issued'' and inserting ``benefits
issued''.
(3) Section 5 of the Food and Nutrition Act of 2007 (7
U.S.C. 2014) is amended--
(A) in subsection (a), by striking ``section 3(i)(4)'' and
inserting ``section 3(n)(4)'';
(B) in subsection (h)(3)(B), in the second sentence, by
striking ``section 7(i)'' and inserting ``section 7(h)''; and
(C) in subsection (i)(2)(E), by striking ``, as defined in
section 3(i) of this Act,''.
(4) Section 6 of the Food and Nutrition Act of 2007 (7
U.S.C. 2015) is amended--
(A) in subsection (b)(1)--
(i) in subparagraph (B), by striking ``coupons or
authorization cards'' and inserting ``program benefits''; and
(ii) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(B) in subsection (d)(4)(L), by striking ``section
11(e)(22)'' and inserting ``section 11(e)(19)''.
(5) Section 7(f) of the Food and Nutrition Act of 2007 (7
U.S.C. 2016(f)) is amended by striking ``including any
losses'' and all that follows through ``section 11(e)(20),''.
(6) Section 8 of the Food and Nutrition Act of 2007 (7
U.S.C. 2017) is amended--
(A) in subsection (b), by striking ``, whether through
coupons, access devices, or otherwise''; and
(B) in subsections (e)(1) and (f), by striking ``section
3(i)(5)'' each place it appears and inserting ``section
3(n)(5)''.
(7) Section 9 of the Food and Nutrition Act of 2007 (7
U.S.C. 2018) is amended--
(A) by striking ``coupons'' each place it appears and
inserting ``benefits'';
(B) in subsection (a)--
(i) in paragraph (1), by striking ``coupon business'' and
inserting ``benefit transactions''; and
(ii) by striking paragraph (3) and inserting the following:
``(3) Authorization periods.--The Secretary shall establish
specific time periods during which authorization to accept
and redeem benefits shall be valid under the food and
nutrition program.''; and
(C) in subsection (g), by striking ``section 3(g)(9)'' and
inserting ``section 3(k)(9)''.
(8) Section 10 of the Food and Nutrition Act of 2007 (7
U.S.C. 2019) is amended--
(A) by striking the section designation and heading and all
that follows through ``Regulations'' and inserting the
following:

``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.

``Regulations'';
(B) by striking ``section 3(k)(4) of this Act'' and
inserting ``section 3(p)(4)'';
(C) by striking ``section 7(i)'' and inserting ``section
7(h)''; and
(D) by striking ``coupons'' each place it appears and
inserting ``benefits''.
(9) Section 11 of the Food and Nutrition Act of 2007 (7
U.S.C. 2020) is amended--
(A) in subsection (d)--
(i) by striking ``section 3(n)(1) of this Act'' each place
it appears and inserting ``section 3(t)(1)''; and
(ii) by striking ``section 3(n)(2) of this Act'' each place
it appears and inserting ``section 3(t)(2)'';
(B) in subsection (e)--
(i) in paragraph (8)(E), by striking ``paragraph (16) or
(20)(B)'' and inserting ``paragraph (15) or (18)(B)'';
(ii) by striking paragraphs (15) and (19);
(iii) by redesignating paragraphs (16) through (18) and
(20) through (25) as paragraphs (15) through (17) and (18)
through (23), respectively; and
(iv) in paragraph (17) (as so redesignated), by striking
``(described in section 3(n)(1) of this Act)'' and inserting
``described in section 3(t)(1)'';
(C) in subsection (h), by striking ``coupon or coupons''
and inserting ``benefits'';
(D) by striking ``coupon'' each place it appears and
inserting ``benefit'';
(E) by striking ``coupons'' each place it appears and
inserting ``benefits'';
(F) in subsection (q), by striking ``section 11(e)(20)(B)''
and inserting ``subsection (e)(18)(B)''
(10) Section 13 of the Food and Nutrition Act of 2007 (7
U.S.C. 2022) is amended by striking ``coupons'' each place it
appears and inserting ``benefits''.
(11) Section 15 of the Food and Nutrition Act of 2007 (7
U.S.C. 2024) is amended--
(A) in subsection (a), by striking ``coupons'' and
inserting ``benefits'';
(B) in subsection (b)(1)--
(i) by striking ``coupons, authorization cards, or access
devices'' each place it appears and inserting ``benefits'';
(ii) by striking ``coupons or authorization cards'' and
inserting ``benefits''; and
(iii) by striking ``access device'' each place it appears
and inserting ``benefit'';
(C) in subsection (c), by striking ``coupons'' each place
it appears and inserting ``benefits'';
(D) in subsection (d), by striking ``Coupons'' and
inserting ``Benefits'';
(E) by striking subsections (e) and (f);
(F) by redesignating subsections (g) and (h) as subsections
(e) and (f), respectively; and
(G) in subsection (e) (as so redesignated), by striking
``coupon, authorization cards or access devices'' and
inserting ``benefits''.
(12) Section 16(a) of the Food and Nutrition Act of 2007 (7
U.S.C. 2025(a)) is amended by striking ``coupons'' each place
it appears and inserting ``benefits''.
(13) Section 17 of the Food and Nutrition Act of 2007 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``coupon'' and
inserting ``benefit'';
(B) in subsection (b)(1)--
(i) in subparagraph (B)--

(I) in clause (iv)--

(aa) in subclause (I), inserting ``or otherwise providing
benefits in a form not restricted to the purchase of food''
after ``of cash'';
(bb) in subclause (III)(aa), by striking ``section 3(i)''
and inserting ``section 3(n)''; and
(cc) in subclause (VII), by striking ``section 7(j)'' and
inserting ``section 7(i)''; and

(II) in clause (v)--

(aa) by striking ``countersigned food coupons or similar'';
and
(bb) by striking ``food coupons'' and inserting ``EBT
cards''; and
(ii) in subparagraph (C)(i)(I), by striking ``coupons'' and
inserting ``EBT cards'';
(C) in subsection (f), by striking ``section 7(g)(2)'' and
inserting ``section 7(f)(2)''; and
(D) in subsection (j), by striking ``coupon'' and inserting
``benefit''.
(14) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking
``section 3(o)(4)'' and inserting ``section 3(u)(4)''.
(15) Section 21 of the Food and Nutrition Act of 2007 (7
U.S.C. 2030) is amended--
(A) in subsection (b)(2)(G)(i), by striking ``and (19)''
and inserting ``(and (17)'';
(B) in subsection (d)(3), by striking ``food coupons'' and
inserting ``EBT cards''; and
(C) by striking ``coupons'' each place it appears and
inserting ``EBT cards''.
(16) Section 22 of the Food and Nutrition Act of 2007 (7
U.S.C. 2031) is amended--
(A) by striking ``food coupons'' each place it appears and
inserting ``benefits'';
(B) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(C) in subsection (g)(1)(A), by striking ``coupon'' and
inserting ``benefits''.
(17) Section 26(f)(3) of the Food and Nutrition Act of 2007
(7 U.S.C. 2035(f)(3)) is amended--
(A) in subparagraph (A), by striking ``subsections (a)
through (g)'' and inserting ``subsections (a) through (f)'';
and
(B) in subparagraph (E), by striking ``(16), (18), (20),
(24), and (25)'' and inserting ``(15), (17), (18), (22), and
(23)''.
(c) Conforming Cross-References.--
(1) In general.--
(A) Use of terms.--Each provision of law described in
subparagraph (B) is amended (as applicable)--
(i) by striking ``coupons'' each place it appears and
inserting ``benefits'';
(ii) by striking ``coupon'' each place it appears and
inserting ``benefit'';
(iii) by striking ``food coupons'' each place it appears
and inserting ``benefits'';!!!
(iv) in each section heading, by striking ``FOOD COUPONS''
each place it appears and inserting ``BENEFITS'';
(v) by striking ``food stamp coupon'' each place it appears
and inserting ``benefit''; and
(vi) by striking ``food stamps'' each place it appears and
inserting ``benefits''.
(B) Provisions of law.--The provisions of law referred to
in subparagraph (A) are the following:
(i) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note;
107 Stat. 2418).
(ii) Section 1956(c)(7)(D) of title 18, United States Code.
(iii) Titles II through XIX of the Social Security Act (42
U.S.C. 401 et seq.).
(iv) Section 401(b)(3) of the Social Security Amendments of
1972 (42 U.S.C. 1382e note; Public Law 92-603).
(v) The Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.).
(vi) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
8011(d)(2)(A)(i)(II)).
(2) Definition references.--
(A) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note;
107 Stat. 2418) is amended by striking ``section 3(k)(1)''
and inserting ``section 3(p)(1)''.
(B) Section 205 of the Food Stamp Program Improvements Act
of 1994 (7 U.S.C. 2012 note; Public Law 103-225) is amended
by striking

[[Page S14918]]

``section 3(k) of such Act (as amended by section 201)'' and
inserting ``section 3(p) of that Act''.
(C) Section 115 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) is
amended--
(i) by striking ``section 3(h)'' each place it appears and
inserting ``section 3(l)''; and
(ii) in subsection (e)(2), by striking ``section 3(m)'' and
inserting ``section 3(s)''.
(D) Section 402(a) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)) is
amended--
(i) in paragraph (2)(F)(ii), by striking ``section 3(r)''
and inserting ``section 3(j)''; and
(ii) in paragraph (3)(B), by striking ``section 3(h)'' and
inserting ``section 3(l)''.
(E) Section 3803(c)(2)(C)(vii) of title 31, United States
Code, is amended by striking ``section 3(h)'' and inserting
``section 3(l)''.
(F) Section 303(d)(4) of the Social Security Act (42 U.S.C.
503(d)(4)) is amended by striking ``section 3(n)(1)'' and
inserting ``section 3(t)(1)''.
(G) Section 404 of the Social Security Act (42 U.S.C. 604)
is amended by striking ``section 3(h)'' each place it appears
and inserting ``section 3(l)''.
(H) Section 531 of the Social Security Act (42 U.S.C. 654)
is amended by striking ``section 3(h)'' each place it appears
and inserting ``section 3(l)''.
(I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
8011(d)(2)(A)(i)(II)) is amended by striking ``(as defined in
section 3(e) of such Act)''.
(d) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to a ``coupon'',
``authorization card'', or other access device provided under
the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.)
shall be considered to be a reference to a ``benefit''
provided under that Act.

SEC. 4203. CLARIFICATION OF SPLIT ISSUANCE.

Section 7(h) of the Food and Nutrition Act of 2007 (7
U.S.C. 2016(h)) is amended by striking paragraph (2) and
inserting the following:
``(2) Requirements.--
``(A) In general.--Any procedure established under
paragraph (1) shall--
``(i) not reduce the allotment of any household for any
period; and
``(ii) ensure that no household experiences an interval
between issuances of more than 40 days.
``(B) Multiple issuances.--The procedure may include
issuing benefits to a household in more than 1 issuance only
when a benefit correction is necessary.''.

SEC. 4204. STATE OPTION FOR TELEPHONIC SIGNATURE.

Section 11(e)(2)(C) of the Food and Nutrition Act of 2007
(7 U.S.C. 2020(e)(2)(C)) is amended--
(1) by striking ``Nothing in this Act'' and inserting the
following:
``(C) Electronic and automated systems.--
``(i) In general.--Nothing in this Act''; and
(2) by adding at the end the following:
``(ii) State option for telephonic signature.--A State
agency may establish a system by which an applicant household
may sign an application through a recorded verbal assent over
the telephone.
``(iii) Requirements.--A system established under clause
(ii) shall--

``(I) record for future reference the verbal assent of the
household member and the information to which assent was
given;
``(II) include effective safeguards against impersonation,
identity theft, and invasions of privacy;
``(III) not deny or interfere with the right of the
household to apply in writing;
``(IV) promptly provide to the household member a written
copy of the completed application, with instructions for a
simple procedure for correcting any errors or omissions;
``(V) comply with paragraph (1)(B);
``(VI) satisfy all requirements for a signature on an
application under this Act and other laws applicable to the
food and nutrition program, with the date on which the
household member provides verbal assent considered as the
date of application for all purposes; and
``(VII) comply with such other standards as the Secretary
may establish.''.

SEC. 4205. PRIVACY PROTECTIONS.

Section 11(e)(8) of the Food and Nutrition Act of 2007 (7
U.S.C. 2020(e)(8)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``limit'' and inserting ``prohibit''; and
(B) by striking ``to persons'' and all that follows through
``State programs'';
(2) by redesignating subparagraphs (A) through (E) as
subparagraphs (B) through (F), respectively;
(3) by inserting before subparagraph (B) (as so
redesignated) the following:
``(A) the safeguards shall permit--
``(i) the disclosure of such information to persons
directly connected with the administration or enforcement of
the provisions of this Act, regulations issued pursuant to
this Act, Federal assistance programs, or federally-assisted
State programs; and
``(ii) the subsequent use of the information by persons
described in clause (i) only for such administration or
enforcement;''; and
(4) in subparagraph (F) (as so redesignated) by inserting
``or subsection (u)'' before the semicolon at the end.

SEC. 4206. STUDY ON COMPARABLE ACCESS TO FOOD AND NUTRITION
ASSISTANCE FOR PUERTO RICO.

(a) In General.--The Secretary shall carry out a study of
the feasibility and effects of including the Commonwealth of
Puerto Rico in the definition of the term ``State'' under
section 3 of the Food and Nutrition Act of 2007 (7 U.S.C.
2012), in lieu of providing block grants under section 19 of
that Act (7 U.S.C. 2028).
(b) Inclusions.--The study shall include--
(1) an assessment of the administrative, financial
management, and other changes that would be necessary for the
Commonwealth to establish a comparable food and nutrition
program, including compliance with appropriate program rules
under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et
seq,), such as--
(A) benefit levels under section 3(o) of that Act (7 U.S.C.
3012(o));
(B) income eligibility standards under sections 5(c) and 6
of that Act (7 U.S.C. 2014(c), 2015); and
(C) deduction levels under section 5(e) of that Act (7
U.S.C. 2014(e));
(2) an estimate of the impact on Federal and Commonwealth
benefit and administrative costs;
(3) an assessment of the impact of the program on low-
income Puerto Ricans, as compared to the program under
section 19 of that Act (7 U.S.C. 2028);
(4) such other matters as the Secretary considers to be
appropriate.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the results of the study
conducted under this section.
(d) Funding.--
(1) In general.--On October 1, 2008, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out this
section $1,000,000, to remain available until expended.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.

SEC. 4207. CIVIL RIGHTS COMPLIANCE.

Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C.
2020) is amended by striking subsection (c) and inserting the
following:
``(c) Civil Rights Compliance.--
``(1) In general.--In the certification of applicant
households for the food and nutrition program, there shall be
no discrimination by reason of race, sex, religious creed,
national origin, or political affiliation.
``(2) Relation to other laws.--The administration of the
program by a State agency shall be consistent with the rights
of households under the following laws (including
implementing regulations):
``(A) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et
seq.).
``(B) Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794).
``(C) The Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.).
``(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.).''.

SEC. 4208. EMPLOYMENT, TRAINING, AND JOB RETENTION.

Section 6(d)(4) of the Food and Nutrition Act of 2007 (7
U.S.C. 2015(d)(4)) is amended--
(1) in subparagraph (B)--
(A) by redesignating clause (vii) as clause (viii); and
(B) by inserting after clause (vi) the following:
``(vii) Programs intended to ensure job retention by
providing job retention services, if the job retention
services are provided for a period of not more than 90 days
after an individual who received employment and training
services under this paragraph gains employment.''; and
(2) in subparagraph (F), by adding at the end the
following:
``(iii) Any individual voluntarily electing to participate
in a program under this paragraph shall not be subject to the
limitations described in clauses (i) and (ii).''.

SEC. 4209. CODIFICATION OF ACCESS RULES.

Section 11(e)(1)) of the Food and Nutrition Act of 2007 (7
U.S.C. 2020(e)(1)) is amended--
(1) by striking ``shall (A) at'' and inserting ``shall--
``(A) at''; and
(2) by striking ``and (B) use'' and inserting ``and
``(B) comply with regulations of the Secretary requiring
the use of''.

SEC. 4210. EXPANDING THE USE OF EBT CARDS AT FARMERS'
MARKETS.

(a) In General.--For each of fiscal years 2008 through
2010, the Secretary shall make grants to pay 100 percent of
the costs of eligible entities approved by the Secretary to
carry out projects to expand the number of farmers' markets
that accept EBT cards by--
(1) providing equipment and training necessary for farmers'
markets to accept EBT cards;
(2) educating and providing technical assistance to farmers
and farmers' market operators about the process and benefits
of accepting EBT cards; or
(3) other activities considered to be appropriate by the
Secretary.
(b) Limitation.--A grant under this section--
(1) may not be made for the ongoing cost of carrying out
any project; and

[[Page S14919]]

(2) shall only be provided to eligible entities that
demonstrate a plan to continue to provide EBT card access at
1 or more farmers' markets following the receipt of the
grant.
(c) Eligible Entities.--To be eligible to receive a grant
under this section, an entity shall be--
(1) a State agency administering the food and nutrition
program established under the Food and Nutrition Act of 2007
(7 U.S.C. 2011 et seq.);
(2) a State agency or local government; or
(3) a private nonprofit entity that coordinates farmers'
markets in a State in cooperation with a State or local
government.
(d) Selection of Eligible Entities.--The Secretary--
(1) shall develop criteria to select eligible entities to
receive grants under this section; and
(2) may give preference to any eligible entity that
consists of a partnership between a government entity and a
nongovernmental entity.
(e) Mandatory Funding.--
(1) In general.--On October 1, 2007, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary of Agriculture to
carry out this section $5,000,000, to remain available until
expended.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.

SEC. 4211. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C.
2020) is amended by striking subsection (a) and inserting the
following:
``(a) State Responsibility.--
``(1) In general.--The State agency of each participating
State shall have responsibility for certifying applicant
households and issuing EBT cards.
``(2) Local administration.--The responsibility of the
agency of the State government shall not be affected by
whether the program is operated on a State-administered or
county-administered basis, as provided under section 3(t)(1).
``(3) Records.--
``(A) In general.--Each State agency shall keep such
records as may be necessary to determine whether the program
is being conducted in compliance with this Act (including
regulations issued under this Act).
``(B) Inspection and audit.--Records described in
subparagraph (A) shall--
``(i) be available for inspection and audit at any
reasonable time;
``(ii) subject to subsection (e)(8), be available for
review in any action filed by a household to enforce any
provision of this Act (including regulations issued under
this Act); and
``(iii) be preserved for such period of not less than 3
years as may be specified in regulations.
``(4) Review of major changes in program design.--
``(A) In general.--The Secretary shall develop standards
for identifying major changes in the operations of a State
agency, including--
``(i) large or substantially-increased numbers of low-
income households that do not live in reasonable proximity to
an office performing the major functions described in
subsection (e);
``(ii) substantial increases in reliance on automated
systems for the performance of responsibilities previously
performed by personnel described in subsection (e)(6)(B);
``(iii) changes that potentially increase the difficulty of
reporting information under subsection (e) or section 6(c);
and
``(iv) changes that may disproportionately increase the
burdens on any of the types of households described in
subsection (e)(2)(A).
``(B) Notification.--If a State agency implements a major
change in operations, the State agency shall--
``(i) notify the Secretary; and
``(ii) collect such information as the Secretary shall
require to identify and correct any adverse effects on
program integrity or access, including access by any of the
types of households described in subsection (e)(2)(A).''.

SEC. 4212. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C.
2025) is amended by striking subsection (g) and inserting the
following:
``(g) Cost Sharing for Computerization.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the Secretary is authorized to pay to each State agency
the amount provided under subsection (a)(6) for the costs
incurred by the State agency in the planning, design,
development, or installation of 1 or more automatic data
processing and information retrieval systems that the
Secretary determines--
``(A) would assist in meeting the requirements of this Act;
``(B) meet such conditions as the Secretary prescribes;
``(C) are likely to provide more efficient and effective
administration of the food and nutrition program;
``(D) would be compatible with other systems used in the
administration of State programs, including the program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.);
``(E) would be tested adequately before and after
implementation, including through pilot projects in limited
areas for major systems changes as determined under rules
promulgated by the Secretary, data from which shall be
thoroughly evaluated before the Secretary approves the system
to be implemented more broadly; and
``(F) would be operated in accordance with an adequate plan
for--
``(i) continuous updating to reflect changed policy and
circumstances; and
``(ii) testing the effect of the system on access for
eligible households and on payment accuracy.
``(2) Limitation.--The Secretary shall not make payments to
a State agency under paragraph (1) to the extent that the
State agency--
``(A) is reimbursed for the costs under any other Federal
program; or
``(B) uses the systems for purposes not connected with the
food and nutrition program.''.

SEC. 4213. NUTRITION EDUCATION.

(a) Authority to Provide Nutrition Education.--Section 4(a)
of the Food and Nutrition Act of 2007 (7 U.S.C. 2013(a)) is
amended in the first sentence by inserting ``and through an
approved State plan, nutrition education'' after ``an
allotment''.
(b) Implementation.--Section 11 of the Food and Nutrition
Act of 2007 (7 U.S.C. 2020(f) is amended by striking
subsection (f) and inserting the following:
``(f) Nutrition Education.--
``(1) In general.--State agencies may implement a nutrition
education program for individuals eligible for program
benefits that promotes healthy food choices consistent with
the most recent Dietary Guidelines for Americans published
under section 301 of the National Nutrition Monitoring and
Related Research Act of 1990 (7 U.S.C. 5341).
``(2) Delivery of nutrition education.--State agencies may
deliver nutrition education directly to eligible persons or
through agreements with the Cooperative State Research,
Education, and Extension Service, including through the
expanded food and nutrition education under section 3(d) of
the Act of May 8, 1914 (7 U.S.C. 343(d)), and other State and
community health and nutrition providers and organizations.
``(3) Nutrition education state plans.--
``(A) In general.--A State agency that elects to provide
nutrition education under this subsection shall submit a
nutrition education State plan to the Secretary for approval.
``(B) Requirements.--The plan shall--
``(i) identify the uses of the funding for local projects;
and
``(ii) conform to standards established by the Secretary
through regulations or guidance.
``(C) Reimbursement.--State costs for providing nutrition
education under this subsection shall be reimbursed pursuant
to section 16(a).
``(4) Notification.--To the maximum extent practicable,
State agencies shall notify applicants, participants, and
eligible program participants of the availability of
nutrition education under this subsection.''.

PART IV--IMPROVING PROGRAM INTEGRITY

SEC. 4301. MAJOR SYSTEMS FAILURES.

(a) In General.--Section 13(b) of the Food and Nutrition
Act of 2007 (7 U.S.C. 2022(b)) is amended by adding at the
end the following:
``(5) Over issuances caused by systemic state errors.--
``(A) In general.--If the Secretary determines that a State
agency over issued benefits to a substantial number of
households in a fiscal year as a result of a major systemic
error by the State agency, as determined by the Secretary,
the Secretary may prohibit the State agency from collecting
these over issuances from some or all households.
``(B) Procedures.--
``(i) Information reporting by states.--Every State agency
shall provide to the Secretary all information requested by
the Secretary concerning the issuance of benefits to
households by the State agency in the applicable fiscal year.
``(ii) Final determination.--After reviewing relevant
information provided by a State agency, the Secretary shall
make a final determination--

``(I) whether the State agency over issued benefits to a
substantial number of households as a result of a systemic
error in the applicable fiscal year; and
``(II) as to the amount of the over issuance in the
applicable fiscal year for which the State agency is liable.

``(iii) Establishing a claim.--Upon determining under
clause (ii) that a State agency has over issued benefits to
households due to a major systemic error determined under
subparagraph (A), the Secretary shall establish a claim
against the State agency equal to the value of the over
issuance caused by the systemic error.
``(iv) Administrative and judicial review.--Administrative
and judicial review, as provided in section 14, shall apply
to the final determinations by the Secretary under clause
(ii).
``(v) Remission to the secretary.--

``(I) Determination not appealed.--If the determination of
the Secretary under clause (ii) is not appealed, the State
agency shall, as soon as practicable, remit to the Secretary
the dollar amount specified in the claim under clause (iii).
``(II) Determination appealed.--If the determination of the
Secretary under clause

[[Page S14920]]

(ii) is appealed, upon completion of administrative and
judicial review under clause (iv), and a finding of liability
on the part of the State, the appealing State agency shall,
as soon as practicable, remit to the Secretary a dollar
amount subject to the finding of the administrative and
judicial review.

``(vi) Alternative method of collection.--

``(I) In general.--If a State agency fails to make a
payment under clause (v) within a reasonable period of time,
as determined by the Secretary, the Secretary may reduce any
amount due to the State agency under any other provision of
this Act by the amount due.
``(II) Accrual of interest.--During the period of time
determined by the Secretary to be reasonable under subclause
(I), interest in the amount owed shall not accrue.

``(vii) Limitation.--Any liability amount established under
section 16(c)(1)(C) shall be reduced by the amount of the
claim established under this subparagraph.''.
(b) Conforming Amendment.--Section 14(a)(6) of the Food and
Nutrition Act of 2007 (7 U.S.C. 2023(a)(6)) is amended by
striking ``pursuant to section'' and inserting ``pursuant to
section 13(b)(5) and''.

SEC. 4302. PERFORMANCE STANDARDS FOR BIOMETRIC IDENTIFICATION
TECHNOLOGY.

Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C.
2025) is amended by adding at the end the following:
``(l) Performance Standards for Biometric Identification
Technology.--
``(1) Definition of biometric identification technology.--
In this subsection, the term `biometric identification
technology' means a technology that provides an automated
method to identify an individual based on physical
characteristics, such as fingerprints or retinal scans.
``(2) Administrative funds.--The Secretary may not pay a
State agency any amount for administrative costs for the
development, purchase, administration, or other costs
associated with the use of biometric identification
technology unless the State agency has, under such terms and
conditions as the Secretary considers appropriate--
``(A) provided to the Secretary an analysis of the cost-
effectiveness of the use of the proposed biometric
identification technology to detect fraud in carrying out the
food and nutrition program;
``(B) demonstrated to the Secretary that the analysis is--
``(i) statistically valid; and
``(ii) based on appropriate and valid assumptions for the
households served by the food and nutrition program;
``(C) demonstrated to the Secretary that--
``(i) the proposed biometric identification technology is
cost-effective in reducing fraud; and
``(ii) there are no other technologies or fraud-detection
methods that are at least as cost-effective in carrying out
the purposes of the proposed biometric identification system;
and
``(D) demonstrated to the Secretary that no information
produced by or used in the biometric information technology
system will be made available or used for any purpose other
than a purpose allowed under section 11(e)(8).
``(3) Standards.--The Secretary shall establish uniform
standards for the evaluation of cost-effectiveness analyses
submitted to the Secretary under paragraph (2).''.

SEC. 4303. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL
FOOD STORES AND WHOLESALE FOOD CONCERNS.

Section 12 of the Food and Nutrition Act of 2007 (7 U.S.C.
2021) is amended--
(1) by striking the section designation and heading and all
that follows through the end of subsection (a) and inserting
the following:

``SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL
FOOD STORES AND WHOLESALE FOOD CONCERNS.

``(a) Disqualification.--
``(1) In general.--An approved retail food store or
wholesale food concern that violates a provision of this Act
or a regulation under this Act may be--
``(A) disqualified for a specified period of time from
further participation in the food and nutrition program; or
``(B) assessed a civil penalty of up to $100,000 for each
violation.
``(2) Regulations.--Regulations promulgated under this Act
shall provide criteria for the finding of a violation of, the
suspension or disqualification of, and the assessment of a
civil penalty against, a retail food store or wholesale food
concern on the basis of evidence that may include facts
established through on-site investigations, inconsistent
redemption data, or evidence obtained through a transaction
report under an electronic benefit transfer system.'';
(2) in subsection (b)--
(A) by striking ``(b) Disqualification'' and inserting the
following:
``(b) Period of Disqualification.--Subject to subsection
(c), a disqualification'';
(B) in paragraph (1), by striking ``of no less than six
months nor more than five years'' and inserting ``not to
exceed 5 years'';
(C) in paragraph (2), by striking ``of no less than twelve
months nor more than ten years'' and inserting ``not to
exceed 10 years'';
(D) in paragraph (3)(B)--
(i) by inserting ``or a finding of the unauthorized
redemption, use, transfer, acquisition, alteration, or
possession of EBT cards'' after ``concern'' the first place
it appears; and
(ii) by striking ``civil money penalties'' and inserting
``civil penalties''; and
(E) by striking ``civil money penalty'' each place it
appears and inserting ``civil penalty'';
(3) in subsection (c)--
(A) by striking ``(c) The action'' and inserting the
following:
``(c) Civil Penalty and Review of Disqualification and
Penalty Determinations.--
``(1) Civil penalty.--In addition to a disqualification
under this section, the Secretary may assess a civil penalty
in an amount not to exceed $100,000 for each violation.
``(2) Review.--The action''; and
(B) in paragraph (2) (as designated by subparagraph (A)),
by striking ``civil money penalty'' and inserting ``civil
penalty'';
(4) in subsection (d)--
(A) by striking ``(d)'' and all that follows through ``.
The Secretary shall'' and inserting the following:
``(d) Conditions of Authorization.--
``(1) In general.--As a condition of authorization to
accept and redeem benefits, the Secretary may require a
retail food store or wholesale food concern that, pursuant to
subsection (a), has been disqualified for more than 180 days,
or has been subjected to a civil penalty in lieu of a
disqualification period of more than 180 days, to furnish a
collateral bond or irrevocable letter of credit for a period
of not more than 5 years to cover the value of benefits that
the store or concern may in the future accept and redeem in
violation of this Act.
``(2) Collateral.--The Secretary also may require a retail
food store or wholesale food concern that has been sanctioned
for a violation and incurs a subsequent sanction regardless
of the length of the disqualification period to submit a
collateral bond or irrevocable letter of credit.
``(3) Bond requirements.--The Secretary shall'';
(B) by striking ``If the Secretary finds'' and inserting
the following:
``(4) Forfeiture.--If the Secretary finds''; and
(C) by striking ``Such store or concern'' and inserting the
following:
``(5) Hearing.--A store or concern described in paragraph
(4)'';
(5) in subsection (e), by striking ``civil money penalty''
each place it appears and inserting ``civil penalty''; and
(6) by adding at the end the following:
``(h) Flagrant Violations.--
``(1) In general.--The Secretary, in consultation with the
Inspector General of the Department of Agriculture, shall
establish procedures under which the processing of program
benefit redemptions for a retail food store or wholesale food
concern may be immediately suspended pending administrative
action to disqualify the retail food store or wholesale food
concern.
``(2) Requirements.--Under the procedures described in
paragraph (1), if the Secretary, in consultation with the
Inspector General, determines that a retail food store or
wholesale food concern is engaged in flagrant violations of
this Act (including regulations promulgated under this Act),
unsettled program benefits that have been redeemed by the
retail food store or wholesale food concern--
``(A) may be suspended; and
``(B)(i) if the program disqualification is upheld, may be
subject to forfeiture pursuant to subsection (g); or
``(ii) if the program disqualification is not upheld, shall
be released to the retail food store or wholesale food
concern.
``(3) No liability for interest.--The Secretary shall not
be liable for the value of any interest on funds suspended
under this subsection.''.

SEC. 4304. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

(a) In General.--Section 16(h)(1)(A) of the Food and
Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)(A)) is amended in
subparagraph (A), by striking ``to remain available until
expended'' and inserting ``to remain available for 2 fiscal
years''.
(b) Rescission of Funds.--Notwithstanding any other
provision of law, funds provided under section 16(h)(1)(A) of
the Food and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)(A))
for any fiscal year before the fiscal year beginning October
1, 2007, shall be rescinded on the date of enactment of this
Act, unless obligated by a State agency before that date.

SEC. 4305. ELIGIBILITY DISQUALIFICATION.

Section 6 of the Food and Nutrition Assistance Act of 2007
(7 U.S.C. 2015) is amended by adding at the end the
following:
``(p) Disqualification for Obtaining Cash by Destroying
Food and Collecting Deposits.--Any person who has been found
by a State or Federal court or administrative agency or in a
hearing under subsection (b) to have intentionally obtained
cash by purchasing products with food and nutrition benefits
that have containers that require return deposits, discarding
the product, and returning the container for the deposit
amount shall be ineligible for benefits under this Act for
such period of time as the Secretary shall prescribe by
regulation.
``(q) Disqualification for Sale of Food Purchased With Food
and Nutrition Benefits.--Subject to any requirements
established by the Secretary, any person who has been found
by a State or Federal court or administrative agency or in a
hearing under

[[Page S14921]]

subsection (b) to have intentionally sold any food that was
purchased using food and nutrition benefits shall be
ineligible for benefits under this Act for such period of
time as the Secretary shall prescribe by regulation.''.

PART V--MISCELLANEOUS

SEC. 4401. DEFINITION OF STAPLE FOODS.

Subsection (r) of section 3 of the Food and Nutrition Act
of 2007 (7 U.S.C. 2012) (as redesignated by section
4202(b)(1)(M)) is amended--
(1) by striking ``(r)(1) Except'' and inserting the
following:
``(r) Staple Foods.--
``(1) In general.--Except''; and
(2) by striking paragraph (2) and inserting the following:
``(2) Exceptions.--The term `staple foods' does not include
accessory food items, such as coffee, tea, cocoa, carbonate
and uncarbonated drinks, candy, condiments, and spices, or
dietary supplements.
``(3) Depth of stock.--The Secretary may issue regulations
to define depth of stock to ensure that stocks of staple
foods are available on a continuous basis.''.

SEC. 4402. ACCESSORY FOOD ITEMS.

Section 9(a) of the Food and Nutrition Act of 2007 (7
U.S.C. 2018(a)) is amended by adding at the end the
following:
``(4) Accessory food items.--
``(A) In general.--Not later than 1 year after the date of
enactment of this paragraph, the Secretary shall promulgate
proposed regulations providing that a dietary supplement
shall not be considered an accessory food item unless the
dietary supplement--
``(i) contains folic acid or calcium in accordance with
sections 101.72 and 101.79 of title 21, Code of Federal
Regulations (as in effect on the date of enactment of this
paragraph); and
``(ii) is a multivitamin-mineral supplement that--

``(I) provides at least \2/3\ of the essential vitamins and
minerals at 100 percent of the daily value levels, as
determined by the Food and Drug Administration; and
``(II) does not exceed the daily upper limit for those
nutrients for which an established daily upper limit has been
determined by the Institute of Medicine of the National
Academy of Sciences.

``(B) Final regulations.--Not later than 2 years after the
date of enactment of this paragraph, the Secretary shall
promulgate final regulations in accordance with subparagraph
(A).
``(C) Purchase of dietary supplements.--No dietary
supplements may be purchased using benefits under this Act
until the earlier of--
``(i) the date on which the Secretary promulgates final
regulations under subparagraph (B); or
``(ii) the date on which the Secretary certifies a
voluntary system of labeling for the ready and accurate
identification of eligible dietary supplements, as developed
by the Secretary in consultation with the dietary supplement
industry and dietary supplement retailers.''.

SEC. 4403. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION
PROMOTION IN THE FOOD AND NUTRITION PROGRAM.

Section 17 of the Food and Nutrition Act of 2007 (7 U.S.C.
2026) is amended by adding at the end the following:
``(k) Pilot Projects To Evaluate Health and Nutrition
Promotion in the Food and Nutrition Program.--
``(1) In general.--The Secretary shall carry out, under
such terms and conditions as the Secretary considers to be
appropriate, pilot projects to develop and test methods--
``(A) of using the food and nutrition program to improve
the dietary and health status of households participating in
the food and nutrition program; and
``(B) to reduce overweight, obesity, and associated co-
morbidities in the United States.
``(2) Projects.--Pilot projects carried out under paragraph
(1) may include projects to determine whether healthier food
purchases by and healthier diets among households
participating in the food and nutrition program result from
projects that--
``(A) increase the food and nutrition assistance purchasing
power of the participating households by providing increased
food and nutrition assistance benefit allotments to the
participating households;
``(B) increase access to farmers markets by participating
households through the electronic redemption of food and
nutrition assistance at the farmers markets;
``(C) provide incentives to authorized food and nutrition
program vendors to increase the availability of healthy foods
to participating households;
``(D) subject authorized food and nutrition program vendors
to stricter vendor requirements with respect to carrying and
stocking healthy foods;
``(E) provide incentives at the point of purchase to
encourage participating households to purchase fruits,
vegetables, or other healthy foods; or
``(F) provide to participating households integrated
communication and education programs, including the provision
of funding for a portion of a school based nutrition
coordinator to implement a broad nutrition action plan and
parent nutrition education programs in elementary schools,
separately or in combination with pilot projects carried out
under subparagraphs (A) through (E).
``(3) Duration.--A pilot project carried out under this
subsection shall have a term of not more than 5 years.
``(4) Evaluations and reports.--
``(A) Evaluations.--
``(i) Independent evaluation.--

``(I) In general.--The Secretary shall provide for an
independent evaluation of each pilot project under this
subsection that measures the impact of the pilot program on
health and nutrition as described in paragraph (1).
``(II) Requirement.--The independent evaluation under
subclause (I) shall use rigorous methodologies, particularly
random assignment or other methods that are capable of
producing scientifically-valid information regarding which
activities are effective.

``(ii) Costs.--The Secretary may use funds provided to
carry out this section to pay costs associated with
monitoring and evaluating each pilot project.
``(B) Reports.--Not later than 90 days after the last day
of fiscal year 2008 and each fiscal year thereafter until the
completion of the last evaluation under subparagraph (A), the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that includes
a description of--
``(i) the status of each pilot project;
``(ii) the results of the evaluation completed during the
previous fiscal year; and
``(iii) to the maximum extent practicable--

``(I) the impact of the pilot project on appropriate
health, nutrition, and associated behavioral outcomes among
households participating in the pilot project;
``(II) baseline information relevant to the stated goals
and desired outcomes of the pilot project; and
``(III) equivalent information about similar or identical
measures among control or comparison groups that did not
participate in the pilot project.

``(5) Funding.--
``(A) In general.--Out of any funds made available under
section 18, the Secretary shall use $50,000,000 to carry out
this section, to remain available until expended.
``(B) Use of funds.--Of funds made available under
subparagraph (A), the Secretary shall use not more than
$25,000,000 to carry out a pilot project described in
paragraph (2)(E).''.

SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY
LELAND INTERNATIONAL HUNGER FELLOWS.

(a) In General.--The Food and Nutrition Act of 2007 (7
U.S.C. 2011 et seq.) is amended by adding at the end the
following:

``SEC. 28. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY
LELAND INTERNATIONAL HUNGER FELLOWS.

``(a) Short Title.--This section may be cited as the `Bill
Emerson National Hunger Fellows and Mickey Leland
International Hunger Fellows Program Act of 2007'.
``(b) Findings.--Congress finds that--
``(1) there is a critical need for compassionate
individuals who are committed to assisting people who suffer
from hunger to initiate and administer solutions to the
hunger problem;
``(2) Bill Emerson, the distinguished late Representative
from the 8th District of Missouri, demonstrated--
``(A) his commitment to solving the problem of hunger in a
bipartisan manner;
``(B) his commitment to public service; and
``(C) his great affection for the institution and ideals of
the United States Congress;
``(3) George T. (Mickey) Leland, the distinguished late
Representative from the 18th District of Texas,
demonstrated--
``(A) his compassion for those in need;
``(B) his high regard for public service; and
``(C) his lively exercise of political talents;
``(4) the special concern that Mr. Emerson and Mr. Leland
demonstrated during their lives for the hungry and poor was
an inspiration for others to work toward the goals of
equality and justice for all;
``(5) these 2 outstanding leaders maintained a special bond
of friendship regardless of political affiliation and worked
together to encourage future leaders to recognize and provide
service to others; and
``(6) it is especially appropriate to honor the memory of
Mr. Emerson and Mr. Leland by creating a fellowship program
to develop and train the future leaders of the United States
to pursue careers in humanitarian service.
``(c) Definitions.--In this subsection:
``(1) Director.--The term `Director' means the head of the
Congressional Hunger Center.
``(2) Fellow.--The term `fellow' means--
``(A) a Bill Emerson Hunger Fellow; or
``(B) Mickey Leland Hunger Fellow
``(3) Fellowship programs.--The term `Fellowship Programs'
means the Bill Emerson National Hunger Fellowship Program and
the Mickey Leland International Hunger Fellowship Program
established under subsection (d)(1).
``(d) Fellowship Programs.--
``(1) In general.--There is established the Bill Emerson
National Hunger Fellowship Program and the Mickey Leland
International Hunger Fellowship Program.
``(2) Purposes.--
``(A) In general.--The purposes of the Fellowship Programs
are--
``(i) to encourage future leaders of the United States--

``(I) to pursue careers in humanitarian and public service;
``(II) to recognize the needs of low-income people and
hungry people;
``(III) to provide assistance to people in need; and
``(IV) to seek public policy solutions to the challenges of
hunger and poverty;

[[Page S14922]]

``(ii) to provide training and development opportunities
for such leaders through placement in programs operated by
appropriate organizations or entities; and
``(iii) to increase awareness of the importance of public
service.
``(B) Bill emerson hunger fellowship program.--The purpose
of the Bill Emerson Hunger Fellowship Program is to address
hunger and poverty in the United States.
``(C) Mickey leland hunger fellowship program.--The purpose
of the Mickey Leland Hunger Fellowship Program is to address
international hunger and other humanitarian needs.
``(3) Administration.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall offer to enter into a contract with the
Congressional Hunger Center to administer the Fellowship
Programs.
``(B) Terms of contract.--The terms of the contract entered
into under subparagraph (A), including the length of the
contract and provisions for the alteration or termination of
the contract, shall be determined by the Secretary in
accordance with this section.
``(e) Fellowships.--
``(1) In general.--The Director shall make available Bill
Emerson Hunger Fellowships and Mickey Leland Hunger
Fellowships in accordance with this subsection.
``(2) Curriculum.--
``(A) In general.--The Fellowship Programs shall provide
experience and training to develop the skills necessary to
train fellows to carry out the purposes described in
subsection (d)(2), including--
``(i) training in direct service programs for the hungry
and other anti-hunger programs in conjunction with community-
based organizations through a program of field placement; and
``(ii) providing experience in policy development through
placement in a governmental entity or nongovernmental,
nonprofit, or private sector organization.
``(B) Work plan.--To carry out subparagraph (A) and assist
in the evaluation of the fellowships under paragraph (6), the
Director shall, for each fellow, approve a work plan that
identifies the target objectives for the fellow in the
fellowship, including specific duties and responsibilities
relating to those objectives.
``(3) Period of fellowship.--
``(A) Bill emerson hunger fellow.--A Bill Emerson Hunger
Fellowship awarded under this section shall be for not more
than 15 months.
``(B) Mickey leland hunger fellow.--A Mickey Leland Hunger
Fellowship awarded under this section shall be for not more
than 2 years.
``(4) Selection of fellows.--
``(A) In general.--Fellowships shall be awarded pursuant to
a nationwide competition established by the Director.
``(B) Qualifications.--A successful program applicant shall
be an individual who has demonstrated--
``(i) an intent to pursue a career in humanitarian services
and outstanding potential for such a career;
``(ii) leadership potential or actual leadership
experience;
``(iii) diverse life experience;
``(iv) proficient writing and speaking skills;
``(v) an ability to live in poor or diverse communities;
and
``(vi) such other attributes as are considered to be
appropriate by the Director.
``(5) Amount of award.--
``(A) In general.--A fellow shall receive--
``(i) a living allowance during the term of the Fellowship;
and
``(ii) subject to subparagraph (B), an end-of-service
award.
``(B) Requirement for successful completion of
fellowship.--Each fellow shall be entitled to receive an end-
of-service award at an appropriate rate for each month of
satisfactory service completed, as determined by the
Director.
``(C) Terms of fellowship.--A fellow shall not be
considered an employee of--
``(i) the Department of Agriculture;
``(ii) the Congressional Hunger Center; or
``(iii) a host agency in the field or policy placement of
the fellow.
``(D) Recognition of fellowship award.--
``(i) Emerson fellow.--An individual awarded a fellowship
from the Bill Emerson Hunger Fellowship shall be known as an
`Emerson Fellow'.
``(ii) Leland fellow.--An individual awarded a fellowship
from the Mickey Leland Hunger Fellowship shall be known as a
`Leland Fellow'.
``(6) Evaluations and audits.--Under terms stipulated in
the contract entered into under subsection (d)(3), the
Director shall--
``(A) conduct periodic evaluations of the Fellowship
Programs; and
``(B) arrange for annual independent financial audits of
expenditures under the Fellowship Programs.
``(f) Authority.--
``(1) In general.--Subject to paragraph (2), in carrying
out this section, the Director may solicit, accept, use, and
dispose of gifts, bequests, or devises of services or
property, both real and personal, for the purpose of
facilitating the work of the Fellowship Programs.
``(2) Limitation.--Gifts, bequests, or devises of money and
proceeds from sales of other property received as gifts,
bequests, or devises shall be used exclusively for the
purposes of the Fellowship Programs.
``(g) Report.--The Director shall annually submit to the
Secretary of Agriculture, the Committee on Agriculture of the
House of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that--
``(1) describes the activities and expenditures of the
Fellowship Programs during the preceding fiscal year,
including expenditures made from funds made available under
subsection (h); and
``(2) includes the results of evaluations and audits
required by subsection (f).
``(h) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this section, to remain available
until expended.''.
(b) Repeal.--Section 4404 of the Farm Security and Rural
Investment Act of 2002 (2 U.S.C. 1161) is repealed.

SEC. 4405. HUNGER-FREE COMMUNITIES.

(a) Definitions.--In this section:
(1) Domestic hunger goal.--The term ``domestic hunger
goal'' means--
(A) the goal of reducing hunger in the United States to at
or below 2 percent by 2010; or
(B) the goal of reducing food insecurity in the United
States to at or below 6 percent by 2010.
(2) Emergency feeding organization.--The term ``emergency
feeding organization'' has the meaning given the term in
section 201A of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7501).
(3) Food security.--The term ``food security'' means the
state in which an individual has access to enough food for an
active, healthy life.
(4) Hunger-free communities goal.--The term ``hunger-free
communities goal'' means any of the 14 goals described in the
H. Con. Res. 302 (102nd Congress).
(b) Hunger Reports.--
(1) Study.--
(A) Timeline.--
(i) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall conduct a study of
major matters relating to the problem of hunger in the United
States, as determined by the Secretary.
(ii) Update.--Not later than 5 years after the date on
which the study under clause (i) is conducted, the Secretary
shall update the study.
(B) Matters to be assessed.--The matters to be assessed by
the Secretary in the study and update under this paragraph
shall include--
(i) data on hunger and food insecurity in the United
States;
(ii) measures carried out during the previous year by
Federal, State, and local governments to achieve domestic
hunger goals and hunger-free communities goals; and
(iii) measures that could be carried out by Federal, State,
and local governments to achieve domestic hunger goals and
hunger-free communities goals.
(2) Recommendations.--The Secretary shall develop
recommendations on--
(A) removing obstacles to achieving domestic hunger goals
and hunger-free communities goals; and
(B) otherwise reducing domestic hunger.
(3) Report.--The Secretary shall submit to the President
and Congress--
(A) not later than 1 year after the date of enactment of
this Act, a report that contains--
(i) a detailed statement of the results of the study, or
the most recent update to the study, conducted under
paragraph (1)(A); and
(ii) the most recent recommendations of the Secretary under
paragraph (2); and
(B) not later than 5 years after the date of submission of
the report under subparagraph (A), an update of the report.
(c) Hunger-Free Communities Collaborative Grants.--
(1) Definition of eligible entity.--In this subsection, the
term ``eligible entity'' means a public food program service
provider or a nonprofit organization, including but not
limited to an emergency feeding organization, that
demonstrates the organization has collaborated, or will
collaborate, with 1 or more local partner organizations to
achieve at least 1 hunger-free communities goal.
(2) Program authorized.--
(A) In general.--The Secretary shall use not more than 55
percent of any funds made available under subsection (f) to
make grants to eligible entities to pay the Federal share of
the costs of an activity described in paragraph (4).
(B) Federal share.--The Federal share of the cost of
carrying out an activity under this subsection shall not
exceed 80 percent.
(C) Non-federal share.--
(i) Calculation.--The non-Federal share of the cost of an
activity under this subsection may be provided in cash or in
kind, fairly evaluated, including facilities, equipment, or
services.
(ii) Sources.--Any entity may provide the non-Federal share
of the cost of an activity under this subsection through a
State government, a local government, or a private source.
(3) Application.--
(A) In general.--To receive a grant under this subsection,
an eligible entity shall submit an application to the
Secretary at the time and in the manner and accompanied by
any information the Secretary may require.
(B) Contents.--Each application submitted under
subparagraph (A) shall--
(i) identify any activity described in paragraph (4) that
the grant will be used to fund;

[[Page S14923]]

(ii) describe the means by which an activity identified
under clause (i) will reduce hunger in the community of the
eligible entity;
(iii) list any partner organizations of the eligible entity
that will participate in an activity funded by the grant;
(iv) describe any agreement between a partner organization
and the eligible entity necessary to carry out an activity
funded by the grant; and
(v) if an assessment described in paragraph (4)(A) has been
performed, include--

(I) a summary of that assessment; and
(II) information regarding the means by which the grant
will help reduce hunger in the community of the eligible
entity.

(C) Priority.--In making grants under this subsection, the
Secretary shall give priority to eligible entities that--
(i) demonstrate in the application of the eligible entity
that the eligible entity makes collaborative efforts to
reduce hunger in the community of the eligible entity; and
(ii)(I) serve communities in which the rates of food
insecurity, hunger, poverty, or unemployment are demonstrably
higher than national average rates;
(II) provide evidence of long-term efforts to reduce hunger
in the community;
(III) provide evidence of public support for the efforts of
the eligible entity; or
(IV) demonstrate in the application of the eligible entity
a commitment to achieving more than 1 hunger-free communities
goal.
(4) Use of funds.--
(A) Assessment of hunger in the community.--
(i) In general.--An eligible entity in a community that has
not performed an assessment described in clause (ii) may use
a grant received under this subsection to perform the
assessment for the community.
(ii) Assessment.--The assessment referred to in clause (ii)
shall include--

(I) an analysis of the problem of hunger in the community
served by the eligible entity;
(II) an evaluation of any facility and any equipment used
to achieve a hunger-free communities goal in the community;
(III) an analysis of the effectiveness and extent of
service of existing nutrition programs and emergency feeding
organizations; and
(IV) a plan to achieve any other hunger-free communities
goal in the community.

(B) Activities.--An eligible entity in a community that has
submitted an assessment to the Secretary shall use a grant
received under this subsection for any fiscal year for
activities of the eligible entity, including--
(i) meeting the immediate needs of people in the community
served by the eligible entity who experience hunger by--

(I) distributing food;
(II) providing community outreach; or
(III) improving access to food as part of a comprehensive
service;

(ii) developing new resources and strategies to help reduce
hunger in the community;
(iii) establishing a program to achieve a hunger-free
communities goal in the community, including--

(I) a program to prevent, monitor, and treat children in
the community experiencing hunger or poor nutrition; or
(II) a program to provide information to people in the
community on hunger, domestic hunger goals, and hunger-free
communities goals; and

(iv) establishing a program to provide food and nutrition
services as part of a coordinated community-based
comprehensive service.
(d) Hunger-Free Communities Infrastructure Grants.--
(1) Definition of eligible entity.--In this subsection, the
term ``eligible entity'' means an emergency feeding
organization (as defined in section 201A(4) of the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7501(4))).
(2) Program authorized.--
(A) In general.--The Secretary shall use not more than 45
percent of any funds made available under subsection (f) to
make grants to eligible entities to pay the Federal share of
the costs of an activity described in paragraph (4).
(B) Federal share.--The Federal share of the cost of
carrying out an activity under this subsection shall not
exceed 80 percent.
(3) Application.--
(A) In general.--To receive a grant under this subsection,
an eligible entity shall submit an application to the
Secretary at the time and in the manner and accompanied by
any information the Secretary may require.
(B) Contents.--Each application submitted under
subparagraph (A) shall--
(i) identify any activity described in paragraph (4) that
the grant will be used to fund; and
(ii) describe the means by which an activity identified
under clause (i) will reduce hunger in the community of the
eligible entity.
(C) Priority.--In making grants under this subsection, the
Secretary shall give priority to eligible entities the
applications of which demonstrate 2 or more of the following:
(i) The eligible entity serves a community in which the
rates of food insecurity, hunger, poverty, or unemployment
are demonstrably higher than national average rates.
(ii) The eligible entity serves a community that has
carried out long-term efforts to reduce hunger in the
community.
(iii) The eligible entity serves a community that provides
public support for the efforts of the eligible entity.
(iv) The eligible entity is committed to achieving more
than 1 hunger-free communities goal.
(4) Use of funds.--An eligible entity shall use a grant
received under this subsection for any fiscal year to carry
out activities of the eligible entity, including--
(A) constructing, expanding, or repairing a facility or
equipment to support hunger relief agencies in the community;
(B) assisting an emergency feeding organization in the
community in obtaining locally-produced produce and protein
products; and
(C) assisting an emergency feeding organization in the
community to process and serve wild game.
(e) Report.--If funds are made available under subsection
(f), not later than September 30, 2012, the Secretary shall
submit to Congress a report describing--
(1) each grant made under this section, including--
(A) a description of any activity funded by such a grant;
and
(B) the degree of success of each activity funded by such a
grant in achieving hunger-free communities goals; and
(2) the degree of success of all activities funded by
grants under this section in achieving domestic hunger goals.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $50,000,000 for
each of fiscal years 2008 through 2012.

SEC. 4406. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING
PROGRAM BENEFITS FOR FREE SCHOOL MEALS.

(a) In General.--Not later than June 30 of each year, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that assesses
the effectiveness of each State in enrolling school-aged
children in households receiving program benefits under the
Food and Nutrition Act of 2007 (7 U.S.C. 2011 et seq.)
(referred to in this section as ``program benefits'') for
free school meals using direct certification.
(b) Specific Measures.--The assessment of the Secretary of
the performance of each State shall include--
(1) an estimate of the number of school-aged children, by
State, who were members of a household receiving program
benefits at any time in July, August, or September of the
prior year;
(2) an estimate of the number of school-aged children, by
State, who were directly certified as eligible for free
lunches under the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.), based on receipt of program
benefits, as of October 1 of the prior year; and
(3) an estimate of the number of school-aged children, by
State, who were members of a household receiving program
benefits at any time in July, August, or September of the
prior year who were not candidates for direct certification
because on October 1 of the prior year the children attended
a school operating under the special assistance provisions of
section 11(a)(1) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1759a) that is not operating in a base
year.
(c) Performance Innovations.--The report of the Secretary
shall describe best practices from States with the best
performance or the most improved performance from the
previous year.

Subtitle B--Food Distribution Program on Indian Reservations

SEC. 4501. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD
PACKAGE.

(a) In General.--Section 4 of the Food and Nutrition Act of
2007 (7 U.S.C. 2013) is amended by striking subsection (b)
and inserting the following:
``(b) Food Distribution Program on Indian Reservations.--
``(1) In general.--Distribution of commodities, with or
without the food and nutrition program, shall be made
whenever a request for concurrent or separate food program
operations, respectively, is made by a tribal organization.
``(2) Administration.--
``(A) In general.--Subject to subparagraphs (B) and (C), in
the event of distribution on all or part of an Indian
reservation, the appropriate agency of the State government
in the area involved shall be responsible for the
distribution.
``(B) Administration by tribal organization.--If the
Secretary determines that a tribal organization is capable of
effectively and efficiently administering a distribution
described in paragraph (1), then the tribal organization
shall administer the distribution.
``(C) Prohibition.--The Secretary shall not approve any
plan for a distribution described in paragraph (1) that
permits any household on any Indian reservation to
participate simultaneously in the food and nutrition program
and the distribution of federally donated foods.
``(3) Disqualified participants.--An individual who is
disqualified from participation in the food distribution
program on Indian reservations under this subsection is not
eligible to participate in the food and nutrition program
under this Act.
``(4) Administrative costs.--The Secretary is authorized to
pay such amounts for administrative costs and distribution
costs on Indian reservations as the Secretary finds necessary
for effective administration of such distribution by a State
agency or tribal organization.

[[Page S14924]]

``(5) Bison meat.--Subject to the availability of
appropriations, the Secretary may purchase bison meat for
recipients of food distributed under this subsection,
including bison meat from--
``(A) Native American bison producers; and
``(B) producer-owned cooperatives of bison ranchers.
``(6) Traditional food fund.--
``(A) In general.--Subject to the availability of
appropriations, the Secretary shall establish a fund for use
in purchasing traditional foods for recipients of food
distributed under this subsection.
``(B) Survey.--In carrying out this paragraph, the
Secretary shall--
``(i) survey participants of the food distribution program
on Indian reservations established under this subsection to
determine which traditional foods are most desired by those
participants; and
``(ii) purchase or offer to purchase those traditional
foods that may be procured cost-effectively.
``(C) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
paragraph $5,000,000 for each of fiscal years 2008 through
2012.''.
(b) FDPIR Food Package.--Not later than 180 days after the
date of enactment of this Act, the Secretary of Agriculture
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes--
(1) how the Secretary derives the process for determining
the food package under the food distribution program on
Indian reservations established under section 4(b) of the
Food and Nutrition Act of 2007 (7 U.S.C. 2013(b)) (referred
to in this subsection as the ``food package'');
(2) the extent to which the food package--
(A) addresses the nutritional needs of low-income Americans
compared to the food and nutrition program, particularly for
very low-income households;
(B) conforms (or fails to conform) to the 2005 Dietary
Guidelines for Americans published under section 301 of the
National Nutrition Monitoring and Related Research Act of
1990 (7 U.S.C. 5341);
(C) addresses (or fails to address) the nutritional and
health challenges that are specific to Native Americans; and
(D) is limited by distribution costs or challenges of
infrastructure;
(3) any plans of the Secretary to revise and update the
food package to conform with the most recent Dietary
Guidelines for Americans, including any costs associated with
the planned changes; and
(4) if the Secretary does not plan changes to the food
package, the rationale of the Secretary for retaining the
food package.

Subtitle C--Administration of Emergency Food Assistance Program and
Commodity Supplemental Food Program

SEC. 4601. EMERGENCY FOOD ASSISTANCE.

(a) State Plan.--Section 202A of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7503) is amended by striking
subsection (a) and inserting the following:
``(a) Plans.--To receive commodities under this Act, every
3 years, a State shall submit to the Secretary an operation
and administration plan for the provision of assistance under
this Act.''.
(b) Donated Wild Game.--Section 204(a)(1) of the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended
in the first sentence by inserting ``and donated wild game''
before the period at the end.

SEC. 4602. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

Section 5 of the Agriculture and Consumer Protection Act of
1973 (7 U.S.C. 612c note; Public Law 93-86) is amended by
striking subsection (g) and inserting the following:
``(g) Prohibition.--Notwithstanding any other provision of
law (including regulations), the Secretary may not require a
State or local agency to prioritize assistance to a
particular group of individuals that are--
``(1) low-income persons aged 60 and older; or
``(2) women, infants, and children.''.

Subtitle D--Senior Farmers' Market Nutrition Program

SEC. 4701. EXCLUSION OF BENEFITS IN DETERMINING ELIGIBILITY
FOR OTHER PROGRAMS.

(a) In General.--Section 4402 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 3007) is amended--
(1) in subsection (a), by striking ``each of fiscal years
2003 through 2007'' and inserting ``fiscal year 2008 and each
fiscal year thereafter'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (e), respectively;
(3) by inserting after subsection (a) the following:
``(b) Additional Funds.--In addition to the amounts made
available under subsection (a), for fiscal year 2008 and each
fiscal year thereafter, of the funds of the Commodity Credit
Corporation, the Secretary of Agriculture shall use
$50,000,000 to expand the program established under this
section.''; and
(4) by inserting after subsection (c) (as redesignated by
paragraph (2)) the following:
``(d) Exclusion of Benefits in Determining Eligibility for
Other Programs.--The value of any benefit provided under the
program under this section shall not be taken into
consideration in determining the eligibility of an individual
for any other Federal or State assistance program.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of enactment of this Act.

SEC. 4702. PROHIBITION ON COLLECTION OF SALES TAX.

Section 4402 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3007) is amended by inserting after
subsection (d) (as added by section 4701(a)(4)) the
following:
``(e) Prohibition on Collection of Sales Tax.--A State that
collects any sales tax on the purchase of food using a
benefit provided under the program under this section shall
not be eligible to participate in the program.''.

SEC. 4703. WIC FARMERS' MARKET NUTRITION PROGRAM.

Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(m)(9)(A)) is amended--
(1) in clause (i), by striking ``each of fiscal years 2004
through 2009'' and inserting ``each fiscal year''; and
(2) by striking clause (ii) and inserting the following:
``(ii) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall make available to
carry out this subsection, $40,000,000 for each fiscal
year.''.

Subtitle E--Reauthorization of Federal Food Assistance Programs

SEC. 4801. FOOD AND NUTRITION PROGRAM.

(a) Grants for Simple Application and Eligibility
Determination Systems and Improved Access to Benefits.--
Section 11(t)(1) of the Food and Nutrition Act of 2007 (7
U.S.C. 2020(t)(1)) is amended by striking ``For each of
fiscal years 2003 through 2007'' and inserting ``For fiscal
year 2008 and each fiscal year thereafter''.
(b) Funding of Employment and Training Programs.--Section
16(h)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.
2025(h)(1)) is amended--
(1) in subparagraph (A)(vii), by striking ``for each of
fiscal years 2002 through 2007'' and inserting ``for fiscal
year 2008 and each fiscal year thereafter''; and
(2) in subparagraph (E)(i), by striking ``for each of
fiscal years 2002 through 2007'' and inserting ``for fiscal
year 2008 and each fiscal year thereafter''.
(c) Reductions in Payments for Administrative Costs.--
Section 16(k)(3) of the Food and Nutrition Act of 2007 (7
U.S.C. 2025(k)(3)) is amended--
(1) in the first sentence of subparagraph (A), by striking
``for each of fiscal years 1999 through 2007'' and inserting
``for fiscal year 2008 and each fiscal year thereafter''; and
(2) in subparagraph (B)(ii), by striking ``through fiscal
year 2007''.
(d) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi)
of the Food and Nutrition Act of 2007 (7 U.S.C.
2026(b)(1)(B(vi)) is amended by striking ``through October 1,
2007''.
(e) Authorization of Appropriations.--Section 18(a)(1) of
the Food and Nutrition Act of 2007 (7 U.S.C. 2027(a)(1)) is
amended in the first sentence by striking ``for each of the
fiscal years 2003 through 2007'' and inserting ``for fiscal
year 2008 and each fiscal year thereafter''.
(f) Consolidated Block Grants for Puerto Rico and American
Samoa.--Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) by striking ``for each
of fiscal years 2004 through 2007'' and inserting ``for
fiscal year 2008 and each fiscal year thereafter''.
(g) Assistance for Community Food Projects.--Section 25 of
the Food and Nutrition Act of 2007 (7 U.S.C. 2034) is
amended--
(1) in subsection (b)(2), by striking subparagraph (B) and
inserting the following:
``(B) $10,000,000 for each of fiscal years 2008 through
2012.''; and
(2) in subsection (h)(4), by striking ``2007'' and
inserting ``2012''.

SEC. 4802. COMMODITY DISTRIBUTION.

(a) Emergency Food Assistance.--Section 204(a)(1) of the
Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1))
is amended in the first sentence by striking ``$60,000,000
for each of the fiscal years 2003 through 2007'' and
inserting ``$100,000,000 for fiscal year 2008 and each fiscal
year thereafter''.
(b) Commodity Distribution Program.--Section 4(a) of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C.
612c note; Public Law 93-86) is amended in the first sentence
by striking ``years 1991 through 2007'' and inserting ``year
2008 and each fiscal year thereafter''.
(c) Commodity Supplemental Food Program.--Section 5 of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C.
612c note; Public Law 93-86) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``each of fiscal years
2003 through 2007'' and inserting ``fiscal year 2008 and each
fiscal year thereafter''; and
(B) in paragraph (2)(B), by striking ``(B) Fiscal years
2004 through 2007.--'' and all that follows through ``2007''
and inserting the following:
``(B) Subsequent fiscal years.--For fiscal year 2004 and
each subsequent fiscal year''; and
(2) in subsection (d)(2), by striking ``each of the fiscal
years 1991 through 2007'' and inserting ``fiscal year 2008
and each fiscal year thereafter''.
(d) Distribution of Surplus Commodities to Special
Nutrition Projects.--Section 1114(a)(2)(A) of the Agriculture
and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in

[[Page S14925]]

the first sentence by striking ``2007'' and inserting
``2012''.

SEC. 4803. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

Section 4403(f) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 3171 note; Public Law 107-171) is
amended by striking ``2007'' and inserting ``2012''.

Subtitle F--Food Employment Empowerment and Development Program

SEC. 4851. SHORT TITLE.

This subtitle may be cited as the ``Food Employment
Empowerment and Development Program Act of 2007'' or the
``FEED Act of 2007''.

SEC. 4852. DEFINITIONS.

In this subtitle:
(1) Eligible entity.--The term ``eligible entity'' means an
entity that meets the requirements of section 4013(b).
(2) Vulnerable subpopulation.--
(A) In general.--The term ``vulnerable subpopulation''
means low-income individuals, unemployed individuals, and
other subpopulations identified by the Secretary as being
likely to experience special risks from hunger or a special
need for job training.
(B) Inclusions.--The term ``vulnerable subpopulation''
includes--
(i) addicts (as defined in section 102 of the Controlled
Substances Act (21 U.S.C. 802));
(ii) at-risk youths (as defined in section 1432 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6472));
(iii) individuals that are basic skills deficient (as
defined in section 101 of the Workforce Investment Act of
1998 (29 U.S.C. 2801));
(iv) homeless individuals (as defined in section 17(b) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(b));
(v) homeless youths (as defined in section 387 of the
Runaway and Homeless Youth Act (42 U.S.C. 5732a));
(vi) individuals with disabilities (as defined in section 3
of the Americans with Disabilities Act of 1990 (42 U.S.C.
12102));
(vii) low-income individuals (as defined in section 101 of
the Workforce Investment Act of 1998 (29 U.S.C. 2801)); and
(viii) older individuals (as defined in section 102 of the
Older Americans Act of 1965 (42 U.S.C. 3002)).

SEC. 4853. FOOD EMPLOYMENT EMPOWERMENT AND DEVELOPMENT
PROGRAM.

(a) Establishment.--The Secretary shall establish a food
employment empowerment and development program under which
the Secretary shall make grants to eligible entities to
encourage the effective use of community resources to combat
hunger and the root causes of hunger by creating opportunity
through food recovery and job training.
(b) Eligible Entities.--To be eligible to receive a grant
under this section, an entity shall be a public agency, or
private nonprofit institution, that conducts, or will
conduct, 2 or more of the following activities as an integral
part of the normal operation of the entity:
(1) Recovery of donated food from area restaurants,
caterers, hotels, cafeterias, farms, or other food service
businesses.
(2) Distribution of meals or recovered food to--
(A) nonprofit organizations described in section 501(c)(3)
of the Internal Revenue Code of 1986;
(B) entities that feed vulnerable subpopulations; and
(C) other agencies considered appropriate by the Secretary.
(3) Training of unemployed and underemployed adults for
careers in the food service industry.
(4) Carrying out of a welfare-to-work job training program
in combination with--
(A) production of school meals, such as school meals served
under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.); or
(B) support for after-school programs, such as programs
conducted by community learning centers (as defined in
section 4201(b) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7171(b))).
(c) Use of Funds.--An eligible entity may use a grant
awarded under this section for--
(1) capital investments related to the operation of the
eligible entity;
(2) support services for clients, including staff, of the
eligible entity and individuals enrolled in job training
programs;
(3) purchase of equipment and supplies related to the
operation of the eligible entity or that improve or directly
affect service delivery;
(4) building and kitchen renovations that improve or
directly affect service delivery;
(5) educational material and services;
(6) administrative costs, in accordance with guidelines
established by the Secretary; and
(7) additional activities determined appropriate by the
Secretary.
(d) Preferences.--In awarding grants under this section,
the Secretary shall give preference to eligible entities that
perform, or will perform, any of the following activities:
(1) Carrying out food recovery programs that are integrated
with--
(A) culinary worker training programs, such as programs
conducted by a food service management institute under
section 21 of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1769b-1);
(B) school education programs; or
(C) programs of service-learning (as defined in section 101
of the National and Community Service Act of 1990 (42 U.S.C.
12511)).
(2) Providing job skills training, life skills training,
and case management support to vulnerable subpopulations.
(3) Integrating recovery and distribution of food with a
job training program.
(4) Maximizing the use of an established school, community,
or private food service facility or resource in meal
preparation and culinary skills training.
(5) Providing job skills training, life skills training,
and case management support to vulnerable subpopulations.
(e) Eligibility for Job Training.--To be eligible to
receive job training assistance from an eligible entity using
a grant made available under this section, an individual
shall be a member of a vulnerable subpopulation.
(f) Performance Indicators.--The Secretary shall establish,
for each year of the program, performance indicators and
expected levels of performance for meal and food distribution
and job training for eligible entities to continue to receive
and use grants under this section.
(g) Technical Assistance.--
(1) In general.--The Secretary shall provide technical
assistance to eligible entities that receive grants under
this section to assist the eligible entities in carrying out
programs under this section using the grants.
(2) Form.--Technical assistance for a program provided
under this subsection includes--
(A) maintenance of a website, newsletters, email
communications, and other tools to promote shared
communications, expertise, and best practices;
(B) hosting of an annual meeting or other forums to provide
education and outreach to all programs participants;
(C) collection of data for each program to ensure that the
performance indicators and purposes of the program are met or
exceeded;
(D) intervention (if necessary) to assist an eligible
entity to carry out the program in a manner that meets or
exceeds the performance indicators and purposes of the
program;
(E) consultation and assistance to an eligible entity to
assist the eligible entity in providing the best services
practicable to the community served by the eligible entity,
including consultation and assistance related to--
(i) strategic plans;
(ii) board development;
(iii) fund development;
(iv) mission development; and
(v) other activities considered appropriate by the
Secretary;
(F) assistance considered appropriate by the Secretary
regarding--
(i) the status of program participants;
(ii) the demographic characteristics of program
participants that affect program services;
(iii) any new idea that could be integrated into the
program; and
(iv) the review of grant proposals; and
(G) any other forms of technical assistance the Secretary
considers appropriate.
(h) Relationship to Other Law.--
(1) Bill emerson good samaritan food donation act.--An
action taken by an eligible entity using a grant provided
under this section shall be covered by the Bill Emerson Good
Samaritan Food Donation Act (42 U.S.C. 1791).
(2) Food handling guidelines.--In using a grant provided
under this section, an eligible entity shall comply with any
applicable food handling guideline established by a State or
local authority.
(3) Inspections.--An eligible entity using a grant provided
under this section shall be exempt from inspection under
sections 303.1(d)(2)(iii) and 381.10(d)(2)(iii) of volume 9,
Code of Federal Regulations (or a successor regulation), if
the eligible entity--
(A) has a hazard analysis and critical control point
(HACCP) plan;
(B) has a sanitation standard operating procedure (SSOP);
and
(C) otherwise complies with the Federal Meat Inspection Act
(21 U.S.C. 601 et seq.) and the Poultry Products Inspection
Act (21 U.S.C. 451 et seq.).
(i) Maximum Amount of Grant.--The amount of a grant
provided to an eligible entity for a fiscal year under this
section shall not exceed $200,000.
(j) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out this section $20,000,000 for each of fiscal years
2008 through 2012.
(2) Technical assistance.--Of the amount of funds that are
made available for a fiscal year under paragraph (1), the
Secretary shall use to provide technical assistance under
subsection (g) not more than the greater of--
(A) 5 percent of the amount of funds that are made
available for the fiscal year under paragraph (1); or
(B) $1,000,000.

Subtitle G--Miscellaneous

SEC. 4901. PURCHASES OF LOCALLY GROWN FRUITS AND VEGETABLES.

Section 9(j) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(j)) is amended to read as follows:
``(j) Purchases of Locally Grown Fruits and Vegetables.--
The Secretary shall--
``(1) encourage institutions receiving funds under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
to purchase locally grown fruits and vegetables, to the
maximum extent practicable and appropriate;

[[Page S14926]]

``(2) advise institutions participating in a program
described in paragraph (1) of the policy described in that
paragraph and post information concerning the policy on the
website maintained by the Secretary; and
``(3) allow institutions receiving funds under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
including the Department of Defense, to use a geographic
preference for the procurement of locally grown fruits and
vegetables.''.

SEC. 4902. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

(a) Payments to Service Institutions.--Section 13(b) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1761(b)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraph (A);
(B) by redesignating subparagraphs (B) through (D) as
subparagraphs (A) through (C), respectively;
(C) in subparagraph (A) (as redesignated by subparagraph
(B)), by striking ``(A)'' and all that follows through
``shall not exceed--'' and inserting the following:
``(A) In general.--Subject to subparagraph (B), in addition
to amounts made available under paragraph (3), payments to
service institutions shall be--'';
(D) in subparagraph (B) (as redesignated by subparagraph
(B)), by striking ``subparagraph (B)'' and inserting
``subparagraph (A)''; and
(E) in subparagraph (C) (as redesignated by subparagraph
(B)), by striking ``(A), (B), and (C)'' and inserting ``(A)
and (B)''; and
(2) in the second sentence of paragraph (3), by striking
``full amount of State approved'' and all that follows
through ``maximum allowable''.
(b) Conforming Amendments.--Section 18 of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769) is
amended--
(1) by striking subsection (f); and
(2) by redesignating subsection (g) through (k) as
subsections (f) through (j), respectively.
(c) Effective Date.--The amendments made by this section
take effect on January 1 of the first full calendar year
following the date of enactment of this Act.

SEC. 4903. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.

Section 18(i) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769(i)) is amended--
(1) in paragraph (1)(C), by inserting ``promotes healthy
food education in the school curriculum and'' before
``incorporates'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Administration.--In providing grants under this
subsection, the Secretary shall give priority to projects
that can be replicated in schools.''.

SEC. 4904. FRESH FRUIT AND VEGETABLE PROGRAM.

(a) In General.--The Richard B. Russell National School
Lunch Act is amended by inserting after section 18 (42 U.S.C.
1769) the following:

``SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM.

``(a) In General.--For the school year beginning July 2008
and each subsequent school year, the Secretary shall provide
grants to States to carry out a program to make free fresh
fruits and vegetables available in elementary schools
(referred to in this section as the `program').
``(b) Program.--A school participating in the program shall
make free fresh fruits and vegetables available to students
throughout the school day (or at such other times as are
considered appropriate by the Secretary) in 1 or more areas
designated by the school.
``(c) Funding to States.--
``(1) Minimum grant.--The Secretary shall provide to each
of the 50 States and the District of Columbia an annual grant
in an amount equal to 1 percent of the funds made available
for a fiscal year to carry out the program.
``(2) Additional funding.--Of the funds remaining after
grants are made under paragraph (1), the Secretary shall
allocate additional funds to each State that is operating a
school lunch program under section 4 based on the proportion
that--
``(A) the population of the State; bears to
``(B) the population of the United States.
``(d) Selection of Schools.--
``(1) In general.--In selecting schools to participate in
the program, each State shall--
``(A) ensure that each school chosen to participate in the
program is a school--
``(i) except as provided in paragraph (2), in which not
less than 50 percent of the students are eligible for free or
reduced price meals under this Act; and
``(ii) that submits an application in accordance with
subparagraph (C); and
``(B) to the maximum extent practicable, give the highest
priority to schools with the highest proportion of children
who are eligible for free or reduced price meals under this
Act;
``(C) solicit applications from interested schools that
include--
``(i) information pertaining to the percentage of students
enrolled in the school submitting the application who are
eligible for free or reduced price school lunches under this
Act;
``(ii) a certification of support for participation in the
program signed by the school food manager, the school
principal, and the district superintendent (or equivalent
positions, as determined by the school); and
``(iii) such other information as may be requested by the
Secretary;
``(D) give priority to schools that submit a plan for
implementation of the program that includes a partnership
with 1 or more entities that provide non-Federal resources
(including entities representing the fruit and vegetable
industry) for--
``(i) the acquisition, handling, promotion, or distribution
of fresh and dried fruits and fresh vegetables; or
``(ii) other support that contributes to the purposes of
the program;
``(E) give priority to schools that provide evidence of
efforts to integrate activities carried out under this
section with other efforts to promote sound health and
nutrition, reduce overweight and obesity, or promote physical
activity; and
``(F) ensure that each school selected is an elementary
school.
``(2) Exception.--Clause (i) of paragraph (1)(A) shall not
apply to a State if the State does not have a sufficient
number of schools that meet the requirement of that clause.
``(3) Consortia.--A consortia of schools may apply for
funding under this section.
``(e) Notice of Availability.--To be eligible to
participate in the program, a school shall widely publicize
within the school the availability of free fresh fruits and
vegetables under the program.
``(f) Per-Student Grant.--The per-student grant provided to
a school under this section shall be--
``(1) determined by a State agency; and
``(2) not less than $50, nor more than $75, annually.
``(g) Limitation.--To the maximum extent practicable, each
State agency shall ensure that in making available to
students the fruits and vegetables provided under this
section, schools participating in the program offer the
fruits and vegetables separately from meals otherwise
provided at the school under this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.).
``(h) Schools on Indian Reservations.--The Secretary shall
ensure that not less than 100 of the schools chosen to
participate in the program are schools operated on Indian
reservations.
``(i) Evaluation and Reports.--
``(1) In general.--The Secretary shall conduct an
evaluation of the program, including a determination as to
whether children experienced, as a result of participating in
the program--
``(A) increased consumption of fruits and vegetables;
``(B) other dietary changes, such as decreased consumption
of less nutritious foods; and
``(C) such other outcomes as are considered appropriate by
the Secretary.
``(2) Report.--Not later than September 30, 2011, the
Secretary shall submit to the Committee on Education and
Labor of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, a report
that describes the results of the evaluation under paragraph
(1).
``(j) Funding.--
``(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section--
``(A) on October 1, 2007, $225,000,000; and
``(B) on October 1, 2008, and each October 1 thereafter,
the amount made available for the preceding fiscal year, as
adjusted to reflect changes for the 12-month period ending
the preceding June 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor, for items other than food.
``(2) Evaluation funding.--On October 1, 2007, out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the Secretary to
carry out the evaluation required under subsection (i),
$3,000,000, to remain available until expended.
``(3) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section any funds transferred for that purpose, without
further appropriation.
``(4) Authorization of appropriations.--In addition to any
other amounts made available to carry out this section, there
are authorized to be appropriated such sums as are necessary
to expand the program established under this section.
``(5) Administrative costs.--Of funds made available to
carry out this section for a fiscal year, the Secretary may
use not more than $500,000 for the administrative costs of
carrying out the program.
``(6) Reallocation.--
``(A) Among states.--The Secretary may reallocate any
amounts made available to carry out this section that are not
obligated or expended by a date determined by the Secretary.
``(B) Within states.--A State that receives a grant under
this section may reallocate any amounts made available under
the grant that are not obligated or expended by a date
determined by the Secretary.''.
(b) Conforming Amendments.--Section 18 of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769) is
amended--
(1) by striking subsection (g); and
(2) by redesignating subsections (h) through (k) as
subsections (g) through (j), respectively.

SEC. 4905. BUY AMERICAN REQUIREMENTS.

(a) Findings.--Congress finds that--

[[Page S14927]]

(1) Federal law requires that commodities and products
purchased with Federal funds be, to the maximum extent
practicable, of domestic origin;
(2) Federal Buy American statutory requirements seek to
ensure that purchases made with Federal funds benefit
domestic producers; and
(3) the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) requires the use of domestic food
products for all meals served under the school lunch program,
including food products purchased with local funds.
(b) Buy American Statutory Requirements.--It is the sense
of Congress that the Secretary should undertake training,
guidance, and enforcement of the various Buy American
statutory requirements and regulations in effect on the date
of enactment of this Act, including requirements of--
(1) the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.); and
(2) the Department of Defense fresh fruit and vegetable
distribution program.

SEC. 4906. MINIMUM PURCHASES OF FRUITS, VEGETABLES, AND NUTS
THROUGH SECTION 32 TO SUPPORT DOMESTIC
NUTRITION ASSISTANCE PROGRAMS.

(a) Minimum Funding for Purchases of Fruits, Vegetables,
and Nuts.--In lieu of the purchases of fruits, vegetables,
and nuts required by section 10603 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 612c-4), the Secretary
shall purchase fruits, vegetables, and nuts for the purpose
of providing nutritious foods for use in domestic nutrition
assistance programs, using, of the funds made available under
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), the
following amounts:
(1) $390,000,000 for fiscal year 2008.
(2) $393,000,000 for fiscal year 2009.
(3) $399,000,000 for fiscal year 2010.
(4) $403,000,000 for fiscal year 2011.
(5) $406,000,000 for fiscal year 2012 and each fiscal year
thereafter.
(b) Form of Purchases.--Fruits, vegetables, and nuts may be
purchased under this section in frozen, canned, dried, or
fresh form.
(c) Value-Added Products.--The Secretary may offer value-
added products containing fruits, vegetables, or nuts under
this section, taking into consideration--
(1) whether demand exists for the value-added product; and
(2) the interests of entities that receive fruits,
vegetables, and nuts under this section.

SEC. 4907. CONFORMING AMENDMENTS TO RENAMING OF FOOD STAMP
PROGRAM.

(a) In General.--
(1) Section 4 of the Food and Nutrition Act of 2007 (7
U.S.C. 2013) is amended in the section heading by striking
``food stamp program'' and inserting ``food and nutrition
program''.
(2) Section 5(h)(2)(A) of the Food and Nutrition Act of
2007 (7 U.S.C. 2014(h)(2)(A)) is amended by striking ``Food
Stamp Disaster Task Force'' and inserting ``Food and
Nutrition Disaster Task Force''.
(3) Section 6 of the Food and Nutrition Act of 2007 (7
U.S.C. 2015) is amended--
(A) in subsection (d)(3), by striking ``eligible for food
stamps'' and inserting ``eligible to receive food and
nutrition assistance'';
(B) in subsection (g), by striking ``food stamps'' and
inserting ``food and nutrition assistance'';
(C) in subsection (j), in the subsection heading, by
striking ``Food Stamp'' and inserting ``Food and Nutrition'';
and
(D) in subsection (o)--
(i) in paragraph (2), by striking ``food stamp benefits''
and inserting ``food and nutrition assistance''; and
(ii) in paragraph (6)--

(I) in subparagraph (A)--

(aa) in clause (i), by striking ``food stamps'' and
inserting ``food and nutrition assistance''; and
(bb) in clause (ii)--
(AA) in the matter preceding subclause (I), by striking ``a
food stamp recipient'' and inserting ``a member of a
household that receives food and nutrition assistance''; and
(BB) by striking ``food stamp benefits'' each place it
appears and inserting ``food and nutrition assistance''; and

(II) in subparagraphs (D) and (E), by striking ``food stamp
recipients'' each place it appears and inserting ``members of
households that receive food and nutrition assistance''.

(4) Section 7 of the Food and Nutrition Act of 2007 (7
U.S.C. 2016) (as amended by section 4202(a)(11)) is amended--
(A) in subsection (h)--
(i) in paragraph (3)(B)(ii), by striking ``food stamp
households'' and inserting ``households receiving food and
nutrition assistance''; and
(ii) in paragraph (7), by striking ``food stamp issuance''
and inserting ``food and nutrition assistance issuance''; and
(B) in subsection (j)--
(i) in paragraph (2), by striking ``food stamp benefits''
and inserting ``food and nutrition assistance benefits''; and
(ii) in paragraph (3), by striking ``food stamp retail''
and inserting ``food and nutrition assistance retail''.
(5) Section 9(b)(1) of that Food and Nutrition Act of 2007
(7 U.S.C. 2018(b)(1)) is amended by striking ``food stamp
households'' and inserting ``households that receive food and
nutrition assistance''.
(6) Section 11 of the Food and Nutrition Act of 2007 (7
U.S.C. 2020) (as amended by section 4202(b)(9)(B)(III)) is
amended--
(A) in subsection (e)--
(i) in paragraph (2)--

(I) in subparagraph (A), by striking ``food stamp offices''
and inserting ``food and nutrition assistance offices''; and
(II) in subparagraph (B)--

(aa) in clause (iii), by striking ``food stamp office'' and
inserting ``food and nutrition assistance office'';
(bb) in clause (v)(II), by striking ``food stamps'' and
inserting ``food and nutrition assistance''; and
(cc) in clause (vii), by striking ``food stamp offices''
and inserting ``food and nutrition assistance offices'';
(ii) in paragraph (14), by striking ``food stamps'' and
inserting ``food and nutrition assistance'';
(iii) in paragraph (15), by striking ``food stamps'' and
inserting ``food and nutrition assistance''; and
(iv) in paragraph (23)--

(I) in the matter preceding subparagraph (A), by striking
``Simplified Food Stamp Program'' and inserting ``Simplified
Food and Nutrition Assistance Program''; and
(II) in subparagraph (A), by striking ``food stamp
benefits'' and inserting ``food and nutrition assistance'';

(B) in subsection (k), by striking ``may issue, upon
request by the State agency, food stamps'' and inserting
``may provide, on request by the State agency, food and
nutrition assistance'';
(C) in subsection (l), by striking ``food stamp
participation'' and inserting ``food and nutrition program
participation'';
(D) in subsections (q) and (r), in the subsection headings,
by striking ``Food Stamps'' each place it appears and
inserting ``Food and Nutrition Assistance'';
(E) in subsection (s), by striking ``food stamp benefits''
each place it appears and inserting ``food and nutrition
assistance''; and
(F) in subsection (t)(1)--
(i) in subparagraph (A), by striking ``food stamp
application'' and inserting ``food and nutrition assistance
application''; and
(ii) in subparagraph (B), by striking ``food stamp
benefits'' and inserting ``food and nutrition assistance''.
(7) Section 14(b) of the Food and Nutrition Act of 2007 (7
U.S.C. 2023(b)) is amended by striking ``food stamp
allotments'' and inserting ``food and nutrition assistance''.
(8) Section 16 of the Food and Nutrition Act of 2007 (7
U.S.C. 2025) is amended--
(A) in subsection (a)(4), by striking ``food stamp
informational activities'' and inserting ``informational
activities relating to the food and nutrition program'';
(B) in subsection (c)(9)(C), by striking ``food stamp
caseload'' and inserting ``the caseload under the food and
nutrition program''; and
(C) in subsection (h)(1)(E)(i), by striking ``food stamp
recipients'' and inserting ``households receiving food and
nutrition assistance''.
(9) Section 17 of the Food and Nutrition Act of 2007 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``food stamp
benefits'' each place it appears and inserting ``food and
nutrition assistance benefits'';
(B) in subsection (b)--
(i) in paragraph (1)--

(I) in subparagraph (A), by striking ``food stamp
benefits'' and inserting ``food and nutrition assistance'';
and
(II) in subparagraph (B)--

(aa) in clause (ii)(II), by striking ``food stamp
recipients'' and inserting ``food and nutrition assistance
recipients'';
(bb) in clause (iii)(I), by striking ``the State's food
stamp households'' and inserting ``the number of households
in the State receiving food and nutrition assistance''; and
(cc) in clause (iv)(IV)(bb), by striking ``food stamp
deductions'' and inserting ``food and nutrition assistance
deductions'';
(ii) in paragraph (2), by striking ``food stamp benefits''
and inserting ``food and nutrition assistance''; and
(iii) in paragraph (3)--

(I) in subparagraph (A), by striking ``food stamp
employment'' and inserting ``food and nutrition program
employment'';
(II) in subparagraph (B), by striking ``food stamp
recipients'' and inserting ``food and nutrition assistance
recipients'';
(III) in subparagraph (C), by striking ``food stamps'' and
inserting ``food and nutrition assistance''; and
(IV) in subparagraph (D), by striking ``food stamp
benefits'' and inserting ``food and nutrition assistance
benefits'';

(C) in subsection (c), by striking ``food stamps'' and
inserting ``food and nutrition assistance'';
(D) in subsection (d)--
(i) in paragraph (1)(B), by striking ``food stamp
benefits'' and inserting ``food and nutrition assistance'';
(ii) in paragraph (2)--

(I) in subparagraph (A), by striking ``food stamp
allotments'' each place it appears and inserting ``food and
nutrition assistance''; and
(II) in subparagraph (C)(ii), by striking ``food stamp
benefit'' and inserting ``food and nutrition assistance'';
and

(iii) in paragraph (3)(E), by striking ``food stamp
benefits'' and inserting ``food and nutrition assistance'';
(E) in subsections (e) and (f), by striking ``food stamp
benefits'' each place it appears and inserting ``food and
nutrition assistance'';
(F) in subsection (g), in the first sentence, by striking
``receipt of food stamp'' and inserting ``receipt of food and
nutrition assistance''; and

[[Page S14928]]

(G) in subsection (j), by striking ``food stamp agencies''
and inserting ``food and nutrition program agencies''.
(10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking
``food stamps'' and inserting ``food and nutrition
assistance''.
(11) Section 21(d)(3) of the Food and Nutrition Act of 2007
(7 U.S.C. 2030(d)(3)) is amended by striking ``food stamp
benefits'' and inserting ``food and nutrition assistance''.
(12) Section 22 of the Food and Nutrition Act of 2007 (7
U.S.C. 2031) is amended--
(A) in the section heading, by striking ``food stamp
portion of minnesota family investment plan'' and inserting
``food and nutrition assistance portion of minnesota family
investment project'';
(B) in subsections (b)(12) and (d)(3), by striking ``the
Food Stamp Act, as amended,'' each place it appears and
inserting ``this Act''; and
(C) in subsection (g)(1), by striking ``the Food Stamp Act
of 1977 (7 U.S.C. 2011 et seq.)'' and inserting ``this Act''.
(13) Section 26 of the Food and Nutrition Act of 2007 (7
U.S.C. 2035) is amended--
(A) in the section heading, by striking ``simplified food
stamp program'' and inserting ``simplified food and nutrition
program''; and
(B) in subsection (b), by striking ``simplified food stamp
program'' and inserting ``simplified food and nutrition
program''.
(b) Conforming Cross-References.--
(1) In general.--Each provision of law described in
paragraph (2) is amended (as applicable)--
(A) by striking ``food stamp program'' each place it
appears and inserting ``food and nutrition program'';
(B) by striking ``Food Stamp Act of 1977'' each place it
appears and inserting ``Food and Nutrition Act of 2007'';
(C) by striking ``Food Stamp Act'' each place it appears
and inserting ``Food and Nutrition Act of 2007'';
(D) by striking ``food stamp'' each place it appears and
inserting ``food and nutrition assistance'';
(E) by striking ``food stamps'' each place it appears and
inserting ``food and nutrition assistance'';
(F) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``FOOD STAMP''
each place it appears and inserting ``FOOD AND NUTRITION
ASSISTANCE'';
(G) in each applicable subsection and appropriations
heading, by striking ``Food Stamp'' each place it appears and
inserting ``Food and Nutrition Assistance'';
(H) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``food stamp'' each place
it appears and inserting ``food and nutrition assistance'';
(I) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``FOOD STAMPS''
each place it appears and inserting ``FOOD AND NUTRITION
ASSISTANCE'';
(J) in each applicable subsection and appropriations
heading, by striking ``Food Stamps'' each place it appears
and inserting ``Food and Nutrition Assistance''; and
(K) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``food stamps'' each
place it appears and inserting ``food and nutrition
assistance''.
(2) Provisions of law.--The provisions of law referred to
in paragraph (1) are the following:
(A) The Hunger Prevention Act of 1988 (Public Law 100-435;
102 Stat. 1645).
(B) The Food Stamp Program Improvements Act of 1994 (Public
Law 103-225; 108 Stat. 106).
(C) Title IV of the Farm Security and Rural Investment Act
of 2002 (Public Law 107-171; 116 Stat. 305).
(D) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note).
(E) Section 807(b) of the Stewart B. McKinney Homeless
Assistance Act (7 U.S.C. 2014 note; Public Law 100-77).
(F) The Electronic Benefit Transfer Interoperability and
Portability Act of 2000 (Public Law 106-171; 114 Stat. 3).
(G) Section 502(b) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 2025 note; Public
Law 105-185).
(H) The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.).
(I) The Emergency Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.).
(J) The Immigration and Nationality Act (8 U.S.C. 1101 et
seq.).
(K) Section 8119 of the Department of Defense
Appropriations Act, 1999 (10 U.S.C. 113 note; Public Law 105-
262).
(L) The Armored Car Industry Reciprocity Act of 1993 (15
U.S.C. 5901 et seq.).
(M) Title 18, United States Code.
(N) The Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.).
(O) The Internal Revenue Code of 1986.
(P) Section 650 of the Treasury and General Government
Appropriations Act, 2000 (26 U.S.C. 7801 note; Public Law
106-58).
(Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.).
(R) The Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.).
(S) Title 31, United States Code.
(T) Title 37, United States Code.
(U) The Public Health Service Act (42 U.S.C. 201 et seq.).
(V) Titles II through XIX of the Social Security Act (42
U.S.C. 401 et seq.).
(W) Section 406 of the Family Support Act of 1988 (Public
Law 100-485; 102 Stat. 2400).
(X) Section 232 of the Social Security Act Amendments of
1994 (42 U.S.C. 1314a).
(Y) The United States Housing Act of 1937 (42 U.S.C. 1437
et seq.).
(Z) The Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.).
(AA) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.).
(BB) The Older Americans Act of 1965 (42 U.S.C. 3001 et
seq.).
(CC) Section 208 of the Intergovernmental Personnel Act of
1970 (42 U.S.C. 4728).
(DD) The Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.).
(EE) The Low-Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.).
(FF) Section 658K of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858i).
(GG) The Alaska Native Claims Settlement Act (43 U.S.C.
1601 et seq.).
(HH) Public Law 95-348 (92 Stat. 487).
(II) The Agriculture and Food Act of 1981 (Public Law 97-
98; 95 Stat. 1213).
(JJ) The Disaster Assistance Act of 1988 (Public Law 100-
387; 102 Stat. 924).
(KK) The Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101-624; 104 Stat. 3359).
(LL) The Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625; 104 Stat. 4079).
(MM) Section 388 of the Persian Gulf Conflict Supplemental
Authorization and Personnel Benefits Act of 1991 (Public Law
102-25; 105 Stat. 98).
(NN) The Food, Agriculture, Conservation, and Trade Act
Amendments of 1991 (Public Law 102-237; 105 Stat. 1818).
(OO) The Act of March 26, 1992 (Public Law 102-265; 106
Stat. 90).
(PP) Public Law 105-379 (112 Stat. 3399).
(QQ) Section 101(c) of the Emergency Supplemental Act, 2000
(Public Law 106-246; 114 Stat. 528).
(c) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to the ``food
stamp program'' established under the Food and Nutrition Act
of 2007 (7 U.S.C. 2011 et seq.) shall be considered to be
a reference to the ``food and nutrition program''
established under that Act.

SEC. 4908. EFFECTIVE AND IMPLEMENTATION DATES.

(a) General Effective Date.--Except as otherwise provided
in this title, this title and the amendments made by this
title take effect on April 1, 2008.
(b) Implementation of Improvements to Program Benefits.--
(1) In general.--A State agency may implement the
amendments made by part II of subtitle A beginning on a date
(as determined by the State agency) during the period
beginning on April 1, 2008, and ending on October 1, 2008.
(2) Certification period.--At the option of a State agency,
the State agency may implement 1 or more of the amendments
made by sections 4103 and 4104 for a certification period
that begins not earlier than the implementation date
determined by the State under paragraph (1).

TITLE V--CREDIT

Subtitle A--Farm Ownership Loans

SEC. 5001. DIRECT LOANS.

Section 302 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1922) is amended--
(1) by striking the section designation and heading and all
that follows through ``(a) The Secretary is authorized to''
and inserting the following:

``SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.

``(a) In General.--The Secretary may''; and
(2) in subsection (a)(2), by inserting ``, taking into
consideration all farming experience of the applicant,
without regard to any lapse between farming experiences''
after ``farming operations''.

SEC. 5002. PURPOSES OF LOANS.

Section 303(a)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1923(a)(1)) is amended--
(1) in subparagraph (D), by striking ``or'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(F) refinancing guaranteed farm ownership loans of
qualified beginning farmers and ranchers under this subtitle
that were used to carry out purposes described in
subparagraphs (A) through (E).''.

SEC. 5003. SOIL AND WATER CONSERVATION AND PROTECTION.

Section 304 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1924) is amended--
(1) in subsection (a)--
(A) in paragraph (4), by inserting ``or conversion to a
certified organic farm in accordance with the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.)'' after
``systems'';
(B) in paragraph (5), by striking ``and'' at the end;
(C) by redesignating paragraph (6) as paragraph (7); and
(D) by inserting after paragraph (5) the following:

[[Page S14929]]

``(6) the implementation of 1 or more practices under the
environmental quality section of the comprehensive
stewardship incentives program established under subchapter A
of chapter 6 of subtitle D of title XII of the Food Security
Act of 1985; and''; and
(2) by striking subsections (b) and (c) and inserting the
following:
``(b) Priority.--In making or guaranteeing loans under this
section, the Secretary shall give priority to--
``(1) qualified beginning farmers or ranchers and socially
disadvantaged farmers or ranchers;
``(2) owners or tenants who use the loans to convert to
sustainable or organic agricultural production systems;
``(3) producers who use the loans to build conservation
structures or establish conservation practices to comply with
section 1212 of the Food Security Act of 1985 (16 U.S.C.
3812); and
``(4) producers who have a certification from the Natural
Resources Conservation Service issued pursuant to section
1240B(d) of the Food Security Act of 1985.''.

SEC. 5004. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

Section 305(a)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1925(a)(2)) is amended by striking
``$200,000'' and inserting ``$300,000''.

SEC. 5005. DOWN PAYMENT LOAN PROGRAM.

Section 310E of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1935) is amended--
(1) in subsection (a)(1), by inserting ``and socially
disadvantaged farmers and ranchers'' after ``ranchers'';
(2) in subsection (b)--
(A) by striking paragraph (1) and inserting the following:
``(1) Principal.--
``(A) Purchase price of $500,000 or less.--Each loan made
under this section for a purchase price that is $500,000 or
less, shall be in an amount that does not exceed 45 percent
of the lesser of--
``(i) the purchase price; or
``(ii) the appraised value of the farm or ranch to be
acquired.
``(B) Purchase price greater than $500,000.--Each loan made
under this section for a purchase price that is greater than
$500,000, shall be in an amount that does not exceed 45
percent of the lesser of--
``(i) $500,000; or
``(ii) the appraised value of the farm or ranch to be
acquired.'';
(B) by striking paragraph (2) and inserting the following:
``(2) Interest rate.--The interest rate on any loan made by
the Secretary under this section shall be a rate equal to the
greater of--
``(A) the difference obtained by subtracting 400 basis
points from the interest rate for regular farm ownership
loans under this subtitle; or
``(B) 2 percent.''; and
(C) in paragraph (3), by striking ``15'' and inserting
``20'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``10 percent'' and
inserting ``5 percent'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2); and
(D) in subparagraph (B) of paragraph (2) (as so
redesignated), by striking ``15-year'' and inserting ``20-
year''; and
(4) in subsection (d)--
(A) in paragraph (3), by striking the ``and'' at the end;
(B) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) establish annual performance goals to promote the use
of the down payment loan program and other joint financing
participation loans as the preferred choice for direct real
estate loans made by any lender to a qualified beginning
farmer or rancher or socially disadvantaged farmer or
rancher.''.

SEC. 5006. BEGINNING FARMER OR RANCHER CONTRACT LAND SALES
PROGRAM.

Section 310F of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1936) is amended to read as follows:

``SEC. 310F. BEGINNING FARMER OR RANCHER CONTRACT LAND SALES
PROGRAM.

``(a) In General.--Subject to subsection (c), the Secretary
shall, in accordance with each condition described in
subsection (b), provide a prompt payment guarantee for any
loan made by a private seller of farmland or ranch land to a
qualified beginning farmer or rancher on a contract land sale
basis.
``(b) Conditions for Guarantee.--To receive a guarantee for
a loan by the Secretary under subsection (a)--
``(1) the qualified beginning farmer or rancher shall--
``(A) on the date on which the contract land sale that is
the subject of the loan is complete, own and operate the
farmland or ranch land that is the subject of the contract
land sale;
``(B) on the date on which the contract land sale that is
the subject of the loan is commenced--
``(i) have a credit history that--

``(I) includes a record of satisfactory debt repayment, as
determined by the Secretary; and
``(II) is acceptable to the Secretary; and

``(ii) demonstrate to the Secretary that the qualified
beginning farmer or rancher is unable to obtain sufficient
credit without a guarantee to finance any actual need of the
qualified beginning farmer or rancher at a reasonable rate or
term;
``(2) the loan made by the private seller of farmland or
ranch land to the qualified beginning farmer or rancher on a
contract land sale basis shall meet applicable underwriting
criteria, as determined by the Secretary; and
``(3) to carry out the loan--
``(A) a commercial lending institution shall agree to serve
as an escrow agent; or
``(B) the private seller of farmland or ranch land, in
cooperation with the qualified beginning farmer or rancher,
shall use an appropriate alternate arrangement, as determined
by the Secretary.
``(c) Limitations.--
``(1) Down payment.--The Secretary shall not guarantee a
loan made by a private seller of farmland or ranch land to a
qualified beginning farmer or rancher under subsection (a) if
the contribution of the qualified beginning farmer or rancher
to the down payment for the farmland or ranch land that is
the subject of the contract land sale would be an amount less
than 5 percent of the purchase price of the farmland or ranch
land.
``(2) Maximum purchase price.--The Secretary shall not
guarantee a loan made by a private seller of farmland or
ranch land to a qualified beginning farmer or rancher under
subsection (a) if the purchase price or the appraisal value
of the farmland or ranch land that is the subject of the
contract land sale is an amount greater than $500,000.
``(d) Period of Guarantee.--The Secretary shall guarantee a
loan made by a private seller of farmland or ranch land to a
qualified beginning farmer or rancher under subsection (a)
for a 10-year period beginning on the date on which the
Secretary guarantees the loan.
``(e) Prompt Payment Guarantee.--The Secretary shall
provide to a private seller of farmland or ranch land who
makes a loan to a qualified beginning farmer or rancher that
is guaranteed by the Secretary, a prompt payment guarantee,
which shall cover--
``(1) 3 amortized annual installments; or
``(2) an amount equal to 3 annual installments (including
an amount equal to the total cost of any tax and insurance
incurred during the period covered by the annual
installments).''.

Subtitle B--Operating Loans

SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.

Section 311 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1941) is amended--
(1) by striking the section designation and all that
follows through ``(a) The Secretary is authorized to'' and
inserting the following:

``SEC. 311. PERSONS ELIGIBLE FOR LOANS.

``(a) In General.--The Secretary may'';
(2) in subsection (a)(2), by inserting ``, taking into
consideration all farming experience of the applicant,
without regard to any lapse between farming experiences''
after ``farming operations''; and
(3) in subsection (c)(1)(C), by striking ``6'' and
inserting ``7''.

SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

Section 313(a)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1943(a)(1)) is amended by striking
``$200,000'' and inserting ``$300,000''.

SEC. 5103. LIMITATION ON PERIOD BORROWERS ARE ELIGIBLE FOR
GUARANTEED ASSISTANCE.

Section 319 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1949) is repealed.

Subtitle C--Administrative Provisions

SEC. 5201. BEGINNING FARMER AND RANCHER INDIVIDUAL
DEVELOPMENT ACCOUNTS PILOT PROGRAM.

The Consolidated Farm and Rural Development Act is amended
by adding after section 333A (7 U.S.C. 1983a) the following:

``SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL
DEVELOPMENT ACCOUNTS PILOT PROGRAM.

``(a) Definitions.--In this section:
``(1) Demonstration program.--The term `demonstration
program' means a demonstration program carried out by a
qualified entity under the pilot program established in
subsection (b)(1).
``(2) Eligible participant.--The term `eligible
participant' means a qualified beginning farmer or rancher
that--
``(A) lacks significant financial resources or assets; and
``(B) has an income that is less than--
``(i) 80 percent of the median income of the area in which
the eligible participant is located; or
``(ii) 200 percent of the most recent annual Federal
Poverty Income Guidelines published by the Department of
Health and Human Services for that area.
``(3) Individual development account.--The term `individual
development account' means a savings account described in
subsection (b)(4)(A).
``(4) Qualified entity.--
``(A) In general.--The term `qualified entity' means--
``(i) 1 or more organizations--

``(I) described in section 501(c)(3) of the Internal
Revenue Code of 1986; and
``(II) exempt from taxation under section 501(a) of such
Code; or

``(ii) a State, local, or tribal government submitting an
application jointly with an organization described in clause
(i).
``(B) No prohibition on collaboration.--An organization
described in subparagraph (A)(i) may collaborate with a
financial institution or for-profit community development

[[Page S14930]]

corporation to carry out the purposes of this section.
``(b) Pilot Program.--
``(1) In general.--The Secretary shall establish a pilot
program to be known as the `New Farmer Individual Development
Accounts Pilot Program' under which the Secretary shall work
through qualified entities to establish demonstration
programs--
``(A) of at least 5 years in duration; and
``(B) in at least 15 States.
``(2) Coordination.--The Secretary shall operate the pilot
program through, and in coordination with the farm loan
programs of, the Farm Service Agency.
``(3) Reserve funds.--
``(A) In general.--Each demonstration program shall
establish a reserve fund consisting of a non-Federal match of
25 percent of the total amount of the grant awarded to the
demonstration program under this section.
``(B) Federal funds.--After a demonstration program has
deposited in the reserve fund the non-Federal matching funds
described in subparagraph (A), the Secretary shall provide to
the demonstration program for deposit in the reserve fund the
total amount of the grant awarded under this section.
``(C) Use of funds.--Of funds deposited in a reserve fund
under subparagraphs (A) and (B), a demonstration program--
``(i) may use up to 20 percent for administrative expenses;
and
``(ii) shall use the remainder to make matching awards
described in paragraph (4)(B)(ii)(I).
``(D) Interest.--Any interest earned on amounts in a
reserve fund established under subparagraph (A) may be used
as additional matching funds for, or to administer, the
demonstration program.
``(E) Guidance.--The Secretary shall implement guidance
regarding the investment requirements of reserve funds
established under this paragraph.
``(4) Individual development accounts.--
``(A) In general.--A qualified entity receiving a grant
under this section shall establish and administer an
individual development account for each eligible participant.
``(B) Contract requirements.--To be eligible to receive
funds under this section from a qualified entity, each
eligible participant shall enter into a contract with a
qualified entity under which--
``(i) the eligible participant shall agree--

``(I) to deposit a certain amount of funds of the eligible
participant in a personal savings account, as prescribed by
the contractual agreement between the eligible participant
and the qualified entity; and
``(II) to use the funds described in subclause (I) only for
1 or more eligible expenditures described in paragraph
(5)(A); and

``(ii) the qualified entity shall agree--

``(I) to deposit not later than 1 month after a deposit
described in clause (i)(I) at least a 100-percent, and up to
a 300-percent, match of that amount into the individual
development account established for the eligible participant;
``(II) with uses of funds proposed by the eligible
participant; and
``(III) to complete qualified financial training.

``(C) Limitation.--
``(i) In general.--A qualified entity administering a
demonstration program may provide not more than $9,000 for
each fiscal year in matching funds to any eligible
participant.
``(ii) Treatment of amount.--An amount provided under
clause (i) shall not be considered to be a gift or loan for
mortgage purposes.
``(D) Interest.--Any interest earned on amounts in an
individual development account shall be compounded with
amounts otherwise deposited in the individual development
account.
``(5) Eligible expenditures.--
``(A) In general.--An eligible expenditure described in
this subparagraph is an expenditure--
``(i) to purchase farmland or make a down payment on an
accepted purchase offer for farmland;
``(ii) to make mortgage payments for up to 180 days after
the date of purchase of farmland;
``(iii) to purchase farm equipment or production, storage,
or marketing infrastructure or buy into an existing value-
added business;
``(iv) to purchase breeding stock or fruit or nut trees or
trees to harvest for timber;
``(v) to pay training or mentorship expenses to facilitate
specific entrepreneurial agricultural activities; and
``(vi) for other similar expenditures, as determined by the
Secretary.
``(B) Timing.--
``(i) In general.--An eligible expenditure may be made at
any time during the 2-year period beginning on the date on
which the last matching funds are provided under paragraph
(4)(B)(ii)(I).
``(ii) Unexpended funds.--Funds remaining in an individual
development account after the period described in clause (i)
shall revert to the reserve fund of the demonstration
program.
``(C) Prohibition.--An eligible participant that uses funds
in an individual development account for an eligible
expenditure described in subparagraph (A)(viii) shall not be
eligible to receive funds for a substantially similar purpose
(as determined by the Secretary) under the national organic
program established under the Organic Foods Production Act of
1990 (7 U.S.C. 6501 et seq.).
``(c) Applications.--
``(1) Announcement of demonstration programs.--Not later
than 180 days after the date of enactment of this section,
the Secretary shall--
``(A) publicly announce the availability of funding under
this section for demonstration programs; and
``(B) ensure that applications to carry out demonstration
programs are widely available to qualified entities.
``(2) Submission.--Not later than 270 days after the date
of enactment of this section, a qualified entity may submit
to the Secretary an application to carry out a demonstration
program.
``(3) Criteria.--In considering whether to approve an
application to carry out a demonstration program, the
Secretary shall assess--
``(A) the degree to which the demonstration program
described in the application is likely to aid eligible
participants in successfully pursuing new farming
opportunities;
``(B) the experience and ability of the qualified entity to
responsibly administer the project;
``(C) the experience and ability of the qualified entity in
recruiting, educating, and assisting eligible participants to
increase economic independence and pursue or advance farming
opportunities;
``(D) the aggregate amount of direct funds from non-Federal
public sector and private sources that are formally committed
to the demonstration program as matching contributions;
``(E) the adequacy of the plan for providing information
relevant to an evaluation of the demonstration program; and
``(F) such other factors as the Secretary considers to be
appropriate.
``(4) Preferences.--In considering an application to
conduct a demonstration program under this part, the
Secretary shall give preference to an application from a
qualified entity that demonstrates--
``(A) a track record of serving clients targeted by the
program, including, as appropriate, socially disadvantaged
farmers and ranchers; and
``(B) expertise in dealing with financial management
aspects of farming.
``(5) Approval.--
``(A) In general.--Not later than 1 year after the date of
enactment of this section, in accordance with this section,
the Secretary shall, on a competitive basis, approve such
applications to conduct demonstration programs as the
Secretary considers appropriate.
``(B) Diversity.--The Secretary shall ensure, to the
maximum extent practicable, that approved applications
involve demonstration programs for a range of geographic
areas and diverse populations.
``(6) Term of authority.--If the Secretary approves an
application to carry out a demonstration program, the
Secretary shall authorize the applying qualified entity to
carry out the project for a period of 5 years, plus an
additional 2 years for the making of eligible expenditures in
accordance with subsection (b)(5)(B).
``(d) Grant Authority.--
``(1) In general.--For each year during which a
demonstration program is carried out under this section, the
Secretary shall make a grant to the qualified entity
authorized to carry out the demonstration program.
``(2) Maximum amount of grants.--The aggregate amount of
grant funds provided to a demonstration program carried out
under this section shall not exceed $300,000.
``(e) Reports.--
``(1) Annual progress reports.--
``(A) In general.--Not later than 60 days after the end of
the calendar year in which the Secretary authorizes a
qualified entity to carry out a demonstration program, and
annually thereafter until the conclusion of the demonstration
program, the qualified entity shall prepare an annual report
that includes, for the period covered by the report--
``(i) an evaluation of the progress of the demonstration
program;
``(ii) information about the demonstration program and
eligible participants;
``(iii) the number and characteristics of individuals that
have made 1 or more deposits into an individual development
account;
``(iv) the amounts in the reserve fund established with
respect to the program;
``(v) the amounts deposited in the individual development
accounts;
``(vi) the amounts withdrawn from the individual
development accounts and the purposes for which the amounts
were withdrawn;
``(vii) the balances remaining in the individual
development accounts;
``(viii) such other information as the Secretary may
require.
``(B) Submission of reports.--A qualified entity shall
submit each report required under subparagraph (A) to the
Secretary.
``(2) Reports by the secretary.--Not later than 1 year
after the date on which all demonstration programs under this
section are concluded, the Secretary shall submit to Congress
a final report that describes the results and findings of all
reports and evaluations carried out under this section.
``(f) Regulations.--In carrying out this section, the
Secretary may promulgate regulations to ensure that the
program includes provisions for--
``(1) the termination of demonstration programs;

[[Page S14931]]

``(2) control of the reserve funds in the case of such a
termination;
``(3) transfer of demonstration programs to other qualified
entities; and
``(4) remissions from a reserve fund to the Secretary in a
case in which a demonstration program is terminated without
transfer to a new qualified entity.
``(g) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2008 through 2012.
``(2) Administration and training.--Of the total funds made
available under paragraph (1) and in addition to any other
available funds, not more than 10 percent may be used by the
Secretary--
``(A) to administer the pilot program; and
``(B) to provide training, or hire 1 or more consultants to
provide training, to instruct qualified entities in carrying
out demonstration programs, including payment of reasonable
costs incurred with respect to that training for--
``(i) staff or consultant travel;
``(ii) lodging;
``(iii) meals; and
``(iv) materials.''.

SEC. 5202. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES.

(a) Inventory Sales Preferences.--Section 335(c) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1985(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B)--
(i) in the subparagraph heading, by inserting ``; socially
disadvantaged farmer or rancher'' after ``or rancher'';
(ii) in clause (i), by inserting `` or a socially
disadvantaged farmer or rancher'' after ``or rancher'';
(iii) in clause (ii), by inserting ``or socially
disadvantaged farmer or rancher'' after ``or rancher'';
(iv) in clause (iii), by inserting ``or a socially
disadvantaged farmer or rancher'' after ``or rancher''; and
(v) in clause (iv), by inserting ``and socially
disadvantaged farmers and ranchers'' after ``and ranchers'';
and
(B) in subparagraph (C), by inserting ``or a socially
disadvantaged farmer or rancher'' after ``or rancher'';
(2) in paragraph (5)(B)--
(A) in clause (i)--
(i) in the clause heading, by inserting ``; socially
disadvantaged farmer or rancher'' after ``or rancher'';
(ii) by inserting ``or a socially disadvantaged farmer or
rancher'' after ``a beginning farmer or rancher''; and
(iii) by inserting ``or the socially disadvantaged farmer
or rancher'' after ``the beginning farmer or rancher''; and
(B) in clause (ii)--
(i) in the matter preceding subclause (I), by inserting
``or a socially disadvantaged farmer or rancher'' after ``or
rancher''; and
(ii) in subclause (II), by inserting ``or the socially
disadvantaged farmer or rancher'' after ``or rancher''; and
(3) in paragraph (6)--
(A) in subparagraph (A), by inserting ``or a socially
disadvantaged farmer or rancher'' after ``or rancher''; and
(B) in subparagraph (C)--
(i) in clause (i)(I), by inserting ``and socially
disadvantaged farmers and ranchers'' after ``and ranchers'';
and
(ii) in clause (ii), by inserting ``or socially
disadvantaged farmers or ranchers'' after ``or ranchers''.
(b) Loan Fund Set-Asides.--Section 346(b)(2) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1994(b)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i)--
(i) in subclause (I), by striking ``70 percent'' and
inserting ``an amount that is not less than 75 percent of the
total amount''; and
(ii) in subclause (II)--

(I) in the subclause heading, by inserting ``; joint
financing arrangements'' after ``payment loans'';
(II) by striking ``60 percent'' and inserting ``an amount
not less than \2/3\ of the amount''; and
(III) by inserting ``and joint financing arrangements under
section 307(a)(3)(D)'' after ``section 310E''; and

(B) in clause (ii)(III), by striking ``2003 through 2007,
35 percent'' and inserting ``2008 through 2012, an amount
that is not less than 50 percent of the total amount''; and
(2) in subparagraph (B)(i), by striking ``25 percent'' and
inserting ``an amount that is not less than 40 percent of the
total amount''.

SEC. 5203. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES
OF CREDIT.

Subtitle D of the Consolidated Farm and Rural Development
Act is amended by inserting after section 344 (7 U.S.C. 1992)
the following:

``SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES
OF CREDIT.

``(a) In General.--In making or insuring a farm loan under
subtitle A or B, the Secretary shall establish a plan and
promulgate regulations (including performance criteria) that
promote the goal of transitioning borrowers to private
commercial credit and other sources of credit in the shortest
practicable period of time.
``(b) Coordination.--In carrying out this section, the
Secretary shall integrate and coordinate the transition
policy described in subsection (a) with--
``(1) the borrower training program established by section
359;
``(2) the loan assessment process established by section
360;
``(3) the supervised credit requirement established by
section 361;
``(4) the market placement program established by section
362; and
``(5) other appropriate programs and authorities, as
determined by the Secretary.''.

SEC. 5204. LOAN AUTHORIZATION LEVELS.

Section 346(b)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1994(b)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``$3,796,000,000 for each of fiscal years 2003 through 2007''
and inserting ``$4,226,000,000 for each of fiscal years 2008
through 2012''; and
(2) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``$770,000,000'' and inserting ``$1,200,000,000'';
(B) in clause (i), by striking ``$205,000,000'' and
inserting ``$350,000,000''; and
(C) in clause (ii), by striking ``$565,000,000'' and
inserting ``$850,000,000''.

SEC. 5205. INTEREST RATE REDUCTION PROGRAM.

Section 351(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1999(a)) is amended--
(1) in the subsection heading, by inserting ``and
Availability'' after ``Establishment'';
(2) by striking ``The Secretary'' and inserting the
following:
``(1) Establishment.--The Secretary''; and
(3) by adding at the end the following:
``(2) Availability.--The program established under
paragraph (1) shall be available with respect to new
guaranteed operating loans or guaranteed operating loans
restructured under this title after the date of enactment of
this paragraph that meet the requirements of subsection
(b).''.

SEC. 5206. DEFERRAL OF SHARED APPRECIATION RECAPTURE
AMORTIZATION.

Section 353(e)(7)(D) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2001(e)(7)(D)) is amended--
(1) in the subparagraph heading, by inserting ``and
deferral'' after ``Reamortization''; and
(2) in clause (ii)--
(A) by redesignating subclause (II) as subclause (III); and
(B) by inserting after subclause (I) the following:

``(II) Term of deferral.--The term of a deferral under this
subparagraph shall not exceed 1 year.''.

SEC. 5207. RURAL DEVELOPMENT, HOUSING, AND FARM LOAN PROGRAM
ACTIVITIES.

Subtitle D of the Consolidated Farm and Rural Development
Act is amended by inserting after section 364 (7 U.S.C.
2006f) the following:

``SEC. 365. RURAL DEVELOPMENT, HOUSING, AND FARM LOAN PROGRAM
ACTIVITIES.

``The Secretary may not complete a study of, or enter into
a contract with a private party to carry out, without
specific authorization in a subsequent Act of Congress, a
competitive sourcing activity of the Secretary, including
support personnel of the Department of Agriculture, relating
to rural development, housing, or farm loan programs.''.

Subtitle D--Farm Credit

SEC. 5301. AUTHORITY TO PASS ALONG COST OF INSURANCE
PREMIUMS.

(a) In General.--Section 1.12(b) of the Farm Credit Act of
1971 (12 U.S.C. 2020(b)) is amended--
(1) in the first sentence, by striking ``Each Farm'' and
inserting the following;
``(1) In general.--Each Farm''; and
(2) by striking the second sentence and inserting the
following:
``(2) Computation.--The assessment on any association or
other financing institution described in paragraph (1) for
any period shall be computed in an equitable manner, as
determined by the Corporation.''.
(b) Rules and Regulations.--Section 5.58(10) of the Farm
Credit Act of 1971 (12 U.S.C. 2277a-7(10)) is amended by
inserting ``and section 1.12(b)'' after ``part''.

SEC. 5302. TECHNICAL CORRECTION.

Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C.
2124(b)) is amended in the first sentence by striking ``per''
and inserting ``par''.

SEC. 5303. CONFIRMATION OF CHAIRMAN.

Section 5.8(a) of the Farm Credit Act of 1971 (12 U.S.C.
2242(a)) is amended in the fifth sentence by inserting ``by
and with the advice and consent of the Senate,'' after
``designated by the President,''.

SEC. 5304. PREMIUMS.

(a) Amount in Fund Not Exceeding Secure Base Amount.--
Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C.
2277a--4(a)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``paragraph (2)'' and inserting ``paragraph
(3)''; and
(ii) by striking ``annual'' ; and
(B) by striking subparagraphs (A) through (D) and inserting
the following:
``(A) the average outstanding insured obligations issued by
the bank for the calendar year, after deducting from the
obligations the percentages of the guaranteed portions of
loans and investments described in paragraph (2), multiplied
by 0.0020; and

[[Page S14932]]

``(B) the product obtained by multiplying--
``(i) the sum of--

``(I) the average principal outstanding for the calendar
year on loans made by the bank that are in nonaccrual status;
and
``(II) the average amount outstanding for the calendar year
of other-than-temporarily impaired investments made by the
bank; by

``(ii) 0.0010.'';
(2) by striking paragraph (4);
(3) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Deductions from average outstanding insured
obligations.--The average outstanding insured obligations
issued by the bank for the calendar year referred to in
paragraph (1)(A) shall be reduced by deducting from the
obligations the sum of (as determined by the Corporation)--
``(A) 90 percent of each of --
``(i) the average principal outstanding for the calendar
year on the guaranteed portions of Federal government-
guaranteed loans made by the bank that are in accrual status;
and
``(ii) the average amount outstanding for the calendar year
of the guaranteed portions of Federal government-guaranteed
investments made by the bank that are not permanently
impaired; and
``(B) 80 percent of each of--
``(i) the average principal outstanding for the calendar
year on the guaranteed portions of State government-
guaranteed loans made by the bank that are in accrual status;
and
``(ii) the average amount outstanding for the calendar year
of the guaranteed portions of State government-guaranteed
investments made by the bank that are not permanently
impaired.'';
(5) in paragraph (3) (as redesignated by paragraph (3)), by
striking ``annual''; and
(6) in paragraph (4) (as redesignated by paragraph (3))--
(A) in the paragraph heading, by inserting ``or
investments'' after ``loans''; and
(B) in the matter preceding subparagraph (A), by striking
``As used'' and all that follows through ``guaranteed--'' and
inserting ``In this section, the term ``government-
guaranteed'', when applied to a loan or an investment, means
a loan, credit, or investment, or portion of a loan, credit,
or investments, that is guaranteed--''.
(b) Amount in Fund Exceeding Secure Base Amount.--Section
5.55(b) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(b))
is amended by striking ``annual''.
(c) Secure Base Amount.--Section 5.55(c) of the Farm Credit
Act of 1971 (12 U.S.C. 2277a-4(c)) is amended--
(1) by striking ``For purposes'' and inserting the
following:
``(1) In general.--For purposes'';
(2) by striking ``(adjusted downward'' and all that follows
through ``by the Corporation)'' and inserting ``(as adjusted
under paragraph (2))''; and
(3) by adding at the end the following:
``(2) Adjustment.--The aggregate outstanding insured
obligations of all insured System banks under paragraph (1)
shall be adjusted downward to exclude an amount equal to the
sum of (as determined by the Corporation)--
``(A) 90 percent of each of--
``(i) the guaranteed portions of principal outstanding on
Federal government-guaranteed loans in accrual status made by
the banks; and
``(ii) the guaranteed portions of the amount of Federal
government-guaranteed investments made by the banks that are
not permanently impaired; and
``(B) 80 percent of each of--
``(i) the guaranteed portions of principal outstanding on
State government-guaranteed loans in accrual status made by
the banks; and
``(ii) the guaranteed portions of the amount of State
government-guaranteed investments made by the banks that are
not permanently impaired.''.
(d) Determination of Loan and Investment Amounts.--Section
5.55(d) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(d))
is amended--
(1) in the paragraph heading, by striking ``Principal
Outstanding'' and inserting ``Loan and Investment Amounts'';
(2) in the matter preceding paragraph (1), by striking
``For the purpose'' and all that follows through ``made--''
and inserting ``For the purpose of subsections (a) and (c),
the principal outstanding on all loans made by an insured
System bank, and the amount outstanding on all investments
made by an insured System bank, shall be determined based
on--'';
(3) by inserting ``all loans or investments made'' before
``by'' the first place it appears in each of paragraph (1),
(2), and (3); and
(4) in paragraphs (1) and (2), by inserting ``or
investments'' after ``that is able to make such loans'' each
place it appears.
(e) Allocation to System Institutions of Excess Reserves.--
Section 5.55(e) of the Farm Credit Act of 1971 (12 U.S.C.
2277a-4(e)) is amended--
(1) in paragraph (3), by striking ``the average secure base
amount for the calendar year (as calculated on an average
daily balance basis)'' and inserting ``the secure base
amount'';
(2) in paragraph (4), by striking subparagraph (B) and
inserting the following:
``(B) there shall be credited to the Allocated Insurance
Reserves Account of each insured System bank an amount that
bears the same ratio to the total amount (less any amount
credited under subparagraph (A)) as--
``(i) the average principal outstanding for the calendar
year on insured obligations issued by the bank (after
deducting from the principal the percentages of the
guaranteed portions of loans and investments described in
subsection (a)(2)); bears to
``(ii) the average principal outstanding for the calendar
year on insured obligations issued by all insured System
banks (after deducting from the principal the percentages of
the guaranteed portions of loans and investments described in
subsection (a)(2)).''; and
(3) in paragraph (6)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by striking
``beginning more'' and all that follows through ``January 1,
2005'';
(ii) by striking clause (i) and inserting the following:
``(i) subject to subparagraph (D), pay to each insured
System bank, in a manner determined by the Corporation, an
amount equal to the balance in the Allocated Insurance
Reserves Account of the System bank; and''; and
(iii) in clause (ii)--

(I) by striking ``subparagraphs (C), (E), and (F)'' and
inserting ``subparagraphs (C) and (E)''; and
(II) by striking ``, of the lesser of--'' and all that
follows through the end of subclause (II) and inserting ``at
the time of the termination of the Financial Assistance
Corporation, of the balance in the Allocated Insurance
Reserves Account established under paragraph (1)(B).'';

(B) in subparagraph (C)--
(i) in clause (i), by striking ``(in addition to the
amounts described in subparagraph (F)(ii))''; and
(ii) by striking clause (ii) and inserting the following:
``(iii) Termination of account.--On disbursement of amount
equal to $56,000,000, the Corporation shall--

``(I) close the Account established under paragraph (1)(B);
and
``(II) transfer any remaining funds in the Account to the
remaining Allocated Insurance Reserves Accounts in accordance
with paragraph (4)(B) for the calendar year in which the
transfer occurs.''.

(C) by striking subparagraph (F).

SEC. 5305. CERTIFICATION OF PREMIUMS.

(a) Filing Certified Statement.--Section 5.56 of the Farm
Credit Act of 1971 (12 U.S.C. 2277a-5) is amended by striking
subsection (a) and inserting the following:
``(a) Filing Certified Statement.--On a date to be
determined in the sole discretion of the Board of Directors
of the Corporation, each insured System bank that became
insured before the beginning of the period for which premiums
are being assessed (referred to in this section as the
`period') shall file with the Corporation a certified
statement showing--
``(1) the average outstanding insured obligations for the
period issued by the bank;
``(2)(A) the average principal outstanding for the period
on the guaranteed portion of Federal government-guaranteed
loans that are in accrual status; and
``(B) the average amount outstanding for the period of
Federal government-guaranteed investments that are not
permanently impaired (as defined in section 5.55(a)(4));
``(3)(A) the average principal outstanding for the period
on State government-guaranteed loans that are in accrual
status; and
``(B) the average amount outstanding for the period of
State government-guaranteed investments that are not
permanently impaired (as defined in section 5.55(a)(4));
``(4)(A) the average principal outstanding for the period
on loans that are in nonaccrual status; and
``(B) the average amount outstanding for the period of
other-than-temporarily impaired investments; and
``(5) the amount of the premium due the Corporation from
the bank for the period.''.
(b) Premium Payments.--Section 5.56 of the Farm Credit Act
of 1971 (12 U.S.C. 2277a-5(c)) is amended by striking
subsection (c) and inserting the following:
``(c) Premium Payments.--
``(1) In general.--Except as provided in paragraph (2),
each insured System bank shall pay to the Corporation the
premium payments required under subsection (a), not more
frequently than once in each calendar quarter, in such manner
and at such 1 or more times as the Board of Directors shall
prescribe.
``(2) Premium amount.--The amount of the premium shall be
established not later than 60 days after filing the certified
statement specifying the amount of the premium.''.
(c) Subsequent Premium Payments.--Section 5.56 of the Farm
Credit Act of 1971 (12 U.S.C. 2277a-5) is amended--
(1) by striking subsection (d); and
(2) by redesignating subsection (e) as subsection (d).

SEC. 5306. RURAL UTILITY LOANS.

(a) Definition of Qualified Loan.--Section 8.0(9) of the
Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended--
(1) in subparagraph (A)(iii), by striking ``or'' at the
end;
(2) in subparagraph (B)(ii), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following:
``(C) that is a loan, or an interest in a loan, for an
electric or telephone facility by a cooperative lender to a
borrower that has received, or is eligible to receive, a loan
under

[[Page S14933]]

the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.).''.
(b) Guarantee of Qualified Loans.--Section 8.6(a)(1) of the
Farm Credit Act of 1971 (12 U.S.C. 2279aa-6(a)(1)) is amended
by inserting ``applicable'' before ``standards'' each place
it appears in subparagraphs (A) and (B)(i).
(c) Standards for Qualified Loans.--Section 8.8 of the Farm
Credit Act of 1971 (12 U.S.C. 2279aa-8) is amended--
(1) in subsection (a)--
(A) by striking the first sentence and inserting the
following:
``(1) In general.--The Corporation shall establish
underwriting, security appraisal, and repayment standards for
qualified loans taking into account the nature, risk profile,
and other differences between different categories of
qualified loans.
``(2) Supervision, examination, and report of condition.--
The standards shall be subject to the authorities of the Farm
Credit Administration under section 8.11.''; and
(B) in the last sentence, by striking ``In establishing''
and inserting the following:
``(3) Mortgage loans.--In establishing'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by inserting
``with respect to loans secured by agricultural real estate''
after ``subsection (a)''; and
(B) in paragraph (5)--
(i) by striking ``borrower'' the first place it appears and
inserting ``farmer or rancher''; and
(ii) by striking ``site'' and inserting ``farm or ranch'';
(3) in subsection (c)(1), by inserting ``secured by
agricultural real estate'' after ``A loan'';
(4) by striking subsection (d); and
(5) by redesignating subsection (e) as subsection (d).
(d) Risk-Based Capital Levels.--Section 8.32(a)(1) of the
Farm Credit Act of 1971 (12 U.S.C. 2279bb-1(a)(1)) is
amended--
(1) by striking ``With respect'' and inserting the
following:
``(A) In general.--With respect''; and
(2) by adding at the end the following:
``(B) Rural utility loans.--With respect to securities
representing an interest in, or obligation backed by, a pool
of qualified loans described in section 8.0(9)(C) owned or
guaranteed by the Corporation, losses occur at a rate of
default and severity reasonably related to risks in electric
and telephone facility loans (as applicable), as determined
by the Director.''.

SEC. 5307. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN
DISTRICT ASSOCIATIONS.

(a) In General.--The Farm Credit Act of 1971 is amended by
inserting after section 7.6 (12 U.S.C. 2279b) the following:

``SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN
DISTRICT ASSOCIATIONS.

``(a) Equalization of Loan-Making Powers.--
``(1) In general.--
``(A) Federal land bank or credit association.--Subject to
paragraph (2), any association that under its charter has
title II lending authority and that owns, is owned by, or is
under common ownership with, a Federal land bank association
authorized as of January 1, 2007, to make long-term loans
under title I in the geographic area described in subsection
(b) may make short- and intermediate-term loans and otherwise
operate as a production credit association under title II in
the geographic area.
``(B) Production credit associations.--Subject to paragraph
(2), any association that under its charter has title I
lending authority and that owns, is owned by, or is under
common ownership with, a production credit association
authorized as of January 1, 2007, to make short- and
intermediate-term loans under title II in the geographic area
described in subsection (b) may make long-term loans and
otherwise operate as a Federal land bank association or
Federal land credit association under title I in the
geographic area.
``(C) Farm credit bank.--The Farm Credit Bank with which
any association had a written financing agreement as of
January 1, 2007, may make loans and extend other similar
financial assistance with respect to, and may purchase, any
loans made under the new authority provided under
subparagraph (A) or (B) by an association that owns, is owned
by, or is under common ownership with, the association.
``(2) Required approvals.--An association may exercise the
additional authority provided for in paragraph (1) only after
the exercise of the authority is approved by--
``(A) the board of directors of the association; and
``(B) a majority of the voting stockholders of the
association (or, if the association is a subsidiary of
another association, the voting stockholders of the parent
association) voting, in person or by proxy, at a duly
authorized meeting of stockholders.
``(b) Applicability.--This section applies only to
associations the chartered territory of which is in the
geographic area served by the Federal intermediate credit
bank that merged with a Farm Credit Bank under section
410(e)(1) of the Agricultural Credit Act of 1987 (12 U.S.C.
2011 note; Public Law 100-233).''.
(b) Charter Amendments.--Section 5.17(a) of the Farm Credit
Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the
end the following:
``(15)(A) Approve amendments to the charters of
institutions of the Farm Credit System to implement the
equalization of loan-making powers of a Farm Credit System
association under section 7.7.
``(B) Amendments described in subparagraph (A) to the
charters of an association and the related Farm Credit Bank
shall be approved by the Farm Credit Administration on the
date on which the Farm Credit Administration receives all
approvals required by section 7.7(a)(2).''.
(c) Conforming Amendments.--
(1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12
U.S.C. 2252(a)(2)) is amended--
(A) by striking ``(2)(A)'' and inserting ``(2)''; and
(B) by striking subparagraphs (B) and (C).
(2) Section 410(e)(1)(A)(iii) of the Agricultural Credit
Act of 1987 (12 U.S.C. 2011 note; Public Law 100-233) is
amended by inserting ``(other than section 7.7 of that Act)''
after ``(12 U.S.C. 2001 et seq.)''.
(3) Section 401(b) of the Farm Credit Banks and
Associations Safety and Soundness Act of 1992 (12 U.S.C. 2011
note; Public Law 102-552) is amended--
(A) by inserting ``(other than section 7.7 of the Farm
Credit Act of 1971)'' after ``provision of law''; and
(B) by striking ``, subject to such limitations'' and all
that follows through the end of the paragraph and inserting a
period.
(d) Effective Date.--The amendments made by this section
take effect on January 1, 2009.

Subtitle E--Miscellaneous

SEC. 5401. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

The first section of Public Law 91-229 (25 U.S.C. 488) is
amended--
(1) by striking ``That the Secretary'' and inserting the
following:

``SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

``(a) In General.--The Secretary''; and
(2) by adding at the end the following:
``(b) Highly Fractionated Land.--
``(1) In general.--Subject to paragraph (2), the Secretary
of Agriculture may make and insure loans in accordance with
section 309 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1929) to eligible purchasers of highly
fractionated land pursuant to section 205(c) of the Indian
Land Consolidation Act (25 U.S.C. 2204(c)).
``(2) Exclusion.--Section 4 shall not apply to trust land,
restricted tribal land, or tribal corporation land that is
mortgaged in accordance with paragraph (1).''.

SEC. 5402. DETERMINATION ON MERITS OF PIGFORD CLAIMS.

(a) Definitions.--In this section:
(1) Consent decree.--The term ``consent decree'' means the
consent decree in the case of Pigford v. Glickman, approved
by the United States District Court for the District of
Columbia on April 14, 1999.
(2) Pigford claim.--The term ``Pigford claim'' means a
discrimination complaint, as defined by section 1(h) of the
consent decree and documented under section 5(b) of the
consent decree.
(3) Pigford claimant.--The term ``Pigford claimant'' means
an individual who previously submitted a late-filing request
under section 5(g) of the consent decree.
(b) Determination on Merits.--Any Pigford claimant who has
not previously obtained a determination on the merits of a
Pigford claim may, in a civil action brought in the United
States District Court for the District of Columbia, obtain
that determination.
(c) Limitation.--
(1) In general.--Subject to paragraph (2), all payments or
debt relief (including any limitation on foreclosure under
subsection (g)) shall be made exclusively from funds made
available under subsection (h).
(2) Maximum amount.--The total amount of payments and debt
relief pursuant to an action commenced under subsection (b)
shall not exceed $100,000,000.
(d) Intent of Congress as to Remedial Nature of Section.--
It is the intent of Congress that this section be liberally
construed so as to effectuate its remedial purpose of giving
a full determination on the merits for each Pigford claim
denied that determination.
(e) Loan Data.--
(1) Report to person submitting petition.--Not later than
60 days after the Secretary receives notice of a complaint
filed by a claimant under subsection (b), the Secretary shall
provide to the claimant a report on farm credit loans made
within the claimant's county or adjacent county by the
Department during the period beginning on January 1 of the
year preceding the year or years covered by the complaint and
ending on December 31 of year following such year or years.
Such report shall contain information on all persons whose
application for a loan was accepted, including--
(A) the race of the applicant;
(B) the date of application;
(C) the date of the loan decision;
(D) the location of the office making the loan decision;
and
(E) all data relevant to the process of deciding on the
loan.
(2) No personally identifiable information.--The reports
provided pursuant to paragraph (1) shall not contain any
information that would identify any person that applied for a
loan from the Department of Agriculture.
(f) Expedited Resolutions Authorized.--Any person filing a
complaint under this Act

[[Page S14934]]

for discrimination in the application for, or making or
servicing of, a farm loan, at his or her discretion, may seek
liquidated damages of $50,000, discharge of the debt that was
incurred under, or affected by, the discrimination that is
the subject of the person's complaint, and a tax payment in
the amount equal to 25 percent of the liquidated damages and
loan principal discharged, in which case--
(1) if only such damages, debt discharge, and tax payment
are sought, the complainant shall be able to prove his or her
case by substantial evidence (as defined in section 1(l) of
the consent decree); and
(2) the court shall decide the case based on a review of
documents submitted by the complainant and defendant relevant
to the issues of liability and damages.
(g) Limitation on Foreclosures.--Notwithstanding any other
provision of law, the Secretary may not begin acceleration on
or foreclosure of a loan if the borrower is a Pigford
claimant and, in an appropriate administrative proceeding,
makes a prima facie case that the foreclosure is related to a
Pigford claim.
(h) Funding.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available for payments
and debt relief in satisfaction of claims against the United
States under subsection (b) and for any actions under
subsection (g) $100,000,000 for fiscal year 2008, to remain
available until expended.
(2) Authorization of appropriations.--In addition to funds
made available under paragraph (1), there are authorized to
be appropriated such sums as are necessary to carry out this
section.

SEC. 5403. SENSE OF THE SENATE RELATING TO CLAIMS BROUGHT BY
SOCIALLY DISADVANTAGED FARMERS OR RANCHERS.

It is the sense of the Senate that the Secretary should
resolve all claims and class actions brought against the
Department of Agriculture by socially disadvantaged farmers
or ranchers (as defined in section 355(e) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2003(e)), including
Native American, Hispanic, and female farmers or ranchers,
based on racial, ethnic, or gender discrimination in farm
program participation in an expeditious and just manner.

SEC. 5404. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR
EMERGENCY LOANS.

Section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)) is amended--
(1) in paragraph (1), by striking ``farmers, ranchers'' and
inserting ``farmers or ranchers (including equine farmers or
ranchers)''; and
(2) in paragraph (2)(A), by striking ``farming, ranching,''
and inserting ``farming or ranching (including equine farming
or ranching)''.

TITLE VI--RURAL DEVELOPMENT AND INVESTMENT

Subtitle A--Consolidated Farm and Rural Development Act

SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY
GRANTS.

Section 306(a)(2)(B)(vii) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is
amended, by striking ``2007'' and inserting ``2012''.

SEC. 6002. RURAL BUSINESS OPPORTUNITY GRANTS.

Section 306(a)(11)(D) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 6003. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN
GUARANTEES.

Section 306(a)(19) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(19)) is amended by striking
subparagraph (C) and inserting the following:
``(C) Child day care facilities.--
``(i) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use for the costs of grants,
loans, and loan guarantees to pay the Federal share of the
cost of developing and constructing day care facilities for
children in rural areas, as determined by the Secretary,
$40,000,000 for fiscal year 2008, to remain available until
expended.
``(ii) Relationship to other funding and authorities.--The
funds and authorities made available under this subparagraph
shall be in addition to other funds and authorities relating
to development and construction of rural day care
facilities.''.

SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

Section 306(a)(22) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(22)) is amended--
(1) in subparagraph (B), by striking ``2002 (115 Stat.
719)'' and inserting ``2008''; and
(2) in subparagraph (C), by striking ``$15,000,000 for
fiscal year 2003'' and inserting ``$20,000,000 for fiscal
year 2008''.

SEC. 6005. MULTIJURISDICTIONAL REGIONAL PLANNING
ORGANIZATIONS.

Section 306(a)(23)(E) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(23)(E)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 6006. RURAL HOSPITAL LOANS AND LOAN GUARANTEES.

Section 306(a)(24) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(24)) is amended by adding
at the end the following:
``(C) Rural hospitals.--
``(i) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use for the costs of loans
and loan guarantees to pay the Federal share of the cost of
rehabilitating or improving hospitals that have not more than
100 acute beds in rural areas, as determined by the
Secretary, $50,000,000 for fiscal year 2008, to remain
available until expended.
``(ii) Priority.--In making loans and loan guarantees under
this subparagraph, the Secretary shall give priority to
hospitals for--

``(I) the provision of facilities to improve and install
patient care, health quality outcomes, and health information
technology, including computer hardware and software,
equipment for electronic medical records, handheld computer
technology, and equipment that improves interoperability; or
``(II) the acquisition of equipment and software purchased
collectively in a cost effective manner to address technology
needs.

``(iii) Relationship to other funding and authorities.--The
funds and authorities made available under this subparagraph
shall be in addition to other funds and authorities relating
to rehabilitation and improvement of hospitals described in
clause (i).''.

SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY
FACILITIES.

Section 306(a)(25) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(25)) is amended--
(1) in subparagraph (B)(ii), by striking ``75 percent'' and
inserting ``95 percent''; and
(2) in subparagraph (C), by striking ``2007'' and inserting
``2012''.

SEC. 6008. COMMUNITY FACILITY LOANS AND GRANTS FOR FREELY
ASSOCIATED STATES AND OUTLYING AREAS.

Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) is amended by adding at
the end the following:
``(26) Community facility loans and grants for freely
associated states and outlying areas.--
``(A) In general.--Subject to subparagraph (B), of the
amount that is made available for each fiscal year for each
of the community facility loan and grant programs established
under paragraphs (1), (19), (20), (21), and (25), the
Secretary shall allocate 0.5 percent of the amount for making
loans or grants (as applicable) under the program to eligible
entities that are located in freely associated States or
outlying areas (as those terms are defined in section 1121(c)
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6331(c)) that are subject to the jurisdiction of the
United States and are otherwise covered by this Act.
``(B) Reallocation.--If the Secretary determines that a
sufficient number of applications for loans or grants for a
program described in subparagraph (A) have not been received
from eligible entities for a fiscal year during the 180-day
period beginning on October 1 of the fiscal year, the
Secretary shall reallocate any unused funds to make loans or
grants (as applicable) under the program to eligible entities
that are located in States.''.

SEC. 6009. PRIORITY FOR COMMUNITY FACILITY LOAN AND GRANT
PROJECTS WITH HIGH NON-FEDERAL SHARE.

Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) (as amended by section
6008) is amended by adding at the end the following:
``(27) Priority for community facility loan and grant
projects with high non-federal share.--In carrying out the
community facility loan and grant programs established under
paragraphs (1), (19), (20), (21), and (25), the Secretary
shall give priority to projects that will be carried out with
a non-Federal share of funds that is substantially greater
than the minimum requirement, as determined by the Secretary
by regulation.''.

SEC. 6010. SEARCH GRANTS.

Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) (as amended by section
6009) is amended by adding at the end the following:
``(28) Applications filed by eligible communities.--
``(A) Eligible community.--In this paragraph, the term
`eligible community' means a community that, as determined by
the Secretary--
``(i) has a population of 2,500 or fewer inhabitants; and
``(ii) is financially distressed.
``(B) Applications.--In the case of water and waste
disposal and wastewater facilities grant programs authorized
under this title, the Secretary may accept applications from
eligible communities for grants for feasibility study,
design, and technical assistance.
``(C) Terms.--
``(i) In general.--Except as provided in clause (ii), the
terms of the grant programs described in subparagraph (B)
shall apply to the applications described in that
subparagraph.
``(ii) Exceptions.--Grants made pursuant to applications
described in subparagraph (B)--

``(I) shall fund up to 100 percent of eligible project
costs; and
``(II) shall be subject to the least documentation
requirements practicable.

``(iii) Processing.--The Secretary shall process
applications received under subparagraph (B) in the same
manner as other similar grant applications.

[[Page S14935]]

``(D) Funding.--In addition to any other funds made
available for technical assistance, the Secretary may use to
carry out this paragraph not more than 4 percent of the total
amount of funds made available for a fiscal year for water,
waste disposal, and essential community facilities.''.

SEC. 6011. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE
GRANT PROGRAM.

Section 306A(i)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926a(i)(2)) is amended by striking
``2007'' and inserting ``2012''.

SEC. 6012. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN
ALASKA.

Section 306D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926d) is amended--
(1) in subsection (a)--
(A) by striking ``make grants to the State'' and inserting
``make grants to--
``(1) the State'';
(B) by striking the period at the end and inserting ``;
and''; and
(C) by adding at the end the following:
``(2) the Denali Commission to improve solid waste disposal
sites that are contaminating, or threaten to contaminate,
rural drinking water supplies in the State of Alaska.'';
(2) in subsection (b), by striking ``the State of Alaska''
and inserting ``a grantee'';
(3) in subsection (c)--
(A) in the subsection heading by striking ``With the State
of Alaska''; and
(B) by striking ``the State of Alaska'' and inserting ``the
appropriate grantee under subsection (a)''; and
(4) in subsection (d)(1), by striking ``2007'' and
inserting ``2012''.

SEC. 6013. GRANTS TO DEVELOP WELLS IN RURAL AREAS.

(a) Grants to Nonprofit Organizations to Finance the
Construction, Refurbishing, and Servicing of Individually-
Owned Household Water Well Systems in Rural Areas for
Individuals With Low or Moderate Incomes.--Section 306E(d) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1926e(d)) is amended by striking ``2007'' and inserting
``2012''.
(b) Grants to Develop Area Wells in Isolated Areas.--
Subtitle A of the Consolidated Farm and Rural Development Act
is amended by inserting after section 306E (7 U.S.C. 1926e)
the following:

``SEC. 306F. GRANTS TO DEVELOP AREA WELLS IN ISOLATED AREAS.

``(a) Definition of Isolated Area.--In this section, the
term `isolated area' means an area--
``(1) in which the development of a traditional water
system is not financially practical due to--
``(A) the distances or geography of the area; and
``(B) the limited number of households present to be
served; and
``(2) that is not part of a city of more than 1,000
inhabitants.
``(b) Grants.--The Secretary may make grants to nonprofit
organizations to develop and construct household, shared, and
community water wells in isolated rural areas.
``(c) Priority in Awarding Grants.--In awarding grants
under this section, the Secretary shall give priority to
applicants that have demonstrated experience in developing
safe and similar projects including household, shared, and
community wells in rural areas.
``(d) Requirements.--
``(1) In general.--As a condition on receipt of a grant
under this section, the water from wells funded under this
section shall be tested annually for water quality, as
determined by the Secretary.
``(2) Results.--The results of tests under paragraph (1)
shall be made available to--
``(A) the users of the wells; and
``(B) the appropriate State agency.
``(e) Limitation.--The amount of a grant under this section
shall not exceed the lesser of--
``(1) $50,000; or
``(2) the amount that is 75 percent of the cost of a single
well and associated system.
``(f) Prohibition.--The Secretary may not award grants
under this section in any area in which a majority of the
users of a proposed well have a household income that is
greater than the nonmetropolitan median household income of
the State or territory, as determined by the Secretary.
``(g) Administrative Expenses.--Not more than 10 percent of
the amount of a grant made under this section may be used to
pay administrative expenses associated with providing project
assistance, as determined by the Secretary.
``(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2008 through 2012.''.

SEC. 6014. COOPERATIVE EQUITY SECURITY GUARANTEE.

Section 310B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932) is amended--
(1) in the first sentence of subsection (a), by inserting
``and private investment funds that invest primarily in
cooperative organizations'' after ``or nonprofit''; and
(2) in subsection (g)--
(A) in paragraph (1), by inserting``, including guarantees
described in paragraph (3)(A)(ii)'' before the period at the
end;
(B) in paragraph (3)(A)--
(i) by striking ``(A) In general.--The Secretary'' and
inserting the following:
``(A) Eligibility.--
``(i) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(ii) Equity.--The Secretary may guarantee a loan made for
the purchase of preferred stock or similar equity issued by a
cooperative organization or a fund that invests primarily in
cooperative organizations, if the guarantee significantly
benefits 1 or more entities eligible for assistance under
subsection (a)(1), as determined by the Secretary.''; and
(C) in paragraph (8)(A)(ii), by striking ``a project--''
and all that follows through the end of subclause (II) and
inserting ``a project that--

``(I)(aa) is in a rural area; and
``(bb) provides for the value-added processing of
agricultural commodities; or
``(II) significantly benefits 1 or more entities eligible
for assistance under subsection (a)(1), as determined by the
Secretary.''.

SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.

(a) Eligibility.--Section 310B(e)(5) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1932(e)(5)) is
amended--
(1) in subparagraph (A), by striking ``a nationally
coordinated, regionally or State-wide operated project'' and
inserting ``activities to promote and assist the development
of cooperatively- and mutually-owned businesses'';
(2) in subparagraph (B), by inserting ``to promote and
assist the development of cooperatively- and mutually-owned
businesses'' before the semicolon;
(3) by striking subparagraph (D);
(4) by redesignating subparagraph (E) as subparagraph (D);
(5) in subparagraph (D) (as so redesignated), by striking
``and'' at the end;
(6) by inserting after subparagraph (D) (as so
redesignated) the following:
``(E) demonstrate a commitment to--
``(i) networking with and sharing the results of the
efforts of the center with other cooperative development
centers and other organizations involved in rural economic
development efforts; and
``(ii) developing multiorganization and multistate
approaches to addressing the cooperative and economic
development needs of rural areas; and'';
(7) in subparagraph (F), by striking ``providing greater
than'' and inserting ``providing''.
(b) Authority To Award Multiyear Grants.--Section 310B(e)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) is amended by striking paragraph (6) and inserting
the following:
``(6) Grant period.--
``(A) In general.--A grant awarded to a center that has
received no prior funding under this subsection shall be made
for a period of 1 year.
``(B) Multiyear grants.--If the Secretary determines it to
be in the best interest of the program, the Secretary shall
award grants for a period of more than 1 year, but not more
than 3 years, to a center that has successfully met the goals
described in paragraph (3) in providing services under this
subsection, as determined by the Secretary.''.
(c) Authority To Extend Grant Period.--Section 310B(e) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) is amended--
(1) by redesignating paragraphs (7), (8), and (9) as
paragraphs (8), (9), and (12), respectively; and
(2) inserting after paragraph (6) the following:
``(7) Authority to extend grant period.--The Secretary may
extend for 1 additional 12-month period the period in which a
grantee may use a grant made under this subsection.''.
(d) Cooperative Research Program.--Section 310B(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) is amended by inserting after paragraph (9) (as
redesignated by subsection (c)(1)) the following:
``(10) Cooperative research program.--The Secretary shall
enter into a cooperative research agreement with 1 or more
qualified academic institutions in each fiscal year to
conduct research on the national economic effects of all
types of cooperatives.''.
(e) Addressing Needs of Minority Communities.--Section
310B(e) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932(e)) is amended by inserting after paragraph (10)
(as added by subsection (d)) the following:
``(11) Addressing needs of minority communities.--
``(A) Definition of socially disadvantaged.--In this
paragraph, the term `socially disadvantaged' has the meaning
given the term in section 355(e).
``(B) Reservation of funds.--
``(i) In general.--If the total amount appropriated under
paragraph (12) for a fiscal year exceeds $7,500,000, the
Secretary shall reserve an amount equal to 20 percent of the
total amount appropriated for grants for cooperative
development centers, individual cooperatives, or groups of
cooperatives that serve socially disadvantaged communities, a
majority of the boards of directors or governing boards of
which are comprised of socially disadvantaged individuals.
``(ii) Insufficient applications.--To the extent that the
Secretary determines that funds reserved under clause (i)
would not be used for grants described in that clause due to
insufficient applications for the grants,

[[Page S14936]]

the Secretary shall use the funds as otherwise authorized by
this subsection.''.
(f) Authorization of Appropriations.--Paragraph (12) of
section 310B(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(e)) (as redesignated by
subsection (c)(1)) is amended by striking ``2007'' and
inserting ``2012''.

SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.

Section 310B(f)(3) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(f)(3)) is amended by striking
``2007'' and inserting ``2012''.

SEC. 6017. LOCALLY-PRODUCED AGRICULTURAL FOOD PRODUCTS.

Section 310B(g) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(g)) is amended by adding at
the end the following:
``(9) Locally-produced agricultural food products.--
``(A) Definitions.--In this paragraph:
``(i) Locally-produced agricultural food product.--The term
`locally-produced agricultural food product' means any
agricultural product raised, produced, and distributed in--

``(I) the locality or region in which the final
agricultural product is marketed, so that the total distance
that the agricultural product is transported is less than 300
miles from the origin of the agricultural product; or
``(II) the State in which the agricultural product is
produced.

``(ii) Underserved community.--The term `underserved
community' means a community (including an urban or rural
community and an Indian tribal community) that has, as
determined by the Secretary--

``(I) limited access to affordable, healthy foods,
including fresh fruits and vegetables, in grocery retail
stores or farmer-to-consumer direct markets or a high
incidence of a diet-related disease as compared to the
national average, including obesity; and
``(II) a high rate of hunger or food insecurity or a high
poverty rate.

``(B) Loan and loan guarantee program.--
``(i) In general.--The Secretary, acting through the
Administrator of the Rural Business-Cooperative Service in
coordination with the Administration of the Agricultural
Marketing Service, shall make or guarantee loans to
individuals, cooperatives, businesses, and other entities to
establish and facilitate enterprises that process,
distribute, aggregate, store, and market locally-produced
agricultural food products.
``(ii) Requirement.--The recipient of a loan or loan
guarantee under clause (i) shall agree to make a reasonable
effort, as determined by the Secretary, to work with retail
and institutional facilities to which the recipient sells
locally-produced agricultural food products to inform the
consumers of the retail or institutional facilities that the
consumers are purchasing or consuming locally-produced
agricultural food products.
``(iii) Priority.--In making or guaranteeing a loan under
clause (i), the Secretary shall give priority to--

``(I) projects that support community development and farm
and ranch income by marketing, distributing, storing,
aggregating, or processing a locally-produced agricultural
food product; and
``(II) projects that have components benefitting
underserved communities.

``(iv) Retail or institutional facilities.--The Secretary
may allow recipients of loans or loan guarantees under clause
(i) to provide up to $250,000 in loan or loan guarantee funds
per retail or institutional facility for an underserved
community in a rural or nonrural area to help retail
facilities--

``(I) to modify and update the facilities to accommodate
locally-produced agricultural food products; and
``(II) to provide outreach to consumers about the sale of
locally-produced agricultural food products.

``(v) Reports.--Not later than 1 year after the date of
enactment of this paragraph and annually thereafter, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes
projects carried out using loans or loan guarantees made
under clause (i), including--

``(I) the characteristics of the communities served by the
projects; and
``(II) benefits of the projects.

``(vi) Reservation of funds.--

``(I) In general.--For each of fiscal years 2008 through
2012, the Secretary shall reserve not less than 5 percent of
the funds made available to carry out this subsection to
carry out this subparagraph.
``(II) Availability of funds.--Funds reserved under
subclause (I) for a fiscal year shall be reserved until April
1 of the fiscal year.''.

SEC. 6018. CENTER FOR HEALTHY FOOD ACCESS AND ENTERPRISE
DEVELOPMENT.

Paragraph (9) of section 310B(g) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1932(g)) (as added by
section 6017) is amended by adding at the end the following:
``(C) Center for healthy food access and enterprise
development.--
``(i) In general.--The Secretary, acting through the
Agricultural Marketing Service, shall establish and support a
Center for Healthy Food Access and Enterprise Development.
``(ii) Duties.--The Center established under clause (i)
shall contract with 1 or more nonprofit entities to provide
technical assistance and disseminate information to food
wholesalers and retailers concerning best practices for the
aggregating, storage, processing, and marketing of locally-
produced agricultural food products.
``(iii) Deadline.--The Secretary shall establish the Center
not later than 180 days after the date on which funds are
made available under clause (iv).
``(iv) Authorization of appropriations.--There is
authorized to be appropriated to carry out this subparagraph
$1,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 6019. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.

Section 310B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932) is amended by adding at the end the
following:
``(i) Appropriate Technology Transfer for Rural Areas
Program.--
``(1) Definition of national nonprofit agricultural
assistance institution.--In this subsection, the term
`national nonprofit agricultural assistance institution'
means an organization that--
``(A) is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under 501(a) of
that Code;
``(B) has staff and offices in multiple regions of the
United States;
``(C) has experience and expertise in operating national
sustainable agriculture technical assistance programs; and
``(D) provides the technical assistance through toll-free
hotlines, 1 or more websites, publications, and workshops.
``(2) Establishment.--The Secretary shall establish a
national appropriate technology transfer for rural areas
program to assist agricultural producers that are seeking
information to help the agricultural producers--
``(A) reduce input costs;
``(B) conserve energy resources;
``(C) diversify operations through new energy crops and
energy generation facilities; and
``(D) expand markets for the agricultural commodities
produced by the producers through use of practices involving
sustainable agriculture.
``(3) Implementation.--
``(A) In general.--The Secretary shall carry out the
program under this subsection by making a grant to, or
offering to enter into a cooperative agreement with, a
national nonprofit agricultural assistance organization.
``(B) Grant amount.--A grant made, or cooperative agreement
entered into, under subparagraph (A) shall provide 100
percent of the cost of providing information described in
paragraph (2).
``(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection
$5,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 6020. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

Section 310B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932) (as amended by section 6019) is amended
by adding at the end the following:
``(j) Rural Economic Area Partnership Zones.--For the
period beginning on the date of enactment of this subsection
and ending on September 30, 2012, the Secretary shall carry
out rural economic area partnership zones in the States of
New York, North Dakota, and Vermont, in accordance with the
terms and conditions contained in the memorandums of
agreement entered into by the Secretary for the rural
economic area partnership zones, except as otherwise provided
in this subsection.''.

SEC. 6021. DEFINITIONS.

(a) Rural Area.--Section 343(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1991(a)) is amended by
striking paragraph (13) and inserting the following:
``(13) Rural and rural area.--
``(A) In general.--Subject to subparagraphs (B) and (C),
the terms `rural' and `rural area' mean any area other than--
``(i) a city or town that has a population of greater than
50,000 inhabitants, except that, for all activities under
programs in the rural development mission area within the
areas of the County of Honolulu, Hawaii, and the Commonwealth
of Puerto Rico, the Secretary may designate any portion of
the areas as a rural area or eligible rural community that
the Secretary determines is not urban in character, other
than any area included in the Honolulu Census Designated
Place or the San Juan Census Designated Place;
``(ii) any urbanized area (as defined by the Bureau of the
Census) contiguous and adjacent to a city or town described
in clause (i); and
``(iii) any collection of census blocks contiguous to each
other (as defined by the Bureau of the Census) that--

``(I) is adjacent to a city or town described in clause (i)
or an urbanized area described in clause (ii); and
``(II) has a housing density that the Secretary estimates
is greater than 200 housing units per square mile, except
that an applicant may appeal the estimate based on actual
data for the area.

``(B) Water and waste disposal grants and direct and
guaranteed loans.--For the purpose of water and waste
disposal grants and direct and guaranteed loans provided
under paragraphs (1), (2), and (24) of section 306(a), the
terms `rural' and `rural area' mean any area other than--
``(i) an area described in clause (i), (ii), or (iii) of
subparagraph (A); and

[[Page S14937]]

``(ii) a city, town, or unincorporated area that has a
population of greater than 10,000 inhabitants.
``(C) Community facility loans and grants.--For the purpose
of community facility direct and guaranteed loans and grants
under paragraphs (1), (19), (20), (21), and (24) of section
306(a), the terms `rural' and `rural area' mean any area
other than--
``(i) an area described in clause (i), (ii), or (iii) of
subparagraph (A); and
``(ii) a city, town, or unincorporated area that has a
population of greater than 20,000 inhabitants.''.
(b) Additional Terms.--Section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a)) is amended
by adding at the end the following:
``(14) Sustainable agriculture.--The term `sustainable
agriculture' means an integrated system of plant and animal
production practices having a site-specific application that
will, over the long-term--
``(A) satisfy human food and fiber needs;
``(B) enhance environmental quality and the natural
resource base upon which the agriculture economy depends;
``(C) make the most efficient use of nonrenewable resources
and on-farm resources and integrate, where appropriate,
natural biological cycles and controls;
``(D) sustain the economic viability of farm operations;
and
``(E) enhance the quality of life for farmers and society
as a whole.
``(15) Technical assistance.--The term `technical
assistance' means managerial, financial, operational, and
scientific analysis and consultation to assist an individual
or entity (including a borrower or potential borrower under
this title)--
``(A) to identify and evaluate practices, approaches,
problems, opportunities, or solutions; and
``(B) to assist in the planning, implementation,
management, operation, marketing, or maintenance of projects
authorized under this title.''.

SEC. 6022. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.

Subtitle D of the Consolidated Farm and Rural Development
Act (as amended by section 5207) is amended by inserting
after section 365 the following:

``SEC. 366. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.

``(a) Definitions.--In this section:
``(1) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(2) Low- or moderate-income individual.--The term `low-
or moderate-income individual' means an individual with an
income (adjusted for family size) of not more than 80 percent
of the national median income.
``(3) Microcredit.--The term `microcredit' means a business
loan or loan guarantee of not more than $50,000 that is
provided to a rural microenterprise.
``(4) Microenterprise development organization.--The term
`microenterprise development organization' means an
organization that--
``(A) is--
``(i) a nonprofit entity;
``(ii) an Indian tribe, the tribal government of which
certifies to the Secretary that no microenterprise
development organization or microenterprise development
program exists under the jurisdiction of the Indian tribe; or
``(iii) for the purpose of subsection (b), a public
institution of higher education;
``(B) provides training and technical assistance to rural
microenterprises;
``(C) facilitates access to capital or another service
described in subsection (b) for rural microenterprises; and
``(D) has a demonstrated record of delivering services to
economically disadvantaged microenterprises, or an effective
plan to develop a program to deliver microenterprise services
to rural microenterprises effectively, as determined by the
Secretary.
``(5) Rural capacity building service.--The term `rural
capacity building service' means a service provided to an
organization that--
``(A) is, or is in the process of becoming, a
microenterprise development organization; and
``(B) serves rural areas for the purpose of enhancing the
ability of the organization to provide training, technical
assistance, and other services relating to rural development.
``(6) Rural microenterprise.--
``(A) In general.--The term `rural microenterprise' means
an individual described in subparagraph (B) who is unable to
obtain sufficient training, technical assistance, or
microcredit other than under this section, as determined by
the Secretary.
``(B) Description.--An individual described in this
subparagraph is--
``(i) a self-employed individual located in a rural area;
or
``(ii) an owner and operator, or prospective owner and
operator, of a business entity located in a rural area with
not more than 10 full-time-equivalent employees.
``(7) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Rural Business-Cooperative
Service.
``(b) Rural Microenterprise Program.--
``(1) Establishment.--The Secretary shall establish a rural
microenterprise program.
``(2) Purpose.--The purpose of the rural microenterprise
program shall be to provide low- or moderate-income
individuals with--
``(A) the skills necessary to establish new rural
microenterprises; and
``(B) continuing technical and financial assistance as
individuals and business starting or operating rural
microenterprises.
``(3) Grants.--
``(A) In general.--The Secretary may make a grant under the
rural microenterprise program to microenterprise development
organizations--
``(i) to provide training, operational support, business
planning assistance, market development assistance, and other
related services to rural microenterprises, with an emphasis
on rural microenterprises that --

``(I) are composed of low- or moderate-income individuals;
or
``(II) are in areas that have lost population;

``(ii) to assist in researching and developing the best
practices in delivering training, technical assistance, and
microcredit to rural microenterprises; and
``(iii) to carry out such other projects and activities as
the Secretary determines to be consistent with the purposes
of this section.
``(B) Diversity.--In making grants under this paragraph,
the Secretary shall ensure, to the maximum extent
practicable, that grant recipients include microenterprise
development organizations--
``(i) of varying sizes; and
``(ii) that serve racially- and ethnically-diverse
populations.
``(C) Cost sharing.--
``(i) Federal share.--The Federal share of the cost of a
project carried out using funds from a grant made under this
paragraph shall be 75 percent.
``(ii) Form of non-federal share.--The non-Federal share of
the cost of a project described in clause (i) may be
provided--

``(I) in cash (including through fees, grants (including
community development block grants), and gifts); or
``(II) as in-kind contributions.

``(4) Rural microloan program.--
``(A) Establishment.--In carrying out the rural
microenterprise program, the Secretary may carry out a rural
microloan program.
``(B) Purpose.--The purpose of the rural microloan program
shall be to provide technical and financial assistance to
rural microenterprises that--
``(i) are composed of low- or moderate-income individuals;
or
``(ii) are in areas that have lost population.
``(C) Authority of secretary.--In carrying out the rural
microloan program, the Secretary may--
``(i) make direct loans to microentrerprise development
organizations for the purpose of making fixed interest rate
microloans to startup, newly established, and growing rural
microenterprises; and
``(ii) in conjunction with those loans, provide technical
assistance grants in accordance with subparagraph (E) to
those microentrerprise development organizations.
``(D) Loan duration; interest rates; conditions.--
``(i) Loan duration.--A direct loan made by the Secretary
under this paragraph shall be for a term not to exceed 20
years.
``(ii) Applicable interest rate.--A direct loan made by the
Secretary under this paragraph shall bear an annual interest
rate of 1 percent.
``(iii) Loan loss reserve fund.--The Secretary shall
require each microentrerprise development organization that
receives a direct loan under this paragraph to--

``(I) establish a loan loss reserve fund; and
``(II) maintain the reserve fund in an amount equal to at
least 5 percent of the outstanding balance of such loans owed
by the microentrerprise development organization, until all
obligations owed to the Secretary under this paragraph are
repaid.

``(iv) Deferral of interest and principal.--The Secretary
shall permit the deferral of payments on principal and
interest due on a loan made under this paragraph during the
2-year period beginning on the date on which the loan is
made.
``(E) Technical assistance grant amounts.--
``(i) In general.--Except as otherwise provided in this
section, each microentrerprise development organization that
receives a direct loan under this paragraph shall be eligible
to receive a technical assistance grant to provide marketing,
management, and technical assistance to rural
microenterprises that are borrowers or potential borrowers
under this subsection.
``(ii) Maximum amount of technical assistance grant for
microenterprise development organizations.--Each
microenterprise development organization that receives a
direct loan under this paragraph shall receive an annual
technical assistance grant in an amount equal to not more
than 25 percent of the total outstanding balance of
microloans made by the microenterprise development
organization under this paragraph, as of the date of
provision of the technical assistance grant.
``(iii) Matching requirement.--

``(I) In general.--As a condition of any grant made to a
microentrerprise development organization under this
subparagraph, the Secretary shall require the
microentrerprise development organization to match not less
than 15 percent of the total amount of the grant.
``(II) Form of non-federal share.--The non-Federal share of
the cost of a project described in subclause (I) may be
provided--

[[Page S14938]]

``(aa) in cash; or
``(bb) as indirect costs or in-kind contributions.
``(c) Administrative Expenses.--Not more than 10 percent of
a grant received by a microentrerprise development
organization for a fiscal year under this section may be used
to pay administrative expenses.
``(d) Funding.--
``(1) Mandatory funding.--
``(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $40,000,000 for fiscal year 2008, to remain available
until expended.
``(B) Allocation of funds.--Of the amount made available by
subparagraph (A) for fiscal year 2008--
``(i) not less than $25,000,000 shall be available for use
in carrying out subsection (b)(3); and
``(ii) not less than $15,000,000 shall be available for use
in carrying out subsection (b)(4), of which not more than
$7,000,000 shall be used for the cost of direct loans.
``(2) Authorization of appropriations.--In addition to
amounts made available under paragraph (1), there are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2009 through
2012.''.

SEC. 6023. ARTISANAL CHEESE CENTERS.

Subtitle D of the Consolidated Farm and Rural Development
Act is amended by inserting after section 366 (as added by
section 6022) the following:

``SEC. 367. ARTISANAL CHEESE CENTERS.

``(a) In General.--The Secretary shall establish artisanal
cheese centers to provide educational and technical
assistance relating to the manufacture and marketing of
artisanal cheese by small- and medium-sized producers and
businesses.
``(b) Authorization of Appropriations.--There is authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.''.

SEC. 6024. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

Section 378 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2008m) is amended--
(1) in subsection (g)(1), by striking ``2007'' and
inserting ``2012''; and
(2) in subsection (h), by striking ``the date that is 5
years after the date of enactment of this section'' and
inserting ``September 30, 2012''.

SEC. 6025. HISTORIC BARN PRESERVATION.

Section 379A(c) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008o(c)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Eligible projects.--
``(A) In general.--A grant under this subsection may be
made to an eligible applicant for a project--
``(i) to rehabilitate or repair a historic barn;
``(ii) to preserve a historic barn; and
``(iii) to identify, document, survey, and conduct research
on a historic barn or historic farm structure to develop and
evaluate appropriate techniques or best practices for
protecting historic barns.
``(B) Priority.--The Secretary shall give the highest
funding priority to grants for projects described in
subparagraph (A)(iii).''; and
(2) in paragraph (4), by striking ``2007'' and inserting
``2012''.

SEC. 6026. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

Section 379B(d) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008p(d)) is amended by striking
``2007'' and inserting ``2012''.

SEC. 6027. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES
AND TO TRAIN FARM WORKERS IN SPECIALIZED SKILLS
NECESSARY FOR HIGHER VALUE CROPS.

Section 379C(c) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008q(c)) is amended by striking
``2007'' and inserting ``2012''.

SEC. 6028. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES
FOR INDIVIDUALS WITH DISABILITIES IN RURAL
AREAS.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) is amended by adding at the end
the following:

``SEC. 379E. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES
FOR INDIVIDUALS WITH DISABILITIES IN RURAL
AREAS.

``(a) Definitions.--In this section:
``(1) Individual with a disability.--The term `individual
with a disability' means an individual with a disability (as
defined in section 3 of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12102)).
``(2) Individuals with disabilities.--The term `individuals
with disabilities' means more than 1 individual with a
disability.
``(b) Grants.--The Secretary shall make grants to nonprofit
organizations, or to a consortium of nonprofit organizations,
to expand and enhance employment opportunities for
individuals with disabilities in rural areas.
``(c) Eligibility.--To be eligible to receive a grant under
this section, a nonprofit organization or consortium of
nonprofit organizations shall have--
``(1) a significant focus on serving the needs of
individuals with disabilities;
``(2) demonstrated knowledge and expertise in--
``(A) employment of individuals with disabilities; and
``(B) advising private entities on accessibility issues
involving individuals with disabilities;
``(3) expertise in removing barriers to employment for
individuals with disabilities, including access to
transportation, assistive technology, and other
accommodations;
``(4) existing relationships with national organizations
focused primarily on the needs of rural areas;
``(5) affiliates in a majority of the States; and
``(6) a close working relationship with the Department of
Agriculture.
``(d) Uses.--A grant received under this section may be
used only to expand or enhance--
``(1) employment opportunities for individuals with
disabilities in rural areas by developing national technical
assistance and education resources to assist small businesses
in a rural area to recruit, hire, accommodate, and employ
individuals with disabilities; and
``(2) self-employment and entrepreneurship opportunities
for individuals with disabilities in a rural area.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $2,000,000 for
each of fiscal years 2008 through 2012.''.

SEC. 6029. DELTA REGIONAL AUTHORITY.

(a) Health Care Services.--Section 382C of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009aa-2) is amended
by adding at the end the following:
``(c) Health Care Services.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary may award a grant to the
Delta Health Alliance for the development of health care
services, health education programs, and health care job
training programs fields, and for the development and
expansion of public health-related facilities, in the
Mississippi Delta region to address longstanding and unmet
health needs in the Mississippi Delta region.
``(2) Use.--As a condition of the receipt of the grant, the
Delta Health Alliance shall use the grant to fund projects
and activities described in paragraph (1), based on input
solicited from local governments, public health care
providers, and other entities in the Mississippi Delta
region.
``(3) Federal interest in property.--Notwithstanding any
other provision of law, with respect to the use of grant
funds provided under this subsection for a project involving
the construction or major alteration of property, the Federal
interest in the property shall terminate on the earlier of--
``(A) the date that is 1 year after the date of the
completion of the project; or
``(B) the date on which the Federal Government is
compensated for the proportionate interest of the Federal
Government in the property, if the use of the property
changes or the property is transferred or sold.''.
(b) Authorization of Appropriations.--Section 382M(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2009aa-12(a)) is amended by striking ``2007'' and inserting
``2012''.
(c) Termination of Authority.--Section 382N of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
13) is amended by striking ``2007'' and inserting ``2012''.
(d) Delta Region Agricultural Economic Development.--
Section 379D(b) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008r(b)) is amended by striking
``2007'' and inserting ``2012''.

SEC. 6030. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

(a) Establishment.--Section 383B of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009bb-1) is amended--
(1) in subsection (a), by adding at the end the following:
``(4) Failure to confirm.--
``(A) Federal member.--Notwithstanding any other provision
of this section, if a Federal member described in paragraph
(2)(A) has not been confirmed by the Senate by not later than
180 days after the date of enactment of this paragraph, the
Authority may organize and operate without the Federal
member.
``(B) Indian chairperson.--Notwithstanding any other
provision of this section, if a chairperson of an Indian
Tribe described in paragraph (2)(C) has not been confirmed by
the Senate by not later than 180 days after the date of
enactment of this paragraph, the leaders of the Indian tribes
in the region may select that member.'';
(2) in subsection (d)--
(A) in paragraph (1), by striking ``to establish priorities
and'' and inserting ``for multistate cooperation to advance
the economic and social well-being of the region and to''
(B) in paragraph (3), by striking ``local development
districts,'' and inserting ``regional and local development
districts or organizations, regional boards established under
subtitle I,'';
(C) in paragraph (4), by striking ``cooperation;'' and
inserting ``cooperation for--
``(i) renewable energy development and transmission;
``(ii) transportation planning and economic development;
``(iii) information technology;
``(iv) movement of freight and individuals within the
region;
``(v) federally-funded research at institutions of higher
education; and
``(vi) conservation land management;'';

[[Page S14939]]

(D) by striking paragraph (6) and inserting the following:
``(6) enhance the capacity of, and provide support for,
multistate development and research organizations, local
development organizations and districts, and resource
conservation districts in the region;''; and
(E) in paragraph (7), by inserting ``renewable energy,''
after ``commercial,''.
(3) in subsection (f)(2), by striking ``the Federal
cochairperson'' and inserting ``a cochairperson'';
(4) in subsection (g)(1), by striking subparagraphs (A)
through (C) and inserting the following:
``(A) for each of fiscal years 2008 and 2009, 100 percent;
``(B) for fiscal year 2010, 75 percent; and
``(C) for fiscal year 2011 and each fiscal year thereafter,
50 percent.''.
(b) Interstate Cooperation for Economic Opportunity and
Efficiency.--
(1) In general.--Subtitle G of the Consolidated Farm and
Rural Development Act is amended--
(A) by redesignating sections 383C through 383N (7 U.S.C.
2009bb-2 through 2009bb-13) as sections 383D through 383O,
respectively; and
(B) by inserting after section 383B (7 U.S.C. 2009bb-1) the
following:

``SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY
AND EFFICIENCY.

``(a) In General.--The Authority shall provide assistance
to States in developing regional plans to address multistate
economic issues, including plans--
``(1) to develop a regional transmission system for
movement of renewable energy to markets outside the region,
``(2) to assist in the harmonization of transportation
policies and regulations that impact the interstate movement
of goods and individuals, including the establishment of a
Northern Great Plains Regional Transportation Working Group;
``(3) to encourage and support interstate collaboration on
federally-funded research that is in the national interest;
and
``(4) to establish a Regional Working Group on Agriculture
Development and Transportation.
``(b) Economic Issues.--The multistate economic issues
referred to in subsection (a) shall include--
``(1) renewable energy development and transmission;
``(2) transportation planning and economic development;
``(3) information technology;
``(4) movement of freight and individuals within the
region;
``(5) federally-funded research at institutions of higher
education; and
``(6) conservation land management.''.
(2) Conforming amendments.--
(A) Section 383B(c)(3)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009bb-1(c)(3)(B)) is amended
by striking ``383I'' and inserting ``383J''.
(B) Section 383D(a) of the Consolidated Farm and Rural
Development Act (as redesignated by paragraph (1)(A)) is
amended by striking ``383I'' and inserting ``383J''.
(C) Section 383E of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended--
(i) in subsection (b)(1), by striking ``383F(b)'' and
inserting ``383G(b)''; and
(ii) in subsection (c)(2)(A), by striking ``383I'' and
inserting ``383J''.
(D) Section 383G of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended--
(i) in subsection (b)--

(I) in paragraph (1), by striking ``383M'' and inserting
``383N''; and
(II) in paragraph (2), by striking ``383D(b)'' and
inserting ``383E(b)'';

(ii) in subsection (c)(2)(A), by striking ``383E(b)'' and
inserting ``383F(b)''; and
(iii) in subsection (d)--

(I) by striking ``383M'' and inserting ``383N''; and
(II) by striking ``383C(a)'' and inserting ``383D(a)''.

(E) Section 383J(c)(2) of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended by striking
``383H'' and inserting ``383I''.
(c) Economic and Community Development Grants.--Section
383D of the Consolidated Farm and Rural Development Act (as
redesignated by subsection (b)(1)(A)) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``transportation and
telecommunication'' and inserting ``transportation, renewable
energy transmission, and telecommunication''; and
(B) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (1), respectively, and moving those paragraphs so as
to appear in numerical order; and
(2) in subsection (b)(2), by striking ``the activities in
the following order or priority'' and inserting ``the
following activities''.
(d) Supplements to Federal Grant Programs.--Section 383E(a)
of the Consolidated Farm and Rural Development Act (as
redesignated by subsection (b)(1)(A)) is amended by striking
``, including local development districts,''.
(e) Multistate and Local Development Districts and
Organizations and Northern Great Plains Inc.--Section 383F of
the Consolidated Farm and Rural Development Act (as
redesignated by subsection (b)(1)(A)) is amended--
(1) by striking the section heading and inserting
``MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND
ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.'';
(2) by striking subsections (a) and (b) and inserting the
following:
``(a) Definition of Multistate and Local Development
District or Organization.--In this section, the term
`multistate and local development district or organization'
means an entity--
``(1) that--
``(A) is a planning district in existence on the date of
enactment of this subtitle that is recognized by the Economic
Development Administration of the Department of Commerce; or
``(B) is--
``(i) organized and operated in a manner that ensures
broad-based community participation and an effective
opportunity for other nonprofit groups to contribute to the
development and implementation of programs in the region;
``(ii) a nonprofit incorporated body organized or chartered
under the law of the State in which the entity is located;
``(iii) a nonprofit agency or instrumentality of a State or
local government;
``(iv) a public organization established before the date of
enactment of this subtitle under State law for creation of
multijurisdictional, area-wide planning organizations;
``(v) a nonprofit agency or instrumentality of a State that
was established for the purpose of assisting with multistate
cooperation; or
``(vi) a nonprofit association or combination of bodies,
agencies, and instrumentalities described in clauses (ii)
through (v); and
``(2) that has not, as certified by the Federal
cochairperson--
``(A) inappropriately used Federal grant funds from any
Federal source; or
``(B) appointed an officer who, during the period in which
another entity inappropriately used Federal grant funds from
any Federal source, was an officer of the other entity.
``(b) Grants to Multistate, Local, or Regional Development
Districts and Organizations.--
``(1) In general.--The Authority may make grants for
administrative expenses under this section to multistate,
local, and regional development districts and organizations.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant awarded
under paragraph (1) shall not exceed 80 percent of the
administrative expenses of the regional or local development
district or organization receiving the grant.
``(B) Maximum period.--No grant described in paragraph (1)
shall be awarded for a period greater than 3 years.
``(3) Local share.--The contributions of a regional or
local development district or organization for administrative
expenses may be in cash or in kind, fairly evaluated,
including space, equipment, and services.''; and
(3) in subsection (c)--
(A) by striking ``Duties'' and inserting ``Authorities'';
and
(B) in the matter preceding paragraph (1), by striking
``shall'' and inserting ``may''.
(f) Distressed Counties and Areas and Nondistressed
Counties.--Section 383G of the Consolidated Farm and Rural
Development Act (as redesignated by subsection (b)(1)(A)) is
amended--
(1) in subsection (b)(1), by striking ``75'' and inserting
``50'';
(2) by striking subsection (c);
(3) by redesignating subsection (d) as subsection (c); and
(4) in subsection (c) (as so redesignated)--
(A) in the subsection heading, by inserting ``, Renewable
Energy,'' after ``Telecommunication,''; and
(B) by inserting ``, renewable energy,'' after
``telecommunication,''.
(g) Development Planning Process.--Section 383H of the
Consolidated Farm and Rural Development Act (as redesignated
by subsection (b)(1)(A)) is amended--
(1) in subsection (c)(1), by striking subparagraph (A) and
inserting the following:
``(A) multistate, regional, and local development districts
and organizations; and''; and
(2) in subsection (d)(1), by striking ``State and local
development districts'' and inserting ``multistate, regional,
and local development districts and organizations''.
(h) Program Development Criteria.--Section 383I(a)(1) of
the Consolidated Farm and Rural Development Act (as
redesignated by subsection (b)(1)(A)) is amended by inserting
``multistate or'' before ``regional''.
(i) Authorization of Appropriations.--Section 383N(a) of
the Consolidated Farm and Rural Development Act (as
redesignated by subsection (b)(1)(A)) is amended by striking
``2002 through 2007'' and inserting ``2008 through 2012''.
(j) Termination of Authority.--Section 383O of the
Consolidated Farm and Rural Development Act (as redesignated
by subsection (b)(1)(A)) is amended by striking ``2007'' and
inserting ``2012''.

SEC. 6031. RURAL BUSINESS INVESTMENT PROGRAM.

(a) Issuance and Guarantee of Trust Certificates.--Section
384F of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009cc-5) is amended--
(1) in subsection (a)(1), by inserting ``, including an
investment pool created entirely by such bank or savings
association'' before the period at the end;
(2) in subsection (b)(3)(A), by striking ``In the event''
and inserting the following:
``(i) Authority to prepay.--A debenture may be prepaid at
any time without penalty.

[[Page S14940]]

``(ii) Reduction of guarantee.--Subject to clause (i),
if''; and
(3) in subsection (e), by adding at the end the following:
``(6) Distributions.--
``(A) In general.--The Secretary shall authorize
distributions to investors for unrealized income from a
debenture.
``(B) Treatment.--Distributions made by a rural business
investment company to an investor of private capital in the
rural business investment company for the purpose of covering
the tax liability of the investor resulting from unrealized
income of the rural business investment company shall not
require the repayment of a debenture.''.
(b) Fees.--Section 384G of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009cc-6) is amended--
(1) in subsection (a), by striking ``such fees as the
Secretary considers appropriate'' and inserting ``a fee that
does not exceed $500'';
(2) in subsection (b), by striking ``approved by the
Secretary'' and inserting ``that does not exceed $500''; and
(3) in subsection (c)--
(A) in paragraph (1), by striking ``The'' and inserting
``Except as provided in paragraph (3), the'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``and'' at the end;
(ii) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) shall not exceed $500 for any fee collected under
this subsection.''; and
(C) by adding at the end the following:
``(3) Prohibition on collection of certain fees.--In the
case of a license described in paragraph (1) that was
approved before July 1, 2007, the Secretary shall not collect
any fees due on or after the date of enactment of this
paragraph.''.
(c) Rural Business Investment Companies.--Section 384I(c)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
2009cc-8(c)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Time frame.--Each rural business investment company
shall have a period of 2 years to meet the capital
requirements of this subsection.''.
(d) Financial Institution Investments.--Section 384J of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-
9) is amended by striking subsection (c).
(e) Contracting of Functions.--Section 384Q of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-
16) is repealed.
(f) Funding.--The Consolidated Farm and Rural Development
Act is amended by striking section 384S (7 U.S.C. 2009cc-18)
and inserting the following:

``SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated such sums as are
necessary to carry out this subtitle.''.

SEC. 6032. RURAL COLLABORATIVE INVESTMENT PROGRAM.

Subtitle I of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009dd et seq.) is amended to read as follows:

``Subtitle I--Rural Collaborative Investment Program

``SEC. 385A. PURPOSE.

``The purpose of this subtitle is to establish a regional
rural collaborative investment program--
``(1) to provide rural regions with a flexible investment
vehicle, allowing for local control with Federal oversight,
assistance, and accountability;
``(2) to provide rural regions with incentives and
resources to develop and implement comprehensive strategies
for achieving regional competitiveness, innovation, and
prosperity;
``(3) to foster multisector community and economic
development collaborations that will optimize the asset-based
competitive advantages of rural regions with particular
emphasis on innovation, entrepreneurship, and the creation of
quality jobs;
``(4) to foster collaborations necessary to provide the
professional technical expertise, institutional capacity, and
economies of scale that are essential for the long-term
competitiveness of rural regions; and
``(5) to better use Department of Agriculture and other
Federal, State, and local governmental resources, and to
leverage those resources with private, nonprofit, and
philanthropic investments, to achieve measurable community
and economic prosperity, growth, and sustainability.

``SEC. 385B. DEFINITIONS.

``In this subtitle:
``(1) Benchmark.--The term `benchmark' means an annual set
of goals and performance measures established for the purpose
of assessing performance in meeting a regional investment
strategy of a Regional Board.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(3) National board.--The term `National Board' means the
National Rural Investment Board established under section
385C(c).
``(4) National institute.--The term `National Institute'
means the National Institute on Regional Rural
Competitiveness and Entrepreneurship established under
section 385C(b)(2).
``(5) Regional board.--The term `Regional Board' means a
Regional Rural Investment Board described in section 385D(a).
``(6) Regional innovation grant.--The term `regional
innovation grant' means a grant made by the Secretary to a
certified Regional Board under section 385F.
``(7) Regional investment strategy grant.--The term
`regional investment strategy grant' means a grant made by
the Secretary to a certified Regional Board under section
385E.

``SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL
COLLABORATIVE INVESTMENT PROGRAM.

``(a) Establishment.--The Secretary shall establish a Rural
Collaborative Investment Program to support comprehensive
regional investment strategies for achieving rural
competitiveness.
``(b) Duties of Secretary.--In carrying out this subtitle,
the Secretary shall--
``(1) appoint and provide administrative and program
support to the National Board;
``(2) establish a national institute, to be known as the
`National Institute on Regional Rural Competitiveness and
Entrepreneurship', to provide technical assistance to the
Secretary and the National Board regarding regional
competitiveness and rural entrepreneurship, including
technical assistance for--
``(A) the development of rigorous analytic programs to
assist Regional Boards in determining the challenges and
opportunities that need to be addressed to receive the
greatest regional competitive advantage;
``(B) the provision of support for best practices developed
by the Regional Boards;
``(C) the establishment of programs to support the
development of appropriate governance and leadership skills
in the applicable regions; and
``(D) the evaluation of the progress and performance of the
Regional Boards in achieving benchmarks established in a
regional investment strategy;
``(3) work with the National Board to develop a national
rural investment plan, which shall--
``(A) create a framework to encourage and support a more
collaborative and targeted rural investment portfolio in the
United States;
``(B) establish the Rural Philanthropic Initiative, to work
with rural communities to create and enhance the pool of
permanent philanthropic resources committed to rural
community and economic development;
``(C) cooperate with the Regional Boards and State and
local governments, organizations, and entities to ensure
investment strategies are developed that take into
consideration existing rural assets; and
``(D) encourage the organization of Regional Boards;
``(4) certify the eligibility of Regional Boards to receive
regional investment strategy grants and regional innovation
grants;
``(5) provide grants for Regional Boards to develop and
implement regional investment strategies;
``(6) provide technical assistance to Regional Boards on
issues, best practices, and emerging trends relating to rural
development, in cooperation with the National Rural
Investment Board; and
``(7) provide analytic and programmatic support for
regional rural competitiveness through the National
Institute, including--
``(A) programs to assist Regional Boards in determining the
challenges and opportunities that must be addressed to
receive the greatest regional competitive advantage;
``(B) support for best practices development by the
regional investment boards;
``(C) programs to support the development of appropriate
governance and leadership skills in the region; and
``(D) a review and annual evaluation of the performance of
the Regional Boards (including progress in achieving
benchmarks established in a regional investment strategy) in
an annual report submitted to--
``(i) the Committee on Agriculture of the House of
Representatives; and
``(ii) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
``(c) National Rural Investment Board.--The Secretary shall
establish within the Department of Agriculture a board to be
known as the `National Rural Investment Board'.
``(d) Duties of National Board.--The National Board shall--
``(1) not later than 180 days after the date of
establishment of the National Board, develop rules relating
to the operation of the National Board;
``(2) provide advice to the Secretary and subsequently
review the design, development, and execution of the National
Rural Investment Plan;
``(3) provide advice to Regional Boards on issues, best
practices, and emerging trends relating to rural development;
and
``(4) provide advice to the Secretary and the National
Institute on the development and execution of the program
under this subtitle.
``(e) Membership.--
``(1) In general.--The National Board shall consist of 14
members appointed by the Secretary not later than 180 days
after the date of enactment of the Food and Energy Security
Act of 2007.
``(2) Supervision.--The National Board shall be subject to
the general supervision and direction of the Secretary.
``(3) Sectors represented.--The National Board shall
consist of representatives from each of--
``(A) nationally recognized entrepreneurship organizations;

[[Page S14941]]

``(B) regional strategy and development organizations;
``(C) community-based organizations;
``(D) elected members of county and municipal governments;
``(E) elected members of State legislatures;
``(F) primary, secondary, and higher education, job skills
training, and workforce development institutions;
``(G) the rural philanthropic community;
``(H) financial, lending, venture capital,
entrepreneurship, and other related institutions;
``(I) private sector business organizations, including
chambers of commerce and other for-profit business interests;
``(J) Indian tribes; and
``(K) cooperative organizations.
``(4) Selection of members.--
``(A) In general.--In selecting members of the National
Board, the Secretary shall consider recommendations made by--
``(i) the chairman and ranking member of each of the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate;
``(ii) the Majority Leader and Minority Leader of the
Senate; and
``(iii) the Speaker and Minority Leader of the House of
Representatives.
``(B) Ex-officio members.--In consultation with the
chairman and ranking member of each of the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate, the
Secretary may appoint not more than 3 other officers or
employees of the Executive Branch to serve as ex-officio,
non-voting members of the National Board.
``(5) Term of office.--
``(A) In general.--Subject to subparagraph (B), the term of
office of a member of the National Board appointed under
paragraph (1)(A) shall be for a period of not more than 4
years.
``(B) Staggered terms.--The members of the National Board
shall be appointed to serve staggered terms.
``(6) Initial appointments.--Not later than 120 days after
the date of enactment of the Food and Energy Security Act of
2007, the Secretary shall appoint the initial members of the
National Board.
``(7) Vacancies.--A vacancy on the National Board shall be
filled in the same manner as the original appointment.
``(8) Compensation.--A member of the National Board shall
receive no compensation for service on the National Board,
but shall be reimbursed for related travel and other expenses
incurred in carrying out the duties of the member of the
National Board in accordance with section 5702 and 5703 of
title 5, United States Code.
``(9) Chairperson.--The National Board shall select a
chairperson from among the members of the National Board.
``(10) Federal status.--For purposes of Federal law, a
member of the National Board shall be considered a special
Government employee (as defined in section 202(a) of title
18, United States Code).
``(f) Administrative Support.--The Secretary, on a
reimbursable basis from funds made available under section
385H(b)(3), may provide such administrative support to the
National Board as the Secretary determines is necessary to
carry out the duties of the National Board.

``SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.

``(a) In General.--A Regional Rural Investment Board shall
be a multijurisdictional and multisectoral group that--
``(1) represents the long-term economic, community, and
cultural interests of a region;
``(2) is certified by the Secretary to establish a rural
investment strategy and compete for regional innovation
grants;
``(3) is composed of residents of a region that are broadly
representative of diverse public, nonprofit, and private
sector interests in investment in the region, including (to
the maximum extent practicable) representatives of--
``(A) units of local government (including
multijurisdictional units of local government);
``(B) nonprofit community-based development organizations,
including community development financial institutions and
community development corporations;
``(C) agricultural, natural resource, and other asset-based
related industries;
``(D) in the case of regions with federally recognized
Indian tribes, Indian tribes;
``(E) regional development organizations;
``(F) private business organizations, including chambers of
commerce;
``(G)(i) institutions of higher education (as defined in
section 101(a) of the Higher Education Act of 1965 (20 U.S.C.
1001(a)));
``(ii) tribally controlled colleges or universities (as
defined in section 2(a) of Tribally Controlled College or
University Assistance Act of 1978 (25 U.S.C. 1801(a))); and
``(iii) tribal technical institutions;
``(H) workforce and job training organizations;
``(I) other entities and organizations, as determined by
the Regional Board;
``(J) cooperatives; and
``(K) consortia of entities and organizations described in
subparagraphs (A) through (J);
``(4) represents a region inhabited by--
``(A) more than 25,000 individuals, as determined in the
latest available decennial census conducted under section
141(a) of title 13, United States Code; or
``(B) in the case of a region with a population density of
less than 2 individuals per square mile, at least 10,000
individuals, as determined in that latest available decennial
census;
``(5) has a membership of which not less than 25 percent,
nor more than 40 percent, represents--
``(A) units of local government and Indian tribes described
in subparagraphs (A) and (D) of paragraph (3);
``(B) nonprofit community and economic development
organizations and institutions of higher education described
in subparagraphs (B) and (G) of paragraph (3); or
``(C) private business (including chambers of commerce and
cooperatives) and agricultural, natural resource, and other
asset-based related industries described in subparagraphs (C)
and (F) of paragraph (3);
``(6) has a membership that may include an officer or
employee of a Federal or State agency, serving as an ex-
officio, nonvoting member of the Regional Board to represent
the agency; and
``(7) has organizational documents that demonstrate that
the Regional Board shall--
``(A) create a collaborative, inclusive public-private
strategy process;
``(B) develop, and submit to the Secretary for approval, a
regional investment strategy that meets the requirements of
section 385E, with benchmarks--
``(i) to promote investment in rural areas through the use
of grants made available under this subtitle; and
``(ii) to provide financial and technical assistance to
promote a broad-based regional development program aimed at
increasing and diversifying economic growth, improved
community facilities, and improved quality of life;
``(C) implement the approved regional investment strategy;
``(D) provide annual reports to the Secretary and the
National Board on progress made in achieving the benchmarks
of the regional investment strategy, including an annual
financial statement; and
``(E) select a non-Federal organization (such as a regional
development organization) in the local area served by the
Regional Board that has previous experience in the management
of Federal funds to serve as fiscal manager of any funds of
the Regional Board.
``(b) Urban Areas.--A resident of an urban area may serve
as an ex-officio member of a Regional Board.
``(c) Duties.--A Regional Board shall--
``(1) create a collaborative and inclusive planning process
for public-private investment within a region;
``(2) develop, and submit to the Secretary for approval, a
regional investment strategy;
``(3) develop approaches that will create permanent
resources for philanthropic giving in the region, to the
maximum extent practicable;
``(4) implement an approved strategy; and
``(5) provide annual reports to the Secretary and the
National Board on progress made in achieving the strategy,
including an annual financial statement.

``SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.

``(a) In General.--The Secretary shall make regional
investment strategy grants available to Regional Boards for
use in developing, implementing, and maintaining regional
investment strategies.
``(b) Regional Investment Strategy.--A regional investment
strategy shall provide--
``(1) an assessment of the competitive advantage of a
region, including--
``(A) an analysis of the economic conditions of the region;
``(B) an assessment of the current economic performance of
the region;
``(C) a background overview of the population, geography,
workforce, transportation system, resources, environment, and
infrastructure needs of the region; and
``(D) such other pertinent information as the Secretary may
request;
``(2) an analysis of regional economic and community
development challenges and opportunities, including--
``(A) incorporation of relevant material from other
government-sponsored or supported plans and consistency with
applicable State, regional, and local workforce investment
strategies or comprehensive economic development plans; and
``(B) an identification of past, present, and projected
Federal and State economic and community development
investments in the region;
``(3) a section describing goals and objectives necessary
to solve regional competitiveness challenges and meet the
potential of the region;
``(4) an overview of resources available in the region for
use in--
``(A) establishing regional goals and objectives;
``(B) developing and implementing a regional action
strategy;
``(C) identifying investment priorities and funding
sources; and
``(D) identifying lead organizations to execute portions of
the strategy;
``(5) an analysis of the current state of collaborative
public, private, and nonprofit participation and investment,
and of the strategic roles of public, private, and nonprofit
entities in the development and implementation of the
regional investment strategy;
``(6) a section identifying and prioritizing vital
projects, programs, and activities for consideration by the
Secretary, including--
``(A) other potential funding sources; and

[[Page S14942]]

``(B) recommendations for leveraging past and potential
investments;
``(7) a plan of action to implement the goals and
objectives of the regional investment strategy;
``(8) a list of performance measures to be used to evaluate
the implementation of the regional investment strategy,
including--
``(A) the number and quality of jobs, including self-
employment, created during implementation of the regional
rural investment strategy;
``(B) the number and types of investments made in the
region;
``(C) the growth in public, private, and nonprofit
investment in the human, community, and economic assets of
the region;
``(D) changes in per capita income and the rate of
unemployment; and
``(E) other changes in the economic environment of the
region;
``(9) a section outlining the methodology for use in
integrating the regional investment strategy with the
economic priorities of the State; and
``(10) such other information as the Secretary determines
to be appropriate.
``(c) Maximum Amount of Grant.--A regional investment
strategy grant shall not exceed $150,000.
``(d) Cost Sharing.--
``(1) In general.--Subject to paragraph (2), of the share
of the costs of developing, maintaining, evaluating,
implementing, and reporting with respect to a regional
investment strategy funded by a grant under this section--
``(A) not more than 40 percent may be paid using funds from
the grant; and
``(B) the remaining share shall be provided by the
applicable Regional Board or other eligible grantee.
``(2) Form.--A Regional Board or other eligible grantee
shall pay the share described in paragraph (1)(B) in the form
of cash, services, materials, or other in-kind contributions,
on the condition that not more than 50 percent of that share
is provided in the form of services, materials, and other in-
kind contributions.

``SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM.

``(a) Grants.--
``(1) In general.--The Secretary shall provide, on a
competitive basis, regional innovation grants to Regional
Boards for use in implementing projects and initiatives that
are identified in a regional rural investment strategy
approved under section 385E.
``(2) Timing.--After October 1, 2008, the Secretary shall
provide awards under this section on a quarterly funding
cycle.
``(b) Eligibility.--For a Regional Board to receive a
regional innovation grant, the Secretary shall determine
that--
``(1) the regional rural investment strategy of a Regional
Board has been reviewed by the National Board prior to
approval by the Secretary;
``(2) the management and organizational structure of the
Regional Board is sufficient to oversee grant projects,
including management of Federal funds; and
``(3) the Regional Board has a plan to achieve, to the
maximum extent practicable, the performance-based benchmarks
of the project in the regional rural investment strategy of
the Regional Board.
``(c) Limitations.--
``(1) Amount received.--A Regional Board may not receive
more than $6,000,000 in regional innovation grants under this
section during any 5-year period.
``(2) Determination of amount.--The Secretary shall
determine the amount of a regional innovation grant based
on--
``(A) the needs of the region being addressed by the
applicable regional rural investment strategy consistent with
the purposes described in subsection (f)(2); and
``(B) the size of the geographical area of the region.
``(3) Geographic diversity.--The Secretary shall ensure
that not more than 10 percent of funding made available under
this section is provided to Regional Boards in any State.
``(d) Cost-Sharing.--
``(1) Limitation.--Subject to paragraph (2), the amount of
a grant made under this section shall not exceed 50 percent
of the cost of the project.
``(2) Waiver of grantee share.--The Secretary may waive the
limitation in paragraph (1) under special circumstances, as
determined by the Secretary, including--
``(A) a sudden or severe economic dislocation;
``(B) significant chronic unemployment or poverty;
``(C) a natural disaster; or
``(D) other severe economic, social, or cultural duress.
``(3) Other federal assistance.--For the purpose of
determining cost-share limitations for any other Federal
program, funds provided under this section shall be
considered to be non-Federal funds.
``(e) Preferences.--In providing regional innovation grants
under this section, the Secretary shall give--
``(1) a high priority to strategies that demonstrate
significant leverage of capital and quality job creation; and
``(2) a preference to an application proposing projects and
initiatives that would--
``(A) advance the overall regional competitiveness of a
region;
``(B) address the priorities of a regional rural investment
strategy, including priorities that--
``(i) promote cross-sector collaboration, public-private
partnerships, or the provision of collaborative gap financing
or seed capital for program implementation;
``(ii) exhibit collaborative innovation and
entrepreneurship, particularly within a public-private
partnership; and
``(iii) represent a broad coalition of interests described
in section 385D(a);
``(C) include a strategy to leverage public non-Federal and
private funds and existing assets, including agricultural
assets, natural assets, and public infrastructure, with
substantial emphasis placed on the existence of real
financial commitments to leverage the available funds;
``(D) create quality jobs;
``(E) enhance the role, relevance, and leveraging potential
of community and regional foundations in support of regional
investment strategies;
``(F) demonstrate a history, or involve organizations with
a history, of successful leveraging of capital for economic
development and public purposes;
``(G) address gaps in existing basic services, including
technology, within a region;
``(H) address economic diversification, including
agricultural and non-agriculturally based economies, within a
regional framework;
``(I) improve the overall quality of life in the region
(including with respect to education, health care, housing,
recreation, and arts and culture);
``(J) enhance the potential to expand economic development
successes across diverse stakeholder groups within the
region;
``(K) include an effective working relationship with 1 or
more institutions of higher education, tribally controlled
colleges or universities, or tribal technical institutions;
or
``(L) help to meet the other regional competitiveness needs
identified by a Regional Board.
``(f) Uses.--
``(1) Leverage.--A Regional Board shall prioritize projects
and initiatives carried out using funds from a regional
innovation grant provided under this section, based in part
on the degree to which members of the Regional Board are able
to leverage additional funds for the implementation of the
projects.
``(2) Purposes.--A Regional Board may use a regional
innovation grant--
``(A) to support the development of critical infrastructure
(including technology deployment and services) necessary to
facilitate the competitiveness of a region;
``(B) to provide assistance to entities within the region
that provide essential public and community services;
``(C) to enhance the value-added production, marketing, and
use of agricultural and natural resources within the region,
including activities relating to renewable and alternative
energy production and usage;
``(D) to assist with entrepreneurship, job training,
workforce development, housing, educational, or other quality
of life services or needs, relating to the development and
maintenance of strong local and regional economies;
``(E) to assist in the development of unique new
collaborations that link public, private, and philanthropic
resources, including community foundations;
``(F) to provide support for business and entrepreneurial
investment, strategy, expansion, and development, including
feasibility strategies, technical assistance, peer networks,
and business development funds;
``(G) to carry out other broad activities relating to
strengthening the economic competitiveness of the region; and
``(H) to provide matching funds to enable community
foundations located within the region to build endowments
which provide permanent philanthropic resources to implement
a regional investment strategy.
``(3) Availability of funds.--The funds made available to a
Regional Board or any other eligible grantee through a
regional innovation grant shall remain available for the 7-
year period beginning on the date on which the award is
provided, on the condition that the Regional Board or other
grantee continues to be certified by the Secretary as making
adequate progress toward achieving established benchmarks.
``(g) Cost Sharing.--
``(1) Waiver of grantee share.--The Secretary may waive the
share of a grantee of the costs of a project funded by a
regional innovation grant under this section if the Secretary
determines that such a waiver is appropriate, including with
respect to special circumstances within tribal regions, in
the event an area experiences--
``(A) a sudden or severe economic dislocation;
``(B) significant chronic unemployment or poverty;
``(C) a natural disaster; or
``(D) other severe economic, social, or cultural duress.
``(2) Other federal programs.--For the purpose of
determining cost-sharing requirements for any other Federal
program, funds provided as a regional innovation grant under
this section shall be considered to be non-Federal funds.
``(h) Noncompliance.--If a Regional Board or other eligible
grantee fails to comply with any requirement relating to the
use of funds provided under this section, the Secretary may--
``(1) take such actions as are necessary to obtain
reimbursement of unused grant funds; and

[[Page S14943]]

``(2) reprogram the recaptured funds for purposes relating
to implementation of this subtitle.
``(i) Priority to Areas With Awards and Approved
Strategies.--
``(1) In general.--Subject to paragraph (3), in providing
rural development assistance under other programs, the
Secretary shall give a high priority to areas that receive
innovation grants under this section.
``(2) Consultation.--The Secretary shall consult with the
heads of other Federal agencies to promote the development of
priorities similar to those described in paragraph (1).
``(3) Exclusion of certain programs.--Paragraph (1) shall
not apply to the provision of rural development assistance
under any program relating to basic health, safety, or
infrastructure, including broadband deployment or minimum
environmental needs.

``SEC. 385G. RURAL ENDOWMENT LOANS PROGRAM.

``(a) In General.--The Secretary may provide long-term
loans to eligible community foundations to assist in the
implementation of regional investment strategies.
``(b) Eligible Community Foundations.--To be eligible to
receive a loan under this section, a community foundation
shall--
``(1) be located in an area that is covered by a regional
investment strategy;
``(2) match the amount of the loan with an amount that is
at least 250 percent of the amount of the loan; and
``(3) use the loan and the matching amount to carry out the
regional investment strategy targeted to community and
economic development, including through the development of
community foundation endowments.
``(c) Terms.--A loan made under this section shall--
``(1) have a term of not less than 10, nor more than 20,
years;
``(2) bear an interest rate of 1 percent per annum; and
``(3) be subject to such other terms and conditions as are
determined appropriate by the Secretary.

``SEC. 385H. FUNDING.

``(a) In General.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use $135,000,000 to carry
out this subtitle, to remain available until expended.
``(b) Use by Secretary.--Of the amounts made available to
the Secretary under subsection (a), the Secretary shall use--
``(1) $15,000,000 to be provided for regional investment
strategy grants to Regional Boards under section 385E;
``(2) $110,000,000 to provide innovation grants to Regional
Boards under section 385F and for the cost of rural endowment
loans under section 385G;
``(3) $5,000,000 for fiscal year 2008 to administer the
duties of the National Board, to remain available until
expended; and
``(4) $5,000,000 for fiscal year 2008 to administer the
National Institute, to remain available until expended.
``(c) Authorization of Appropriations.--In addition to
funds otherwise made available to carry out this subtitle,
there are authorized to be appropriated to the Secretary such
sums as are necessary to carry out this subtitle.''.

SEC. 6033. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND
GRANT APPLICATIONS.

(a) Definition of Application.--In this section, the term
``application'' does not include an application for a loan or
grant that, as of the date of enactment of this Act, is in
the preapplication phase of consideration under regulations
of the Secretary in effect on the date of enactment of this
Act.
(b) Use of Funds.--Subject to subsection (c), the Secretary
shall use funds made available under subsection (d) to
provide funds for applications that are pending on the date
of enactment of this Act for--
(1) water or waste disposal grants or direct loans under
paragraph (1) or (2) of section 306(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926(a)); and
(2) emergency community water assistance grants under
section 306A of that Act (7 U.S.C. 1926a).
(c) Limitations.--
(1) Appropriated amounts.--Funds made available under this
section shall be available to the Secretary to provide funds
for applications for loans and grants described in subsection
(b) that are pending on the date of enactment of this Act
only to the extent that funds for the loans and grants
appropriated in the annual appropriations Act for fiscal year
2007 have been exhausted.
(2) Program requirements.--The Secretary may use funds made
available under this section to provide funds for a pending
application for a loan or grant described in subsection (b)
only if the Secretary processes, reviews, and approves the
application in accordance with regulations in effect on the
date of enactment of this Act.
(3) Priority.--In providing funding under this section for
pending applications for loans or grants described in
subsection (b), the Secretary shall provide funding in the
following order of priority (until funds made available under
this section are exhausted):
(A) Pending applications for water systems.
(B) Pending applications for waste disposal systems.
(4) Individual states.--In allocating funds made available
under subsection (d), the Secretary shall use not more 5
percent of the funds for pending applications for loans or
grants described in subsection (b) that are made in any
individual State.
(d) Funding.--Notwithstanding any other provision of law,
of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $135,000,000,
to remain available until expended.

Subtitle B--Rural Electrification Act of 1936

SEC. 6101. ENERGY EFFICIENCY PROGRAMS.

Sections 2(a) and 4 of the Rural Electrification Act of
1936 (7 U.S.C. 902(a), 904) are amended by inserting
``efficiency and'' before ``conservation'' each place it
appears.

SEC. 6102. LOANS AND GRANTS FOR ELECTRIC GENERATION AND
TRANSMISSION.

(a) In General.--Section 4 of the Rural Electrification Act
of 1936 (7 U.S.C. 904) is amended in the first sentence by
striking ``authorized and empowered, from the sums
hereinbefore authorized, to'' and inserting ``shall''.
(b) Rural Communities With Extremely High Energy Costs.--
Section 19(a) of the Rural Electrification Act of 1936 (7
U.S.C. 918a(a)) is amended in the matter preceding paragraph
(1) by striking ``may'' and inserting ``shall''.

SEC. 6103. FEES FOR ELECTRIFICATION BASELOAD GENERATION LOAN
GUARANTEES.

The Rural Electrification Act of 1936 is amended by
inserting after section 4 (7 U.S.C. 904) the following:

``SEC. 5. FEES FOR ELECTRIFICATION BASELOAD GENERATION LOAN
GUARANTEES.

``(a) In General.--For electrification baseload generation
loan guarantees, the Secretary shall, at the request of the
borrower, charge an upfront fee to cover the costs of the
loan guarantee.
``(b) Fee.--
``(1) In general.--The fee described in subsection (a) for
a loan guarantee shall be at least equal to the costs of the
loan guarantee (within the meaning of section 502(5)(C) of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
``(2) Separate fee.--The Secretary may establish a separate
fee for each loan.
``(c) Eligibility.--To be eligible for an electrification
baseload generation loan guarantee under this section, a
borrower shall--
``(1) provide a rating of the loan, exclusive of the
Federal guarantee, by an organization identified by the
Securities and Exchange Commission as a nationally recognized
statistical rating organization that determines that the loan
has at least a AA rating, or equivalent rating, as determined
by the Secretary; or
``(2) obtain insurance or a guarantee for the full and
timely repayment of principal and interest on the loan from
an entity that has at least an AA or equivalent rating by a
nationally recognized statistical rating organization.
``(d) Limitation.--Funds received from a borrower to pay
for the fees described in this section shall not be derived
from a loan or other debt obligation that is made or
guaranteed by the Federal Government.''.

SEC. 6104. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED
ENERGY EFFICIENCY AND DEMAND REDUCTION.

Section 12 of the Rural Electrification Act of 1936 (7
U.S.C. 912) is amended by adding at the end the following:
``(c) Deferment of Payments to Allows Loans for Improved
Energy Efficiency and Demand Reduction.--
``(1) In general.--The Secretary shall allow borrowers to
defer payment of principal and interest on any direct loan
made under this Act to enable the borrower to make loans to
residential, commercial, and industrial consumers to install
energy efficient measures or devices that reduce the demand
on electric systems.
``(2) Amount.--The total amount of a deferment under this
subsection shall not exceed the sum of the principal and
interest on the loans made to a customer of the borrower, as
determined by the Secretary.
``(3) Term.--The term of a deferment under this subsection
shall not exceed 60 months.''.

SEC. 6105. RURAL ELECTRIFICATION ASSISTANCE.

Section 13 of the Rural Electrification Act of 1936 (7
U.S.C. 913) is amended to read as follows:

``SEC. 13. DEFINITIONS.

``In this Act:
``(1) Farm.--The term `farm' means a farm, as defined by
the Bureau of the Census.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(3) Rural area.--
``(A) In general.--Except as provided otherwise in this
Act, the term `rural area' means the farm and nonfarm
population of--
``(i) any area described in section 343(a)(13)(A) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(13)(A)); and
``(ii) any area within a service area of a borrower for
which a borrower has an outstanding loan made under titles I
through V as of the date of enactment of this paragraph.
``(B) Rural broadband access.--For the purpose of loans and
loan guarantees made under section 601, the term `rural area'
has the meaning given the term in section 343(a)(13)(C) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(13)(C)).
``(4) Territory.--The term `territory' includes any insular
possession of the United States.

[[Page S14944]]

``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.''.

SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR
ELECTRIFICATION OR TELEPHONE PURPOSES.

Section 313A of the Rural Electrification Act of 1936 (7
U.S.C. 940c-1) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``for electrification''
and all that follows through the end and inserting ``for
eligible electrification or telephone purposes consistent
with this Act.''; and
(B) by striking paragraph (4) and inserting the following:
``(4) Annual amount.--The total amount of guarantees
provided by the Secretary under this section during a fiscal
year shall not exceed $1,000,000,000, subject to the
availability of funds under subsection (e).'';
(2) in subsection (c), by striking paragraphs (2) and (3)
and inserting the following:
``(2) Amount.--
``(A) In general.--The amount of the annual fee paid for
the guarantee of a bond or note under this section shall be
equal to 30 basis points of the amount of the unpaid
principal of the bond or note guaranteed under this section.
``(B) Prohibition.--Except as otherwise provided in this
subsection and subsection (e)(2), no other fees shall be
assessed.
``(3) Payment.--
``(A) In general.--A lender shall pay the fees required
under this subsection on a semiannual basis.
``(B) Structured schedule.--The Secretary shall, with the
consent of the lender, structure the schedule for payment of
the fee to ensure that sufficient funds are available to pay
the subsidy costs for note or bond guarantees as provided for
in subsection (e)(2).''; and
(3) in subsection (f), by striking ``2007'' and inserting
``2012''.

SEC. 6107. EXPANSION OF 911 ACCESS.

Section 315 of the Rural Electrification Act of 1936 (7
U.S.C. 940e) is amended to read as follows:

``SEC. 315. EXPANSION OF 911 ACCESS.

``(a) In General.--Subject to such terms and conditions as
the Secretary may prescribe, the Secretary may make loans
under this title to entities eligible to borrow from the
Rural Utilities Service, emergency communications equipment
providers, State or local governments, Indian tribes (as
defined in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b)), or other public
entities for facilities and equipment to expand or improve--
``(1) 911 access;
``(2) integrated interoperable emergency communications,
including multiuse networks that--
``(A) serve rural areas; and
``(B) provide commercial services or transportation
information services in addition to emergency communications
services;
``(3) homeland security communications;
``(4) transportation safety communications; or
``(5) location technologies used outside an urbanized area.
``(b) Loan Security.--Government-imposed fees related to
emergency communications (including State or local 911 fees)
may be considered to be security for a loan under this
section.
``(c) Regulations.--The Secretary shall--
``(1) not later than 90 days after the date of enactment of
this subsection, promulgate proposed regulations to carry out
this section; and
``(2) not later than 90 days after the publication of
proposed rules to carry out this section, adopt final rules.
``(d) Authorization of Appropriations.--The Secretary shall
use to make loans under this section any funds otherwise made
available for telephone or broadband loans for each of fiscal
years 2007 through 2012.''.

SEC. 6108. ELECTRIC LOANS TO RURAL ELECTRIC COOPERATIVES.

Title III of the Rural Electrification Act of 1936 is
amended by inserting after section 316 (7 U.S.C. 940f) the
following:

``SEC. 317. ELECTRIC LOANS TO RURAL ELECTRIC COOPERATIVES.

``(a) Definition of Renewable Energy Source.--In this
section, the term `renewable energy source' has the meaning
given the term `qualified energy resources' in section
45(c)(1) of the Internal Revenue Code of 1986.
``(b) Loans.--In addition to any other funds or authorities
otherwise made available under this Act, the Secretary may
make electric loans under this title for--
``(1) electric generation from renewable energy resources
for resale to rural and nonrural residents; and
``(2) transmission lines principally for the purpose of
wheeling power from 1 or more renewable energy sources.
``(c) Rate.--The rate of a loan under this section shall be
equal to the average tax-exempt municipal bond rate of
similar maturities.''.

SEC. 6109. AGENCY PROCEDURES.

Title III of the Rural Electrification Act of 1936 is
amended by inserting after section 317 (as added by section
6108) the following:

``SEC. 318. AGENCY PROCEDURES.

``(a) Customer Service.--The Secretary shall ensure that
loan applicants under this Act are contacted at least once
each month by the Rural Utilities Service regarding the
status of any pending loan applications.
``(b) Financial Need.--The Secretary shall ensure that--
``(1) an applicant for any grant program administered by
the Rural Utilities Service has an opportunity to present
special economic circumstances in support of the grant, such
as the high cost of living, out migration, low levels of
employment, weather damage, or environmental loss; and
``(2) the special economic circumstances presented by the
applicant are considered in determining the financial need of
the applicant.
``(c) Mobile Digital Wireless.--To facilitate the
transition from analog wireless service to digital mobile
wireless service, the Secretary may adjust population
limitations under this Act related to digital mobile wireless
service up to the level permitted under section 601.
``(d) Bonding Requirements.--The Secretary shall review the
bonding requirements for all programs administered by the
Rural Utilities Service under this Act to ensure that bonds
are not required if--
``(1) the interests of the Secretary are adequately
protected by product warranties; or
``(2) the costs or conditions associated with a bond exceed
the benefit of the bond to the Secretary.''.

SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN
RURAL AREAS.

(a) In General.--Section 601 of the Rural Electrification
Act of 1936 (7 U.S.C. 950bb) is amended to read as follows:

``SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES
IN RURAL AREAS.

``(a) Purpose.--The purpose of this section is to provide
loans and loan guarantees to provide funds for the costs of
the construction, improvement, and acquisition of facilities
and equipment for broadband service in rural areas.
``(b) Definition of Broadband Service.--In this section:
``(1) In general.--The term `broadband service' means any
technology identified by the Secretary as having the capacity
to transmit data to enable a subscriber to the service to
originate and receive high-quality voice, data, graphics, and
video.
``(2) Mobile broadband.--The term `broadband service'
includes any service described in paragraph (1) that is
provided over a licensed spectrum through the use of a mobile
station or receiver communicating with a land station or
other mobile stations communicating among themselves.
``(c) Loans and Loan Guarantees.--
``(1) In general.--The Secretary shall make or guarantee
loans to eligible entities described in subsection (d) to
provide funds for the construction, improvement, or
acquisition of facilities and equipment for the provision of
broadband service in rural areas.
``(2) Priority.--In making or guaranteeing loans under
paragraph (1), the Secretary shall give the highest priority
to applicants that offer to provide broadband service to the
greatest proportion of households that, prior to the
provision of the service, had no terrestrial broadband
service provider.
``(3) Offer of service.--For purposes of this section, a
provider shall be considered to offer broadband service in a
rural area if the provider makes the broadband service
available to households in the rural area at not more than
average prices as compared to the prices at which similar
services are made available in the nearest urban area, as
determined by the Secretary.
``(d) Eligible Entities.--
``(1) Requirements.--
``(A) In general.--To be eligible to obtain a loan or loan
guarantee under this section, an entity shall--
``(i) have the ability to furnish, improve, or extend a
broadband service to a rural area;
``(ii) submit to the Secretary a proposal that meets the
requirements of this section for a project to offer to
provide service to at least 25 percent of households in a
specified rural area that, as of the date on which the
proposal is submitted, are not offered broadband service by a
terrestrial broadband service provider; and
``(iii) agree to complete buildout of the broadband service
described in the proposal not later than 3 years after the
date on which a loan or loan guarantee under this section is
received.
``(B) Prohibition.--In carrying out this section, the
Secretary may not make a loan or loan guarantee for a project
in any specific area in which broadband service is offered by
3 or more terrestrial service providers that offer services
that are comparable to the services proposed by the
applicant.
``(C) Equity and market survey requirements.--
``(i) In general.--The Secretary may require an entity to
provide a cost share in an amount not to exceed 10 percent of
the amount of the loan or loan guarantee requested in the
application of the entity.
``(ii) Credit.--Recurring revenues of an entity, including
broadband service client revenues, may be credited toward the
cost share required under clause (i).
``(iii) Market survey.--

``(I) In general.--The Secretary may require an entity that
proposes to have a subscriber projection of more than 20
percent of the broadband service market in a rural area to
submit to the Secretary a market survey.
``(II) Less than 20 percent.--The Secretary may not require
an entity that proposes to have a subscriber projection of
less than 20 percent of the broadband service market in a

[[Page S14945]]

rural area to submit to the Secretary a market survey.

``(2) State and local governments and indian tribes.--
Subject to paragraph (1), a State or local government
(including any agency, subdivision, or instrumentality
thereof (including consortia thereof)) and an Indian tribe
shall be eligible for a loan or loan guarantee under this
section to provide broadband services to a rural area.
``(3) Adequacy of security.--The Secretary shall ensure
that the type, amount, and method of security used to secure
any loan or loan guarantee provided under this section is
commensurate to the risk involved with the loan or loan
guarantee, particularly if the loan or loan guarantee is
issued to a financially-healthy, strong, and stable entity.
``(4) Limitation.--No entity (including subsidiaries of an
entity) may acquire more than 20 percent of the resources of
the program under this section in any fiscal year, as
determined by the Secretary.
``(5) Notice requirement.--The Secretary shall include a
notice of applications under this section on the website of
the Secretary for a period of not less than 90 days.
``(6) Proposal information.--
``(A) Public access.--The Secretary shall make available on
the website of the Secretary during the consideration of a
loan by the Secretary--
``(i) the name of the applicant;
``(ii) a description and geographical representation of the
proposed area of broadband service;
``(iii) a geographical representation and numerical
estimate of the households that have no terrestrial broadband
service offered in the proposed service area of the project;
and
``(iv) such other relevant information that the Secretary
determines to be appropriate.
``(B) Proprietary information.--In making information
available relating to a loan proposal as described in
subparagraph (A), the Secretary shall not make available
information that is proprietary (within the meaning of
section 552(b)(4) of title 5, United States Code) to the
business interests of the loan applicant.
``(7) Timeline.--The Secretary shall establish a timeline
on the website for the Secretary for tracking applications
received under this section.
``(8) Additional information and determination.--
``(A) Prompt processing of applications.--
``(i) In general.--The Secretary shall establish, by
regulation, procedures to ensure prompt processing of loan
and loan guarantee applications under this section.
``(ii) Time limits.--Subject to clause (iii), the
regulations shall establish general time limits for action by
the Secretary and applicant response.
``(iii) Extensions.--The Secretary may grant an extension
for a time limit established under clause (ii).
``(iv) Annual reports.--The Secretary shall publish an
annual report that--

``(I) describes processing times for loan and loan
guarantee applications under this section; and
``(II) provides an explanation for any processing time
extensions required by the Secretary.

``(B) Additional information.--Not later than 60 days after
the date on which an applicant submits an application, the
Secretary shall request any additional information required
for the application to be complete.
``(C) Determination.--Not later than 180 days after the
date on which an applicant submits a completed application,
the Secretary shall make a determination of whether to
approve the application.
``(9) Loan closing.--Not later than 45 days after the date
on which the Secretary approves an application, documents
necessary for the closing of the loan or loan guarantee shall
be provided to applicant.
``(10) Fund disbursement.--Not later than 10 business days
after the date of the receipt of valid documentation
requesting disbursement of the approved, closed loan, the
disbursement of loan funds shall occur.
``(11) Preapplication process.--The Secretary shall
establish an optional preapplication process under which an
applicant may apply to the Rural Utilities Service for a
binding determination of area eligibility prior to preparing
a full loan application.
``(12) Pending applications.--An application for a loan or
loan guarantee under this section, or a petition for
reconsideration of a decision on such an application, that is
pending on the date of enactment of this paragraph shall be
considered under eligibility and feasibility criteria that
are no less favorable to the applicant than the criteria in
effect on the original date of submission of the application.
``(e) Broadband Service.--
``(1) In general.--The Secretary shall, from time to time
as advances in technology warrant, review and recommend
modifications of rate-of-data transmission criteria for
purposes of the identification of broadband service
technologies under subsection (b).
``(2) Prohibition.--The Secretary shall not establish
requirements for bandwidth or speed that have the effect of
precluding the use of evolving technologies appropriate for
rural areas outside rural communities.
``(f) Technological Neutrality.--For purposes of
determining whether to make a loan or loan guarantee for a
project under this section, the Secretary shall use criteria
that are technologically neutral.
``(g) Terms and Conditions for Loans and Loan Guarantees.--
``(1) In general.--Notwithstanding any other provision of
law, a loan or loan guarantee under subsection (c) shall--
``(A) bear interest at an annual rate of, as determined by
the Secretary--
``(i) in the case of a direct loan, the lower of--

``(I) the cost of borrowing to the Department of the
Treasury for obligations of comparable maturity; or
``(II) 4 percent; and

``(ii) in the case of a guaranteed loan, the current
applicable market rate for a loan of comparable maturity; and
``(B) except as provided in paragraph (2), have a term not
to exceed the useful life of the assets constructed,
improved, or acquired with the proceeds of the loan or
extension of credit.
``(2) Term of loan exception.--A loan or loan guarantee
under subsection (c) may have a term not to exceed 30 years
if the Secretary determines that the loan security is
sufficient.
``(3) Recurring revenue.--The Secretary shall consider the
recurring revenues of the entity at the time of application
in determining an adequate level of credit support.
``(h) Use of Loan Proceeds to Refinance Loans for
Deployment of Broadband Service.--Notwithstanding any other
provision of this Act, the proceeds of any loan made or
guaranteed by the Secretary under this Act may be used by the
recipient of the loan for the purpose of refinancing an
outstanding obligation of the recipient on another
telecommunications-related loan made under this Act if the
use of the proceeds for that purpose will further the
construction, improvement, or acquisition of facilities and
equipment for the provision of broadband service in rural
areas.
``(i) Reports.--Not later than 1 year after the date of
enactment of the Food and Energy Security Act of 2007, and
biennially thereafter, the Administrator shall submit to
Congress a report that--
``(1) describes the ways in which the Administrator
determines under subsection (b)(1) that a service enables a
subscriber to originate and receive high-quality voice, data,
graphics, and video; and
``(2) provides a detailed list of services that have been
granted assistance under this section.
``(j) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$25,000,000 for each of fiscal years 2008 through 2012.
``(2) Allocation of funds.--
``(A) In general.--From amounts made available for each
fiscal year under this subsection, the Secretary shall--
``(i) establish a national reserve for loans and loan
guarantees to eligible entities in States under this section;
and
``(ii) allocate amounts in the reserve to each State for
each fiscal year for loans and loan guarantees to eligible
entities in the State.
``(B) Amount.--Based on information available from the most
recent decennial census, the amount of an allocation made to
a State for a fiscal year under subparagraph (A) shall bear
the same ratio to the amount of allocations made for all
States for the fiscal year as--
``(i) the number of communities with a population of 2,500
inhabitants or less in the State; bears to
``(ii) the number of communities with a population of 2,500
inhabitants or less in all States.
``(C) Unobligated amounts.--Any amounts in the reserve
established for a State for a fiscal year under subparagraph
(B) that are not obligated by April 1 of the fiscal year
shall be available to the Secretary to make loans and loan
guarantees under this section to eligible entities in any
State, as determined by the Secretary.
``(k) Termination of Authority.--No loan or loan guarantee
may be made under this section after September 30, 2012.''.
(b) National Center for Rural Telecommunications
Assessment.--Title VI of Rural Electrification Act of 1936 (7
U.S.C. 950bb et seq.) is amended by adding at the end the
following:

``SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS
ASSESSMENT.

``(a) Establishment of Center.--The Secretary shall
designate a National Center for Rural Telecommunications
Assessment (referred to in this section as the `Center').
``(b) Criteria.--In designating the Center, the Secretary
shall ensure that--
``(1) the Center is an entity with a focus on rural policy
research and a minimum of 5 years experience in rural
telecommunications research and assessment;
``(2) the Center is capable of assessing broadband services
in rural areas; and
``(3) the Center has significant experience with other
rural economic development centers and organizations in the
assessment of rural policies and formulation of policy
solutions at the local, State, and Federal levels.
``(c) Duties.--The Center shall--
``(1) assess the effectiveness of programs under this
section in increasing broadband availability and use in rural
areas, especially in those rural communities identified by
the Secretary as having no service before award of a
broadband loan or loan guarantee under section 601(c);

[[Page S14946]]

``(2) develop assessments of broadband availability in
rural areas, working with existing rural development centers
selected by the Center;
``(3) identify policies and initiatives at the local,
State, and Federal level that have increased broadband
availability and use in rural areas;
``(4) conduct national studies of rural households and
businesses focusing on the adoption of, barriers to, and use
of broadband services, with specific attention addressing the
economic, social and educational consequences of
inaccessibility to affordable broadband services;
``(5) provide reports to the public on the activities
carried out and funded under this section; and
``(6) conduct studies and provide recommendations to local,
State, and Federal policymakers on effective strategies to
bring affordable broadband services to rural citizens
residing outside of the municipal boundaries of rural cities
and towns.
``(d) Reporting Requirements.--Not later than December 1,
2008, and each year thereafter through December 1, 2012, the
Center shall submit to the Secretary a report that--
``(1) describes the activities of the Center, the results
of research carried out by the Center, and any additional
information for the preceding fiscal year that the Secretary
may request; and
``(2) includes--
``(A) assessments of the programs carried out under this
section and section 601;
``(B) annual assessments on the effects of the policy
initiatives identified under subsection (c)(3); and
``(C) results from the national studies of rural households
and businesses conducted under subsection (c)(4).
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$1,000,000 for each of fiscal years 2008 through 2012.''.
(c) Regulations.--The Secretary may promulgate such
regulations as are necessary to implement the amendments made
by this section.

SEC. 6111. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

The Rural Electrification Act of 1936 is amended by
inserting after section 306E (7 U.S.C. 936e) the following:

``SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

``(a) Definitions.--In this section:
``(1) Substantially underserved trust area.--The term
`substantially underserved trust area' means a community in
`trust land' (as defined in section 3765 of title 38, United
States Code) in which more than 20 percent of the residents
do not have modern, affordable, or reliable utility services,
as determined by the Secretary.
``(2) Utility service.--The term `utility service' means
electric, telecommunications, broadband, or water service.
``(b) Initiative.--The Secretary, in consultation with
local governments and Federal agencies, may implement an
initiative to identify and improve the availability and
quality of utility services in communities in substantially
underserved trust areas.
``(c) Authority of Secretary.--In carrying out subsection
(b), the Secretary--
``(1) may make available from loan or loan guarantee
programs administered by the Rural Utilities Service to
qualified utilities or applicants financing with an interest
rate as low as 2 percent, and extended repayment terms, for
use in facilitating improved utility service in substantially
underserved trust areas;
``(2) may waive nonduplication restrictions, matching fund
requirements, credit support requirements, or other
regulations from any loan or grant program administered by
the Rural Utilities Service to facilitate the construction,
acquisition, or improvement of infrastructure used to deliver
affordable utility services to substantially underserved
trust areas;
``(3) may assign the highest funding priority to projects
in substantially underserved trust areas;
``(4) shall make any loan or loan guarantee found to be
financially feasible to provide service to substantially
underserved trust areas; and
``(5) may conduct research and participate in regulatory
proceedings to recommend policy changes to enhance utility
service in substantially underserved trust areas.
``(d) Report.--Not later than 1 year after the date of
enactment of this section and annually thereafter, the
Secretary shall submit to Congress a report that describes--
``(1) the progress of the initiative implemented under
subsection (b); and
``(2) recommendations for any regulatory or legislative
changes that would be appropriate to improve services to
substantially underserved trust areas.''.

SEC. 6112. STUDY OF FEDERAL ASSISTANCE FOR BROADBAND
INFRASTRUCTURE.

(a) In General.--The Comptroller General of the United
States shall conduct a study of--
(1) how the Rural Utilities Service takes into account
economic factors in the decisionmaking process of the Service
in allocating Federal broadband benefits;
(2) what other considerations the Rural Utilities Service
takes into account in making benefit awards;
(3) what economic forces prompt Rural Utilities Service
broadband loan applicants to seek Federal funding rather than
relying on the private market alone;
(4) how awards made by the Rural Utilities Service of
Federal benefits impact the expansion of broadband
infrastructure by the private sector; and
(5) what changes to Federal policy are needed to further
encourage technology expansion by private broadband service
providers.
(b) Report.--Not later than 30 months after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes
the results of the study conducted under subsection (a),
including any findings and recommendations.

Subtitle C--Connect the Nation Act

SEC. 6201. SHORT TITLE.

This subtitle may be cited as the ``Connect the Nation
Act''.

SEC. 6202. GRANTS TO ENCOURAGE STATE INITIATIVES TO IMPROVE
BROADBAND SERVICE.

(a) Definitions.--In this section:
(1)  Broadband service.--The term ``broadband service''
means any service that connects the public to the Internet
with a data transmission-rate equivalent that is at least 200
kilobits per second or 200,000 bits per second, or any
successor transmission-rate established by the Federal
Communications Commission for broadband, in at least 1
direction.
(2) Eligible entity.--The term ``eligible entity'' means a
nonprofit organization that, in conjunction with State
agencies and private sector partners, carries out an
initiative under the section to identify and track the
availability and adoption of broadband services within
States.
(3) Nonprofit organization.--The term ``nonprofit
organization'' means an organization that--
(A) is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a)
of that Code;
(B) has net earnings that do not inure to the benefit of
any member, founder, contributor, or individual associated
with the organization;
(C) has an established record of competence and working
with public and private sectors to accomplish widescale
deployment and adoption of broadband services and information
technology; and
(D) has a board of directors that does not have a majority
of individuals who are employed by, or otherwise associated
with, any Federal, State, or local government or agency.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(b) Program.--The Secretary shall award grants to eligible
entities to pay the Federal share of the cost of the
development and implementation of statewide initiatives to
identify and track the availability and adoption of broadband
services within States.
(c) Purposes.--The purpose of a grant made this section
shall be--
(1) to ensure, to the maximum extent practicable, that all
citizens and businesses in States have access to affordable
and reliable broadband service;
(2) to promote improved technology literacy, increased
computer ownership, and home broadband use among those
citizens and businesses;
(3) to establish and empower local grassroots technology
teams in States to plan for improved technology use across
multiple community sectors; and
(4) to establish and sustain an environment that supports
broadband services and information technology investment.
(d)  Eligibility.--To be eligible to receive a grant for an
initiative under this section, an eligible entity shall--
(1) submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary
may require; and
(2) provide matching non-Federal funds in an amount that is
equal to not less than 20 percent of the total cost of the
initiative.
(e) Competitive Basis.--Grants under this section shall be
awarded on a competitive basis.
(f) Peer Review.--
(1) In general.--The Secretary shall require technical and
scientific peer review of applications for grants under this
section.
(2) Review procedures.--The Secretary shall require that
any technical and scientific peer review group--
(A) be provided a written description of the grant to be
reviewed;
(B) provide the results of any review by the group to the
Secretary; and
(C) certify that the group will enter into such voluntary
nondisclosure agreements as are necessary to prevent the
unauthorized disclosure of confidential and propriety
information provided by broadband service providers in
connection with projects funded by a grant under this
section.
(g) Use of Funds.--A grant awarded to an eligible entity
under this section shall be used--
(1) to provide a baseline assessment of broadband service
deployment in 1 or more participating States;
(2) to identify and track--
(A) areas in the participating States that have low levels
of broadband service deployment;
(B) the rate at which individuals and businesses adopt
broadband service and other related information technology
services; and

[[Page S14947]]

(C) possible suppliers of the services;
(3) to identify barriers to the adoption by individuals and
businesses of broadband service and related information
technology services, including whether--
(A) the demand for the services is absent; and
(B) the supply for the services is capable of meeting the
demand for the services;
(4) to create and facilitate in each county or designated
region in the participating States a local technology
planning team--
(A) with members representing a cross section of
communities, including representatives of business,
telecommunications labor organizations, K-12 education,
health care, libraries, higher education, community-based
organizations, local government, tourism, parks and
recreation, and agriculture; and
(B) that shall--
(i) benchmark technology use across relevant community
sectors;
(ii) set goals for improved technology use within each
sector; and
(iii) develop a tactical business plan for achieving the
goals of the team, with specific recommendations for online
application development and demand creation;
(5) to work collaboratively with broadband service
providers and information technology companies to encourage
deployment and use, especially in unserved, underserved, and
rural areas, through the use of local demand aggregation,
mapping analysis, and the creation of market intelligence to
improve the business case for providers to deploy;
(6) to establish programs to improve computer ownership and
Internet access for unserved, underserved, and rural
populations;
(7) to collect and analyze detailed market data concerning
the use and demand for broadband service and related
information technology services;
(8) to facilitate information exchange regarding the use
and demand for broadband services between public and private
sectors; and
(9) to create within the participating States a geographic
inventory map of broadband service that shall--
(A) identify gaps in the service through a method of
geographic information system mapping of service availability
at the census block level; and
(B) provide a baseline assessment of statewide broadband
deployment in terms of households with high-speed
availability.
(h) Participation Limitation.--For each participating
State, an eligible entity may not receive a new grant under
this section to carry out the activities described in
subsection (g) within the participating State if the eligible
entity obtained prior grant awards under this section to
carry out the same activities in the participating State for
each of the previous 4 fiscal years.
(i) Report.--Each recipient of a grant under this section
shall submit to the Secretary a report describing the use of
the funds provided by the grant.
(j) No Regulatory Authority.--Nothing in this section
provides any public or private entity with any regulatory
jurisdiction or oversight authority over providers of
broadband services or information technology.
(k) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $40,000,000 for
each of fiscal years 2008 through 2012.

Subtitle D--Food, Agriculture, Conservation, and Trade Act of 1990

SEC. 6301. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

Section 1670(e) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5923(e)) is amended by striking
``2007'' and inserting ``2012''.

SEC. 6302. TELEMEDICINE, LIBRARY CONNECTIVITY, PUBLIC
TELEVISION, AND DISTANCE LEARNING SERVICES IN
RURAL AREAS.

(a) In General.--Chapter 1 of subtitle D of title XXII of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 950aaa et seq.) is amended in the chapter heading by
striking ``AND DISTANCE LEARNING'' and inserting ``, LIBRARY
CONNECTIVITY, PUBLIC TELEVISION, AND DISTANCE LEARNING''.
(b) Purpose.--Section 2331 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa) is
amended by striking ``telemedicine services and distance
learning'' and inserting ``telemedicine services, library
connectivity, and distance learning''.
(c) Definitions.--Section 2332 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-1) is
amended--
(1) by redesignating paragraphs (1) through (3) as
paragraphs (2) through (4), respectively; and
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Connectivity.--The term `connectivity' means the
ability to use a range of high-speed digital services or
networks.''.
(d) Telemedicine, Library Connectivity, and Distance
Learning Services in Rural Areas.--Section 2333 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
950aaa-2) is amended--
(1) in the section heading, by striking ``AND DISTANCE
LEARNING'' and inserting ``, LIBRARY CONNECTIVITY, PUBLIC
TELEVISION, AND DISTANCE LEARNING'';
(2) in subsection (a), by striking ``construction of
facilities and systems to provide telemedicine services and
distance learning services'' and inserting ``construction and
use of facilities and systems to provide telemedicine
services, library connectivity, distance learning services,
and public television station digital conversion'';
(3) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) Form.--The Secretary shall establish by notice the
amount of the financial assistance available to applicants in
the form of grants, costs of money loans, combinations of
grants and loans, or other financial assistance so as to--
``(A)(i) further the purposes of this chapter; and
``(ii) in the case of loans, result in the maximum feasible
repayment to the Federal Government of the loan; and
``(B) to ensure that funds made available to carry out this
chapter are used to the maximum extent practicable to assist
useful and needed projects.'';
(4) in subsection (c)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by striking
``financial assistance'' and inserting ``assistance in the
form of grants'';
(ii) in subparagraph (A), by striking ``and'' at the end;
(iii) in subparagraph (B)--

(I) by striking ``service or distance'' and inserting
``services, library connectivity services, public television
station digital conversion, or distance'';
(II) by striking the period at the end and inserting a
semicolon; and
(III) by adding at the end the following:

``(C) libraries or library support organizations;
``(D) public television stations and the parent
organizations of public television stations; and
``(E) schools, libraries, and other facilities operated by
the Bureau of Indian Affairs or the Indian Health Service.'';
(B) in paragraph (4), by striking ``services or distance''
and inserting ``service, library connectivity, public
television station digital conversion, or distance''; and
(C) by adding at the end the following:
``(5) Public television grants.--The Secretary shall
establish a separate competitive process to determine the
allocation of grants under this chapter to public television
stations.'';
(5) in subsection (d)--
(A) in the matter preceding paragraph (1), by inserting ``1
or more of'' after ``considering'';
(B) in paragraph (12), by striking ``and'' at the end;
(C) by redesignating paragraph (13) as paragraph (14); and
(D) by inserting after paragraph (12) the following:
``(13) the cost and availability of high-speed network
access; and'';
(6) by striking subsection (f) and inserting the following:
``(f) Use of Funds.--Financial assistance provided under
this chapter shall be used for--
``(1) the development, acquisition, and digital
distribution of instructional programming to rural users;
``(2) the development and acquisition, through lease or
purchase, of computer hardware and software, audio and visual
equipment, computer network components, telecommunications
terminal equipment, telecommunications transmission
facilities, data terminal equipment, or interactive video
equipment, teleconferencing equipment, or other facilities
that would further telemedicine services, library
connectivity, or distance learning services;
``(3) the provision of technical assistance and instruction
for the development or use of the programming, equipment, or
facilities referred to in paragraphs (1) and (2);
``(4) the acquisition of high-speed network transmission
equipment or services that would not otherwise be available
or affordable to the applicant;
``(5) costs relating to the coordination and collaboration
among and between libraries on connectivity and universal
service initiatives, or the development of multi-library
connectivity plans that benefit rural users; or
``(6) other uses that are consistent with this chapter, as
determined by the Secretary.''; and
(7) in subsection (i)--
(A) in paragraph (1), by striking ``telemedicine or
distance'' and inserting ``telemedicine, library
connectivity, public television station digital conversion,
or distance''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``telemedicine or
distance'' and inserting ``telemedicine, library
connectivity, or distance''; and
(ii) in subparagraph (B), by inserting ``nonproprietary
information contained in'' before ``the applications''.
(e) Administration.--Section 2334 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-3) is
amended--
(1) in subsection (a), by striking ``services or distance''
and inserting ``services, library connectivity, or
distance''; and
(2) in subsection (d), by striking ``or distance learning''
and all that follows through the end of the subsection and
inserting ``, library connectivity, or distance learning

[[Page S14948]]

services through telecommunications in rural areas.''.
(f) Authorization of Appropriations.--Section 2335A of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 950aaa-5) is amended by striking ``2007'' and
inserting ``2012''.
(g) Conforming Amendment.--Section 1(b) of Public Law 102-
551 (7 U.S.C. 950aaa note; Public Law 102-551) is amended by
striking ``2007'' and inserting ``2012''.

Subtitle E--Miscellaneous

SEC. 6401. VALUE-ADDED AGRICULTURAL PRODUCT MARKET
DEVELOPMENT GRANTS.

(a) Definitions.--Section 231 of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
224) is amended by striking subsection (a) and inserting the
following:
``(a) Definitions.--In this section:
``(1) Assisting organization.--The term `assisting
organization' means a nonprofit organization, institution of
higher education, or units of government with expertise, as
determined by the Secretary, to assist eligible producers and
entities described in subsection (b)(1) through--
``(A) the provision of market research, training, or
technical assistance; or
``(B) the development of supply networks for value-added
products that strengthen the profitability of small and mid-
sized family farms.
``(2) Technical assistance.--The term `technical
assistance' means managerial, financial, operational, and
scientific analysis and consultation to assist an individual
or entity (including a recipient or potential recipient of a
grant under this section)--
``(A) to identify and evaluate practices, approaches,
problems, opportunities, or solutions; and
``(B) to assist in the planning, implementation,
management, operation, marketing, or maintenance of projects
authorized under this section.
``(3) Value-added agricultural product.--
``(A) In general.--The term `value-added agricultural
product' means any agricultural commodity or product that--
``(i)(I) has undergone a change in physical state;
``(II) was produced in a manner that enhances the value of
the agricultural commodity or product, as demonstrated
through a business plan that shows the enhanced value, as
determined by the Secretary; or
``(III) is physically segregated in a manner that results
in the enhancement of the value of the agricultural commodity
or product; and
``(ii) as a result of the change in physical state or the
manner in which the agricultural commodity or product was
produced, marketed, or segregated--

``(I) the customer base for the agricultural commodity or
product has been expanded; and
``(II) a greater portion of the revenue derived from the
marketing, processing, or physical segregation of the
agricultural commodity or product is available to the
producer of the commodity or product.

``(B) Inclusion.--The term `value-added agricultural
products' includes--
``(i) farm- or ranch-based renewable energy, including the
sale of E-85 fuel; and
``(ii) the aggregation and marketing of locally-produced
agricultural food products.''.
(b) Grant Program.--Section 231(b) of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
224) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking ``exceed $500,000''
and inserting ``exceed--
``(i) $300,000 in the case of grants including working
capital; and
``(ii) $100,000 in the case of all other grants.''; and
(B) by adding at the end the following:
``(C) Research, training, technical assistance, and
outreach.--The amount of grant funds provided to an assisting
organization for a fiscal year may not exceed 10 percent of
the total amount of funds that are used to make grants for
the fiscal year under this subsection.'';
(2) in paragraph (3)--
(A) in subparagraph (A), by striking ``or'' at the end;
(B) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(C) to conduct market research, provide training and
technical assistance, develop supply networks, or provide
program outreach.''; and
(3) by striking paragraph (4) and inserting the following:
``(4) Term.--A grant under this section shall have a term
that does not exceed 3 years.
``(5) Simplified application.--The Secretary shall offer a
simplified application form and process for project proposals
requesting less than $50,000.
``(6) Priority.--
``(A) In general.--In awarding grants, the Secretary shall
give the priority to projects that--
``(i) contribute to increasing opportunities for beginning
farmers or ranchers, socially disadvantaged farmers or
ranchers, and operators of small- and medium-sized farms and
ranches that are not larger than family farms; and
``(ii) support new ventures that do not have well-
established markets or product development staffs and
budgets, including the development of local food systems and
the development of infrastructure to support local food
systems.
``(B) Participation.--To the maximum extent practicable,
the Secretary shall provide grants to projects that provide
training and outreach activities in areas that have, as
determined by the Secretary, received relatively fewer grants
than other areas.
``(7) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection for each of fiscal years 2008
through 2012.''.

SEC. 6402. STUDY OF RAILROAD ISSUES.

(a) In General.--The Secretary, in coordination with the
Secretary of Transportation, shall conduct a study of
railroad issues regarding the movement of agricultural
products, domestically-produced renewable fuels, and
domestically-produced resources for the production of
electricity in rural areas of the United States and for
economic development in rural areas of the United States.
(b) Issue.--In conducting the study, the Secretary shall
include an examination of--
(1) the importance of freight railroads to--
(A) the delivery of equipment, seed, fertilizer, and other
products that are important to the development of
agricultural commodities and products;
(B) the movement of agricultural commodities and products
to market; and
(C) the delivery of ethanol and other renewable fuels;
(2) the sufficiency in rural areas of the United States
of--
(A) railroad capacity;
(B) competition in the railroad system; and
(C) the reliability of rail service; and
(3) the accessibility to rail customers in rural areas of
the United States to Federal processes for the resolution of
rail customer grievances with the railroads.
(c) Report.--Not later than 270 days after the date of
enactment of this Act, the Secretary shall submit to Congress
a report that describes--
(1) the results of the study conducted under this section;
and
(2) the recommendations of the Secretary for new Federal
policies to address any problems identified by the study.

SEC. 6403. INSURANCE OF LOANS FOR HOUSING AND RELATED
FACILITIES FOR DOMESTIC FARM LABOR.

Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C.
1484(f)(3)) is amended by striking ``or the handling of such
commodities in the unprocessed stage'' and inserting ``, the
handling of agricultural or aquacultural commodities in the
unprocessed stage, or the processing of agricultural or
aquacultural commodities''.

TITLE VII--RESEARCH AND RELATED MATTERS

Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977

SEC. 7001. DEFINITIONS.

Section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is
amended--
(1) in paragraph (4)--
(A) by redesignating subparagraphs (A) through (E) as
clauses (i) through (v), respectively;
(B) by striking ``(4) The terms'' and inserting the
following:
``(4) College and university.--
``(A) In general.--The terms''; and
(C) by adding at the end the following:
``(B) Inclusions.--The terms `college' and `university'
include a research foundation maintained by a college or
university described in subparagraph (A).'';
(2) by redesignating paragraphs (6) through (8), (9)
through (14), (15), and (16) as paragraphs (7) through (9),
(11) through (16), (19), and (6), respectively, and moving
the paragraphs so as to appear in alphabetical order;
(3) by inserting after paragraph (9) (as redesignated by
paragraph (2)) the following:
``(10) Hispanic-serving agricultural colleges and
universities.--The term `Hispanic-serving agricultural
colleges and universities' means a college or university
that--
``(A) qualifies as a Hispanic-serving institution; and
``(B) offers associate, bachelor's, or other accredited
degree programs in agriculture-related fields.''; and
(4) by striking paragraph (11) (as so redesignated) and
inserting the following:
``(11) Hispanic-serving institution.--The term `Hispanic-
serving institution' has the meaning given the term in
section 502(a) of the Higher Education Act of 1965 (20 U.S.C.
1101a(a)).''.

SEC. 7002. NATIONAL AGRICULTURAL RESEARCH, EXTENSION,
EDUCATION, AND ECONOMICS ADVISORY BOARD.

Section 1408(h) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h))
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7003. VETERINARY MEDICINE LOAN REPAYMENT.

Section 1415A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3151a)
is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Regulations.--Not later than 270 days after the date
of enactment of the Food and Energy Security Act of 2007, the
Secretary shall promulgate regulations to carry out this
section.''.

[[Page S14949]]

SEC. 7004. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF
COLUMBIA FOR GRANTS AND FELLOWSHIPS FOR FOOD
AND AGRICULTURAL SCIENCES EDUCATION.

Section 1417 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is
amended--
(1) in the matter preceding paragraph (1) of subsection
(b), by inserting ``(including the University of the District
of Columbia)'' after ``land-grant colleges and
universities''; and
(2) in subsection (d)(2), by inserting ``(including the
University of the District of Columbia)'' after
``universities''.

SEC. 7005. GRANTS TO 1890 INSTITUTIONS TO EXPAND EXTENSION
CAPACITY.

Section 1417(b)(4) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(b)(4)) is amended by striking ``teaching and research''
and inserting ``teaching, research, and extension''.

SEC. 7006. EXPANSION OF FOOD AND AGRICULTURAL SCIENCES
AWARDS.

Section 1417(i) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(i))
is amended--
(1) in the subsection heading, by striking ``Teaching
Awards '' and ``Teaching, Extension, and Research Awards'';
and
(2) by striking paragraph (1) and inserting the following:
``(1) Establishment.--
``(A) In general.--The Secretary shall establish a National
Food and Agricultural Sciences Teaching, Extension, and
Research Awards program to recognize and promote excellence
in teaching, extension, and research in the food and
agricultural sciences at a college or university.
``(B) Minimum requirement.--The Secretary shall make at
least 1 cash award in each fiscal year to a nominee selected
by the Secretary for excellence in each of the areas of
teaching, extension, and research of food and agricultural
science at a college or university.''.

SEC. 7007. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL
SCIENCES EDUCATION.

(a) Education Teaching Programs.--Section 1417(j) of the
National Agricultural Research, Extension and Teaching Policy
Act of 1977 (7 U.S.C. 3152(j)) is amended--
(1) in the subsection heading, by striking ``and 2-Year
Postsecondary Education Teaching Programs'' and inserting ``,
2-Year Postsecondary Education, and Agriculture in the K-12
Classroom''; and
(2) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by striking
``and institutions of higher education that award an
associate's degree'' and inserting ``, institutions of higher
education that award an associate's degree, other
institutions of higher education, and nonprofit
organizations'';
(B) in subparagraph (E), by striking ``and'' at the end;
(C) in subparagraph (F), by striking the period at the end
and inserting ``; and''; and
(D) by adding at the end the following:
``(G) to support current agriculture in the classroom
programs for grades K-12.''.
(b) Authorization of Appropriations.--Section 1417(l) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3152(l)) is amended by striking
``2007'' and inserting ``2012''.
(c) Report.--Section 1417 of the National Agricultural
Research, Extension and Teaching Policy Act of 1977 (7 U.S.C.
3152) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Report.--The Secretary shall submit an annual report
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate describing the distribution of
funds used to implement teaching programs under subsection
(j).''.

SEC. 7008. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF
ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM
AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

Section 1419(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d))
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7009. POLICY RESEARCH CENTERS.

Section 1419A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is
amended--
(1) in subsection (b), by inserting ``(including the Food
Agricultural Policy Research Institute, the Agricultural and
Food Policy Center, the Rural Policy Research Institute, and
the Community Vitality Center)'' after ``research
institutions and organizations''; and
(2) in subsection (d), by striking ``2007'' and inserting
``2012''.

SEC. 7010. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION
RESEARCH PROGRAM.

Section 1424(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d))
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7011. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND
AGRICULTURAL RESEARCH.

Section 1424A(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3174a(d)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 7012. NUTRITION EDUCATION PROGRAM.

(a) Definitions.--Section 1425 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3175) is amended--
(1) by redesignating subsections (a) through (c) as
subsections (b) through (d), respectively;
(2) by striking the section heading and ``Sec. 1425.'' and
inserting the following:

``SEC. 1425. NUTRITION EDUCATION PROGRAM.

``(a) Definitions.--In this section, the terms `1862
Institution' and `1890 Institution' have the meaning given
those terms in section 2 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7601).'';
(3) in subsection (b) (as redesignated by paragraph (1)),
by striking ``The Secretary'' and inserting the following:
``(b) Establishment.--The Secretary''; and
(4) in subsection (c) (as so redesignated), by striking
``In order to enable'' and inserting the following:
``(c) Employment and Training.--To enable''.
(b) Funding to 1862, 1890, and Insular Area Institutions.--
Subsection (d) of section 1425 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3175) (as redesignated by subsection (a)(1)) is
amended--
(1) in the matter preceding paragraph (1), by striking
``Beginning'' and inserting the following:
``(d) Allocation of Funding.--Beginning''; and
(2) in paragraph (2), by striking subparagraph (B) and
inserting the following:
``(B) Notwithstanding section 3(d)(2) of the Act of May 8,
1914 (7 U.S.C. 343(d)(2)), the remainder shall be allocated
among the States as follows:
``(i) $100,000 shall be distributed to each 1862 and 1890
land-grant college and university.
``(ii)(I) Subject to subclause (II), of the remainder, 10
percent for fiscal year 2008, 11 percent for fiscal year
2009, 12 percent for fiscal year 2010, 13 percent for fiscal
year 2011, 14 percent for fiscal year 2012, and 15 percent
for each fiscal year thereafter, shall be distributed among
the 1890 Institutions, to be allocated to each 1890
Institution in an amount that bears the same ratio to the
total amount to be allocated under this clause as--

``(aa) the population living at or below 125 percent of the
income poverty guidelines (as prescribed by the Office of
Management and Budget and as adjusted pursuant to section
673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2))) in the State in which the 1890 Institution is
located; bears to
``(bb) the total population living at or below 125 percent
of the income poverty guidelines in all States that have 1890
Institutions, as determined by the last preceding decennial
census at the time each such additional amount is first
appropriated.

``(II) The total amount allocated under this clause shall
not exceed the amount of the funds appropriated for the
conduct of the expanded food and nutrition education program
for the fiscal year that are in excess of the amount
appropriated for the conduct of the program for fiscal year
2007.
``(iii)(I) Subject to subclauses (II) and (III), the
remainder shall be allocated to the 1860 institution in each
State (including the appropriate insular area institution and
the University of the District of Columbia) in an amount that
bears the same ratio to the total amount to be allocated
under this subparagraph as--

``(aa) the population of the State living at or below 125
percent of the income poverty guidelines prescribed by the
Office of Management and Budget (adjusted pursuant to section
673(2) of the Omnibus Budget Reconciliation Act of 1981 (42
U.S.C. 9902(2))); bears to
``(bb) the total population of all the States living at or
below 125 percent of the income poverty guidelines, as
determined by the last preceding decennial census at the time
each such additional amount is first appropriated.

``(II) The total amount allocated under this clause to the
University of the District of Columbia shall not exceed the
amount described in clause (ii)(II), reduced by the amount
allocated to the University of the District of Columbia under
clause (ii).
``(III) Nothing in this clause precludes the Secretary from
developing educational materials and programs for persons in
income ranges above the level designated in this clause.''.
(c) Authorization of Appropriations.--Subsection (d)(3) of
section 1425 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175)
(as redesignated by subsection (a)(1)) is amended--
(1) by striking ``There is'' and inserting the following:
``(3) Authorization of appropriations.--There is''; and
(2) by striking ``$83,000,000 for each of fiscal years 1996
through 2007'' and inserting ``$90,000,000 for each of fiscal
years 2008 through 2012''.
(d) Conforming Amendment.--Section 1588(b) of the Food
Security Act of 1985 (7 U.S.C. 3175e(b)) is amended by
striking ``section 1425(c)(2)'' and inserting ``section
1425(d)(2)''.
(e) Effective Date.--The amendments made by this section
take effect on October 1, 2007.

[[Page S14950]]

SEC. 7013. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH
PROGRAMS.

Section 1433(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a))
is amended in the first sentence by striking ``2007'' and
inserting ``2012''.

SEC. 7014. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR
REGIONAL PROBLEMS.

Section 1434(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a))
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7015. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM.

Section 1434(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(b))
is amended by inserting after ``universities'' the following:
``(including 1890 Institutions (as defined in section 2 of
the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7601)))''.

SEC. 7016. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-
GRANT COLLEGES.

Section 1444(a)(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3221(a)(2)) is amended by striking ``15 percent'' and
inserting ``20 percent''.

SEC. 7017. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT
1890 LAND-GRANT COLLEGES.

Section 1445(a)(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222(a)(2)) is amended by striking ``25 percent'' and
inserting ``30 percent''.

SEC. 7018. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES
FACILITIES AT 1890 LAND-GRANT COLLEGES,
INCLUDING TUSKEGEE UNIVERSITY.

Section 1447(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222b(b)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 7019. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AT THE DISTRICT OF COLUMBIA LAND
GRANT UNIVERSITY.

The National Agricultural Research, Extension, and Teaching
Policy Act of 1977 is amended by inserting after section 1447
(7 U.S.C. 3222b) the following:

``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AT THE DISTRICT OF COLUMBIA LAND
GRANT UNIVERSITY.

``(a) Purpose.--It is the intent of Congress to assist the
land grant university in the District of Columbia established
under section 208 of the District of Columbia Public
Postsecondary Education Reorganization Act (Public Law 93-
471; 88 Stat. 1428) in efforts to acquire, alter, or repair
facilities or relevant equipment necessary for conducting
agricultural research.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$750,000 for each of fiscal years 2008 through 2012.''.

SEC. 7020. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

Section 1448 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c)
is amended by striking ``2007'' each place it appears in
subsections (a)(1) and (f) and inserting ``2012''.

SEC. 7021. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND
EXTENSION ACTIVITIES OF 1890 INSTITUTIONS.

Section 1449(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222d(c)) is amended in the first sentence by striking
``2007'' and inserting ``2012.''.

SEC. 7022. HISPANIC-SERVING INSTITUTIONS.

Section 1455 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241) is
amended--
(1) in subsection (a) by striking ``(or grants without
regard to any requirement for competition)'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``of consortia'';
(B) in paragraph (3), by striking ``, beginning with the
mentoring of students'' and all that follows through
``doctoral degree''; and
(C) in paragraph (4)--
(i) by striking ``2 or more''; and
(ii) by striking ``, or between Hispanic-serving'' and all
that follows through ``the private sector,''; and
(3) in subsection (c)--
(A) by striking ``$20,000,000'' and inserting
``$40,000,000''; and
(B) by striking ``2007'' and inserting ``2012''.

SEC. 7023. HISPANIC-SERVING AGRICULTURAL COLLEGES AND
UNIVERSITIES.

(a) In General.--The National Agricultural Research,
Extension and Teaching Policy Act of 1977 is amended by
inserting after section 1455 (7 U.S.C. 3241) the following:

``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND
UNIVERSITIES.

``(a) Definition of Endowment Fund.--In this section, the
term `endowment fund' means the Hispanic-Serving Agricultural
Colleges and Universities Fund established under subsection
(b).
``(b) Endowment.--
``(1) In general.--The Secretary of the Treasury shall
establish in accordance with this subsection a Hispanic-
Serving Agricultural Colleges and Universities Fund.
``(2) Agreements.--The Secretary of the Treasury may enter
into such agreements as are necessary to carry out this
subsection.
``(3) Deposit to the endowment fund.--The Secretary of the
Treasury shall deposit in the endowment fund any--
``(A) amounts made available through Acts of
appropriations, which shall be the endowment fund corpus; and
``(B) interest earned on the endowment fund corpus.
``(4) Investments.--The Secretary of the Treasury shall
invest the endowment fund corpus and income in interest-
bearing obligations of the United States.
``(5) Withdrawals and expenditures.--
``(A) Corpus.--The Secretary of the Treasury may not make a
withdrawal or expenditure from the endowment fund corpus.
``(B) Withdrawals.--On September 30, 2008, and each
September 30 thereafter, the Secretary of the Treasury shall
withdraw the amount of the income from the endowment fund for
the fiscal year and warrant the funds to the Secretary of
Agriculture who, after making adjustments for the cost of
administering the endowment fund, shall distribute the
adjusted income as follows:
``(i) 60 percent shall be distributed among the Hispanic-
serving agricultural colleges and universities on a pro rata
basis based on the Hispanic enrollment count of each
institution.
``(ii) 40 percent shall be distributed in equal shares to
the Hispanic-serving agricultural colleges and universities.
``(6) Endowments.--Amounts made available under this
subsection shall be held and considered to be granted to
Hispanic-serving agricultural colleges and universities to
establish an endowment in accordance with this subsection.
``(7) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year
2008 and each fiscal year thereafter.
``(c) Authorization for Annual Payments.--
``(1) In general.--For fiscal year 2008 and each fiscal
year thereafter, there are authorized to be appropriated to
the Department of Agriculture to carry out this subsection an
amount equal to the product obtained by multiplying--
``(A) $80,000; by
``(B) the number of Hispanic-serving agricultural colleges
and universities.
``(2) Payments.--For fiscal year 2008 and each fiscal year
thereafter, the Secretary of the Treasury shall pay to the
treasurer of each Hispanic-Serving agricultural college and
university an amount equal to--
``(A) the total amount made available by appropriations
under subparagraph (A); divided by
``(B) the number of Hispanic-serving agricultural colleges
and universities.
``(3) Use of funds.--
``(A) In general.--Amounts authorized to be appropriated
under this subsection shall be used in the same manner as is
prescribed for colleges under the Act of August 30, 1890
(commonly known as the `Second Morrill Act') (7 U.S.C. 321 et
seq.).
``(B) Relationship to other law.--Except as otherwise
provided in this subsection, the requirements of that Act
shall apply to Hispanic-serving agricultural colleges and
universities under this section.
``(d) Institutional Capacity-Building Grants.--
``(1) In general.--For fiscal year 2008 and each fiscal
year thereafter, the Secretary shall make grants to assist
Hispanic-serving agricultural colleges and universities in
institutional capacity building (not including alteration,
repair, renovation, or construction of buildings).
``(2) Criteria for institutional capacity-building
grants.--
``(A) Requirements for grants.--The Secretary shall make
grants under this subsection on the basis of a competitive
application process under which Hispanic-serving agricultural
colleges and universities may submit applications to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(B) Demonstration of need.--
``(i) In general.--As part of an application for a grant
under this subsection, the Secretary shall require the
applicant to demonstrate need for the grant, as determined by
the Secretary.
``(ii) Other sources of funding.--The Secretary may award a
grant under this subsection only to an applicant that
demonstrates a failure to obtain funding for a project after
making a reasonable effort to otherwise obtain the funding.
``(C) Payment of non-federal share.--A grant awarded under
this subsection shall be made only if the recipient of the
grant pays a non-Federal share in an amount that is specified
by the Secretary and based on assessed institutional needs.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year
2008 and each fiscal year thereafter.
``(e) Competitive Grants Program.--
``(1) In general.--The Secretary shall establish a
competitive grants program to fund fundamental and applied
research at Hispanic-serving agricultural colleges and
universities in agriculture, human nutrition, food science,
bioenergy, and environmental science.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year
2008 and each fiscal year thereafter.''.

[[Page S14951]]

(b) Extension.--Section 3 of the Smith-Lever Act (7 U.S.C.
343) is amended--
(1) in subsection (b), by adding at the end the following:
``(4) Annual appropriation for hispanic-serving
agricultural colleges and universities.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this paragraph for fiscal year
2008 and each fiscal year thereafter.
``(B) Additional amount.--Amounts made available under this
paragraph shall be in addition to any other amounts made
available under this section to States, the Commonwealth of
Puerto Rico, or any other territory or possession of the
United States.
``(C) Administration.--Amounts made available under this
paragraph shall be--
``(i) distributed on the basis of a competitive application
process to be developed and implemented by the Secretary and
paid by the Secretary to the State institutions established
in accordance with the Act of July 2, 1862 (commonly known as
the `First Morrill Act') (7 U.S.C. 301 et seq.); and
``(ii) administered by State institutions through
cooperative agreements with the Hispanic-serving agricultural
colleges and universities (as defined in section 1456 of the
National Agricultural Research, Extension and Teaching Policy
Act of 1977) in the State in accordance with regulations
promulgated by the Secretary.''; and
(2) in subsection (f)--
(A) in the subsection heading, by inserting ``and Hispanic-
Serving Agricultural Colleges and Universities'' after ``1994
Institutions''; and
(B) by striking ``pursuant to subsection (b)(3)'' and
inserting ``or Hispanic-serving agricultural colleges and
universities in accordance with paragraphs (3) and (4) of
subsection (b)''.

SEC. 7024. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION,
AND EDUCATION.

Section 1458(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a))
is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``and'' after the
semicolon;
(B) in subparagraph (B), by adding ``and'' at the end; and
(C) by adding at the end the following:
``(C) giving priority to those institutions with existing
memoranda of understanding, agreements, or other formal ties
to United States institutions, or Federal or State
agencies;'';
(2) in paragraph (3), by inserting ``Hispanic-serving
agricultural colleges and universities,'' after
``universities,'';
(3) in paragraph (7)(A), by striking ``and land-grant
colleges and universities'' and inserting ``, land-grant
colleges and universities, and Hispanic-serving agricultural
colleges and universities'';
(4) in paragraph (9)--
(A) in subparagraph (A), by striking ``or other colleges
and universities'' and inserting ``, Hispanic-serving
agricultural colleges and universities, or other colleges and
universities''; and
(B) in subparagraph (D), by striking ``and'' at the end;
(5) in paragraph (10), by striking the period at the end
and inserting ``; and''; and
(6) by adding at the end the following:
``(11) establish a program for the purpose of providing
fellowships to United States or foreign students to study at
foreign agricultural colleges and universities working under
agreements provided for under paragraph (3).''.

SEC. 7025. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL
SCIENCE AND EDUCATION PROGRAMS.

Section 1459A(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3292b(c)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 7026. INDIRECT COSTS.

Section 1462(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310(a))
is amended by striking ``shall not exceed 19 percent'' and
inserting ``shall be the negotiated indirect rate of cost
established for an institution by the appropriate Federal
audit agency for the institution, not to exceed 30 percent''.

SEC. 7027. RESEARCH EQUIPMENT GRANTS.

Section 1462A(e) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3310a(e)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 7028. UNIVERSITY RESEARCH.

Section 1463 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is
amended by striking ``2007'' each place it appears in
subsections (a) and (b) and inserting ``2012''.

SEC. 7029. EXTENSION SERVICE.

Section 1464 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is
amended by striking ``2007'' and inserting ``2012''.

SEC. 7030. SUPPLEMENTAL AND ALTERNATIVE CROPS.

Section 1473D(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3319d(a)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 7031. AQUACULTURE RESEARCH FACILITIES.

(a) Fish Disease Program.--Section 1475(f) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3322(f)) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary''; and
(2) by adding at the end the following:
``(2) Viral hemorrhagic septicemia.--
``(A) In general.--The study of viral hemorrhagic
septicemia (referred to in this paragraph as `VHS') and VHS
management shall be considered an area of priority research
under this subsection.
``(B) Consultation.--
``(i) In general.--The Secretary shall consult with
appropriate directors of State natural resource management
and agriculture agencies in areas that are VHS positive as of
the date of enactment of this paragraph to develop and
implement a comprehensive set of priorities for managing VHS,
including providing funds for research into the spread and
control of the disease, surveillance, monitoring, risk
evaluation, enforcement, screening, education and outreach,
and management.
``(ii) Consideration.--The Secretary shall provide special
consideration to the recommendations of the directors
described in clause (i) in the development of the VHS
priorities.''.
(b) Authorization of Appropriations.--Section 1477 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3324) is amended by striking
``2007'' and inserting ``2012''.

SEC. 7032. RANGELAND RESEARCH.

(a) Grants.--Section 1480(a) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3333(a)) is amended--
(1) in paragraph (1), by striking ``; and'' and inserting a
semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) pilot programs to coordinate and conduct
collaborative projects to address natural resources
management issues and facilitate the collection of
information and analysis to provide Federal and State
agencies, private landowners, and the public with information
to allow for improved management of public and private
rangeland.''.
(b) Matching Requirements.--Section 1480(b)(2) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3333(b)(2)) is amended by
striking ``subsection (a)(2)'' and inserting ``paragraph (2)
or (3) of subsection (a)''.
(c) Authorization of Appropriations.--Section 1483(a) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking
``2007'' and inserting ``2012''.

SEC. 7033. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND
RESPONSE.

Section 1484(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a))
is amended by striking ``2007'' and inserting ``2012''.

SEC. 7034. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS
PROGRAM FOR INSULAR AREA INSTITUTIONS OF HIGHER
EDUCATION.

(a) Distance Education Grants for Insular Areas.--Section
1490(f) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by
striking ``2007'' and inserting ``2012''.
(b) Resident Instruction Grants for Insular Areas.--Section
1491 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3363) is amended--
(1) by redesignating subsection (e) as subsection (c); and
(2) in subsection (c) (as so redesignated), by striking
``2007'' and inserting ``2012''.

SEC. 7035. FARM MANAGEMENT TRAINING AND PUBLIC FARM
BENCHMARKING DATABASE.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 is amended by
inserting after section 1467 (7 U.S.C. 3313) the following:

``SEC. 1468. FARM MANAGEMENT TRAINING AND PUBLIC FARM
BENCHMARKING DATABASE.

``(a) Definitions.--In this section:
``(1) Benchmark, benchmarking.--The term `benchmark' or
`benchmarking' means the process of comparing the performance
of an agricultural enterprise against the performance of
other similar enterprises, through the use of comparable and
reliable data, in order to identify business management
strengths, weaknesses, and steps necessary to improve
management performance and business profitability.
``(2) Farm management association.--The term `farm
management association' means a public or nonprofit
organization or educational program--
``(A) the purpose of which is to assist farmers, ranchers,
and other agricultural operators to improve financial
management and business profitability by providing training
on farm financial planning and analysis, record keeping, and
other farm management topics; and
``(B) that is affiliated with a land-grant college or
university, other institution of higher education, or
nonprofit entity.
``(3) National farm management center.--The term `National
Farm Management Center' means a land-grant college or
university that, as determined by the Secretary--
``(A) has collaborative partnerships with more than 5 farm
management associations

[[Page S14952]]

that are representative of agricultural diversity in multiple
regions of the United States;
``(B) has maintained and continues to maintain farm
financial analysis software applicable to the production and
management of a wide range of crop and livestock agricultural
commodities (including some organic commodities);
``(C) has established procedures that enable producers--
``(i) to benchmark the farms of the producers against peer
groups; and
``(ii) to query the benchmarking database by location, farm
type, farm size, and commodity at the overall business and
individual enterprise levels; and
``(D) has provided and continues to provide public online
access to farm and ranch financial benchmarking databases.
``(b) Establishment.--
``(1) In general.--The Secretary shall establish a National
Farm Management Center to improve the farm management
knowledge and skills of individuals directly involved in
production agriculture through--
``(A) participation in a farm management education and
training program; and
``(B) direct access to a public farm benchmarking database.
``(2) Proposals.--The Secretary shall request proposals
from appropriate land-grant colleges and universities for the
establishment of a National Farm Management Center in
accordance with this section.
``(3) Requirements.--The National Farm Management Center
established under paragraph (1) shall--
``(A) coordinate standardized financial analysis
methodologies for use by farmers, ranchers, other
agricultural operators, and farm management associations;
``(B) provide the software tools necessary for farm
management associations, farmers, ranchers, and other
agricultural operators to perform the necessary financial
analyses, including the benchmarking of individual
enterprises; and
``(C) develop and maintain a national farm financial
database to facilitate those financial analyses and
benchmarking that is available online to farmers, ranchers,
other agricultural operators, farm management associations,
and the public.
``(c) Administrative Expenses.--Not more than 8 percent of
the funds made available to carry out this section may be
used for the payment of administrative expenses of the
Department of Agriculture in carrying out this section.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.

SEC. 7036. TROPICAL AND SUBTROPICAL AGRICULTURAL RESEARCH.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) is amended by adding at the end the following:

``SEC. 1473E. TROPICAL AND SUBTROPICAL AGRICULTURAL RESEARCH.

``(a) Definition of Caribbean and Pacific Basins.--In this
section, the term `Caribbean and Pacific basins', means--
``(1) the States of Florida and Hawaii;
``(2) the Commonwealth of Puerto Rico;
``(3) the United States Virgin Islands;
``(4) Guam;
``(5) American Samoa;
``(6) the Commonwealth of the Northern Mariana Islands;
``(7) the Federated States of Micronesia;
``(8) the Republic of the Marshall Islands; and
``(9) the Republic of Palau.
``(b) Establishment.--The Secretary shall establish a
program, to be known as the `Tropical and Subtropical
Agricultural Research Program', to sustain the agriculture
and environment of the Caribbean and Pacific basins, by
supporting the full range of research relating to food and
agricultural sciences in the Caribbean and Pacific basins,
with an emphasis on--
``(1) pest management;
``(2) deterring introduction and establishment of invasive
species;
``(3) enhancing existing and developing new tropical and
subtropical agricultural products; and
``(4) expanding value-added agriculture in tropical and
subtropical ecosystems.
``(c) Grants.--
``(1) In general.--In carrying out this section, the
Secretary shall provide grants to be awarded competitively to
support tropical and subtropical agricultural research in the
Caribbean and Pacific basins.
``(2) Eligible entities.--To be eligible to receive a
grant, an entity shall be a land-grant college or university,
or affiliated with a land-grant college or university, that
is located in any region of the Caribbean and Pacific basin.
``(3) Requirements.--
``(A) Equal amounts.--The total amount of grants provided
under this subsection shall be equally divided between the
Caribbean and Pacific basins, as determined by the Secretary.
``(B) Research infrastructure and capability priority.--In
providing grants under this subsection, the Secretary shall
give priority to projects of eligible entities that--
``(i) expand the infrastructure and capability of the
region of the eligible entity;
``(ii) scientifically and culturally address regional
agricultural and environmental challenges; and
``(iii) sustain agriculture in the region of the eligible
entity.
``(C) Term.--The term of a grant provided under this
subsection shall not exceed 5 years.
``(D) Prohibitions.--A grant provided under this subsection
shall not be used for the planning, repair, rehabilitation,
acquisition, or construction of any building or facility.
``(d) Funding.--
``(1) Set-aside.--Not less than 25 percent of the funds
made available to carry out this section during a fiscal year
shall be used to support programs and services that--
``(A) address the pest management needs of a region in the
Caribbean and Pacific basins; or
``(B) minimize the impact to a region in the Caribbean and
Pacific basins of invasive species.
``(2) Administrative costs.--The Secretary shall use not
more than 4 percent of the funds made available under
subsection (e) for administrative costs incurred by the
Secretary in carrying out this section.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this section such sums as are necessary for each of fiscal
years 2008 through 2012.''.

SEC. 7037. REGIONAL CENTERS OF EXCELLENCE.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7036) is amended by adding at
the end the following:

``SEC. 1473F. REGIONAL CENTERS OF EXCELLENCE.

``(a) Purposes.--The purposes of this section are--
``(1) to authorize regional centers of excellence for
specific agricultural commodities; and
``(2) to develop a national, coordinated program of
research, teaching, and extension for commodities that will--
``(A) be cost effective by reducing duplicative efforts
regarding research, teaching, and extension;
``(B) leverage available resources by using public/private
partnerships among industry groups, institutions of higher
education, and the Federal Government;
``(C) increase the economic returns to agricultural
commodity industries by identifying, attracting, and
directing funds to high-priority industry issues; and
``(D) more effectively disseminate industry issue solutions
to target audiences through web-based extension information,
instructional courses, and educational or training modules.
``(b) Definitions.--In this section:
``(1) Agricultural commodity.--The term `agricultural
commodity' has the meaning given the term in section 513 of
the Commodity Promotion, Research, and Information Act of
1996 (7 U.S.C. 7412).
``(2) Land-grant colleges and universities.--The term
`land-grant colleges and universities' means--
``(A) 1862 Institutions (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7601));
``(B) 1890 Institutions (as defined in section 2 of that
Act); and
``(C) 1994 Institutions (as defined in section 2 of that
Act).
``(c) Establishment.--
``(1) Original composition.--The Secretary shall establish
regional centers of excellence for specific agricultural
commodities that are each comprised of--
``(A) a lead land-grant college or university; and
``(B) 1 or more member land-grant colleges and universities
that provide financial support to the regional center of
excellence.
``(2) Board of directors.--Each regional center of
excellence shall be administered by a board of directors
consisting of 15 members, as determined by the lead and
member land-grant colleges and universities of the center.
``(3) Additional directors and institutions.--Each board of
directors of a regional center of excellence may--
``(A) designate additional land-grant colleges and
universities as members of the center; and
``(B) designate representatives of the additional land-
grant colleges and universities and agriculture industry
groups to be additional members of the board of directors.
``(d) Programs.--Each regional center of excellence shall
achieve the purposes of this section through--
``(1) research initiatives focused on issues pertaining to
the specific agricultural commodity;
``(2) teaching initiatives at lead and member land-grant
colleges and universities to provide intensive education
relating to the specific agricultural commodity; and
``(3) extension initiatives focusing on an internet-based
information gateway to provide for relevant information
development, warehousing, and delivery.
``(e) Funding.--
``(1) In general.--Each regional center of excellence shall
be funded through the use of--
``(A) grants made by the Secretary; and
``(B) matching funds provided by land-grant colleges and
universities and agriculture industry groups.
``(2) Process.--The board of directors of each regional
center of excellence shall have

[[Page S14953]]

the responsibility for submitting grant proposals to the
Secretary to carry out the research, education, and extension
program activities described in subsection (d).
``(3) Term of grant.--The term of a grant under this
subsection may not exceed 5 years.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as are necessary for each of fiscal years 2008 through
2012.''.

SEC. 7038. NATIONAL DROUGHT MITIGATION CENTER.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7037) is amended by adding at
the end the following:

``SEC. 1473G. NATIONAL DROUGHT MITIGATION CENTER.

``(a) In General.--The Secretary shall offer to enter into
an agreement with the National Drought Mitigation Center,
under which the Center shall--
``(1) continue to produce the United States Drought
Monitor;
``(2) maintain a clearinghouse and internet portal on
drought; and
``(3) develop new drought mitigation and preparedness
strategies, responses, models, and methodologies for the
agricultural community.
``(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each fiscal year.''.

SEC. 7039. AGRICULTURAL DEVELOPMENT IN THE AMERICAN-PACIFIC
REGION.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7038) is amended by adding at
the end the following:

``SEC. 1473H. AGRICULTURAL DEVELOPMENT IN THE AMERICAN-
PACIFIC REGION.

``(a) Definitions.--In this section:
``(1) American-pacific region.--The term `American-Pacific
region' means the region encompassing--
``(A) American Samoa;
``(B) Guam;
``(C) the Commonwealth of the Northern Mariana Islands;
``(D) the Federated States of Micronesia;
``(E) the Republic of the Marshall Islands;
``(F) the Republic of Palau;
``(G) the State of Hawaii; and
``(H) the State of Alaska.
``(2) Consortium.--The term `consortium' means a
collaborative group that--
``(A) is composed of each eligible institution; and
``(B) submits to the Secretary an application for a grant
under subsection (b)(2).
``(3) Eligible institution.--The term `eligible
institution' means a land-grant college or university that is
located in the American-Pacific region.
``(b) Agricultural Development in the American Pacific
Grants.--
``(1) In general.--The Secretary may make grants to a
consortium of eligible institutions to carry out integrated
research, extension, and instruction programs in support of
food and agricultural sciences.
``(2) Application.--To receive a grant under paragraph (1),
a consortium of eligible institutions shall submit to the
Secretary an application that includes--
``(A) for each eligible institution, a description of each
objective, procedure, and proposed use of funds relating to
any funds provided by the Secretary to the consortium under
paragraph (1); and
``(B) the method of allocation proposed by the consortium
to distribute to each eligible institution any funds provided
by the Secretary to the consortium under paragraph (1).
``(3) Use of funds.--
``(A) In general.--An eligible institution that receives
funds through a grant under paragraph (1) shall use the
funds--
``(i) to acquire the equipment, instrumentation, networking
capability, hardware and software, digital network
technology, and infrastructure required to integrate
research, extension, and instruction programs in the
American-Pacific region;
``(ii) to develop and provide support for conducting
research, extension, and instruction programs in support of
food and agricultural sciences relevant to the American-
Pacific region, with special emphasis on--

``(I) the management of pests; and
``(II) the control of the spread of invasive alien species;
and

``(iii) to provide leadership development to
administrators, faculty, and staff of the eligible
institution with responsibility for programs relating to
agricultural research, extension, and instruction.
``(B) Prohibited uses.--An eligible institution that
receives funds through a grant under paragraph (1) may not
use the funds for any cost relating to the planning,
acquisition, construction, rehabilitation, or repair of any
building or facility of the eligible institution.
``(4) Grant term.--A grant under paragraph (1) shall have a
term of not more than 5 years.
``(5) Administration.--
``(A) Authority of secretary.--The Secretary may carry out
this section in a manner that recognizes the different needs
of, and opportunities for, each eligible institution.
``(B) Administrative costs.--The Secretary shall use not
more than 4 percent of the amount appropriated under
subsection (d) for a fiscal year to pay administrative costs
incurred in carrying out this section.
``(c) No Effect on Distribution of Funds.--Nothing in this
section affects any basis for distribution of funds by a
formula in existence on the date of enactment of this section
relating to--
``(1) the Federated States of Micronesia;
``(2) the Republic of the Marshall Islands; or
``(3) the Republic of Palau.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.

SEC. 7040. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND
TECHNOLOGY FELLOWSHIP PROGRAM.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7039) is amended by adding at
the end the following:

``SEC. 1473I. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND
TECHNOLOGY FELLOWSHIP PROGRAM.

``(a) Fellowship Program.--
``(1) In general.--The Secretary shall establish a
fellowship program, to be known as the `Borlaug International
Agricultural Science and Technology Fellowship Program,' to
provide fellowships for scientific training and study in the
United States to individuals from eligible countries (as
described in subsection (b)) who specialize in agricultural
education, research, and extension.
``(2) Programs.--The Secretary shall carry out the
fellowship program by implementing 3 programs designed to
assist individual fellowship recipients, including--
``(A) a graduate studies program in agriculture to assist
individuals who participate in graduate agricultural degree
training at a United States institution;
``(B) an individual career improvement program to assist
agricultural scientists from developing countries in
upgrading skills and understanding in agricultural science
and technology; and
``(C) a Borlaug agricultural policy executive leadership
course to assist senior agricultural policy makers from
eligible countries, with an initial focus on individuals from
sub-Saharan Africa and the newly independent states of the
former Soviet Union.
``(b) Eligible Countries.--An eligible country is a
developing country, as determined by the Secretary using a
gross national income per capita test selected by the
Secretary.
``(c) Purpose of Fellowships.--A fellowship provided under
this section shall--
``(1) promote food security and economic growth in eligible
countries by--
``(A) educating a new generation of agricultural
scientists;
``(B) increasing scientific knowledge and collaborative
research to improve agricultural productivity; and
``(C) extending that knowledge to users and intermediaries
in the marketplace; and
``(2) shall support--
``(A) training and collaborative research opportunities
through exchanges for entry level international agricultural
research scientists, faculty, and policymakers from eligible
countries;
``(B) collaborative research to improve agricultural
productivity;
``(C) the transfer of new science and agricultural
technologies to strengthen agricultural practice; and
``(D) the reduction of barriers to technology adoption.
``(d) Fellowship Recipients.--
``(1) Eligible candidates.--The Secretary may provide
fellowships under this section to individuals from eligible
countries who specialize in or have experience in
agricultural education, research, extension, or related
fields, including--
``(A) individuals from the public and private sectors; and
``(B) private agricultural producers.
``(2) Candidate identification.--The Secretary shall use
the expertise of United States land grant colleges and
universities and similar universities, international
organizations working in agricultural research and outreach,
and national agricultural research organizations to help
identify program candidates for fellowships under this
section from the public and private sectors of eligible
countries.
``(e) Use of Fellowships.--A fellowship provided under this
section shall be used--
``(1) to promote collaborative programs among agricultural
professionals of eligible countries, agricultural
professionals of the United States, the international
agricultural research system, and, as appropriate, United
States entities conducting research; and
``(2) to support fellowship recipients through programs
described in subsection (a)(2).
``(f) Program Implementation.--The Secretary shall provide
for the management, coordination, evaluation, and monitoring
of the overall Borlaug International Agricultural Science and
Technology Fellowship Program and for the individual programs
described in subsection (a)(2), except that the Secretary may
contract out to 1 or more collaborating universities the
management of 1 or more of the fellowship programs.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section, to remain available until
expended.''.

[[Page S14954]]

SEC. 7041. NEW ERA RURAL TECHNOLOGY PROGRAM.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7040) is amended by adding at
the end the following:

``SEC. 1473J. NEW ERA RURAL TECHNOLOGY PROGRAM.

``(a) Definition of Rural Community College.--In this
section, the term `rural community college' means an
institution of higher education that--
``(1) admits as regular students individuals who--
``(A) are beyond the age of compulsory school attendance in
the State in which the institution is located; and
``(B) have the ability to benefit from the training offered
by the institution, in accordance with criteria established
by the Secretary;
``(2) does not provide an educational program for which it
awards a bachelor's degree or an equivalent degree;
``(3)(A) provides an educational program of not less than 2
years that is acceptable for full credit toward such a
degree; or
``(B) offers a 2-year program in engineering, technology,
mathematics, or the physical, chemical or biological sciences
that is designed to prepare a student to work as a technician
or at the semiprofessional level in engineering, scientific,
or other technological fields requiring the understanding and
application of basic engineering, scientific, or mathematical
principles of knowledge; and
``(4) is located in a rural area (as defined in section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)).
``(b) Program.--
``(1) In general.--The Secretary shall establish a program,
to be known as the `New Era Rural Technology Program', under
which the Secretary shall make grants available for
technology development, applied research, and training to aid
in the development of an agriculture-based renewable energy
workforce.
``(2) Fields.--In making grants under the program, the
Secretary shall support the fields of--
``(A) bioenergy;
``(B) pulp and paper manufacturing; and
``(C) agriculture-based renewable energy resources.
``(c) Eligibility.--To be eligible to receive a grant under
this section, an entity shall--
``(1) be a rural community college or advanced
technological center (as determined by the Secretary), in
existence on the date of the enactment of this section, that
participates in agricultural or bioenergy research and
applied research;
``(2) have a proven record of development and
implementation of programs to meet the needs of students,
educators, business, and industry to supply the agriculture-
based, renewable energy, or pulp and paper manufacturing
fields with certified technicians, as determined by the
Secretary; and
``(3) have the ability to leverage existing partnerships
and occupational outreach and training programs for secondary
schools, 4-year institutions, and relevant nonprofit
organizations.
``(d) Grant Priority.--In making grants under this section,
the Secretary shall give preference to rural community
colleges working in partnership--
``(1) to improve information sharing capacity; and
``(2) to maximize the ability of eligible recipients to
meet the purposes of this section.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.

SEC. 7042. FARM AND RANCH STRESS ASSISTANCE NETWORK.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7041) is amended by adding at
the end the following:

``SEC. 1473K. FARM AND RANCH STRESS ASSISTANCE NETWORK.

``(a) In General.--The Secretary, in cooperation with the
Secretary of Health and Human Services, shall establish a
network, to be known as the `Farm and Ranch Stress Assistance
Network' (referred to in this section as the `Network').
``(b) Purpose.--The purpose the network shall be to provide
behavioral health programs to participants in the
agricultural sector in the United States.
``(c) Grants.--The Secretary, in collaboration with the
extension service at the National Institute of Food and
Agriculture, shall provide grants on a competitive basis to
States and nonprofit organizations for use in carrying out
pilot projects to achieve the purpose of the Network.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.

SEC. 7043. RURAL ENTREPRENEURSHIP AND ENTERPRISE FACILITATION
PROGRAM.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7042) is amended by adding at
the end the following:

``SEC. 1473L. RURAL ENTREPRENEURSHIP AND ENTERPRISE
FACILITATION PROGRAM.

``(a) Definition of Regional Rural Development Center.--In
this section, the term `regional rural development center'
means--
``(1) the North Central Regional Center for Rural
Development (or a designee);
``(2) the Northeast Regional Center for Rural Development
(or a designee);
``(3) the Southern Rural Development Center (or a
designee); and
``(4) the Western Rural Development Center (or a designee).
``(b) Projects.--The Secretary shall carry out research,
extension, and education projects to obtain data, convey
knowledge, and develop skills through projects that--
``(1) transfer practical, reliable, and timely information
to rural entrepreneurs and rural entrepreneurial development
organizations concerning business management, business
planning, microenterprise, marketing, entrepreneurial
education and training, and the development of local and
regional entrepreneurial systems in rural areas and rural
communities;
``(2) provide education, training, and technical assistance
to newly-operational and growing rural businesses;
``(3) improve access to diverse sources of capital, such as
microenterprise loans and venture capital;
``(4) determine the best methods to train entrepreneurs
with respect to preparing business plans, recordkeeping, tax
rules, financial management, and general business practices;
``(5) promote entrepreneurship among--
``(A) rural youth, minority, and immigrant populations;
``(B) women; and
``(C) low- and moderate-income rural residents;
``(6) create networks of entrepreneurial support through
partnerships among rural entrepreneurs, local business
communities, all levels of government, nonprofit
organizations, colleges and universities, and other sectors;
``(7) study and facilitate entrepreneurial development
systems that best align with the unique needs and strengths
of particular rural areas and communities; and
``(8) explore promising strategies for building an
integrated system of program delivery to rural entrepreneurs.
``(c) Agreements.--To carry out projects under subsection
(b), the Secretary shall provide grants to--
``(1) land-grant colleges and universities, including
cooperative extension services, agricultural experiment
stations, and regional rural development centers;
``(2) other colleges and universities;
``(3) community, junior, technical, and vocational colleges
and other 2-year institutions of higher education, and post-
secondary business and commerce schools;
``(4) elementary schools and secondary schools;
``(5) nonprofit organizations; and
``(6) Federal, State, local, and tribal governmental
entities.
``(d) Selection and Priority of Projects.--
``(1) In general.--In selecting projects to be carried out
under this section, the Secretary shall take into
consideration--
``(A) the relevance of the project to the purposes of this
section;
``(B) the appropriateness of the design of the project;
``(C) the likelihood of achieving the objectives of the
project; and
``(D) the national or regional applicability of the
findings and outcomes of the project.
``(2) Priority.--In carrying out projects under this
section, the Secretary shall give priority to projects that--
``(A) enhance widespread access to entrepreneurial
education, including access to such education in community-
based settings for low- and moderate-income entrepreneurs and
potential entrepreneurs;
``(B) closely coordinate research and education activities,
including outreach education efforts;
``(C) indicate the manner in which the findings of the
project will be made readily usable to rural entrepreneurs
and to rural community leaders;
``(D) maximize the involvement and cooperation of rural
entrepreneurs; and
``(E) involve cooperation and partnerships between rural
entrepreneurs, nonprofit organizations, entrepreneurial
development organizations, educational institutions at all
levels, and government agencies at all levels.
``(e) Competitive Basis.--Grants under this section shall
be awarded on a competitive basis, in accordance with such
criteria as the national administrative council established
under subsection (j)(1) may establish.
``(f) Term.--The term of a grant provided under this
section shall be not more than 5 years.
``(g) Limitation.--Not more than 20 percent of the total
amount of grants provided under this section shall be
provided to projects in which cooperative extension services
are involved as the sole or lead entity of the project.
``(h) Diversification of Research, Extension, and Education
Projects.--The Secretary shall carry out projects under this
section in areas that the Secretary determines to be broadly
representative of the diversity of the rural areas of the
United States, and of rural entrepreneurship in the United
States, including entrepreneurship involving youth, minority
populations, microenterprise, and women, with a focus on
nonagricultural businesses or food and agriculturally-based
businesses, but not direct agriculture production.

[[Page S14955]]

``(i) Administration.--The Secretary shall administer
projects carried out under this section acting through the
Administrator of the National Institute of Food and
Agriculture.
``(j) National Administrative Council.--
``(1) Establishment.--The Secretary shall establish, in
accordance with this subsection, a national administrative
council to assist the Secretary in carrying out this section.
``(2) Membership.--The membership of the national
administrative council shall include--
``(A) qualified representatives of entities with
demonstrable expertise relating to rural entrepreneurship,
including representatives of--
``(i) the Cooperative State Research, Education, and
Extension Service;
``(ii) the Rural Business-Cooperative Service;
``(iii) the Small Business Administration;
``(iv) regional rural development centers;
``(v) nonprofit organizations;
``(vi) regional and State agencies;
``(vii) cooperative extension services;
``(viii) colleges and universities;
``(ix) philanthropic organizations; and
``(x) Indian tribal governments;
``(B) self-employed rural entrepreneurs and owners of rural
small businesses;
``(C) elementary and secondary educators that demonstrate
experience in rural entrepreneurship; and
``(D) other persons with experience relating to rural
entrepreneurship and the impact of rural entrepreneurship on
rural communities.
``(3) Responsibilities.--In collaboration with the
Secretary, the national administrative council established
under this subsection shall--
``(A) promote the projects carried out under this section;
``(B) establish goals and criteria for the selection of
projects under this section;
``(C)(i) appoint a technical committee to evaluate project
proposals to be considered by the council; and
``(ii) make recommendations of the technical committee to
the Secretary; and
``(D) prepare and make publicly available an annual report
relating to each applicable project carried out under this
section, including a review of projects carried out during
the preceding year.
``(4) Conflict of interest.--A member of the national
administrative council or a technical committee shall not
participate in any determination relating to, or
recommendation of, a project proposed to be carried out under
this section if the member has had any business interest
(including the provision of consulting services) in the
project or the organization submitting the application.
``(k) Authorization for Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of the fiscal years 2008
through 2012.''.

SEC. 7044. SEED DISTRIBUTION.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7043) is amended by adding at
the end the following:

``SEC. 1473M. SEED DISTRIBUTION.

``(a) Establishment.--The Secretary shall establish a
program, to be known as the `seed distribution program',
under which the Secretary shall provide a grant to a
nonprofit organization selected under subsection (c) to carry
out a seed distribution program to administer and maintain
the distribution of vegetable seeds donated by commercial
seed companies.
``(b) Purpose.--The purpose of the seed distribution
program under this section shall be to distribute vegetable
seeds donated by commercial seed companies.
``(c) Selection of Nonprofit Organizations.--
``(1) In general.--The nonprofit organization selected to
receive a grant under subsection (a) shall demonstrate to the
satisfaction of the Secretary that the organization--
``(A) has expertise regarding distribution of vegetable
seeds donated by commercial seed companies; and
``(B) has the ability to achieve the purpose of the seed
distribution program.
``(2) Priority.--In selecting a nonprofit organization for
purposes of this section, the Secretary shall give priority
to a nonprofit organization that, as of the date of
selection, carries out an activity to benefit underserved
communities, such as communities that experience--
``(A) limited access to affordable fresh vegetables;
``(B) a high rate of hunger or food insecurity; or
``(C) severe or persistent poverty.
``(d) Requirement.--The nonprofit organization selected
under this section shall ensure that seeds donated by
commercial seed companies are distributed free-of-charge to
appropriate--
``(1) individuals;
``(2) groups;
``(3) institutions;
``(4) governmental and nongovernmental organizations; and
``(5) such other entities as the Secretary may designate.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.

SEC. 7045. FARM AND RANCH SAFETY.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7044) is amended by adding at
the end the following:

``SEC. 1473N. FARM AND RANCH SAFETY.

``(a) In General.--The Secretary shall establish a program,
to be known as the `agricultural safety program', under which
the Secretary shall provide grants to eligible entities to
carry out projects to decrease the incidence of injury and
death on farms and ranches.
``(b) Eligible Entities.--To be eligible to receive a grant
under this section, an entity shall be--
``(1) a nonprofit organization;
``(2) a land-grant college or university (including a
cooperative extension service);
``(3) a minority-serving institution;
``(4) a 2-year or 4-year institution of higher education;
or
``(5) such other entity as the Secretary may designate.
``(c) Eligible Projects.--An eligible entity shall use a
grant received under this section only to carry out--
``(1) a project at least 1 component of which emphasizes--
``(A) preventative service through on-site farm or ranch
safety reviews;
``(B) outreach and dissemination of farm safety research
and interventions to agricultural employers, employees,
youth, farm and ranch families, seasonal workers, or other
individuals; or
``(C) agricultural safety education and training; and
``(2) other appropriate activities, as determined by the
Secretary;
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.

SEC. 7046. WOMEN AND MINORITIES IN STEM FIELDS.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7045) is amended by adding at
the end the following:

``SEC. 1473O. WOMEN AND MINORITIES IN STEM FIELDS.

``(a) Establishment.--The Secretary shall establish a
program under which the Secretary, in coordination with
applicable Federal, State, and local programs, shall provide
grants to eligible institutions to increase, to the maximum
extent practicable, participation by women and
underrepresented minorities from rural areas (as defined in
section 343(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a))), in science, technology, engineering,
and mathematics fields (referred to in this section as `STEM
fields').
``(b) Activities.--In carrying out the program established
under subsection (a), the Secretary shall--
``(1) implement multitrack technology career advancement
training programs and provide related services to engage, and
encourage participation by, women and underrepresented
minorities in STEM fields;
``(2) develop and administer training programs for
educators, career counselors, and industry representatives in
recruitment and retention strategies to increase and retain
women and underrepresented minority students and job entrants
into STEM fields; and
``(3) support education-to-workforce programs for women and
underrepresented minorities to provide counseling, job
shadowing, mentoring, and internship opportunities to guide
participants in the academic, training, and work experience
needed for STEM careers.
``(c) Institutions.--
``(1) Grants.--The Secretary shall carry out the program
under this section at such institutions as the Secretary
determines to be appropriate by providing grants, on a
competitive basis, to the institutions.
``(2) Priority.--In providing grants under paragraph (1),
the Secretary shall give priority, to the maximum extent
practicable, to institutions carrying out continuing programs
funded by the Secretary.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.''.

SEC. 7047. NATURAL PRODUCTS RESEARCH PROGRAM.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7046) is amended by adding at
the end the following:

``SEC. 1473P. NATURAL PRODUCTS RESEARCH PROGRAM.

``(a) In General.--The Secretary shall establish a natural
products research program.
``(b) Duties.--In carrying out the program established
under subsection (a), the Secretary shall coordinate research
relating to natural products, including--
``(1) research to improve human health and agricultural
productivity through the discovery, development, and
commercialization of pharmaceuticals and agrichemicals from
bioactive natural products, including products from plant,
marine, and microbial sources;
``(2) research to characterize the botanical sources,
production, chemistry, and biological properties of plant-
derived natural products important for agriculture and
medicine; and

[[Page S14956]]

``(3) other research priorities identified by the
Secretary.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as are necessary for each of fiscal years 2008 through
2012.''.

SEC. 7048. INTERNATIONAL ANTI-HUNGER AND NUTRITION PROGRAM.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7047) is amended by adding at
the end the following:

``SEC. 1473Q. INTERNATIONAL ANTI-HUNGER AND NUTRITION.

``(a) In General.--The Secretary shall provide support to
established nonprofit organizations that focus on promoting
research concerning--
``(1) anti-hunger and improved nutrition efforts
internationally; and
``(2) increased quantity, quality, and availability of
food.
``(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000 for
each of fiscal years 2008 through 2012.''.

SEC. 7049. CONSORTIUM FOR AGRICULTURAL AND RURAL
TRANSPORTATION RESEARCH AND EDUCATION.

Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7048) is amended by adding at
the end the following:

``SEC. 1473R. CONSORTIUM FOR AGRICULTURAL AND RURAL
TRANSPORTATION RESEARCH AND EDUCATION.

``(a) In General.--Subject to the availability of
appropriations to carry out this section, the Secretary,
acting through the Agricultural Marketing Service, shall
award grants to the Consortium for Agricultural and Rural
Transportation Research and Education for the purpose of
funding prospective, independent research, education, and
technology transfer activities.
``(b) Activities.--Activities funded with grants made under
subsection (a) shall focus on critical rural and agricultural
transportation and logistics issues facing agricultural
producers and other rural businesses, including--
``(1) issues relating to the relationship between renewable
fuels and transportation;
``(2) export promotion issues based on transportation
strategies for rural areas;
``(3) transportation and rural business facility planning
and location issues;
``(4) transportation management and supply chain management
support issues;
``(5) rural road planning and finance issues;
``(6) advanced transportation technology applications in a
rural area; and
``(7) creation of a national agricultural marketing and
rural business transportation database.
``(c) Report.--Not later than September 30, 2011, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that--
``(1) describes the activities of Consortium for
Agricultural and Rural Transportation Research and Education
that have been funded through grants made under this section;
and
``(2) contains recommendations about the grant program.
``(d) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section $19,000,000 for each of fiscal
years 2008 through 2012.
``(2) Administrative expenses.--Of the total amount made
available under paragraph (1), not more than $1,000,000 may
be used by the Agricultural Marketing Service for
administrative expenses incurred in carrying out this
section.''.

Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990

SEC. 7101. NATIONAL GENETIC RESOURCES PROGRAM.

(a) In General.--Section 1632 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5841) is
amended--
(1) by striking subsection (b) and inserting the following:
``(b) Purpose.--The program is established for the purpose
of--
``(1) maintaining and enhancing a program providing for the
collection, preservation, and dissemination of plant, animal,
and microbial genetic material of importance to food and
agriculture production in the United States; and
``(2) undertaking long-term research on plant and animal
breeding and disease resistance.''; and
(2) in subsection (d)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) by redesignating paragraph (6) as paragraph (7); and
(C) by inserting after paragraph (5) the following:
``(6) in conjunction with national programs for plant and
animal genetic resources, undertake long-term research on
plant and animal breeding, including the development of
varieties adapted to sustainable and organic farming systems,
and disease resistance; and''.
(b) Authorization of Appropriations.--Section 1635(b) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5844(b)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 7102. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

Section 1672 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925) is amended--
(1) in subsection (e), by adding at the end the following:
``(46) Colony collapse disorder and pollinator research
program.--Research and extension grants may be made to--
``(A) survey and collect data on bee colony production and
health;
``(B) investigate pollinator biology, immunology, ecology,
genomics, and bioinformatics;
``(C) conduct research on various factors that may be
contributing to or associated with colony collapse disorder,
and other serious threats to the health of honey bees and
other pollinators, including--
``(i) parasites and pathogens of pollinators; and
``(ii) the sublethal effects of insecticides, herbicides,
and fungicides on honey bees and native and managed
pollinators;
``(D) develop mitigative and preventative measures to
improve native and managed pollinator health; and
``(E) promote the health of honey bees and native
pollinators through habitat conservation and best management
practices.
``(47) Marine shrimp farming program.--Research and
extension grants may be made to establish a research program
to advance and maintain a domestic shrimp farming industry in
the United States.
``(48) Cranberry research program.--Research and extension
grants may be made to study new technologies to assist
cranberry growers in complying with Federal and State
environmental regulations, increase cranberry production,
develop new growing techniques, establish more efficient
growing methodologies, and educate farmers about sustainable
growth practices.
``(49) Turfgrass research initiative.--Research and
extension grants may be made to study the production of
turfgrass (including the use of water, fertilizer,
pesticides, fossil fuels, and machinery for turf
establishment and maintenance) and environmental protection
and enhancement relating to turfgrass production.
``(50) Pesticide safety research initiative.--Research
grants may be made to study pesticide safety for migrant and
seasonal agricultural workers, including research on
increased risks of cancer or birth defects among migrant or
seasonal farmworkers and their children, identification of
objective biological indicators, and development of
inexpensive clinical tests to enable clinicians to diagnose
overexposure to pesticides, and development of field-level
tests to determine when pesticide-treated fields are safe to
reenter to perform hand labor activities.
``(51) Swine genome project.--Research grants may be made
under this section to conduct swine genome research and to
map the swine genome.
``(52) High plains aquifer region.--Research and extension
grants may be made to carry out interdisciplinary research
relating to diminishing water levels and increased demand for
water in the High Plains aquifer region encompassing the
States of Colorado, Kansas, Nebraska, New Mexico, Oklahoma,
South Dakota, Texas, and Wyoming.
``(53) Cellulosic feedstock transportation and delivery
initiative.--Research and extension grants may be made to
study new technologies for the economic post-harvest
densification, handling, transportation, and delivery of
cellulosic feedstocks for bioenergy conversion.
``(54) Deer initiative.--Research and extension grants may
be made to support collaborative research focusing on the
development of viable strategies for the prevention,
diagnosis, and treatment of infectious, parasitic, and toxic
diseases of farmed deer and the mapping of the deer genome.
``(55) Pasture-based beef systems for appalachia research
initiative.--Research and extension grants may be made to
land-grant institutions--
``(A) to study the development of forage sequences and
combinations for cow-calf, heifer development, stocker, and
finishing systems;
``(B) to deliver optimal nutritive value for efficient
production of cattle for pasture finishing;
``(C) to optimize forage systems to produce pasture
finished beef that is acceptable to consumers;
``(D) to develop a 12-month production and marketing model
cycle for forage-fed beef; and
``(E) to assess the effect of forage quality on
reproductive fitness and related measures.''; and
(2) in subsection (h), by striking ``2007'' and inserting
``2012, of which $20,000,000 shall be used for each fiscal
year to make grants described in subsection (e)(46)''.

SEC. 7103. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION
INITIATIVE.

Section 1672A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925a) is amended--
(1) by redesignating subsection (g) as subsection (f); and
(2) in subsection (f) (as so redesignated), by striking
``2007'' and inserting ``2012''.

SEC. 7104. ORGANIC AGRICULTURE RESEARCH AND EXTENSION
INITIATIVE.

Section 1672B of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925b) is amended by striking
subsection (e) and inserting the following:

[[Page S14957]]

``(e) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $16,000,000 for each of fiscal years 2008 through
2012, to remain available until expended.''.

SEC. 7105. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

Section 1673(h) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking
``2007'' and inserting ``2012''.

SEC. 7106. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH
DISABILITIES.

Section 1680(c)(1) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 7107. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

Section 2381(e) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking
``2007'' and inserting ``2012''.

Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998

SEC. 7201. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD
SYSTEMS.

(a) Funding.--Section 401(b) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7621(b)) is amended by striking paragraph (3) and inserting
the following:
``(3) Other funding.--
``(A) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $200,000,000 for
each of fiscal years 2008 through 2012.
``(B) Shortage of funds.--Notwithstanding any other
provision of law, during any year for which funds are not
made available under this subsection, the Secretary shall use
not less than 80 percent of the funds made available for
competitive mission-linked systems research grants under
section 2(b)(10)(B) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b)(10)(B)) to
carry out a competitive grant program under the same terms
and conditions as are provided under this section.''.
(b) Purposes.--Section 401(c) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7621(c)) is amended--
(1) in paragraph (1)(D), by striking ``policy''; and
(2) in paragraph (2)--
(A) by striking subparagraphs (A) and (D);
(B) by redesignating subparagraphs (B), (C), (E), and (F)
as subparagraphs (A), (B), (F), and (G), respectively;
(C) by inserting after subparagraph (B) the following:
``(C) sustainable and renewable agriculture-based energy
production options and policies;
``(D) environmental services and outcome-based conservation
programs and markets;
``(E) agricultural and rural entrepreneurship and business
and community development, including farming and ranching
opportunities for beginning farmers or ranchers;''; and
(D) in subparagraph (F) (as redesignated by subparagraph
(B))--
(i) by inserting ``and environmental'' after ``natural
resource''; and
(ii) by inserting ``agro-ecosystems and'' after
``including''; and
(E) in subparagraph (G) (as redesignated by subparagraph
(B))--
(i) by striking ``including the viability'' and inserting
the following: ``including--
``(i) the viability''; and
(ii) by striking ``operations.'' and inserting the
following: ``operations;
``(ii) farm transition options for retiring farmers or
ranchers; and
``(iii) farm transfer and entry alternatives for beginning
or socially-disadvantaged farmers or ranchers.''.

SEC. 7202. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT
QUALITY RESEARCH.

Section 402(g) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 7203. PRECISION AGRICULTURE.

Section 403(i)(1) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is
amended by striking ``2007'' and inserting ``2012''.

SEC. 7204. BIOBASED PRODUCTS.

(a) Pilot Project.--Section 404(e)(2) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7624(e)(2)) is amended by striking ``2007'' and
inserting ``2012''.
(b) Authorization of Appropriations.--Section 404(h) of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7624(h)) is amended by striking ``2007'' and
inserting ``2012''.

SEC. 7205. THOMAS JEFFERSON INITIATIVE FOR CROP
DIVERSIFICATION.

Section 405(h) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 7206. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION
COMPETITIVE GRANTS PROGRAM.

Section 406(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 7207. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT,
TRITICALE, AND BARLEY CAUSED BY FUSARIUM
GRAMINEARUM OR BY TILLETIA INDICA.

Section 408(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 7208. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

Section 409(b) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 7209. GRANTS FOR YOUTH ORGANIZATIONS.

Section 410(c) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7630(c)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 7210. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND
DEVELOPMENT FOR DEVELOPING COUNTRIES.

Section 411(c) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by
striking ``2007'' and inserting ``2012''.

SEC. 7211. SPECIALTY CROP RESEARCH INITIATIVE.

Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is
amended by adding at the end the following:

``SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.

``(a) Definitions.--In this section:
``(1) Initiative.--The term `Initiative' means the
specialty crop research initiative established by subsection
(b).
``(2) Specialty crop.--The term `specialty crop' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108-465).
``(b) Establishment.--There is established within the
Department a specialty crop research initiative.
``(c) Purpose.--The purpose of the Initiative shall be to
address the critical needs of the specialty crop industry by
providing science-based tools to address needs of specific
crops and regions, including--
``(1) fundamental and applied work in plant breeding,
genetics, and genomics to improve crop characteristics, such
as--
``(A) product appearance, quality, taste, yield, and shelf
life;
``(B) environmental responses and tolerances;
``(C) plant-nutrient uptake efficiency resulting in
improved nutrient management;
``(D) pest and disease management, including resilience to
pests and diseases resulting in reduced application
management strategies; and
``(E) enhanced phytonutrient content;
``(2) efforts to prevent, identify, control, or eradicate
invasive species;
``(3) methods of improving agricultural production by
developing more technologically-efficient and effective
applications of water, nutrients, and pesticides to reduce
energy use;
``(4) new innovations and technology to enhance
mechanization and reduce reliance on labor;
``(5) methods of improving production efficiency,
productivity, sustainability, and profitability over the long
term;
``(6) methods to prevent, control, and respond to human
pathogen contamination of specialty crops, including fresh-
cut produce; and
``(7) efforts relating to optimizing the production of
organic specialty crops.
``(d) Eligible Entities.--The Secretary may carry out the
Initiative through--
``(1) Federal agencies;
``(2) national laboratories;
``(3) institutions of higher education;
``(4) research institutions and organizations;
``(5) private organizations and corporations;
``(6) State agricultural experiment stations; and
``(7) individuals.
``(e) Research Projects.--In carrying out this section, the
Secretary may--
``(1) carry out research; and
``(2) award grants on a competitive basis.
``(f) Priorities.--In making grants under this section, the
Secretary shall provide a higher priority to projects that--
``(1) are multistate, multi-institutional, or
multidisciplinary; and
``(2) include explicit mechanisms to communicate usable
results to producers and the public.
``(g) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $30,000,000 for each of fiscal years 2008 through
2012, to remain available until expended.''.

SEC. 7212. OFFICE OF PEST MANAGEMENT POLICY.

(a) In General.--Section 614(b) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7653(b)) is amended--
(1) in the matter preceding paragraph (1), by striking
``Department'' and inserting ``Office of the Chief
Economist'';
(2) in paragraph (1), by striking ``the development and
coordination'' and inserting ``the development, coordination,
and representation''; and
(3) in paragraph (3), by striking ``assisting other
agencies of the Department in fulfilling their'' and
inserting ``enabling the Secretary to fulfill the
statutory''.
(b) Authorization of Appropriations.--Section 614(f) of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7653(f)) is amended by striking ``2007'' and
inserting ``2012''.

[[Page S14958]]

SEC. 7213. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

Section 604 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7642) is amended by
adding at the end the following:
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $2,500,000 for
each of fiscal years 2008 through 2012.''.

Subtitle D--Other Laws

SEC. 7301. CRITICAL AGRICULTURAL MATERIALS ACT.

Section 16(a) of the Critical Agricultural Materials Act (7
U.S.C. 178n(a)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 7302. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF
1994.

(a) Definition of 1994 Institutions.--Section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) is amended by adding at the end
the following:
``(34) Ilisagvik College.''.
(b) Endowment for 1994 Institutions.--Section 533(b) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) is amended in the first
sentence by striking ``2007'' and inserting ``2012''.
(c) Institutional Capacity Building Grants.--Section 535 of
the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note; Public Law 103-382) is amended by striking
``2007'' each place it appears and inserting ``2012''.
(d) Research Grants.--Section 536(c) of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382) is amended in the first sentence by
striking ``2007'' and inserting ``2012''.

SEC. 7303. SMITH-LEVER ACT.

(a) Children, Youth, and Families Education and Research
Network Program.--Section 3 of the Smith-Lever Act (7 U.S.C.
343) is amended by adding at the end the following:
``(k) Children, Youth, and Families Education and Research
Network Program.--Notwithstanding section 3(d)(2) of the Act
of May 8, 1914 (7 U.S.C. 343(d)(2)), in carrying out the
children, youth, and families education and research network
program using amounts made available under subsection (d),
the Secretary shall include 1890 Institutions (as defined in
section 2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601)) as eligible
program applicants and participants.''.
(b) Elimination of the Governor's Report Requirement for
Extension Activities.--Section 5 of the Smith-Lever Act (7
U.S.C. 345) is amended by striking the third sentence.

SEC. 7304. HATCH ACT OF 1887.

(a) District of Columbia.--Section 3(d)(4) of the Hatch Act
of 1887 (7 U.S.C. 361c(d)(4)) is amended--
(1) in the paragraph heading, by inserting ``and the
district of columbia'' after ``areas'';
(2) in subparagraph (A)--
(A) by inserting ``and the District of Columbia'' after
``United States''; and
(B) by inserting ``and the District of Columbia'' after
``respectively,''; and
(3) in subparagraph (B), by inserting ``or the District of
Columbia'' after ``area''.
(b) Elimination of Penalty Mail Authorities.--
(1) In general.--Section 6 of the Hatch Act of 1887 (7
U.S.C. 361f) is amended in the first sentence by striking
``under penalty indicia:'' and all that follows through the
end of the sentence and inserting a period.
(2) Conforming amendments in other laws.--
(A) National agricultural research, extension, and teaching
policy act of 1977.--
(i) Section 1444(f) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(f))
is amended by striking ``under penalty indicia:'' and all
that follows through the end of the sentence and inserting a
period.
(ii) Section 1445(e) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(e))
is amended by striking ``under penalty indicia:'' and all
that follows through the end of the sentence and inserting a
period.
(B) Other provisions.--Section 3202(a) of title 39, United
States Code, is amended--
(i) in paragraph (1)--

(I) in subparagraph (D), by adding ``and'' at the end;
(II) in subparagraph (E), by striking ``sections; and'' and
inserting ``sections.''; and
(III) by striking subparagraph (F);

(ii) in paragraph (2), by adding ``and'' at the end;
(iii) in paragraph (3) by striking ``thereof; and'' and
inserting ``thereof.''; and
(iv) by striking paragraph (4).

SEC. 7305. RESEARCH FACILITIES ACT.

Section 6(a) of the Research Facilities Act (7 U.S.C.
390d(a)) is amended by striking ``2007'' and inserting
``2012''.

SEC. 7306. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND
TEACHING POLICY ACT AMENDMENTS OF 1985.

Section 1431 of the National Agricultural Research,
Extension, and Teaching Policy Act Amendments of 1985 (Public
Law 99-198; 99 Stat. 1556) is amended by striking ``2007''
and inserting ``2012''.

SEC. 7307. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH
GRANT ACT.

The Competitive, Special, and Facilities Research Grant Act
(7 U.S.C. 450i) is amended in subsection (b)--
(1) in paragraph (2)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``in the areas'' and all that follows
through ``needs shall be'' and inserting ``, as''; and
(ii) by striking ``year.'' and inserting ``year, relating
to--'';
(B) in subparagraph (E), by striking ``and'' at the end and
inserting ``; agricultural genomics and biotechnology,
including the application of genomics and bioinformatics
tools to develop traits in plants and animals (translational
genomics);'';
(C) in subparagraph (F), by striking the period at the end
and inserting ``, including areas of concern to beginning
farmers or ranchers; and''; and
(D) by adding at the end the following:
``(G) classical plant and animal breeding, including
cultivar and breed development, selection theory, applied
quantitative genetics, breeding for organic and sustainable
systems, breeding for improved nutritional and eating
quality, breeding for improved local adaptation to biotic
stress, abiotic stress, and climate change, and participatory
breeding with farmers and end users.'';
(2) in paragraph (4)--
(A) by striking ``The'' and inserting the following:
``(A) In general.--Subject to subparagraph (B), the''; and
(B) by adding at the end the following:
``(B) Classical plant and animal breeding.--
``(i) Term.--The term of a competitive grant relating to
classical plant and animal breeding under paragraph (2)(G)
shall not exceed 10 years.
``(ii) Availability.--Funds made available for a fiscal
year for a competitive grant relating to classical plant and
animal breeding under paragraph (2)(G) shall remain available
until expended to pay for obligations incurred in that fiscal
year.''; and
(3) in paragraph (10), by striking ``2007'' and inserting
``2012''.

SEC. 7308. EDUCATION GRANTS TO ALASKA NATIVE SERVING
INSTITUTIONS AND NATIVE HAWAIIAN SERVING
INSTITUTIONS.

Section 759 of the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act,
2000 (7 U.S.C. 3242) is amended--
(1) in subsection (a)(3), by striking ``2006'' and
inserting ``2012''; and
(2) in subsection (b)--
(A) in paragraph (2)(A), by inserting before the semicolon
at the end the following: ``, including permitting consortia
to designate fiscal agents for the members of the consortia
and to allocate among the members funds made available under
this section''; and
(B) in paragraph (3), by striking ``2006'' and inserting
``2012''.

SEC. 7309. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

(a) Grants.--Section 7405(c) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (I), by inserting ``, including energy
conservation and efficiency'' after ``assistance''; and
(B) in subparagraph (K), by inserting ``, including
transition to organic and other source-verified and value-
added alternative production and marketing systems'' after
``strategies'';
(2) by striking paragraph (3) and inserting the following:
``(3) Maximum term and size of grant.--
``(A) In general.--A grant under this subsection shall--
``(i) have a term that is not more than 3 years; and
``(ii) be in an amount that is not more than $250,000 a
year.
``(B) Consecutive grants.--An eligible recipient may
receive consecutive grants under this subsection.'';
(3) by redesignating paragraphs (5) through (7) as
paragraphs (9) through (11), respectively;
(4) by inserting after paragraph (4) the following:
``(5) Evaluation criteria.--In making grants under this
subsection, the Secretary shall evaluate--
``(A) relevancy;
``(B) technical merit;
``(C) achievability;
``(D) the expertise and track record of 1 or more
applicants;
``(E) the adequacy of plans for the participatory
evaluation process, outcome-based reporting, and the
communication of findings and results beyond the immediate
target audience; and
``(F) other appropriate factors, as determined by the
Secretary.
``(6) Regional balance.--In making grants under this
subsection, the Secretary shall, to the maximum extent
practicable, ensure geographic diversity.
``(7) Organic conversion.--The Secretary may make grants
under this subsection to support projects that provide
comprehensive technical assistance to beginning farmers or
ranchers who are in the process of converting to certified
organic production.
``(8) Priority.--In making grants under this subsection,
the Secretary shall give priority to partnerships and
collaborations that are led by or include non-governmental
and community-based organizations with expertise in new
farmer training and outreach.''; and

[[Page S14959]]

(5) in paragraph (9) (as redesignated by paragraph (3))--
(A) in subparagraph (B), by striking ``and'' at the end;
(B) in subparagraph (C), by striking the period and adding
``; and''; and
(C) by adding at the end the following:
``(D) refugee or immigrant beginning farmers or ranchers''.
(b) Education Teams.--Section 7405(d)(2) of the Farm
Security and Rural Investment At of 2002 (7 U.S.C.
3319f(d)(2)) is amended by inserting ``, including
sustainable and organic farming production and marketing
methods'' before the period at the end.
(c) Stakeholder Input.--Section 7405(f) of the Farm
Security and Rural Investment At of 2002 (7 U.S.C. 3319f(f))
is amended--
(1) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and indenting
appropriately;
(2) by striking ``In carrying out'' and inserting the
following:
``(1) In general.--In carrying out''; and
(3) by adding at the end the following:
``(2) Review panels.--In forming review panels to evaluate
proposals submitted under this section, the Secretary shall
include individuals from the categories described in
paragraph (1).''.
(d) Funding.--Section 7405 of the Farm Security and Rural
Investment At of 2002 (7 U.S.C. 3319f) is amended by striking
subsection (h) and inserting the following:
``(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $30,000,000 for
each of fiscal years 2002 through 2012.''.

SEC. 7310. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

Section 2 of Public Law 87-788 (commonly known as the
``McIntire-Stennis Cooperative Forestry Act'') (16 U.S.C.
582a-1) is amended by inserting ``and 1890 Institutions (as
defined in section 2 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7601)),'' before
``and (b)''.

SEC. 7311. NATIONAL AQUACULTURE ACT OF 1980.

Section 10 of the National Aquaculture Act of 1980 (16
U.S.C. 2809) is amended by striking ``2007'' each place it
appears and inserting ``2012''.

SEC. 7312. NATIONAL ARBORETUM.

The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is
amended by adding at the end the following:

``SEC. 7. CONSTRUCTION OF A CHINESE GARDEN AT NATIONAL
ARBORETUM.

``A Chinese Garden may be constructed at the National
Arboretum established under this Act with--
``(1) funds accepted under section 5;
``(2) authorities provided to the Secretary of Agriculture
under section 6; and
``(3) appropriations made for this purpose.''.

SEC. 7313. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF
COLUMBIA FOR CERTAIN LAND-GRANT UNIVERSITY
ASSISTANCE.

Section 208 of the District of Columbia Public
Postsecondary Education Reorganization Act (Public Law 93-
471; 88 Stat. 1428) is amended--
(1) in subsection (b)(2), by striking ``, except'' and all
that follows through the period and inserting a period; and
(2) in subsection (c)--
(A) by striking ``section 3'' each place it appears and
inserting ``section 3(c)''; and
(B) by striking ``Such sums may be used to pay'' and all
that follows through ``work.''.

SEC. 7314. EXCHANGE OR SALE AUTHORITY.

Title III of the Department of Agriculture Reorganization
Act of 1994 is amended by adding after section 307 (7 U.S.C.
2204 note; Public Law 103-354) (as amended by section 2602)
the following:

``SEC. 308. EXCHANGE OR SALE AUTHORITY.

``(a) Definition of Qualified Items of Personal Property.--
In this section, the term `qualified items of personal
property' means--
``(1) animals;
``(2) animal products;
``(3) plants; and
``(4) plant products.
``(b) General Authority.--Except as provided in subsection
(c), notwithstanding chapter 5 of subtitle I of title 40,
United States Code, the Secretary of Agriculture, acting
through the Under Secretary for Research, Education, and
Economics, in managing personal property for the purpose of
carrying out the research functions of the Department of
Agriculture, may exchange, sell, or otherwise dispose of any
qualified items of personal property, including by way of
public auction, and may retain and apply the sale or other
proceeds, without further appropriation, in whole or in
partial payment--
``(1) to acquire any qualified items of personal property;
or
``(2) to offset costs related to the maintenance, care, or
feeding of any qualified items of personal property.
``(c) Exception.--Subsection (b) does not apply to the free
dissemination of new varieties of seeds and germ plasm in
accordance with section 520 of the Revised Statutes (commonly
known as the `Department of Agriculture Organic Act of 1862')
(7 U.S.C. 2201).''.

SEC. 7315. CARBON CYCLE RESEARCH.

(a) In General.--To the extent funds are made available,
the Secretary shall provide a grant to the Consortium for
Agricultural Soils Mitigation of Greenhouse Gases, acting
through Kansas State University, to develop, analyze, and
implement, through the land grant universities described in
subsection (b), carbon cycle and greenhouse gas management
research at the national, regional, and local levels.
(b) Land Grant Universities.--The land grant universities
referred to in subsection (a) are--
(1) Colorado State University;
(2) Iowa State University;
(3) Kansas State University;
(4) Michigan State University;
(5) Montana State University;
(6) Purdue University;
(7) Ohio State University;
(8) Texas A&M University; and
(9) University of Nebraska.
(c) Use.--Land grant universities described in subsection
(b) shall use funds made available under this section--
(1) to conduct research to improve the scientific basis of
using land management practices to increase soil carbon
sequestration, including research on the use of new
technologies to increase carbon cycle effectiveness, such as
biotechnology and nanotechnology;
(2) to conduct research on management of other greenhouse
gases in the agricultural sector;
(3) to enter into partnerships to identify, develop, and
evaluate agricultural best practices, including partnerships
between--
(A) Federal, State, or private entities; and
(B) the Department of Agriculture;
(4) to develop necessary computer models to predict and
assess the carbon cycle;
(5) to estimate and develop mechanisms to measure carbon
levels made available as a result of--
(A) voluntary Federal conservation programs;
(B) private and Federal forests; and
(C) other land uses;
(6) to develop outreach programs, in coordination with
Extension Services, to share information on carbon cycle and
agricultural best practices that is useful to agricultural
producers; and
(7) to collaborate with the Great Plains Regional Earth
Science Application Center to develop a space-based carbon
cycle remote sensing technology program--
(A) to provide, on a near-continual basis, a real-time and
comprehensive view of vegetation conditions;
(B) to assess and model agricultural carbon sequestration;
and
(C) to develop commercial products.
(d) Cooperative Research.--
(1) In general.--Subject to the availability of
appropriations, the Secretary, in cooperation with
departments and agencies participating in the U.S. Global
Change Research Program and eligible entities, may carry out
research to promote understanding of--
(A) the flux of carbon in soils and plants (including
trees); and
(B) the exchange of other greenhouse gases from
agriculture.
(2) Eligible entities.--Research under this subsection may
be carried out through the competitive awarding of grants and
cooperative agreements to colleges and universities (as
defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)).
(3) Cooperative research purposes.--Research conducted
under this subsection shall encourage collaboration among
scientists with expertise in the areas of soil science,
agronomy, agricultural economics, forestry, and other
agricultural sciences to focus on--
(A) developing data addressing carbon losses and gains in
soils and plants (including trees) and the exchange of
methane and nitrous oxide from agriculture;
(B) understanding how agricultural and forestry practices
affect the sequestration of carbon in soils and plants
(including trees) and the exchange of other greenhouse gases,
including the effects of new technologies such as
biotechnology and nanotechnology;
(C) developing cost-effective means of measuring and
monitoring changes in carbon pools in soils and plants
(including trees), including computer models;
(D) evaluating the linkage between Federal conservation
programs and carbon sequestration;
(E) developing methods, including remote sensing, to
measure the exchange of carbon and other greenhouse gases
sequestered, and to evaluate leakage, performance, and
permanence issues; and
(F) assessing the applicability of the results of research
conducted under this subsection for developing methods to
account for the impact of agricultural activities (including
forestry) on the exchange of greenhouse gases.
(e) Extension Projects.--
(1) In general.--The Secretary, in cooperation with
departments and agencies participating in the U.S. Global
Change Research Program and local extension agents, experts
from institutions of higher education that offer a curriculum
in agricultural and biological sciences, and other local
agricultural or conservation organizations, may implement
extension projects (including on-farm projects with direct
involvement of agricultural producers) that combine
measurement tools and modeling techniques into integrated
packages to monitor the carbon sequestering benefits of
conservation practices and the exchange of greenhouse gas
emissions from agriculture that demonstrate the feasibility
of methods of measuring and monitoring--
(A) changes in carbon content and other carbon pools in
soils and plants (including trees); and

[[Page S14960]]

(B) the exchange of other greenhouse gases.
(2) Education and outreach.--The Secretary shall make
available to agricultural producers, private forest
landowners, and appropriate State agencies in each State
information concerning--
(A) the results of projects under this subsection;
(B) the manner in which the methods used in the projects
might be applicable to the operations of the agricultural
producers, private forest landowners, and State agencies; and
(C) information on how agricultural producers and private
forest landowners can participate in carbon credit and
greenhouse gas trading system.
(f) Repeal.--Section 221 of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 6711) is repealed.
(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $15,000,000 for
each of fiscal years 2008 through 2012.

Subtitle E--National Institute of Food and Agriculture

SEC. 7401. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

(a) In General.--Subtitle F of the Department of
Agriculture Reorganization Act of 1994 is amended by adding
after section 252 (7 U.S.C. 6972) the following:

``SEC. 253. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

``(a) Definitions.--In this section:
``(1) Advisory board.--The term `Advisory Board' means the
National Agricultural Research, Extension, Education, and
Economics Advisory Board established under section 1408 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3123).
``(2) Competitive program.--The term `competitive program'
means each of the following agricultural research, extension,
education, and related programs for which the Secretary has
administrative or other authority as of the day before the
date of enactment of this section:
``(A) The competitive grant program established under
section 2(b) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(b)), commonly known as the
`National Research Initiative Competitive Grants Program'.
``(B) The program providing competitive grants for risk
management education established under section 524(a)(3) of
the Federal Crop Insurance Act (7 U.S.C. 1524(a)(3)).
``(C) The program providing community food project
competitive grants established under section 25 of the Food
Stamp Act of 1977 (7 U.S.C. 2034).
``(D) Each grant program established under section 2501 of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279) providing outreach and assistance for socially
disadvantaged farmers and ranchers.
``(E) The program providing grants under section 1417(b)(1)
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(1)), commonly
known as `Higher Education Challenge Grants'.
``(F) The program providing grants and related assistance
established under section 1417(b)(5) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3152(b)(5)) commonly known as the `Higher
Education Multicultural Scholars Program'.
``(G) The program providing food and agricultural sciences
national needs graduate and postgraduate fellowship grants
established under section 1417(b)(6) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3152(b)(6)).
``(H) The program providing grants under section 1417(j) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3152(j)), commonly known as
`Institution Challenge Grants'.
``(I) The program providing grants for Hispanic-serving
institutions established under section 1455 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3241).
``(J) The program providing competitive grants for
international agricultural science and education programs
under section 1459A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b).
``(K) The program of agricultural development in the
American-Pacific region established under section 1473H of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977.
``(L) The research and extension projects carried out under
section 1621 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5811), commonly known as the
`Sustainable Agriculture Research and Education program'.
``(M) The biotechnology risk assessment research program
established under section 1668 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5921).
``(N) The organic agriculture research and extension
initiative established under section 1672B of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925b).
``(O) The Initiative for Future Agriculture and Food
Systems established under section 401 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7621).
``(P) The integrated research, education, and extension
competitive grants program established under section 406 of
the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7626).
``(Q) The Small Business Innovation Research Program
established under section 9 of the Small Business Act (15
U.S.C. 638).
``(R) The specialty crop research initiative under section
412 of the Agricultural Research, Extension, and Education
Reform Act of 1998.
``(S) The administration and management of the regional
bioenergy crop research program carried out under section
9012 of the Farm Security and Rural Investment Act of 2002.
``(T) Other programs, including any programs added by
amendments made by title VII of the Food and Energy Security
Act of 2007 that are competitive programs, as determined by
the Secretary.
``(3) Director.--The term `Director' means the Director of
the Institute.
``(4) Infrastructure program.--The term `infrastructure
program' means each of the following agricultural research,
extension, education, and related programs for which the
Secretary has administrative or other authority as of the day
before the date of enactment of this section:
``(A) Each program providing funding to any of the 1994
Institutions under sections 533, 534(a), and 535 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) (commonly known as `financial
assistance, technical assistance, and endowments to tribal
colleges and Navajo Community College').
``(B) The program established under section 536 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) providing research grants for
1994 institutions.
``(C) Each program established under subsections (b), (c),
and (d) of section 3 of the Smith-Lever Act (7 U.S.C. 343).
``(D) Each program established under the Hatch Act of 1887
(7 U.S.C. 361a et seq.).
``(E) Each program established under section 1417(b)(4) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3152(b)(4)), including grant
programs under that section (commonly known as the `1890
Institution Teaching and Research Capacity Building Grants
Program').
``(F) The animal health and disease research program
established under subtitle E of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3191 et seq.).
``(G) Each extension program available to 1890 Institutions
established under sections 1444 and 1464 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3221, 3312).
``(H) The program established under section 1445 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3222) (commonly known as the
`Evans-Allen Program').
``(I) The program providing grants to upgrade agricultural
and food sciences facilities at 1890 Institutions established
under section 1447 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b).
``(J) The program providing distance education grants for
insular areas established under section 1490 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3362).
``(K) The program providing resident instruction grants for
insular areas established under section 1491 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3363).
``(L) Each program available to 1890 Institutions
established under section 406 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7626).
``(M) The program providing competitive extension grants to
eligible 1994 Institutions under section 1464 of National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3312) and the Equity in Educational Land-Grant
Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301 note)
established under section 406 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7626).
``(N) Each research and development and related program
established under Public Law 87-788 (commonly known as the
`McIntire-Stennis Cooperative Forestry Act') (16 U.S.C. 582a
et seq.).
``(O) Each program established under the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1671 et seq.).
``(P) Each program providing funding to Hispanic-serving
agricultural colleges under section 1456 of the National
Agricultural Research, Extension and Teaching Policy Act of
1977.
``(Q) The administration and management of the farm energy
education and technical assistance program carried out under
section 9005 of the Farm Security and Rural Investment Act of
2002.
``(R) Other programs, including any programs added by
amendments made by title VII of the Food and Energy Security
Act of 2007 that are infrastructure programs, as determined
by the Secretary.
``(5) Institute.--The term `Institute' means the National
Institute of Food and Agriculture established by subsection
(b)(1)(A).
``(b) Establishment of National Institute for Food and
Agriculture.--
``(1) Establishment.--

[[Page S14961]]

``(A) In general.--There is established within the
Department an agency to be known as the `National Institute
of Food and Agriculture'.
``(B) Location.--The location of the Institute shall be in
Washington, District of Columbia, as determined by the
Secretary.
``(C) Members.--The Institute shall consist of--
``(i) the Director;
``(ii) the individual offices established under subsection
(e); and
``(iii) the staff and employees of National Institute for
Food and Agriculture.
``(2) Transfer of authorities.--There are transferred to
the Institute the authorities (including all budget
authorities and personnel), duties, obligations, and related
legal and administrative functions prescribed by law or
otherwise granted to the Secretary, the Department, or any
other agency or official of the Department under--
``(A) the infrastructure programs;
``(B) the competitive programs;
``(C) the research, education, economic, cooperative State
research programs, cooperative extension and education
programs, international programs, and other functions and
authorities delegated by the Secretary to the Administrator
of the Cooperative State Research, Education, and Extension
Service pursuant to section 2.66 of title 7, Code of Federal
Regulations (or successor regulations); and
``(D) any and all other authorities administered by the
Administrator of the Cooperative State Research, Education,
and Extension Service.
``(3) Consolidation of authorities.--To carry out this Act,
in accordance with the transfer and continuation of the
authorities, budgetary functions, and personnel resources
under this subsection, the administrative entity within the
Department known as the Cooperative State Research,
Education, and Extension Service shall terminate on the
earlier of--
``(A) October 1, 2008; or
``(B) such earlier date as the Director determines to be
appropriate.
``(c) Director.--
``(1) In general.--The Institute shall be headed by a
Director, who shall be an individual who is--
``(A) a distinguished scientist; and
``(B) appointed by the President, by and with the advice
and consent of the Senate.
``(2) Term.--The Director shall serve for a single, 6-year
term.
``(3) Supervision.--The Director shall report directly to
the Secretary.
``(4) Compensation.--The Director shall receive basic pay
at the rate provided for level II of the Executive Schedule
under section 5513 of title 5, United States Code.
``(5) Authority and responsibilities of director.--
``(A) In general.--Except as otherwise specifically
provided in this section, the Director shall--
``(i) exercise all of the authority provided to the
Institute by this section;
``(ii) formulate programs in accordance with policies
adopted by the Institute;
``(iii) establish offices within the Institute;
``(iv) establish procedures for the peer review of research
funded by the Institute;
``(v) establish procedures for the provision and
administration of grants by the Institute in accordance with
this section;
``(vi) assess the personnel needs of agricultural research
in the areas supported by the Institute, and, if determined
to be appropriate by the Director, for other areas of food
and agricultural research;
``(vii) plan programs that will help meet agricultural
personnel needs in the future, including portable fellowship
and training programs in fundamental agricultural research
and fundamental science; and
``(viii) consult regularly with the National Agricultural
Research, Extension, Education, and Economics Advisory Board.
``(B) Finality of actions.--An action taken by the Director
in accordance with this section shall be final and binding
upon the Institute.
``(C) Delegation and redelegation of functions.--
``(i) In general.--Except as provided in clause (ii), the
Director may, from time to time and as the Director considers
to be appropriate, authorize the performance by any other
officer, agency, or employee of the Institute of any of the
functions of the Director under this section.
``(ii) Contracts, grants, and other arrangements.--The
Director may enter into contracts and other arrangements, and
provide grants, in accordance with this section.
``(iii) Formulation of programs.--The formulation of
programs in accordance with the policies of the Institute
shall be carried out by the Director.
``(6) Staff.--The Director shall recruit and hire such
senior staff and other personnel as are necessary to assist
the Director in carrying out this section.
``(7) Reporting and consultation.--The Director shall--
``(A) periodically report to the Secretary with respect to
activities carried out by the Institute; and
``(B) consult regularly with the Secretary to ensure, to
the maximum extent practicable, that--
``(i) research of the Institute is relevant to agriculture
in the United States and otherwise serves the national
interest; and
``(ii) the research of the Institute supplements and
enhances, and does not replace, research conducted or funded
by--

``(I) other agencies of the Department;
``(II) the National Science Foundation; or
``(III) the National Institutes of Health.

``(d) Powers.--
``(1) In general.--The Institute shall have such authority
as is necessary to carry out this section, including the
authority--
``(A) to promulgate such regulations as the Institute
considers to be necessary for governance of operations,
organization, and personnel;
``(B) to make such expenditures as are necessary to carry
out this section;
``(C) to enter into contracts or other arrangements, or
modifications of contracts or other arrangements--
``(i) to provide for the conduct, by organizations or
individuals in the United States (including other agencies of
the Department, Federal agencies, and agencies of foreign
countries), of such agricultural research or related
activities as the Institute considers to be necessary to
carry out this section; and
``(ii) for the conduct of such specific agricultural
research as is in the national interest or is otherwise of
critical importance, as determined by the Secretary, with the
concurrence of the Institute;
``(D) to make advance, progress, and other payments
relating to research and scientific activities without regard
to subsections (a) and (b) of section 3324 of title 31,
United States Code;
``(E) to receive and use donated funds, if the funds are
donated without restriction other than that the funds be used
in furtherance of 1 or more of the purposes of the Institute;
``(F) to publish or arrange for the publication of research
and scientific information to further the full dissemination
of information of scientific value consistent with the
national interest, without regard to section 501 of title 44,
United States Code;
``(G)(i) to accept and use the services of voluntary and
uncompensated personnel; and
``(ii) to provide such transportation and subsistence as
are authorized by section 5703 of title 5, United States
Code, for individuals serving without compensation;
``(H) to prescribe, with the approval of the Comptroller
General of the United States, the extent to which vouchers
for funds expended under contracts for scientific or
engineering research shall be subject to itemization or
substantiation prior to payment, without regard to the
limitations of other laws relating to the expenditure and
accounting of public funds;
``(I) to reimburse the Secretary, and the heads of other
Federal agencies, for the performance of any activity that
the Institute is authorized to conduct; and
``(J) to enter into contracts, at the request of the
Secretary, for the carrying out of such specific agricultural
research as is in the national interest or otherwise of
critical importance, as determined by the Secretary, with the
consent of the Institute.
``(2) Transfer of research funds of other departments or
agencies.--Funds available to the Secretary, or any other
department or agency of the Federal Government, for
agricultural or scientific research shall be--
``(A) available for transfer, with the approval of the
Secretary or the head of the other appropriate department or
agency involved, in whole or in part, to the Institute for
use in providing grants in accordance with the purposes for
which the funds were made available; and
``(B) if so transferred, expendable by the Institute for
those purposes.
``(e) Offices.--
``(1) Establishment of offices.--
``(A) Office of the agricultural research, extension, and
education network.--
``(i) Establishment.--The Director shall establish within
the Institute an Office of the Agricultural Research,
Extension, and Education Network (referred to in this
subparagraph as the `Office').
``(ii) Duties.--At the discretion of the Director, the
Office shall have responsibility for all infrastructure
programs.
``(B) Office of competitive programs for fundamental
research.--
``(i) Definition of fundamental research.--In this
subparagraph, the term `fundamental research' means research
that--

``(I) is directed toward greater knowledge or understanding
of the fundamental aspects of phenomena and has the potential
for broad, rather than specific, application; and
``(II) has an effect on agriculture, food, nutrition, human
health, or another purpose of this section.

``(ii) Establishment.--The Director shall establish within
the Institute an Office of Competitive Programs for
Fundamental Research (referred to in this subparagraph as the
`Office').
``(iii) Duties.--At the discretion of the Director, the
Office shall have responsibility for all competitive programs
relating to fundamental research.
``(C) Office of competitive programs for applied
research.--
``(i) Definition of applied research.--In this
subparagraph, the term `applied research' means research that
expands on the findings of fundamental research to uncover
practical ways in which new knowledge can be advanced to
benefit individuals and society.
``(ii) Establishment.--The Director shall establish within
the Institute an Office of Competitive Programs for Applied
Research

[[Page S14962]]

(referred to in this subparagraph as the `Office').
``(iii) Duties.--At the discretion of the Director, the
Office shall have responsibility for all competitive programs
relating to applied research.
``(D) Office of competitive programs for education and
other purposes.--
``(i) Establishment.--The Director shall establish within
the Institute an Office of Competitive Programs for Education
and Other Purposes (referred to in this subparagraph as the
`Office')
``(ii) Duties.--At the discretion of the Director, the
Office shall have responsibility for all competitive programs
that provide education fellowships and other education-
related grants.
``(2) Competitive programs for fundamental and applied
research.--
``(A) Definition of a competitive program for fundamental
and applied research.--In this paragraph, the term
`competitive program for fundamental and applied research'
means--
``(i) the competitive grant program established under
section 2 of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i), commonly known as the
`National Research Initiative Competitive Grants Program';
and
``(ii) any other competitive program within the Institute
that funds both fundamental and applied research, as
determined by the Director.
``(B) Program allocations.--For purposes of determining
which Office established under paragraph (1) should have
primary responsibility for administering grants under a
competitive program for fundamental and applied research, the
Director shall--
``(i) determine whether the grant under the competitive
program for fundamental and applied research is principally
related to fundamental or applied research; and
``(ii) assign the grant to the appropriate Office.
``(3) Responsibility of the director.--The Director shall
ensure that the Offices established under paragraph (1)
coordinate with each other Office for maximum efficiency.
``(f) Reporting.--The Director shall submit to the
Secretary, the Committee on Agriculture and the Committee on
Appropriations of the House of Representatives, and the
Committee on Agriculture, Nutrition, and Forestry and the
Committee on Appropriations of the Senate--
``(1) not later than 1 year after the date of establishment
of the Institute, and biennially thereafter, a comprehensive
report that--
``(A) describes the research funded and other activities
carried out by the Institute during the period covered by the
report; and
``(B) describes each contract or other arrangement that the
Institute has entered into, each grant awarded to the
Institute, and each other action of the Director taken, under
subsection (c)(5)(C)(ii); and
``(2) not later than 1 year after the date of establishment
of the Institute, and annually thereafter, a report that
describes the allocation and use of funds under subsection
(g)(2) of section 401 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621).
``(g) Funding.--
``(1) In general.--In addition to funds otherwise
appropriated to carry out each program administered by the
Institute, there are authorized to be appropriated such sums
as are necessary to carry out this section for each fiscal
year.
``(2) Allocation.--Funding made available under paragraph
(1) shall be allocated according to recommendations contained
in the roadmap described in section 309(c)(1)(A).''.
(b) National Agricultural Research, Extension, and Teaching
Policy Act of 1977.--Section 1408(b) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3123(b)) is amended--
(1) in paragraph (1), by striking ``31 members'' and
inserting ``24 members'';
(2) by striking paragraph (3) and inserting the following:
``(3) Membership categories.--The Advisory Board shall
consist of members from each of the following categories:
``(A) 1 member representing a national farm organization.
``(B) 1 member representing farm cooperatives.
``(C) 1 member actively engaged in the production of a food
animal commodity.
``(D) 1 member actively engaged in the production of a
plant commodity.
``(E) 1 member actively engaged in aquaculture.
``(F) 1 member representing a national food animal science
society.
``(G) 1 member representing a national crop, soil,
agronomy, horticulture, plant pathology, or weed science
society.
``(H) 1 member representing a national food science
organization.
``(I) 1 member representing a national human health
association.
``(J) 1 member representing a national nutritional science
society.
``(K) 1 member representing the land-grant colleges and
universities eligible to receive funds under the Act of July
2, 1862 (7 U.S.C. 301 et seq.).
``(L) 1 member representing the land-grant colleges and
universities eligible to receive funds under the Act of
August 30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee
University.
``(M) 1 member representing the 1994 Institutions (as
defined in section 532 of the Equity in Educational Land-
Grant Status Act of 1994 (Public Law 103-382; 7 U.S.C. 301
note)).
``(N) 1 member representing Hispanic-serving institutions.
``(O) 1 member representing the American Colleges of
Veterinary Medicine.
``(P) 1 member engaged in the transportation of food and
agricultural products to domestic and foreign markets.
``(Q) 1 member representing food retailing and marketing
interests.
``(R) 1 member representing food and fiber processors.
``(S) 1 member actively engaged in rural economic
development.
``(T) 1 member representing a national consumer interest
group.
``(U) 1 member representing a national forestry group.
``(V) 1 member representing a national conservation or
natural resource group.
``(W) 1 member representing private sector organizations
involved in international development.
``(X) 1 member representing a national social science
association.''; and
(3) in paragraph (4), by striking ``the Administrator of
the Cooperative State Research, Education, and Extension
Service'' and inserting ``the Director of the National
Institute of Food and Agriculture''.
(c) Conforming Amendments.--
(1) Section 296(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
(A) in paragraph (4), by striking ``or'' at the end;
(B) in paragraph (5), by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following:
``(6) the authority of the Secretary relating to the
National Institute of Food and Agriculture under section 253;
or''.
(2) The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended--
(A) in section 1424A(b) (7 U.S.C. 3174a(b)), by striking
``the Cooperative State Research, Education, and Extension
Service'' and inserting ``the National Institute of Food and
Agriculture''; and
(B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)), by
striking ``the Cooperative State Research, Education, and
Extension Service'' and inserting ``the National Institute of
Food and Agriculture''.
(3) Section 522(d)(2) of the Federal Crop Insurance Act (7
U.S.C. 1522(d)(2)) is amended by striking ``the Cooperative
State Research, Education, and Extension Service'' and
inserting ``the National Institute of Food and Agriculture''.
(4) Section 524(a) of the Federal Crop Insurance Act (7
U.S.C. 1524(a)) is amended in each of paragraphs (1)(B) and
(3)(A) by striking ``the Cooperative State Research,
Education, and Extension Service'' each place it appears and
inserting ``the National Institute of Food and Agriculture''.
(5) Section 306(a)(11)(C) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(11)(C)) is amended by
striking ``the Cooperative State Research, Education, and
Extension Service'' and inserting ``the National Institute of
Food and Agriculture''.
(6) Section 704 of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations
Act, 2006 (7 U.S.C. 2209b), is amended by striking
``Cooperative State Research, Education, and Extension
Service'' and inserting ``the National Institute of Food and
Agriculture''.
(7) Section 7404(b)(1)(B) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107-
171) is amended by striking clause (vi) and inserting the
following:
``(vi) the National Institute of Food and Agriculture.''.
(8) Section 1499(c) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5506(c)) is amended by
striking ``the Cooperative State Research Service'' and
inserting ``the National Institute of Food and Agriculture''.
(9) Section 1622 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5812) is amended--
(A) in subsection (a)(1), by striking ``the Cooperative
State Research Service'' and inserting ``the National
Institute of Food and Agriculture''; and
(B) in subsection (b)(1), by striking subparagraph (B) and
inserting the following:
``(B) the National Institute of Food and Agriculture;''.
(10) Section 1668(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5921(b)) is
amended by striking ``Cooperative State Research, Education,
and Extension Service and the Agricultural Research Service''
and inserting ``the National Institute of Food and
Agriculture''.
(11) Section 1670(a)(4) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is
amended by striking ``the Administrator of the Cooperative
State Research, Education, and Extension Service'' and
inserting ``the Director of the National Institute of Food
and Agriculture''.
(12) Section 537 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7446) is amended in each of
subsections (a)(2) and (b)(3)(B)(i) by striking ``Cooperative
State Research, Education, and Extension Service'' and
inserting ``the National Institute of Food and Agriculture''.

[[Page S14963]]

(13) Section 103(a) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7613(a)) is amended--
(A) in the subsection heading, by striking ``Cooperative
State Research, Education, and Extension Service'' and
inserting ``National Institute of Food and Agriculture''; and
(B) in each of paragraphs (1) and (2)(A), by striking ``the
Cooperative State Research, Education, and Extension
Service'' and inserting ``the National Institute of Food and
Agriculture''.
(14) Section 401(f)(5) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7621(f)(5)) is amended by striking ``the Cooperative State
Research, Education, and Extension Service'' and inserting
``the National Institute of Food and Agriculture''.
(15) Section 407(c) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7627(c)) is amended by striking ``the Cooperative State
Research, Education, and Extension Service'' and inserting
``the National Institute of Food and Agriculture''.
(16) Section 410(a) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7630(a)) is amended by striking ``the Administrator of the
Cooperative State Research, Education, and Extension
Service'' and inserting ``the Director of the National
Institute of Food and Agriculture''.
(17) Section 307(g)(5) of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking
``Administrator of the Cooperative State Research, Education,
and Extension Service'' and inserting ``the Director of the
National Institute of Food and Agriculture''.
(18) Section 6(b) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2103b(b)) is amended by striking ``the
Cooperative State Research, Education, and Extension Service,
may provide technical, financial, and related assistance to
State foresters, equivalent State officials, or Cooperative
Extension officials'' and inserting ``the National Institute
of Food and Agriculture, may provide technical, financial and
related assistance to State foresters, equivalent State
officials, and Institute officials''.
(19) Section 19 of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2113) is amended in subsections (a)(2) and
(b)(1)(B)(i), by striking ``Extension Service,'' each place
it appears and inserting ``National Institute of Food and
Agriculture,''.
(20) Section 105(a) of the Africa: Seeds of Hope Act of
1998 (22 U.S.C. 2293 note; Public Law 105-385) is amended by
striking ``the Cooperative State Research, Education, and
Extension Service (CSREES)'' and inserting ``the National
Institute of Food and Agriculture''.
(21) Section 307(a)(4) of the National Aeronautic and Space
Administration Authorization Act of 2005 (42 U.S.C.
16657(a)(4)) is amended by striking subparagraph (B) and
inserting the following:
``(B) the program and structure of, peer review process of,
management of conflicts of interest by, compensation of
reviewers of, and the effects of compensation on reviewer
efficiency and quality within, the National Institute of Food
and Agriculture of the Department of Agriculture;''.

SEC. 7402. COORDINATION OF AGRICULTURAL RESEARCH SERVICE AND
NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

Title III of the Department of Agriculture Reorganization
Act of 1994 is amended by adding after section 308 (as added
by section 7314) the following:

``SEC. 309. COORDINATION OF AGRICULTURAL RESEARCH SERVICE AND
NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.

``(a) In General.--The Undersecretary for Research,
Education, and Economics shall coordinate the programs under
the authority of the Administrator of the Agricultural
Research Service and the Director of the National Institute
of Food and Agriculture, and the staff of the Administrator
and the Director, including national program leaders, shall
meet on a regular basis to--
``(1) increase coordination and integration of research
programs at the Agricultural Research Service and the
research, extension, and education programs of the National
Institute of Food and Agriculture;
``(2) coordinate responses to emerging issues;
``(3) minimize duplication of work and resources at the
staff level of each agency;
``(4) use the extension and education program to deliver
knowledge to stakeholders;
``(5) address critical needs facing agriculture; and
``(6) focus the research, extension, and education funding
strategy of the Department.
``(b) Reports.--Not later than 270 days after the date of
enactment of this section, and annually thereafter, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report describing
efforts to increase coordination between the Agricultural
Research Service and the National Institute for Food and
Agriculture.
``(c) Roadmap.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, acting through
the Under Secretary for Research, Education, and Economics
shall--
``(A) prepare a roadmap for agricultural research,
extension, and education that--
``(i) identifies major opportunities and gaps in
agricultural research, extension, and education that no
single entity in the Department would be able to carry out
individually, but that is necessary to carry out agricultural
research;
``(ii) involves--

``(I) stakeholders from across the Federal Government;
``(II) stakeholders from across the full array of
nongovernmental entities; and
``(III) the National Agricultural Research, Extension,
Education, and Economics Advisory Board established under
section 1408 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123);

``(iii) incorporates roadmaps for agricultural research
made publicly available by other Federal entities, agencies,
or offices; and
``(iv) describes recommended funding levels for areas of
agricultural research, extension, and education, including--

``(I) competitive programs; and
``(II) infrastructure programs, with attention to the
future growth needs of small 1862 Institutions, 1890
Institutions, and 1994 Institutions (as those terms are
defined in section 2 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7601)), Hispanic-
serving agricultural colleges (as defined in section 1456(a)
of the National Agricultural Research, Extension and Teaching
Policy Act of 1977), and any other public college or
university that is not such an institution or college but
that offers a baccalaureate or higher degree in the study of
agriculture;

``(B) use the roadmap to set the research, extension, and
education agenda of the Department; and
``(C) submit a description of the roadmap to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate.
``(2) Implementation.--The Secretary, acting through the
Under Secretary, shall implement, to the maximum extent
practicable, the roadmap.
``(3) Funding.--There are authorized to be appropriated
such sums as are necessary to carry out this subsection.''.

Subtitle F--Miscellaneous

SEC. 7501. JOINT NUTRITION MONITORING AND RELATED RESEARCH
ACTIVITIES.

The Secretary and the Secretary of Health and Human
Services shall continue to provide jointly for national
nutrition monitoring and related research activities carried
out as of the date of enactment of this Act--
(1) to collect continuous data relating to diet, health,
physical activity, and knowledge about diet and health, using
a nationally-representative sample;
(2) to periodically collect data described in paragraph (1)
on special at-risk populations, as identified by the
Secretaries;
(3) to distribute information on health, nutrition, the
environment, and physical activity to the public in a timely
manner;
(4) to analyze new data as the data becomes available;
(5) to continuously update food composition tables; and
(6) to research and develop data collection methods and
standards.

SEC. 7502. DEMONSTRATION PROJECT AUTHORITY FOR TEMPORARY
POSITIONS.

Notwithstanding section 4703(d)(1) of title 5, United
States Code, the amendment to the personnel management
demonstration project established in the Department of
Agriculture (67 Fed. Reg. 70776 (2002)), shall become
effective upon the date of enactment of this Act and shall
remain in effect unless modified by law.

SEC. 7503. REVIEW OF PLAN OF WORK REQUIREMENTS.

(a) Review.--The Secretary of Agriculture (referred to in
this section as the ``Secretary'') shall work with university
partners in extension and research to review and identify
measures to streamline the submission, reporting under, and
implementation of plan of work requirements including
requirements under--
(1) sections 1444(d) and 1445(c) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3221(d), 3222(c));
(2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); and
(3) section 4 of the Smith-Lever Act (7 U.S.C. 344).
(b) Report.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report describing the results of the review
conducted under subsection (a).
(2) Inclusions.--The report shall include recommendations--
(A) to reduce the administrative burden and workload on
institutions associated with plan of work compliance while
meeting the reporting needs of the Department of Agriculture
for input, output, and outcome indicators;
(B) to streamline the submission and reporting requirements
of the plan of work so that the plan of work is of practical
utility to both the Department of Agriculture and the
institutions; and
(C) for any legislative changes necessary to carry out the
plan of work improvements.

[[Page S14964]]

(c) Consultation.--In carrying out this section, the
Secretary shall consult with land-grant colleges and
universities (as defined in section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)).

SEC. 7504. STUDY AND REPORT ON ACCESS TO NUTRITIOUS FOODS.

(a) In General.--The Secretary shall carry out a study of,
and prepare a report on, areas in the United States with
limited access to affordable and nutritious food, with a
particular focus on predominantly lower-income neighborhoods
and communities.
(b) Contents.--The study and report shall--
(1) assess the incidence and prevalence of areas with
limited access to affordable and nutritious food in the
United States;
(2) identify--
(A) characteristics and factors causing and influencing
those areas; and
(B) the effect on local populations of limited access to
affordable and nutritious food; and
(3) develop recommendations for addressing the causes and
influences of those areas through measures including--
(A) community and economic development initiatives;
(B) incentives for retail food market development,
including supermarkets, small grocery stores, and farmers'
markets; and
(C) improvements to Federal food assistance and nutrition
education programs.
(c) Coordination With Other Agencies and Organizations.--
The Secretary shall conduct the study under this section in
coordination and consultation with--
(1) the Secretary of Health and Human Services;
(2) the Administrator of the Small Business Administration;
(3) the Institute of Medicine; and
(4) representatives of appropriate businesses, academic
institutions, and nonprofit and faith-based organizations.
(d) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall submit the
report prepared under this section, including the findings
and recommendations described in subsection (b), to--
(1) the Committee on Agriculture of the House of
Representatives; and
(2) the Committee on Agriculture, Nutrition, and Forestry
of the Senate.

TITLE VIII--FORESTRY

Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Community forests working land program.
Sec. 8003. Federal, State, and local coordination and cooperation.
Sec. 8004. Comprehensive statewide forest planning.
Sec. 8005. Assistance to the Federated States of Micronesia, the
Republic of the Marshall Islands, and the Republic of
Palau.

Subtitle B--Tribal-Forest Service Cooperative Relations

Sec. 8101. Definitions.

PART I--Collaboration Between Indian Tribes and Forest Service

Sec. 8111. Forest Legacy Program.
Sec. 8112. Forestry and resource management assistance for Indian
tribes.

PART II--Cultural and Heritage Cooperation Authority

Sec. 8121. Purposes.
Sec. 8122. Definitions.
Sec. 8123. Reburial of human remains and cultural items.
Sec. 8124. Temporary closure for traditional and cultural purposes.
Sec. 8125. Forest products for traditional and cultural purposes.
Sec. 8126. Prohibition on disclosure.
Sec. 8127. Severability and savings provisions.

Subtitle C--Amendments to Other Laws

Sec. 8201. Renewable resources extension activities.
Sec. 8202. Office of International Forestry.

TITLE VIII--FORESTRY

Subtitle A--Cooperative Forestry Assistance Act of 1978

SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST
CONSERVATION.

Section 2 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2101) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Priorities.--In allocating funds appropriated or
otherwise made available under this Act, the Secretary shall
focus on the following national private forest conservation
priorities:
``(1) Conserving and managing working forest landscapes for
multiple values and uses.
``(2) Protecting forests from threats to forest and forest
health, including unnaturally large wildfires, hurricanes,
tornadoes, windstorms, snow or ice storms, flooding, drought,
invasive species, insect or disease outbreak, or development,
and restoring appropriate forest structures and ecological
processes in response to such threats.
``(3) Enhancing public benefits from private forests,
including air and water quality, forest products, forestry-
related jobs, production of renewable energy, wildlife,
enhanced biodiversity, the establishment or maintenance of
wildlife corridors and wildlife habitat, and recreation.
``(d) Reporting Requirement.--Not later than September 30,
2011, the Secretary shall submit to Congress a report
describing how funding was used under this Act to address the
national priorities specified in subsection (c) and the
outcomes achieved in meeting the national priorities.''.

SEC. 8002. COMMUNITY FORESTS WORKING LAND PROGRAM.

Section 7 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103c) is amended--
(1) by redesignating subsection (m) as subsection (n); and
(2) by inserting after subsection (l) the following:
``(m) Community Forests Working Land Program.--
``(1) Definitions.--In this subsection:
``(A) Community forest land.--The term `community forest
land' means a parcel of land that is--
``(i) forested; and
``(ii) located, as determined by the Secretary, within, or
in close proximity to, a population center.
``(B) Unit of local government.--The term `unit of local
government' means a town, city, or other unit of local
government.
``(2) Purposes.--The purposes of the community forests
working land program are--
``(A) to help protect environmentally important forest land
near population centers, as determined by the Secretary;
``(B) to facilitate land use planning by units of local
government; and
``(C) to facilitate the donations, acceptance, and
enforcement of conservation easements on community forest
land.
``(3) Establishment.--The Secretary, in cooperation with
the States, shall offer financial and technical assistance to
units of local government by providing, in priority areas (as
defined by the Secretary)--
``(A) financial assistance to purchase conservation
easements on, facilitate the donation, acceptance, and
enforcement of conservation easements on, or otherwise
acquire, community forest land; and
``(B) technical assistance to facilitate--
``(i) conservation of community forests;
``(ii) management of community forests;
``(iii) training related to forest management and forest
conservation; and
``(iv) other forest conservation activities, as determined
by the Secretary.
``(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $65,000,000
for each of fiscal years 2008 through 2012.''.

SEC. 8003. FEDERAL, STATE, AND LOCAL COORDINATION AND
COOPERATION.

Section 19(b)(2)(D) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2113(b)(2)(D)) is amended by inserting
``except for projects submitted by an Indian tribe,'' before
``make recommendations''.

SEC. 8004. COMPREHENSIVE STATEWIDE FOREST PLANNING.

The Cooperative Forestry Assistance Act of 1978 is
amended--
(1) by redesignating section 20 (16 U.S.C. 2114) as section
22; and
(2) by inserting after section 19 (16 U.S.C. 2113) the
following:

``SEC. 20. COMPREHENSIVE STATEWIDE FOREST PLANNING.

``(a) Establishment.--The Secretary shall establish a
comprehensive statewide forest planning program under which
the Secretary shall provide financial and technical
assistance to States for use in the development and
implementation of statewide forest resource assessments and
plans.
``(b) Statewide Forest Resource Assessment and Plan.--For a
State to be eligible to receive funds under this Act, not
later than 2 years after the date of enactment of the Food
and Energy Security Act of 2007, the State Forester of the
State, or an equivalent State official, shall develop a
statewide forest resource assessment and plan that, at a
minimum--
``(1) identifies each critical forest resource area in the
State described in section 2(c);
``(2) to the maximum extent practicable--
``(A) incorporates any forest management plan of the State
in existence on the date of enactment of this section;
``(B) addresses the needs of the region, without regard to
the borders of each State of the region (or the political
subdivisions of each State of the region);
``(C) provides a comprehensive statewide plan (including
the opportunity for public participation in the development
of the statewide plan) for--
``(i) managing the forest land in the State;
``(ii) achieving the national priorities specified in
section 2(c)(2);
``(iii) monitoring the forest land in the State; and
``(iv) administering any forestry-related Federal, State,
or private grants awarded to the State under this section or
any other provisions of law; and
``(D) includes a multiyear, integrated forest management
strategy that provides a management framework for--
``(i) the administration of each applicable program of the
State; and
``(ii) the use of any funds made available for the
management of the forest land in the State; and

[[Page S14965]]

``(3) is determined by the Secretary to be sufficient to
satisfy all relevant State planning and assessment
requirements under this Act.
``(c) Coordination.--In developing the statewide assessment
and plan under subsection (b), the State Forester or
equivalent State official shall--
``(1) coordinate with--
``(A) the State Forest Stewardship Coordination Committee
established for the State under section 19(b);
``(B) the State wildlife agency, with respect to strategies
contained in the State wildlife action plans;
``(C) the State Technical Committee; and
``(D) applicable Federal land management agencies; and
``(2) for purposes of the Forest Legacy Program under
section 7, work cooperatively with the State lead agency
designated by the Governor.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each fiscal year.''.

SEC. 8005. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA,
THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE
REPUBLIC OF PALAU.

Section 13(d)(1) of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2109(d)(1)) is amended by striking ``the
Trust Territory of the Pacific Islands,'' and inserting ``the
Federated States of Micronesia, the Republic of the Marshall
Islands, the Republic of Palau,''.

Subtitle B--Tribal-Forest Service Cooperative Relations

SEC. 8101. DEFINITIONS.

In this subtitle:
(1) Indian.--The term ``Indian'' means an individual who is
a member of an Indian tribe.
(2) Indian tribe.--The term ``Indian tribe''--
(A) for purposes of title I, has the meaning given the term
in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b); and
(B) for purposes of title II, means any Indian or Alaska
Native tribe, band, nation, pueblo, village, or other
community the name of which is included on a list published
by the Secretary of the Interior pursuant to section 104 of
the Federally Recognized Indian Tribe List Act of 1994 (25
U.S.C. 479a-1).
(3) National forest system.--The term ``National Forest
System'' has the meaning given the term in section 11(a) of
the Forest and Rangeland Renewable Resources Planning Act of
1974 (16 U.S.C. 1609(a)).

PART I--COLLABORATION BETWEEN INDIAN TRIBES AND FOREST SERVICE

SEC. 8111. FOREST LEGACY PROGRAM.

(a) Participation by Indian Tribes.--Section 7 of the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103c)
is amended--
(1) in subsection (a), in the first sentence, by inserting
``, including Indian tribes,'' after ``government'';
(2) in subsection (b), by inserting ``or programs of Indian
tribes'' after ``regional programs'';
(3) in subsection (f), in the second sentence, by striking
``other appropriate State or regional natural resource
management agency'' and inserting ``other appropriate natural
resource management agency of a State, region, or Indian
tribe'';
(4) in subsection (h)(2), by inserting ``, including an
Indian tribe'' before the period at the end; and
(5) in subsection (j)(2), in the first sentence, by
inserting ``including Indian tribes,'' after ``governmental
units,''.
(b) Optional State and Tribal Grants.--Section 7(l ) of the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103c(l)) is amended--
(1) in the subsection heading, by inserting ``and Tribal''
after ``State'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Definition of indian tribe.--In this subsection, the
term `Indian tribe' has the meaning given the term in section
4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
``(2) Grants.--On request of a participating State or
Indian tribe, the Secretary shall provide a grant to the
State or Indian tribe to carry out the Forest Legacy Program
in the State or with the Indian tribe.
``(3) Administration.--If a State or Indian tribe elects to
receive a grant under this subsection--
``(A) the Secretary shall use a portion of the funds made
available under subsection (m), as determined by the
Secretary, to provide a grant to the State or Indian tribe;
and
``(B) the State or Indian tribe shall use the grant to
carry out the Forest Legacy Program in the State or with the
Indian tribe, including through acquisition by the State or
Indian tribe of land and interests in land.
``(4) Effect on trust land.--
``(A) Ineligibility.--The Secretary shall not provide a
grant under this subsection for any project on land held in
trust by the United States (including Indian reservations and
allotment land).
``(B) Acquired land.--No land acquired using a grant
provided under this subsection shall be converted to land
held in trust by the United States on behalf of any Indian
tribe.''.
(c) Conforming Amendments.--Section 7(j)(1) of the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103c(j)(1)) is amended by striking the first sentence and
inserting the following: ``Fair market value shall be paid
for any property interest acquired (other than by donation)
under this section.''.

SEC. 8112. FORESTRY AND RESOURCE MANAGEMENT ASSISTANCE FOR
INDIAN TRIBES.

(a) Definition of Eligible Indian Land.--In this section,
the term ``eligible Indian land'' means, with respect to each
participating Indian tribe--
(1) trust land located within the boundaries of the
reservation of the Indian tribe;
(2) land owned in fee by the Indian tribe; and
(3) trust land located outside the boundaries of the
reservation of the Indian tribe that is eligible for use for
land programs of the Indian tribe.
(b) Authority to Provide Assistance.--The Secretary may
provide financial, technical, educational, and related
assistance to any Indian tribe for--
(1) tribal consultation and coordination with the Forest
Service on issues relating to--
(A) access and use by members of the Indian tribe to
National Forest System land and resources for traditional,
religious, and cultural purposes;
(B) coordinated or cooperative management of resources
shared by the Forest Service and the Indian tribe; or
(C) the provision of tribal traditional, cultural, or other
expertise or knowledge;
(2) projects and activities for conservation education and
awareness with respect to forest land or grassland that is
eligible Indian land; and
(3) technical assistance for forest resources planning,
management, and conservation on eligible Indian land.
(c) Requirements.--
(1) In general.--During any fiscal year, an Indian tribe
may participate in only 1 approved activity that receives
assistance under--
(A) subsection (b)(3); or
(B) the forest stewardship program under section 5 of the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103a).
(d) Implementation.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall promulgate
regulations to implement subsection (b), including rules for
determining the distribution of assistance under that
subsection.
(2) Consultation.--In developing regulations pursuant to
paragraph (1), the Secretary shall conduct full, open, and
substantive consultation with Indian tribal governments and
other representatives of Indian tribes.
(e) Coordination With Secretary of Interior.--In carrying
out this section, the Secretary shall coordinate with the
Secretary of the Interior to ensure that activities under
subsection (b)--
(1) do not conflict with Indian tribal programs provided by
the Department of the Interior; and
(2) achieve the goals established by the affected Indian
tribes.
(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.

PART II--CULTURAL AND HERITAGE COOPERATION AUTHORITY

SEC. 8121. PURPOSES.

The purposes of this part are--
(1) to authorize the reburial of human remains and cultural
items, including human remains and cultural items repatriated
under the Native American Graves Protection and Repatriation
Act (25 U.S.C. 3001 et seq.), on National Forest System land;
(2) to prevent the unauthorized disclosure of information
regarding reburial sites, including--
(A) the quantity and identity of human remains and cultural
items on the sites; and
(B) the location of the sites;
(3) to authorize the Secretary to ensure access to National
Forest System land, to the maximum extent practicable, by
Indians and Indian tribes for traditional and cultural
purposes;
(4) to authorize the Secretary to provide forest products
free of charge to Indian tribes for traditional and cultural
purposes;
(5) to authorize the Secretary to protect the
confidentiality of certain information, including information
that is culturally sensitive to Indian tribes;
(6) to increase the availability of Forest Service programs
and resources to Indian tribes in support of the policy of
the United States to promote tribal sovereignty and self-
determination; and
(7) to strengthen support for the policy of the United
States of protecting and preserving the traditional,
cultural, and ceremonial rites and practices of Indian
tribes, in accordance with Public Law 95-341 (commonly known
as the ``American Indian Religious Freedom Act'') (42 U.S.C.
1996).

SEC. 8122. DEFINITIONS.

In this part:
(1) Adjacent site.--The term ``adjacent site'' means a site
that borders a boundary line of National Forest system land.
(2) Cultural items.--
(A) In general.--The term ``cultural items'' has the
meaning given the term in

[[Page S14966]]

section 2 of the Native American Graves Protection and
Repatriation Act (25 U.S.C. 3001).
(B) Exception.--The term ``cultural items'' does not
include human remains.
(3) Human remains.--The term ``human remains'' means the
physical remains of the body of a person of Indian ancestry.
(4) Lineal descendant.--The term ``lineal descendant''
means an individual that can trace, directly and without
interruption, the ancestry of the individual through the
traditional kinship system of an Indian tribe, or through the
common law system of descent, to a known Indian, the human
remains, funerary objects, or other sacred objects of whom
are claimed by the individual.
(5) Reburial site.--The term ``reburial site'' means a
discrete physical location at which cultural items or human
remains are reburied.
(6) Traditional and cultural purpose.--The term
``traditional and cultural purpose'', with respect to a
definable use, area, or practice, means that the use, area,
or practice is identified by an Indian tribe as traditional
or cultural because of the long-established significance or
ceremonial nature of the use, area, or practice to the Indian
tribe.

SEC. 8123. REBURIAL OF HUMAN REMAINS AND CULTURAL ITEMS.

(a) Reburial Sites.--In consultation with an affected
Indian tribe or lineal descendant, the Secretary may
authorize the use of National Forest System land by the
Indian tribe or lineal descendant for the reburial of human
remains or cultural items in the possession of the Indian
tribe or lineal descendant that have been disinterred from
National Forest System land or an adjacent site.
(b) Reburial.--With the consent of the affected Indian
tribe or lineal descendent, the Secretary may recover and
rebury, at Federal expense or using other available funds,
human remains and cultural items described in subsection (a)
at the National Forest System land identified under that
subsection.
(c) Authorization of Use.--
(1) In general.--Subject to paragraph (2), the Secretary
may authorize such uses on reburial sites or adjacent sites
as the Secretary determines to be necessary for management of
the National Forest System.
(2) Avoidance of adverse impacts.--In carrying out
paragraph (1), the Secretary shall avoid adverse impacts to
cultural items and human remains, to the maximum extent
practicable.

SEC. 8124. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL
PURPOSES.

(a) Recognition of Historic Use.--The Secretary shall, to
the maximum extent practicable, ensure access to National
Forest System land by Indians for traditional and cultural
purposes, in accordance with subsection (b), in recognition
of the historic use by Indians of National Forest System
land.
(b) Closing Land From Public Access.--
(1) In general.--On receipt of a request from an Indian
tribe, the Secretary may temporarily close from public access
specifically designated National Forest System land to
protect the privacy of tribal activities for traditional and
cultural purposes.
(2) Limitation.--A closure of National Forest System land
under paragraph (1) shall affect the smallest practicable
area for the minimum period necessary for activities of the
applicable Indian tribe.
(3) Consistency.--Access by Indian tribes to National
Forest System land under this subsection shall be consistent
with the purposes of Public Law 95-341 (commonly known as the
``American Indian Religious Freedom Act'') (42 U.S.C. 1996).

SEC. 8125. FOREST PRODUCTS FOR TRADITIONAL AND CULTURAL
PURPOSES.

(a) In General.--Notwithstanding section 14 of the National
Forest Management Act of 1976 (16 U.S.C. 472a), the Secretary
may provide free of charge to Indian tribes any trees,
portions of trees, or forest products from National Forest
System land for traditional and cultural purposes.
(b) Prohibition.--Trees, portions of trees, or forest
products provided under subsection (a) may not be used for
commercial purposes.

SEC. 8126. PROHIBITION ON DISCLOSURE.

(a) Nondisclosure of Information.--
(1) In general.--The Secretary shall not disclose under
section 552 of title 5, United States Code (commonly known as
the ``Freedom of Information Act''), any information relating
to--
(A) subject to subsection (b)(l), human remains or cultural
items reburied on National Forest System land under section
8123; or
(B) subject to subsection (b)(2), resources, cultural
items, uses, or activities that--
(i) have a traditional and cultural purpose; and
(ii) are provided to the Secretary by an Indian or Indian
tribe under an express expectation of confidentiality in the
context of forest and rangeland research activities carried
out under the authority of the Forest Service.
(2) Limitations on disclosure.--Subject to subsection
(b)(2), the Secretary shall not be required to disclose
information under section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information Act''),
concerning the identity, use, or specific location in the
National Forest System of--
(A) a site or resource used for traditional and cultural
purposes by an Indian tribe; or
(B) any cultural items not covered under section 8123.
(b) Limited Release of Information.--
(1) Reburial.--The Secretary may disclose information
described in subsection (a)(l)(A) if, before the disclosure,
the Secretary--
(A) consults with an affected Indian tribe or lineal
descendent;
(B) determines that disclosure of the information--
(i) would advance the purposes of this part; and
(ii) is necessary to protect the human remains or cultural
items from harm, theft, or destruction; and
(C) attempts to mitigate any adverse impacts identified by
an Indian tribe or lineal descendant that reasonably could be
expected to result from disclosure of the information.
(2) Other information.--The Secretary may disclose
information described under paragraph (1)(B) or (2) of
subsection if the Secretary determines that disclosure of the
information to the public--
(A) would advance the purposes of this part;
(B) would not create an unreasonable risk of harm, theft,
or destruction of the resource, site, or object, including
individual organic or inorganic specimens; and
(C) would be consistent with other applicable laws.

SEC. 8127. SEVERABILITY AND SAVINGS PROVISIONS.

(a) Severability.--If any provision of this part, or the
application of any provision of this part to any person or
circumstance, is held invalid, the application of such
provision or circumstance and the remainder of this part
shall not be affected thereby.
(b) Savings.--Nothing in this part--
(1) diminishes or expands the trust responsibility of the
United States to Indian tribes, or any legal obligation or
remedy resulting from that responsibility;
(2) alters, abridges, repeals, or affects any valid
agreement between the Forest Service and an Indian tribe;
(3) alters, abridges, diminishes, repeals, or affects any
reserved or other right of an Indian tribe; or
(4) alters, abridges, diminishes, repeals, or affects any
other valid existing right relating to National Forest System
land or other public land.

Subtitle C--Amendments to Other Laws

SEC. 8201. RENEWABLE RESOURCES EXTENSION ACTIVITIES.

(a) Authorization of Appropriations.--Section 6 of the
Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is
amended in the first sentence by striking ``2007'' and
inserting ``2012''.
(b) Termination Date.--Section 8 of the Renewable Resources
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-
306) is amended by striking ``2007'' and inserting ``2012''.

SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

Section 2405(d) of the Global Climate Change Prevention Act
of 1990 (7 U.S.C. 6704(d)) is amended by striking ``2007''
and inserting ``2012''.

TITLE IX--ENERGY

SEC. 9001. ENERGY.

Title IX of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8101 et seq.) is amended to read as follows:

``TITLE IX--ENERGY

``SEC. 9001. DEFINITIONS.

``Except as otherwise provided, in this title:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Advisory committee.--The term `Advisory Committee'
means the Biomass Research and Development Technical Advisory
Committee established by section 9008(d)(1).
``(3) Advanced biofuel.--
``(A) In general.--The term `advanced biofuel' means fuel
derived from renewable biomass other than corn starch.
``(B) Inclusions.--The term `advanced biofuel' includes--
``(i) biofuel derived from cellulose, hemicellulose, or
lignin;
``(ii) biofuel derived from sugar and starch (other than
ethanol derived from corn starch);
``(iii) biofuel derived from waste material, including crop
residue, other vegetative waste material, animal waste, food
waste, and yard waste;
``(iv) diesel-equivalent fuel derived from renewable
biomass, including vegetable oil and animal fat;
``(v) biogas (including landfill gas and sewage waste
treatment gas) produced through the conversion of organic
matter from renewable biomass;
``(vi) butanol or other alcohols produced through the
conversion of organic matter from renewable biomass; and
``(vii) other fuel derived from cellulosic biomass.
``(4) Biobased product.--The term `biobased product' means
a product determined by the Secretary to be a commercial or
industrial product (other than food or feed) that is--
``(A) composed, in whole or in significant part, of
biological products, including renewable domestic
agricultural materials and forestry materials; or
``(B) an intermediate ingredient or feedstock.
``(5) Biofuel.--The term `biofuel' means a fuel derived
from renewable biomass.
``(6) Biomass conversion facility.--The term `biomass
conversion facility' means a facility that converts or
proposes to convert renewable biomass into--

[[Page S14967]]

``(A) heat;
``(B) power;
``(C) biobased products; or
``(D) advanced biofuels.
``(7) Biorefinery.--The term `biorefinery' means equipment
and processes that--
``(A) convert renewable biomass into biofuels and biobased
products; and
``(B) may produce electricity.
``(8) Board.--The term `Board' means the Biomass Research
and Development Board established by section 9008(c).
``(9) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 102(a) of the Higher Education Act of 1965
(20 U.S.C. 1002(a)).
``(11) Intermediate ingredient or feedstock.--The term
`intermediate ingredient or feedstock' means a material or
compound made in whole or in significant part from biological
products, including renewable agricultural materials
(including plant, animal, and marine materials) or forestry
materials, that are subsequently used to make a more complex
compound or product.
``(12) Renewable biomass.--The term `renewable biomass'
means--
``(A) materials, pre-commercial thinnings, or removed
exotic species that--
``(i) are byproducts of preventive treatments (such as
trees, wood, brush, thinnings, chips, and slash), that are
removed--

``(I) to reduce hazardous fuels;
``(II) to reduce or contain disease or insect infestation;
or
``(III) to restore ecosystem health;

``(ii) would not otherwise be used for higher-value
products; and
``(iii) are harvested from National Forest System land or
public lands (as defined in section 103 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1702)), in
accordance with--

``(I) Federal and State law;
``(II) applicable land management plans; and
``(III) the requirements for old-growth maintenance,
restoration, and management direction of paragraphs (2), (3),
and (4) of subsection (e) of section 102 of the Healthy
Forests Restoration Act of 2003 (16 U.S.C. 6512) and the
requirements for large-tree retention of subsection (f) of
that section; or

``(B) any organic matter that is available on a renewable
or recurring basis from non-Federal land or land belonging to
an Indian or Indian tribe that is held in trust by the United
States or subject to a restriction against alienation imposed
by the United States, including--
``(i) renewable plant material, including--

``(I) feed grains;
``(II) other agricultural commodities;
``(III) other plants and trees; and
``(IV) algae; and

``(ii) waste material, including--

``(I) crop residue;
``(II) other vegetative waste material (including wood
waste and wood residues);
``(III) animal waste and byproducts (including fats, oils,
greases, and manure);
``(IV) construction waste; and
``(V) food waste and yard waste.

``(13) Renewable energy.--The term `renewable energy' means
energy derived from--
``(A) a wind, solar, renewable biomass, ocean (including
tidal, wave, current, and thermal), geothermal, or
hydroelectric source; or
``(B) hydrogen derived from renewable biomass or water
using an energy source described in subparagraph (A).
``(14) Rural area.--Except as otherwise provided in this
title, the term `rural area' has the meaning given the term
in section 343(a)(13)(A) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)(13)(A)).
``(15) Secretary.--The term `Secretary' means the Secretary
of Agriculture.

``SEC. 9002. BIOBASED MARKETS PROGRAM.

``(a) Federal Procurement of Biobased Products.--
``(1) Definition of procuring agency.--In this subsection,
the term `procuring agency' means--
``(A) any Federal agency that is using Federal funds for
procurement; or
``(B) a person that is a party to a contract with any
Federal agency, with respect to work performed under such a
contract.
``(2) Application of section.--Except as provided in
paragraph (3), each procuring agency shall comply with this
subsection (including any regulations issued under this
subsection), with respect to any purchase or acquisition of a
procurement item for which--
``(A) the purchase price of the item exceeds $10,000; or
``(B) the quantity of the items or of functionally-
equivalent items purchased or acquired during the preceding
fiscal year was at least $10,000.
``(3) Procurement preference.--
``(A) In general.--Except as provided in subparagraph (B),
after the date specified in applicable guidelines prepared
pursuant to paragraph (5), each procuring agency that
procures any items designated in the guidelines and items
containing designated biobased intermediate ingredients and
feedstocks shall, in making procurement decisions (consistent
with maintaining a satisfactory level of competition,
considering the guidelines), give preference to items that--
``(i) are composed of the highest percentage of biobased
products practicable;
``(ii) are composed of at least 5 percent of intermediate
ingredients and feedstocks (or a lesser percentage that the
Secretary determines to be appropriate) as designated by the
Secretary; or
``(iii) comply with the regulations issued under section
103 of Public Law 100-556 (42 U.S.C. 6914b-1).
``(B) Flexibility.--Notwithstanding subparagraph (A), a
procuring agency may decide not to procure items described in
that subparagraph if the procuring agency determines that the
items--
``(i) are not reasonably available within a reasonable
period of time;
``(ii) fail to meet--

``(I) the performance standards set forth in the applicable
specifications; or
``(II) the reasonable performance standards of the
procuring agencies; or

``(iii) are available only at an unreasonable price.
``(C) Certification.--After the date specified in any
applicable guidelines prepared pursuant to paragraph (5),
contracting offices shall require that, with respect to
biobased products, vendors certify that the biobased products
to be used in the performance of the contract will comply
with the applicable specifications or other contractual
requirements.
``(4) Specifications.--Each Federal agency that has the
responsibility for drafting or reviewing procurement
specifications shall, not later than 1 year after the date of
publication of applicable guidelines under paragraph (5), or
as otherwise specified in the guidelines, ensure that the
specifications require the use of biobased products
consistent with this subsection.
``(5) Guidelines.--
``(A) In general.--The Secretary, after consultation with
the Administrator, the Administrator of General Services, and
the Secretary of Commerce (acting through the Director of the
National Institute of Standards and Technology), shall
prepare, and from time to time revise, guidelines for the use
of procuring agencies in complying with the requirements of
this subsection.
``(B) Requirements.--The guidelines under this paragraph
shall--
``(i) designate those items that are or can be produced
with biobased products (including biobased products for which
there is only a single product or manufacturer in the
category) and the procurement of which by procuring agencies
will carry out the objectives of this subsection;
``(ii) designate those intermediate ingredients and
feedstocks and finished products that contain significant
portions of biobased materials or components the procurement
of which by procuring agencies will carry out the objectives
of this subsection;
``(iii) set forth recommended practices with respect to the
procurement of biobased products and items containing such
materials and with respect to certification by vendors of the
percentage of biobased products used;
``(iv) provide information as to the availability, relative
price, performance, and environmental and public health
benefits, of such materials and items; and
``(v) automatically designate those items that are composed
of materials and items designated pursuant to paragraph (3),
if the content of the final product exceeds 50 percent
(unless the Secretary determines a different composition
percentage).
``(C) Information provided.--Information provided pursuant
to subparagraph (B)(iv) with respect to a material or item
shall be considered to be provided for another item made with
the same material or item.
``(D) Prohibition.--Guidelines issued under this paragraph
may not require a manufacturer or vendor of biobased
products, as a condition of the purchase of biobased products
from the manufacturer or vendor, to provide to procuring
agencies more data than would be required to be provided by
other manufacturers or vendors offering products for sale to
a procuring agency, other than data confirming the biobased
content of a product.
``(E) State procurement.--Not later than 180 days after the
date of enactment of this section, the Secretary shall offer
procurement system models that States may use for the
procurement of biobased products by the States.
``(6) Administration.--
``(A) Office of federal procurement policy.--The Office of
Federal Procurement Policy, in cooperation with the
Secretary, shall--
``(i) coordinate the implementation of this subsection with
other policies for Federal procurement;
``(ii) annually collect the information required to be
reported under subparagraph (B) and make the information
publicly available;
``(iii) take a leading role in conducting proactive
research to inform and promote the adoption of and compliance
with procurement requirements for biobased products by
Federal agencies; and
``(iv) not less than once every 2 years, submit to Congress
a report that--

``(I) describes the progress made in carrying out this
subsection, including agency compliance with paragraph (4);
and
``(II) contains a summary of the information reported
pursuant to subparagraph (B).

[[Page S14968]]

``(B) Other agencies.--To assist the Office of Federal
Procurement Policy in carrying out subparagraph (A)--
``(i) each procuring agency shall submit each year to the
Office of Federal Procurement Policy, to the maximum extent
practicable, information concerning--

``(I) actions taken to implement paragraphs (3), (4), and
(7);
``(II) the results of the annual review and monitoring
program established under paragraph (7)(B)(iii);
``(III) the number and dollar value of contracts entered
into during the year that include the direct procurement of
biobased products;
``(IV) the number of service and construction (including
renovations and modernizations) contracts entered into during
the year that include language on the use of biobased
products; and
``(V) the types and dollar value of biobased products
actually used by contractors in carrying out service and
construction (including renovations and modernizations)
contracts during the previous year; and

``(ii) the General Services Administration and the Defense
Logistics Agency shall submit each year to the Office of
Federal Procurement Policy, to the maximum extent
practicable, information concerning the types and dollar
value of biobased products purchased by procuring agencies
through GSA Advantage!, the Federal Supply Schedule, and the
Defense Logistic Agency (including the DoD EMall).
``(7) Procurement program.--
``(A) In general.--Not later than 1 year after the date of
publication of applicable guidelines under paragraph (5),
each Federal agency shall develop a procurement program
that--
``(i) will ensure that items composed of biobased products
will be purchased to the maximum extent practicable; and
``(ii) is consistent with applicable provisions of Federal
procurement law.
``(B) Minimum requirements.--Each procurement program
required under this paragraph shall, at a minimum, contain--
``(i) a biobased products preference program;
``(ii) an agency promotion program to promote the
preference program adopted under clause (i); and
``(iii) annual review and monitoring of the effectiveness
of the procurement program of the agency.
``(C) Consideration.--
``(i) In general.--In developing a preference program, an
agency shall--

``(I) consider the options described in clauses (ii) and
(iii); and
``(II) adopt 1 of the options, or a substantially
equivalent alternative, for inclusion in the procurement
program.

``(ii) Case-by-case policy development.--

``(I) In general.--Subject to paragraph (3)(B), except as
provided in subclause (II), in developing a preference
program, an agency shall consider a policy of awarding
contracts to the vendor offering an item composed of the
highest percentage of biobased products practicable.
``(II) Certain contracts allowed.--Subject to paragraph
(3)(B), an agency may make an award to a vendor offering
items with less than the maximum biobased products content.

``(iii) Minimum content standards.--In developing a
preference program, an agency shall consider minimum biobased
products content specifications that are established in a
manner that ensures that the biobased products content
required is consistent with this subsection, without
violating paragraph (3)(B).
``(b) Labeling.--
``(1) In general.--The Secretary, in consultation with the
Administrator, shall establish a voluntary program under
which the Secretary authorizes producers of biobased products
to use the label `USDA Certified Biobased Product'.
``(2) Eligibility criteria.--
``(A) Criteria.--
``(i) In general.--Not later than 90 days after the date of
the enactment of this section, except as provided in clause
(ii), the Secretary, in consultation with the Administrator
and representatives from small and large businesses,
academia, other Federal agencies, and such other persons as
the Secretary considers appropriate, shall issue criteria (as
of the date of enactment of this section) for determining
which products may qualify to receive the label under
paragraph (1).
``(ii) Exception.--Clause (i) shall not apply to final
criteria that have been issued (as of the date of enactment
of this section) by the Secretary.
``(B) Requirements.--Criteria issued under subparagraph
(A)--
``(i) shall encourage the purchase of products with the
maximum biobased content;
``(ii) shall provide that the Secretary may designate as
biobased for the purposes of the voluntary program
established under this subsection finished products that
contain significant portions of biobased materials or
components; and
``(iii) to the maximum extent practicable, should be
consistent with the guidelines issued under subsection
(a)(5).
``(3) Use of label.--The Secretary shall ensure that the
label referred to in paragraph (1) is used only on products
that meet the criteria issued pursuant to paragraph (2).
``(4) Recognition.--The Secretary shall--
``(A) establish a voluntary program to recognize Federal
agencies and private entities that use a substantial amount
of biobased products; and
``(B) encourage Federal agencies to establish incentives
programs to recognize Federal employees or contractors that
make exceptional contributions to the expanded use of
biobased products.
``(c) Limitation.--Nothing in this section (other than
subsections (f), (g), and (h)) shall apply to the procurement
of motor vehicle fuels, heating oil, or electricity.
``(d) Inclusion.--
``(1) In general.--Not later than 90 days after the date of
enactment of the Food and Energy Security Act of 2007, the
Architect of the Capitol, the Sergeant at Arms of the Senate,
and the Chief Administrative Officer of the House of
Representatives shall establish procedures that apply the
requirements of this section to procurement for the Capitol
Complex.
``(2) Annual showcase.--Beginning in calendar year 2008,
the Secretary shall sponsor or otherwise support, consistent
with applicable Federal laws (including regulations), an
annual exposition at which entities may display and
demonstrate biobased products.
``(e) Testing of Biobased Products.--
``(1) In general.--The Secretary may establish 1 or more
national testing centers for biobased products to verify
performance standards, biobased contents, and other product
characteristics.
``(2) Requirement.--In establishing 1 or more national
testing centers under paragraph (1), the Secretary shall give
preference to entities that have established capabilities and
experience in the testing of biobased materials and products.
``(f) Bioenergy and Other Biobased Products Education and
Awareness Campaign.--
``(1) In general.--The Secretary in consultation with the
Secretary of Energy, shall establish a program to make
competitive grants to eligible entities to carry out broad-
based education and public awareness campaigns relating to
bioenergy (including biofuels but excluding biodiesel) and
other biobased products.
``(2) Eligible entities.--An entity eligible to receive a
grant described in paragraph (1) is an entity that has
demonstrated a knowledge of bioenergy (including biofuels but
excluding biodiesel) and other biobased products and is--
``(A) a State energy or agricultural office;
``(B) a regional, State-based, or tribal energy
organization;
``(C) a land-grant college or university (as defined in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103))
or other institution of higher education;
``(D) a rural electric cooperative or utility;
``(E) a nonprofit organization, including an agricultural
trade association, resource conservation and development
district, and energy service provider;
``(F) a State environmental quality office; or
``(G) any other similar entity, other than a Federal agency
or for-profit entity, as determined by the Secretary.
``(g) Reports.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section and each year thereafter, the
Secretary shall submit to Congress a report on the
implementation of this section.
``(2) Contents.--The report shall include--
``(A) a comprehensive management plan that establishes
tasks, milestones, and timelines, organizational roles and
responsibilities, and funding allocations for fully
implementing this section; and
``(B) information on the status of implementation of--
``(i) item designations (including designation of
intermediate ingredients and feedstocks); and
``(ii) the voluntary labeling program established under
subsection (b).
``(h) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use, to the maximum extent
practicable, $3,000,000 for each of fiscal years 2008 through
2012--
``(A) to continue mandatory funding for biobased products
testing as required to carry out this section; and
``(B) to carry out the bioenergy education and awareness
campaign under subsection (f).
``(2) Authorization of appropriations.--In addition to any
other funds made available to carry out this section, there
are authorized to be appropriated to carry out this section
such sums as are necessary for each of fiscal years 2008
through 2012.
``(3) Priority.--At the discretion of the Secretary, the
Secretary may give priority to the testing of products for
which private sector firms provide cost sharing for the
testing.

``SEC. 9003. BIODIESEL FUEL EDUCATION.

``(a) Purpose.--The purpose of this section is to educate
potential users about the proper use and benefits of
biodiesel.
``(b) Establishment.--The Secretary shall, under such terms
and conditions as are appropriate, make grants to eligible
entities to educate governmental and private entities that
operate vehicle fleets, oil refiners, automotive companies,
owners and operators of watercraft fleets, other interested
entities (as determined by the Secretary), and the public
about the benefits of biodiesel fuel use.
``(c) Eligible Entities.--To receive a grant under
subsection (b), an entity shall--

[[Page S14969]]

``(1) be a nonprofit organization or institution of higher
education (as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001));
``(2) have demonstrated knowledge of biodiesel fuel
production, use, or distribution; and
``(3) have demonstrated the ability to conduct educational
and technical support programs.
``(d) Consultation.--In carrying out this section, the
Secretary shall consult with the Secretary of Energy.
``(e) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section, to the maximum extent practicable, $2,000,000 for
each of fiscal years 2008 through 2012.

``SEC. 9004. BIOMASS CROP TRANSITION.

``(a) Definitions.--In this section:
``(1) Eligible crop.--The term `eligible crop' means a crop
of renewable biomass.
``(2) Eligible participant.--The term `eligible
participant' means an agricultural producer or forest land
owner--
``(A) that is establishing 1 or more eligible crops on
private land to be used in the production of advanced
biofuels, other biobased products, heat, or power from a
biomass conversion facility;
``(B) that has a financial commitment from a biomass
conversion facility, including a proposed biomass conversion
facility that is economically viable, as determined by the
Secretary, to purchase the eligible crops; and
``(C) the production operation of which is in such
proximity to the biomass conversion facility described in
subparagraph (B) as to make delivery of the eligible crops to
that location economically practicable.
``(b) Biomass Crop Transition Assistance.--
``(1) Establishment of program.--The Secretary shall
establish a program to provide transitional assistance for
the establishment and production of eligible crops to be used
in the production of advanced biofuels, other biobased
products, heat, or power from a biomass conversion facility.
``(2) Exclusion.--An agricultural producer shall not be
eligible for assistance under paragraph (1) for the
establishment and production of--
``(A) any crop that is eligible for benefits under title I
of the Food and Energy Security Act of 2007; or
``(B) an annual crop.
``(3) Contracts.--
``(A) In general.--The Secretary shall enter into contracts
with eligible participants and entities described in
subparagraph (B) to provide transitional assistance payments
to eligible participants.
``(B) Contracts with member entities.--The Secretary may
enter into 1 or more contracts with farmer-owned
cooperatives, agricultural trade associations, or other
similar entities on behalf of producer members that meet the
requirements of, and elect to be treated as, eligible
participants if the contract would offer greater efficiency
in administration of the program.
``(C) Requirements.--Under a contract described in
subparagraph (A), an eligible participant shall be required,
as determined by the Secretary--
``(i) to produce 1 or more eligible crops;
``(ii) to develop and actively apply a conservation plan
that meets the requirements for highly erodible land
conservation and wetlands conservation as established under
subtitles B and C of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.); and
``(iii) to use such conservation practices as are
necessary, where appropriate--

``(I) to advance the goals and objectives of State,
regional, and national fish and wildlife conservation plans
and initiatives; and
``(II) to comply with mandatory environmental requirements
for a producer under Federal, State, and local law.

``(4) Payments.--
``(A) First year.--During the first year of the contract,
the Secretary shall make a payment to an eligible participant
in an amount that covers the cost of establishing 1 or more
eligible crops.
``(B) Subsequent years.--During any subsequent year of the
contract, the Secretary shall make incentive payments to an
eligible participant in an amount determined by the Secretary
to encourage the eligible participant to produce renewable
biomass.
``(c) Assistance for Production of Annual Crop of Renewable
Biomass.--
``(1) In general.--The Secretary may provide assistance to
eligible participants to plant an annual crop of renewable
biomass for use in a biomass conversion facility in the form
of--
``(A) technical assistance; and
``(B) cost-share assistance for the cost of establishing an
annual crop of renewable biomass.
``(2) Exclusion.--An agricultural producer shall not be
eligible for assistance under paragraph (1) for the
establishment of any crop that is eligible for benefits under
title I of the Food and Energy Security Act of 2007.
``(3) Compliance.--Eligible participants receiving
assistance under paragraph (1)(B) shall develop and actively
apply a conservation plan that meets the requirements for
highly erodible land conservation and wetlands conservation
as established under subtitles B and C of title XII of the
Food Security Act of 1985 (16 U.S.C. 3811 et seq.).
``(d) Assistance for Collection, Harvest, Storage, and
Transport of Renewable Biomass.--
``(1) Establishment of program.--The Secretary shall
establish a program to provide assistance to eligible
participants for collecting, harvesting, storing, and
transporting eligible crops to be used in the production of
advanced biofuels, biobased products, heat, or power from a
biomass conversion facility.
``(2) Payments.--
``(A) In general.--An eligible participant shall receive
payments under this subsection for each ton of eligible crop
delivered to a biomass conversion facility, based on a fixed
rate to be established by the Secretary in accordance with
subparagraph (B).
``(B) Fixed rate.--The Secretary shall establish a fixed
payment rate for purposes of subparagraph (A) to reflect--
``(i) the estimated cost of collecting, harvesting,
storing, and transporting the applicable eligible crop; and
``(ii) such other factors as the Secretary determines to be
appropriate.
``(e) Best Practices.--
``(1) Recordkeeping.--Each eligible participant, and each
biomass conversion facility contracting with the eligible
participant, shall maintain and make available to the
Secretary, at such times as the Secretary may request,
appropriate records of methods used for activities for which
payment is received under this section.
``(2) Information sharing.--From the records maintained
under subparagraph (A), the Secretary shall maintain, and
make available to the public, information regarding--
``(A) the production potential (including evaluation of the
environmental benefits) of a variety of eligible crops; and
``(B) best practices for producing, collecting, harvesting,
storing, and transporting eligible crops to be used in the
production of advanced biofuels.
``(f) Funding.--
``(1) Biomass crop transition assistance.--Of the funds of
the Commodity Credit Corporation, the Secretary shall use to
carry out subsections (b) and (c) $130,000,000 for fiscal
year 2008, to remain available until expended.
``(2) Assistance for collection, harvest, storage, and
transport of renewable biomass.--Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available to carry out subsection (d) $10,000,000 for each of
fiscal years 2009 through 2011, to remain available until
expended.

``SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.

``(a) Purpose.--The purpose of this section is to assist in
the development of new or emerging technologies for the use
of renewable biomass or other sources of renewable energy--
``(1) to develop advanced biofuels;
``(2) to increase the energy independence of the United
States by promoting the replacement of energy generated from
fossil fuels with energy generated from a renewable energy
source;
``(3) to promote resource conservation, public health, and
the environment;
``(4) to diversify markets for raw agricultural and
forestry products, and agriculture waste material; and
``(5) to create jobs and enhance the economic development
of the rural economy.
``(b) Definition of Repower.--In this section, the term
`repower' means to substitute the production of heat or power
from a fossil fuel source with heat or power from sources of
renewable energy.
``(c) Assistance.--
``(1) In general.--The Secretary shall make available to
eligible entities described in subsection (d)--
``(A) grants to assist in paying the costs of--
``(i) development and construction of pilot- and
demonstration-scale biorefineries intended to demonstrate the
commercial viability of 1 or more processes for converting
renewable biomass to advanced biofuels;
``(ii) repowering a biomass conversion facility, power
plant, or manufacturing facility, in whole or in part; or
``(iii) conducting a study to determine the feasibility of
repowering a biomass conversion facility, power plant, or
manufacturing facility, in whole or in part; and
``(B) guarantees for loans made to fund--
``(i) the development and construction of commercial-scale
biorefineries; or
``(ii) the repowering of a biomass conversion facility,
power plant, or manufacturing facility, in whole or in part.
``(2) Preference.--In selecting projects to receive grants
and loan guarantees under this section, the Secretary shall
give preference to projects that receive or will receive
financial support from the State in which the project is
carried out.
``(d) Eligible Entities.--An eligible entity under this
section is--
``(1) an individual;
``(2) a corporation;
``(3) a farm cooperative;
``(4) a rural electric cooperative or public power entity;
``(5) an association of agricultural producers;
``(6) a State or local energy agency or office;
``(7) an Indian tribe;
``(8) a consortium comprised of any individuals or entities
described in any of paragraphs (1) through (7); or
``(9) any other similar entity, as determined by the
Secretary.
``(e) Grants.--

[[Page S14970]]

``(1) In general.--The Secretary shall award grants under
subsection (c)(1)(A) on a competitive basis.
``(2) Selection criteria.--
``(A) Grants for development and construction of pilot and
demonstration scale biorefineries.--
``(i) In general.--In awarding grants for development and
construction of pilot and demonstration scale biorefineries
under subsection (c)(1)(A)(i), the Secretary shall select
projects based on the likelihood that the projects will
demonstrate the commercial viability of a new or emerging
process for converting renewable biomass into advanced
biofuels.
``(ii) Factors.--The factors to be considered under clause
(i) may include--

``(I) the potential market for 1 or more products;
``(II) the level of financial participation by the
applicants;
``(III) the availability of adequate funding from other
sources;
``(IV) the participation of producer associations and
cooperatives;
``(V) the beneficial impact on resource conservation,
public health, and the environment;
``(VI) the timeframe in which the project will be
operational;
``(VII) the potential for rural economic development;
``(VIII) the participation of multiple eligible entities;
and
``(IX) the potential for developing advanced industrial
biotechnology approaches.

``(B) Grants for repowering.--In selecting projects to
receive grants for repowering under clauses (ii) and (iii) of
subsection (c)(1)(A), the Secretary shall consider--
``(i) the change in energy efficiency that would result
from the proposed repowering of the eligible entity;
``(ii) the reduction in fossil fuel use that would result
from the proposed repowering; and
``(iii) the volume of renewable biomass located in such
proximity to the eligible entity as to make local sourcing of
feedstock economically practicable.
``(3) Cost sharing.--
``(A) Limits.--
``(i) Development and construction of pilot and
demonstration scale biorefineries.--The amount of a grant
awarded for development and construction of a biorefinery
under subsection (c)(1)(A)(i) shall not exceed 50 percent of
the cost of the project.
``(ii) Repowering.--The amount of a grant awarded for
repowering under subsection (c)(1)(A)(ii) shall not exceed 20
percent of the cost of the project.
``(iii) Feasibility study for repowering.--The amount of a
grant awarded for a feasibility study for repowering under
subsection (c)(1)(A)(iii) shall not exceed an amount equal to
the lesser of--

``(I) an amount equal to 50 percent of the total cost of
conducting the feasibility study; and
``(II) $150,000.

``(B) Form of grantee share.--
``(i) In general.--The grantee share of the cost of a
project may be made in the form of cash or the provision of
services, material, or other in-kind contributions.
``(ii) Limitation.--The amount of the grantee share of the
cost of a project that is made in the form of the provision
of services, material, or other in-kind contributions shall
not exceed 15 percent of the amount of the grantee share
determined under subparagraph (A).
``(f) Loan Guarantees.--
``(1) Conditions.--As a condition of making a loan
guarantee under subsection (c)(1)(B), the Secretary shall
require--
``(A) demonstration of binding commitments to cover, from
sources other than Federal funds, at least 20 percent of the
total cost of the project described in the application;
``(B) in the case of a new or emerging technology,
demonstration that the project design has been validated
through a technical review and subsequent operation of a
pilot or demonstration scale facility that can be scaled up
to commercial size; and
``(C) demonstration that the applicant provided
opportunities to local investors (as determined by the
Secretary) to participate in the financing or ownership of
the biorefinery.
``(2) Local ownership.--The Secretary shall give preference
under subsection (c)(1)(B) to applications for projects with
significant local ownership.
``(3) Approval.--Not later than 90 days after the Secretary
receives an application for a loan guarantee under subsection
(c)(1)(B), the Secretary shall approve or disapprove the
application.
``(4) Limitations.--
``(A) Maximum amount of loan guaranteed.--
``(i) Commercial-scale biorefineries.--Subject to clause
(iii), the principal amount of a loan guaranteed under
subsection (c)(1)(B)(i) may not exceed $250,000,000.
``(ii) Repowering.--Subject to clause (iii), the principal
amount of a loan guaranteed under subsection (c)(1)(B)(ii)
may not exceed $70,000,000.
``(iii) Relationship to other federal funding.--The amount
of a loan guaranteed under subsection (c)(1)(B) shall be
reduced by the amount of other Federal funding that the
entity receives for the same project.
``(B) Maximum percentage of loan guaranteed.--A loan
guaranteed under subsection (c)(1)(B) shall be in an amount
not to exceed 80 percent of the project costs, as determined
by the Secretary.
``(C) Authority to guarantee entire amount of the loan.--
The Secretary may guarantee up to 100 percent of the
principal and interest due on a loan guaranteed under
subsection (c)(1)(B).
``(g) Consultation.--In carrying out this section, the
Secretary shall consult with the Secretary of Energy.
``(h) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use for the cost of grants
and loan guarantees to carry out this section $360,000,000
for fiscal year 2008, to remain available until expended.

``SEC. 9006. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

``(a) Definition of Eligible Producer.--In this section,
the term `eligible producer' means a producer of advanced
biofuels.
``(b) Payments.--The Secretary shall make payments to
eligible producers to encourage increased purchases of
renewable biomass for the purpose of expanding production of,
and supporting new production capacity for, advanced
biofuels.
``(c) Contracts.--To receive a payment, an eligible
producer shall--
``(1) enter into a contract with the Secretary to increase
production of advanced biofuels for 1 or more fiscal years;
and
``(2) submit to the Secretary such records as the Secretary
may require as evidence of increased purchase and use of
renewable biomass for the production of advanced biofuels.
``(d) Basis for Payments.--The Secretary shall make
payments under this section to eligible producers based on--
``(1) the level of production by the eligible producer of
an advanced biofuel;
``(2) the price of each renewable biomass feedstock used
for production of the advanced biofuel;
``(3) the net nonrenewable energy content of the advanced
biofuel, if sufficient data is available, as determined by
the Secretary; and
``(4) other appropriate factors, as determined by the
Secretary.
``(e) Overpayments.--If the total amount of payments that
an eligible producer receives for a fiscal year under this
section exceeds the amount that the eligible producer should
have received, the eligible producer shall repay the amount
of the overpayment to the Secretary, with interest (as
determined by the Secretary).
``(f) Limitations.--
``(1) Equitable distribution.--The Secretary may limit the
amount of payments that may be received by a single eligible
producer under this section in order to distribute the total
amount of funding available in an equitable manner.
``(2) Ineligibility.--An eligible producer that claims a
credit allowed under section 40(a)(3), 40(a)(4), or 40A(a)(3)
of the Internal Revenue Code of 1986 shall not be eligible to
receive payments under subsection (d).
``(3) Refining capacity.--An eligible producer may not use
any funds received under this section for an advanced biofuel
production facility or other fuel refinery the total refining
capacity of which is more than 150,000,000 gallons per year.
``(g) Other Requirements.--To receive a payment under this
section, an eligible producer shall meet any other
requirements of Federal and State law (including regulations)
applicable to the production of advanced biofuels.
``(h) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $245,000,000 for the period of fiscal years 2008
through 2012, to remain available until expended.

``SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

``(a) Establishment.--The Secretary, in consultation with
the Secretary of Energy, shall establish a Rural Energy for
America Program to promote energy efficiency and renewable
energy development for agricultural producers, cooperatives,
rural small businesses, and other similar entities through--
``(1) grants for energy audits and renewable energy
development assistance;
``(2) financial assistance for energy efficiency
improvements and renewable energy systems; and
``(3) financial assistance for facilities to convert animal
manure to energy.
``(b) Energy Audits and Renewable Energy Development
Assistance.--
``(1) In general.--The Secretary shall make competitive
grants to eligible entities to provide assistance to
agricultural producers and rural small businesses--
``(A) to become more energy efficient; and
``(B) to use renewable energy technology and resources.
``(2) Eligible entities.--An eligible entity under this
subsection is--
``(A) a State agency;
``(B) a regional, State-based, or tribal energy
organization;
``(C) a land-grant college or university or other
institution of higher education;
``(D) a rural electric cooperative or public power entity;
``(E) a nonprofit organization; and
``(F) any other similar entity, as determined by the
Secretary.
``(3) Merit review.--
``(A) Merit review process.--The Secretary shall establish
a merit review process to review applications for grants
under paragraph (1) that uses the expertise of other

[[Page S14971]]

Federal agencies, industry, and nongovernmental
organizations.
``(B) Selection criteria.--In reviewing applications of
eligible entities to receive grants under paragraph (1), the
Secretary shall consider--
``(i) the ability and expertise of the eligible entity in
providing professional energy audits and renewable energy
assessments;
``(ii) the geographic scope of the program proposed by the
eligible entity in relation to the identified need;
``(iii) the number of agricultural producers and rural
small businesses to be assisted by the program;
``(iv) the potential for energy savings and environmental
and public health benefits resulting from the program; and
``(v) the plan of the eligible entity for providing
information to agricultural producers and rural small
businesses on the benefits of energy efficiency and renewable
energy development.
``(4) Use of grant funds.--
``(A) Required uses.--A recipient of a grant under
paragraph (1) shall use the grant funds to conduct and
promote energy audits for agricultural producers and rural
small businesses to provide recommendations on how to improve
energy efficiency and use renewable energy technology and
resources.
``(B) Permitted uses.--In addition to the uses described in
subparagraph (A), a recipient of a grant may use the grant
funds to make agricultural producers and rural small
businesses aware of--
``(i) financial assistance under subsection (c); and
``(ii) other Federal, State, and local financial assistance
programs for which the agricultural producers and rural small
businesses may be eligible.
``(5) Cost sharing.--A recipient of a grant under paragraph
(1) that conducts an energy audit for an agricultural
producer or rural small business under paragraph (4)(A) shall
require that, as a condition of the energy audit, the
agricultural producer or rural small business pay at least 25
percent of the cost of the energy audit, which shall be
retained by the eligible entity for the cost of the energy
audit.
``(c) Financial Assistance for Energy Efficiency
Improvements and Renewable Energy Systems.--
``(1) In general.--In addition to any similar authority,
the Secretary shall provide loan guarantees, grants, and
production-based incentives to agricultural producers and
rural small businesses--
``(A) to purchase renewable energy systems, including
systems that may be used to produce and sell electricity; and
``(B) to make energy efficiency improvements.
``(2) Award considerations.--In determining the amount of a
grant, loan guarantee, or production-based incentive provided
under this section, the Secretary shall take into
consideration, as applicable--
``(A) the type of renewable energy system to be purchased;
``(B) the estimated quantity of energy to be generated by
the renewable energy system;
``(C) the expected environmental benefits of the renewable
energy system;
``(D) the quantity of energy savings expected to be derived
from the activity, as demonstrated by an energy audit
comparable to an energy audit under subsection (b);
``(E) the estimated period of time for the energy savings
generated by the activity to equal the cost of the activity;
``(F) the expected energy efficiency of the renewable
energy system; and
``(G) other appropriate factors.
``(3) Feasibility studies.--
``(A) In general.--The Secretary may provide assistance in
the form of grants to an agricultural producer or rural small
business to conduct a feasibility study for a project for
which assistance may be provided under this subsection.
``(B) Limitation.--The Secretary shall use not more than 10
percent of the funds made available to carry out this
subsection to provide assistance described in subparagraph
(A).
``(C) Avoidance of duplicative assistance.--An entity shall
be ineligible to receive assistance to carry out a
feasibility study for a project under this paragraph if the
entity has received Federal or State assistance for a
feasibility study for the project.
``(4) Limits.--
``(A) Grants.--The amount of a grant under this subsection
shall not exceed 25 percent of the cost of the activity
carried out using funds from the grant.
``(B) Loan guarantees.--
``(i) Maximum amount.--The amount of a loan guaranteed
under this subsection shall not exceed $25,000,000.
``(ii) Maximum percentage.--A loan guaranteed under this
subsection shall not exceed 75 percent of the cost of the
activity carried out using funds from the loan.
``(5) Production-based incentive payments in lieu of
grants.--
``(A) In general.--In addition to the authority under
subsection (b), to encourage the production of electricity
from renewable energy systems, the Secretary, on receipt of a
request of an eligible applicant under this section, shall
make production-based incentive payments to the applicant in
lieu of a grant.
``(B) Contingency.--A payment under subparagraph (A) shall
be contingent on documented energy production and sales by
the renewable energy system of the eligible applicant to a
third party.
``(C) Limitation.--The total net present value of a
production-based incentive payment under this paragraph shall
not exceed the lesser of--
``(i) an amount equal to 25 percent of the eligible project
costs, as determined by the Secretary; and
``(ii) such other limit as the Secretary may establish, by
rule or guidance.
``(d) Financial Assistance for Facilities to Convert Animal
Manure to Energy.--
``(1) Definition of animal manure.--In this subsection, the
term `animal manure' means agricultural livestock excrement,
including litter, wood shavings, straw, rice hulls, bedding
material, and other materials incidentally collected with the
manure.
``(2) Grants and loan guarantees.--The Secretary shall make
grants and loan guarantees to eligible entities on a
competitive basis for the installation, operation, and
evaluation of facilities described in paragraph (4).
``(3) Eligible entities.--To be eligible to receive a grant
or loan guarantee under this subsection, an entity shall be--
``(A) an agricultural producer;
``(B) a rural small business;
``(C) a rural cooperative; or
``(D) any other similar entity, as determined by the
Secretary.
``(4) Eligible facilities.--
``(A) In general.--Subject to subparagraphs (B) through
(E), an eligible entity may receive a grant or loan guarantee
under this subsection for the installation, first-year
operation, and evaluation of an on-farm or community facility
(such as a digester or power generator using manure for fuel)
the primary function of which is to convert animal manure
into a useful form of energy (including gaseous or liquid
fuel or electricity).
``(B) Subsystems included.--Funds from a grant and loan
guarantee under subparagraph (A) may be used for systems that
support an on-farm or community facility described in that
subparagraph, which may include feedstock gathering systems
and gas piping systems.
``(C) Conversion of renewable biomass.--An eligible entity
may use a grant or loan guarantee provided under this
subsection to convert renewable biomass other than animal
manure (such as waste materials from food processing
facilities and other green wastes) into energy at a facility
if the majority of materials converted into energy at the
facility is animal manure.
``(D) Development and demonstration of new technologies.--
An eligible entity may use a grant or loan guarantee provided
under this subsection for the installation, demonstration,
and first 2 years of operation of an on-farm or community
facility that uses manure-to-energy technologies--
``(i) that are not in commercial use, as determined by the
Secretary; and
``(ii) for which sufficient research has been conducted for
the Secretary to determine that the technology is
commercially viable.
``(5) Selection of eligible entities.--In selecting
applications for grants and loan guarantees under this
subsection, the Secretary shall consider--
``(A) the quality of energy produced; and
``(B) the projected net energy conversion efficiency, which
shall be equal to the quotient obtained by dividing--
``(i) the energy output of the eligible facility; by
``(ii) the sum of--

``(I) the energy content of animal manure at the point of
collection; and
``(II) the energy consumed in facility operations,
including feedstock transportation;

``(C) environmental issues, including potential positive
and negative impacts on water quality, air quality, odor
emissions, pathogens, and soil quality resulting from--
``(i) the use and conversion of animal manure into energy;
``(ii) the installation and operation of the facility; and
``(iii) the disposal of any waste products (including
effluent) from the facility;
``(D) the net impact of the facility and any waste from the
facility on greenhouse gas emissions, based on the estimated
emissions from manure storage systems in use before the
installation of the manure-to-energy facility;
``(E) diversity factors, including diversity of--
``(i) sizes of projects supported; and
``(ii) geographic locations; and
``(F) the proposed project costs and levels of grants or
loan guarantees requested.
``(6) Amount.--
``(A) Grants.--
``(i) Smaller projects.--In the case of a project with a
total eligible cost (as described in paragraph (4)) of not
more than $500,000, the amount of a grant made under this
subsection shall not exceed 50 percent of the total eligible
cost.
``(ii) Larger projects.--In the case of a project with a
total eligible cost (as described in paragraph (4)) of more
than $500,000, the amount of a grant made under this
subsection shall not exceed the greater of--

``(I) $250,000; or
``(II) 25 percent of the total eligible cost.

``(iii) Maximum.--In no case shall the amount of a grant
made under this section exceed $2,000,000.
``(B) Loan guarantees.--The principal amount and interest
of a loan guaranteed under this subsection may not exceed the
lesser of--

[[Page S14972]]

``(i) 80 percent of the difference between--

``(I) the total cost to install and operate the eligible
facility for the first year, as determined by the Secretary;
and
``(II) the amount of any Federal, State, and local funds
received to support the eligible facility; and

``(ii) $25,000,000.
``(7) Prohibition.--A grant or loan guarantee may not be
provided for a project under this subsection that also
receives assistance under subsection (b) or (c).
``(e) Role of State Rural Development Director.--
``(1) Outreach and availability of information.--
``(A) Outreach.--A State rural development director, acting
through local rural development offices, shall provide
outreach regarding the availability of financial assistance
under this section.
``(B) Availability of information.--A State rural
development director shall make available information
relating to the availability of financial assistance under
this section at all local rural development, Farm Service
Agency, and Natural Resources Conservation Service offices.
``(2) Application review.--Applications for assistance
under this section shall be reviewed by the appropriate State
rural development director.
``(f) Small Projects.--
``(1) Application and review process.--The Secretary shall
develop a streamlined application and expedited review
process for project applicants seeking less than $20,000
under this section.
``(2) Percentage of funds.--Not less than 20 percent of the
funds made available under subsection (k)(1) shall be made
available to make grants under this section in an amount of
less than $20,000.
``(g) Preference.--In selecting projects to receive grants
under this section, the Secretary shall give preference to
projects that receive or will receive financial support from
the State in which the project is carried out.
``(h) Rural Energy Star.--The Secretary, in coordination
with the Administrator and the Secretary of Energy, shall
extend the Energy Star program established by section 324A of
the Energy Policy and Conservation Act (42 U.S.C. 6294a) to
include a Rural Energy Star component to promote the
development and use of energy-efficient equipment and
facilities in the agricultural sector.
``(i) Reports.--Not later than 4 years after the date of
enactment of the Food and Energy Security Act of 2007, the
Secretary shall submit to Congress a report on the
implementation of this section, including the outcomes
achieved by projects funded under this section.
``(j) Funding.--
``(1) Commodity credit corporation.--Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available $300,000,000 to carry out subsections (c) and (d)
for fiscal year 2008, to remain available until expended, of
which not less than 15 percent shall be used to carry out
subsection (d).
``(2) Authorization of appropriations.--In addition to any
other funds made available to carry out this section, there
are authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2008
through 2012.

``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

``(a) Definitions.--In this section:
``(1) Biobased product.--The term `biobased product'
means--
``(A) an industrial product (including chemicals,
materials, and polymers) produced from biomass; and
``(B) a commercial or industrial product (including animal
feed and electric power) derived in connection with the
conversion of biomass to fuel.
``(2) Demonstration.--The term `demonstration' means
demonstration of technology in a pilot plant or semi-works
scale facility.
``(3) Initiative.--The term `Initiative' means the Biomass
Research and Development Initiative established under
subsection (e).
``(4) National laboratory.--The term `National Laboratory'
has the meaning given that term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
``(5) Point of contact.--The term `point of contact' means
a point of contact designated under this section.
``(b) Cooperation and Coordination in Biomass Research and
Development.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy shall cooperate with respect to, and
coordinate, policies and procedures that promote research and
development leading to the production of biofuels and
biobased products.
``(2) Points of contact.--
``(A) In general.--To coordinate research and development
programs and activities relating to biofuels and biobased
products that are carried out by their respective
departments--
``(i) the Secretary of Agriculture shall designate, as the
point of contact for the Department of Agriculture, an
officer of the Department of Agriculture appointed by the
President to a position in the Department before the date of
the designation, by and with the advice and consent of the
Senate; and
``(ii) the Secretary of Energy shall designate, as the
point of contact for the Department of Energy, an officer of
the Department of Energy appointed by the President to a
position in the Department before the date of the
designation, by and with the advice and consent of the
Senate.
``(B) Duties.--The points of contact shall jointly--
``(i) assist in arranging interlaboratory and site-specific
supplemental agreements for research and development projects
relating to biofuels and biobased products;
``(ii) serve as cochairpersons of the Board;
``(iii) administer the Initiative; and
``(iv) respond in writing to each recommendation of the
Advisory Committee made under subsection (d).
``(c) Biomass Research and Development Board.--
``(1) Establishment.--There is established the Biomass
Research and Development Board, which shall supersede the
Interagency Council on Biobased Products and Bioenergy
established by Executive Order No. 13134 (7 U.S.C. 8101
note), to coordinate programs within and among departments
and agencies of the Federal Government for the purpose of
promoting the use of biofuels and biobased products by--
``(A) maximizing the benefits deriving from Federal grants
and assistance; and
``(B) bringing coherence to Federal strategic planning.
``(2) Membership.--The Board shall consist of--
``(A) the point of contact of the Department of Energy
designated under subsection (b)(2)(A)(ii), who shall serve as
cochairperson of the Board;
``(B) the point of contact of the Department of Agriculture
designated under subsection (b)(2)(A)(i), who shall serve as
cochairperson of the Board;
``(C) a senior officer of each of the Department of the
Interior, the Environmental Protection Agency, the National
Science Foundation, and the Office of Science and Technology
Policy, each of whom shall--
``(i) be appointed by the head of the respective agency;
and
``(ii) have a rank that is equivalent to the rank of the
points of contact; and
``(D) at the option of the Secretary of Agriculture and the
Secretary of Energy, other members appointed by the
Secretaries (after consultation with the members described in
subparagraphs (A) through (C)).
``(3) Duties.--The Board shall--
``(A) coordinate research and development activities
relating to biofuels and biobased products--
``(i) between the Department of Agriculture and the
Department of Energy; and
``(ii) with other departments and agencies of the Federal
Government;
``(B) provide recommendations to the points of contact
concerning administration of this title;
``(C) ensure that--
``(i) solicitations are open and competitive with awards
made annually; and
``(ii) objectives and evaluation criteria of the
solicitations are clearly stated and minimally prescriptive,
with no areas of special interest; and
``(D) ensure that the panel of scientific and technical
peers assembled under subsection (e) to review proposals is
composed predominantly of independent experts selected from
outside the Departments of Agriculture and Energy.
``(4) Funding.--Each agency represented on the Board is
encouraged to provide funds for any purpose under this
section.
``(5) Meetings.--The Board shall meet at least quarterly to
enable the Board to carry out the duties of the Board under
paragraph (3).
``(d) Biomass Research and Development Technical Advisory
Committee.--
``(1) Establishment.--There is established the Biomass
Research and Development Technical Advisory Committee, which
shall supersede the Advisory Committee on Biobased Products
and Bioenergy established by Executive Order No. 13134 (7
U.S.C. 8101 note)--
``(A) to advise the Secretary of Energy, the Secretary of
Agriculture, and the points of contact concerning--
``(i) the distribution of funding;
``(ii) the technical focus and direction of requests for
proposals issued under the Initiative; and
``(iii) procedures for reviewing and evaluating the
proposals;
``(B) to facilitate consultations and partnerships among
Federal and State agencies, agricultural producers, industry,
consumers, the research community, and other interested
groups to carry out program activities relating to the
Initiative; and
``(C) to evaluate and perform strategic planning on program
activities relating to the Initiative.
``(2) Membership.--
``(A) In general.--The Advisory Committee shall consist
of--
``(i) an individual affiliated with the biofuels industry;
``(ii) an individual affiliated with the biobased
industrial and commercial products industry;
``(iii) an individual affiliated with an institution of
higher education who has expertise in biofuels and biobased
products;
``(iv) 2 prominent engineers or scientists from government
or academia who have expertise in biofuels and biobased
products;
``(v) an individual affiliated with a commodity trade
association;
``(vi) 2 individuals affiliated with an environmental or
conservation organization;

[[Page S14973]]

``(vii) an individual associated with State government who
has expertise in biofuels and biobased products;
``(viii) an individual with expertise in energy and
environmental analysis;
``(ix) an individual with expertise in the economics of
biofuels and biobased products;
``(x) an individual with expertise in agricultural
economics;
``(xi) an individual with expertise in plant biology and
biomass feedstock development; and
``(xii) at the option of the points of contact, other
members.
``(B) Appointment.--The members of the Advisory Committee
shall be appointed by the points of contact.
``(3) Duties.--The Advisory Committee shall--
``(A) advise the points of contact with respect to the
Initiative; and
``(B) evaluate whether, and make recommendations in writing
to the Board to ensure that--
``(i) funds authorized for the Initiative are distributed
and used in a manner that is consistent with the objectives,
purposes, and considerations of the Initiative;
``(ii) solicitations are open and competitive with awards
made annually and that objectives and evaluation criteria of
the solicitations are clearly stated and minimally
prescriptive, with no areas of special interest;
``(iii) the points of contact are funding proposals under
this title that are selected on the basis of merit, as
determined by an independent panel of scientific and
technical peers predominantly from outside the Departments of
Agriculture and Energy; and
``(iv) activities under this section are carried out in
accordance with this section.
``(4) Coordination.--To avoid duplication of effort, the
Advisory Committee shall coordinate the activities of the
Advisory Committee with activities of other Federal advisory
committees working in related areas.
``(5) Meetings.--The Advisory Committee shall meet at least
quarterly to enable the Advisory Committee to carry out the
duties of the Advisory Committee.
``(6) Terms.--Members of the Advisory Committee shall be
appointed for a term of 3 years.
``(e) Biomass Research and Development Initiative.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy, acting through their respective points
of contact and in consultation with the Board, shall
establish and carry out a Biomass Research and Development
Initiative under which competitively awarded grants,
contracts, and financial assistance are provided to, or
entered into with, eligible entities to carry out research
on, and development and demonstration of, biofuels and
biobased products, and the methods, practices, and
technologies, for the production of the fuels and product.
``(2) Objectives.--The objectives of the Initiative are to
develop--
``(A) technologies and processes necessary for abundant
commercial production of biofuels at prices competitive with
fossil fuels;
``(B) high-value biobased products--
``(i) to enhance the economic viability of biofuels and
bioenergy;
``(ii) as substitutes for petroleum-based feedstocks and
products; and
``(iii) to enhance the value of coproducts produced using
the technologies and processes; and
``(C) a diversity of sustainable domestic sources of
renewable biomass for conversion to biofuels, bioenergy, and
biobased products.
``(3) Purposes.--The purposes of the Initiative are--
``(A) to increase the energy security of the United States;
``(B) to create jobs and enhance the economic development
of the rural economy;
``(C) to enhance the environment and public health; and
``(D) to diversify markets for raw agricultural and
forestry products.
``(4) Technical areas.--To advance the objectives and
purposes of the Initiative, the Secretary of Agriculture and
the Secretary of Energy, in consultation with the
Administrator of the Environmental Protection Agency and
heads of other appropriate departments and agencies (referred
to in this subsection as the `Secretaries'), shall direct
research, development, and demonstration toward--
``(A) feedstocks and feedstock systems relevant to
production of raw materials for conversion to biofuels and
biobased products, including--
``(i) development of advanced and dedicated crops with
desired features, including enhanced productivity, broader
site range, low requirements for chemical inputs, and
enhanced processing;
``(ii) advanced crop production methods to achieve the
features described in clause (i) and suitable assay
techniques for those features;
``(iii) feedstock harvest, handling, transport, and
storage;
``(iv) strategies for integrating feedstock production into
existing managed land; and
``(v) improving the value and quality of coproducts,
including material used for animal feeding;
``(B) development of cost-effective technologies for the
use of cellulosic biomass in the production of biofuels and
biobased products, including--
``(i) pretreatment in combination with enzymatic or
microbial hydrolysis;
``(ii) thermochemical approaches, including gasification
and pyrolysis; and
``(iii) self-processing crops that express enzymes capable
of degrading cellulosic biomass;
``(C) product diversification through technologies relevant
to production of a range of biobased products (including
chemicals, animal feeds, and cogenerated power) that
eventually can increase the feasibility of fuel production in
a biorefinery, including--
``(i) catalytic processing, including thermochemical fuel
production;
``(ii) metabolic engineering, enzyme engineering, and
fermentation systems for biological production of desired
products, coproducts, or cogeneration of power;
``(iii) product recovery;
``(iv) power production technologies;
``(v) integration into existing renewable biomass
processing facilities, including starch ethanol plants, sugar
processing or refining plants, paper mills, and power plants;
``(vi) enhancement of products and coproducts, including
dried distillers grains; and
``(vii) technologies that allow for cost-effective harvest,
handling, transport, and storage; and
``(D) analysis that provides strategic guidance for the
application of renewable biomass technologies in accordance
with realization of improved sustainability and environmental
quality, cost effectiveness, security, and rural economic
development, usually featuring system-wide approaches,
including the harvest, handling, transport, and storage of
renewable biomass.
``(5) Additional considerations.--Within the technical
areas described in paragraph (4), and in addition to
advancing the purposes described in paragraph (3) and the
objectives described in paragraph (2), the Secretaries shall
support research and development--
``(A) to create continuously expanding opportunities for
participants in existing biofuels production by seeking
synergies and continuity with current technologies and
practices, such as improvements in dried distillers grains
and other biofuel production coproducts for use as bridge
feedstocks;
``(B) to maximize the environmental, economic, and social
benefits of production of biofuels and biobased products on a
large scale through life-cycle economic and environmental
analysis and other means; and
``(C) to assess the potential of Federal land and land
management programs as feedstock resources for biofuels and
biobased products, consistent with the integrity of soil and
water resources and with other environmental considerations.
``(6) Eligible entities.--To be eligible for a grant,
contract, or assistance under this subsection, an applicant
shall be--
``(A) an institution of higher education;
``(B) a National Laboratory;
``(C) a Federal research agency;
``(D) a State research agency;
``(E) a private sector entity;
``(F) a nonprofit organization; or
``(G) a consortium of 2 or more entities described in
subparagraphs (A) through (F).
``(7) Administration.--
``(A) In general.--After consultation with the Board, the
points of contact shall--
``(i) publish annually 1 or more joint requests for
proposals for grants, contracts, and assistance under this
subsection;
``(ii) require that grants, contracts, and assistance under
this section be awarded competitively, on the basis of merit,
after the establishment of procedures that provide for
scientific peer review by an independent panel of scientific
and technical peers;
``(iii) give partial preference to applications that--

``(I) involve a consortia of experts from multiple
institutions;
``(II) encourage the integration of disciplines and
application of the best technical resources; and
``(III) increase the geographic diversity of demonstration
projects; and

``(iv) require that not less than 15 percent of funds made
available to carry out this section is used for research and
development relating to each of the technical areas described
in paragraph (4).
``(B) Matching funds.--
``(i) In general.--The non-Federal share of the cost of a
demonstration project under this section shall be not less
than 20 percent.
``(ii) Commercial applications.--The non-Federal share of
the cost of a commercial application project under this
section shall be not less than 50 percent.
``(C) Technology and information transfer to agricultural
users.--The Administrator of the National Institute of Food
and Agriculture and the Chief of the Natural Resources
Conservation Service shall ensure that applicable research
results and technologies from the Initiative are--
``(i) adapted, made available, and disseminated through
those services, as appropriate; and
``(ii) included in the best practices database established
under section 220 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6920).
``(f) Administrative Support and Funds.--
``(1) In general.--To the extent administrative support and
funds are not provided by other agencies under paragraph (2),
the Secretary of Energy and the Secretary of Agriculture may
provide such administrative support and funds of the
Department of Energy and the Department of Agriculture to the
Board and the Advisory Committee as

[[Page S14974]]

are necessary to enable the Board and the Advisory Committee
to carry out their duties under this section.
``(2) Other agencies.--The heads of the agencies referred
to in subsection (c)(2)(C), and the other members of the
Board appointed under subsection (c)(2)(D), may, and are
encouraged to, provide administrative support and funds of
their respective agencies to the Board and the Advisory
Committee.
``(3) Limitation.--Not more than 4 percent of the amount
made available for each fiscal year under subsection (h) may
be used to pay the administrative costs of carrying out this
section.
``(g) Reports.--
``(1) Annual reports.--For each fiscal year for which funds
are made available to carry out this section, the Secretary
of Energy and the Secretary of Agriculture shall jointly
submit to Congress a detailed report on--
``(A) the status and progress of the Initiative, including
a report from the Advisory Committee on whether funds
appropriated for the Initiative have been distributed and
used in a manner that--
``(i) is consistent with the objectives, purposes, and
additional considerations described in paragraphs (2) through
(5) of subsection (e);
``(ii) uses the set of criteria established in the initial
report submitted under title III of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 7624 note; Public Law 106-
224) (as in effect on the date before the date of enactment
of the Food and Energy Security Act of 2007); and
``(iii) takes into account any recommendations that have
been made by the Advisory Committee;
``(B) the general status of cooperation and research and
development efforts carried out at each agency with respect
to biofuels and biobased products, including a report from
the Advisory Committee on whether the points of contact are
funding proposals that are selected under subsection
(d)(3)(B)(iii); and
``(C) the plans of the Secretary of Energy and the
Secretary of Agriculture for addressing concerns raised in
the report, including concerns raised by the Advisory
Committee.
``(2) Updates.--The Secretary of Agriculture and the
Secretary of Energy shall update the Vision and Roadmap
documents prepared for Federal biomass research and
development activities.
``(h) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary of Agriculture shall use to carry
out this section $345,000,000 for the period of fiscal years
2008 through 2012, to remain available until expended.

``SEC. 9009. SUN GRANT PROGRAM.

``(a) Purposes.--The purposes of the programs established
under this section are--
``(1) to enhance national energy security through the
development, distribution, and implementation of biobased
energy technologies;
``(2) to promote diversification in, and the environmental
sustainability of, agricultural production in the United
States through biobased energy and product technologies;
``(3) to promote economic diversification in rural areas of
the United States through biobased energy and product
technologies; and
``(4) to enhance the efficiency of bioenergy and biomass
research and development programs through improved
coordination and collaboration between the Department of
Agriculture, the Department of Energy, and the land-grant
colleges and universities.
``(b) Definition of Land-Grant Colleges and Universities.--
The term `land-grant colleges and universities' means--
``(1) 1862 Institutions (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7601));
``(2) 1890 Institutions (as defined in section 2 of that
Act) and West Virginia State College; and
``(3) 1994 Institutions (as defined in section 2 of that
Act).
``(c) Establishment.--To carry out the purposes described
in subsection (a), the Secretary shall provide grants to sun
grant centers specified in subsection (d).
``(d) Grants to Centers.--The Secretary shall use amounts
made available for a fiscal year under subsection (j) to
provide a grants in equal amounts to each of the following
sun grant centers:
``(1) North-central center.--A north-central sun grant
center at South Dakota State University for the region
composed of the States of Illinois, Indiana, Iowa, Minnesota,
Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and
Wyoming.
``(2) Southeastern center.--A southeastern sun grant center
at the University of Tennessee at Knoxville for the region
composed of--
``(A) the States of Alabama, Florida, Georgia, Kentucky,
Mississippi, North Carolina, South Carolina, Tennessee, and
Virginia;
``(B) the Commonwealth of Puerto Rico; and
``(C) the United States Virgin Islands.
``(3) South-central center.--A south-central sun grant
center at Oklahoma State University for the region composed
of the States of Arkansas, Colorado, Kansas, Louisiana,
Missouri, New Mexico, Oklahoma, and Texas.
``(4) Western center.--A western sun grant center at Oregon
State University for the region composed of--
``(A) the States of Alaska, Arizona, California, Hawaii,
Idaho, Nevada, Oregon, Utah, and Washington; and
``(B) territories and possessions of the United States
(other than the territories referred to in subparagraphs (B)
and (C) of paragraph (2)).
``(5) Northeastern center.--A northeastern sun grant center
at Cornell University for the region composed of the States
of Connecticut, Delaware, Massachusetts, Maryland, Maine,
Michigan, New Hampshire, New Jersey, New York, Ohio,
Pennsylvania, Rhode Island, Vermont, and West Virginia.
``(6) Western insular pacific subcenter.--A western insular
Pacific subcenter at the University of Hawaii for the region
composed of the State of Alaska, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Federated
States of Micronesia, the Republic of the Marshall Islands,
and the Republic of Palau.
``(e) Use of Funds.--
``(1) Centers of excellence.--Of the amount of funds that
are made available for a fiscal year to a sun grant center
under subsection (d), the center shall use not more than 25
percent of the amount to support excellence in science,
engineering, and economics at the center to promote the
purposes described in subsection (a) through the State
agricultural experiment station, cooperative extension
services, and relevant educational programs of the
university.
``(2) Grants to land-grant colleges and universities.--
``(A) In general.--The sun grant center established for a
region shall use the funds that remain available for a fiscal
year after expenditures made under paragraph (1) to provide
competitive grants to land-grant colleges and universities in
the region of the sun grant center to conduct, consistent
with the purposes described in subsection (a), multi-
institutional and multistate--
``(i) research, extension, and educational programs on
technology development; and
``(ii) integrated research, extension, and educational
programs on technology implementation.
``(B) Programs.--Of the amount of funds that are used to
provide grants for a fiscal year under subparagraph (A), the
center shall use--
``(i) not less than 30 percent of the funds to carry out
programs described in subparagraph (A)(i); and
``(ii) not less than 30 percent of the funds to carry out
programs described in subparagraph (A)(ii).
``(3) Indirect costs.--A sun grant center may not recover
the indirect costs of making grants under paragraph (2) to
other land-grant colleges and universities.
``(f) Plan.--
``(1) In general.--Subject to the availability of funds
under subsection (j), in cooperation with other land-grant
colleges and universities and private industry in accordance
with paragraph (2), the sun grant centers shall jointly
develop and submit to the Secretary, for approval, a plan for
addressing at the State and regional levels the bioenergy,
biomass, and gasification research priorities of the
Department of Agriculture and the Department of Energy for
the making of grants under paragraphs (1) and (2) of
subsection (e).
``(2) Gasification coordination.--
``(A) In general.--In developing the plan under paragraph
(1) with respect to gasification research, the sun grant
centers identified in paragraphs (1) and (2) of subsection
(d) shall coordinate with land grant colleges and
universities in their respective regions that have ongoing
research activities with respect to the research.
``(B) Funding.--Funds made available under subsection (d)
to the sun grant center identified in subsection (e)(2) shall
be available to carry out planning coordination under
paragraph (1) of this subsection.
``(g) Grants to Other Land-Grant Colleges and
Universities.--
``(1) Priority for grants.--In making grants under
subsection (e)(2), a sun grant center shall give a higher
priority to programs that are consistent with the plan
approved by the Secretary under subsection (f).
``(2) Term of grants.--The term of a grant provided by a
sun grant center under subsection (e)(2) shall not exceed 5
years.
``(h) Grant Information Analysis Center.--The sun grant
centers shall maintain a Sun Grant Information Analysis
Center at the sun grant center specified in subsection (d)(1)
to provide sun grant centers analysis and data management
support.
``(i) Annual Reports.--Not later than 90 days after the end
of a year for which a sun grant center receives a grant under
subsection (d), the sun grant center shall submit to the
Secretary a report that describes the policies, priorities,
and operations of the program carried out by the center
during the year, including a description of progress made in
facilitating the priorities described in subsection (f).
``(j) Funding.--
``(1) Commodity credit corporation.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use to
carry out this section, to remain available until expended--
``(A) $5,000,000 for fiscal year 2008;
``(B) $10,000,000 for fiscal year 2009; and
``(C) $10,000,000 for fiscal year 2010.
``(2) Authorization of appropriations.--
``(A) In general.--In addition to any other funds made
available to carry out this section, there is authorized to
be appropriated to carry out this section $70,000,000 for
each of fiscal years 2008 through 2012.

[[Page S14975]]

``(B) Grant information analysis center.--Of amounts made
available under subparagraph (A), not more than $4,000,000
for each fiscal year shall be made available to carry out
subsection (h).

``SEC. 9010. REGIONAL BIOMASS CROP EXPERIMENTS.

``(a) Purpose.--The purpose of this section is to initiate
multi-region side-by-side crop experiments to provide a sound
knowledge base on all aspects of the production of biomass
energy crops, including crop species, nutrient requirements,
management practices, environmental impacts, greenhouse gas
implications, and economics.
``(b) Crop Experiments.--
``(1) In general.--The Secretary, in consultation with the
Board, based on the recommendations of the Advisory
Committee, shall award 10 competitive grants to land-grant
colleges and universities (as defined in section 1404 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)) to establish regional
biomass crop research experiments (including experiments
involving annuals, perennials, and woody biomass species).
``(2) Selection of grant recipients.--Grant recipients
shall be selected on the basis of applications submitted in
accordance with guidelines issued by the Secretary.
``(3) Selection criteria.--In selecting grant recipients,
the Secretary shall consider--
``(A) the capabilities and experience of the applicant in
conducting side-by-side crop experiments;
``(B) the range of species types and cropping practices
proposed for study;
``(C) the quality of the proposed crop experiment plan;
``(D) the commitment of the applicant of adequate acreage
and necessary resources for, and continued participation in,
the crop experiments;
``(E) the need for regional diversity among the 10
institutions selected; and
``(F) such other factors as the Secretary may determine.
``(c) Grants.--The Secretary shall make a grant to each
land-grant college or university selected under subsection
(b) in the amount of--
``(1) $1,000,000 for fiscal year 2008;
``(2) $2,000,000 for fiscal year 2009; and
``(3) $1,000,000 for fiscal year 2010.
``(d) Coordination.--The Secretary shall coordinate with
participants under this section--
``(1) to provide coordination regarding biomass crop
research approaches; and
``(2) to ensure coordination between biomass crop research
activities carried out by land-grant colleges and
universities under this section and by sun grant centers
under section 9009.
``(e) Funding.--
``(1) Commodity credit corporation.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use to
carry out this section, to remain available until expended--
``(A) $10,000,000 for fiscal year 2008;
``(B) $20,000,000 for fiscal year 2009; and
``(C) $10,000,000 for fiscal year 2010.
``(2) Authorization of appropriations.--In addition to any
other funds made available to carry out this section, there
are authorized to be appropriated such sums are necessary to
carry out this section for each of fiscal years 2008 through
2012.

``SEC. 9011. BIOCHAR RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.

``(a) Purpose.--The purpose of this section is to support
research, development, and demonstration of biochar as a
coproduct of bioenergy production, as a soil enhancement
practice, and as a carbon management strategy.
``(b) Definition of Biochar.--In this section, the term
`biochar' means charcoal or biomass-derived black carbon that
is added to soil to improve soil fertility, nutrient
retention, and carbon content.
``(c) Grants.--The Secretary shall award competitive grants
to eligible entities to support biochar research,
development, and demonstration projects on multiple scales,
including laboratory biochar research and field trials, and
biochar systems on a single farm scale, local community
scale, and agricultural cooperative scale.
``(d) Eligible Entities.--To be eligible to receive a grant
under this section, an entity shall be an eligible entity
described in section 9005(d).
``(e) Areas of Biochar Research, Development, and
Demonstration.--In carrying out this section, the Secretary
shall solicit proposals for activities that include--
``(1) the installation and use of biochar production
systems, including pyrolysis and thermocombustion systems,
and the integration of biochar production with bioenergy and
bioproducts production;
``(2) the study of agronomic effects of biochar usage in
soils, including plant growth and yield effects for different
application rates and soil types, and implications for water
and fertilizer needs;
``(3) biochar characterization, including analysis of
physical properties, chemical structure, product consistency
and quality, and the impacts of those properties on the soil-
conditioning effects of biochar in different soil types;
``(4) the study of effects of the use of biochar on the
carbon content of soils, with an emphasis on the potential
for biochar applications to sequester carbon;
``(5) the study of effects of biochar on greenhouse gas
emissions relating to crop production, including nitrous
oxide and carbon dioxide emissions from cropland;
``(6) the study of the integration of renewable energy and
bioenergy production with biochar production;
``(7) the study of the economics of biochar production and
use, including considerations of feedstock competition,
synergies of coproduction with bioenergy, the value of soil
enhancements, and the value of soil carbon sequestration; and
``(8) such other topics as are identified by the Secretary.
``(f) Funding.--There is authorized to be appropriated to
carry out this section $3,000,000 for each of fiscal years
2008 through 2012.

``SEC. 9012. RENEWABLE WOODY BIOMASS FOR ENERGY.

``(a) In General.--The Secretary, acting through the Chief
of the Forest Service (referred to in this section as the
`Secretary'), shall conduct a competitive research,
technology development, and technology application program to
encourage the use of renewable woody biomass for energy.
``(b) Eligible Entities.--Entities eligible to compete
under the program shall include--
``(1) the Forest Service (through Research and
Development);
``(2) other Federal agencies;
``(3) State and local governments;
``(4) federally recognized Indian tribes;
``(5) colleges and universities; and
``(6) private entities.
``(c) Priority for Project Selection.--The Secretary shall
give priority under the program to projects that--
``(1) develop technology and techniques to use low-value
woody biomass sources, such as byproducts of forest health
treatments and hazardous fuels reduction, for the production
of energy;
``(2) develop processes that integrate production of energy
from woody biomass into biorefineries or other existing
manufacturing streams;
``(3) develop new transportation fuels from woody biomass;
and
``(4) improve the growth and yield of trees intended for
renewable energy production.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2008 through 2012.

``SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM.

``(a) Definitions.--In this section:
``(1) Community wood energy plan.--The term `community wood
energy plan' means a plan that identifies how local forests
can be accessed in a sustainable manner to help meet the wood
supply needs of a community wood energy system.
``(2) Community wood energy system.--
``(A) In general.--The term `community wood energy system'
means an energy system that--
``(i) services schools, town halls, libraries, and other
public buildings; and
``(ii) uses woody biomass as the primary fuel.
``(B) Inclusions.--The term `community wood energy system'
includes single facility central heating, district heating,
combined heat and energy systems, and other related biomass
energy systems.
``(b) Grant Program.--
``(1) In general.--The Secretary, acting through the Chief
of the Forest Service, shall establish a program to be known
as the `Community Wood Energy Program' to provide--
``(A) grants of up to $50,000 to State and local
governments (or designees)--
``(i) to conduct feasibility studies related to community
wood energy plans; and
``(ii) to develop community wood energy plans; and
``(B) competitive grants to State and local governments--
``(i) to acquire or upgrade community wood energy systems
for public buildings; and
``(ii) to implement a community wood energy plan.
``(2) Considerations.--In selecting applicants for grants
under paragraph (1)(B), the Secretary shall consider--
``(A) the energy efficiency of the proposed system; and
``(B) other conservation and environmental criteria that
the Secretary considers appropriate.
``(c) Community Wood Energy Plan.--
``(1) In general.--A State or local government that
receives a grant under subsection (b)(1)(A), shall use the
grant, and the technical assistance of the State forester, to
create a community wood energy plan to meet the wood supply
needs of the community wood energy system, in a sustainable
manner, that the State or local government proposes to
purchase under this section.
``(2) Use of plan.--A State or local government applying to
receive a competitive grant described in subsection (b)(1)(B)
shall submit to the Secretary as part of the grant
application the applicable community wood energy plan
described in paragraph (1).
``(3) Requirement.--To be included in a community wood
energy plan, property shall be subject to a forest management
plan.
``(d) Use in Public Buildings.--A State or local government
that receives a grant under subsection (b)(1)(B) shall use a
community wood energy system acquired, in whole or in part,
with the use of the grant funds for primary use in a public
facility owned by the State or local government.

[[Page S14976]]

``(e) Limitation.--A community wood energy system acquired
with grant funds provided under subsection (b)(1)(B) shall
not exceed an output of--
``(1) 50,000,000 Btu per hour for heating; and
``(2) 2 megawatts for electric power production.
``(f) Matching Funds.--A State or local government that
receives a grant under subsection (b) shall contribute an
amount of non-Federal funds towards the feasibility study,
development of the community wood energy plan, or acquisition
of the community wood energy systems that is at least equal
to the amount of grant funds received by the State or local
government under that subsection.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2008 through 2012.

``SEC. 9014. RURAL ENERGY SYSTEMS RENEWAL.

``(a) Purpose.--The purpose of this section is to establish
a Federal program--
``(1) to encourage communities in rural areas of the United
States to establish energy systems renewal strategies for
their communities;
``(2) to provide the information, analysis assistance, and
guidance that the communities need; and
``(3) to provide financial resources to partially fund the
costs of carrying out community energy systems renewal
projects.
``(b) Program Authority.--The Secretary shall establish and
carry out a program of competitive grants to support
communities in rural areas in carrying out rural energy
systems renewal projects.
``(c) Use of Grants.--A community may use a grant provided
under this section to carry out a project--
``(1) to conduct an energy assessment that assesses total
energy usage by all members and activities of the community,
including an assessment of--
``(A) energy used in community facilities, including energy
for heating, cooling, lighting, and all other building and
facility uses;
``(B) energy used in transportation by community members;
``(C) current sources and types of energy used;
``(D) energy embedded in other materials and products;
``(E) the major impacts of the energy usage (including the
impact on the quantity of oil imported, total costs, the
environment, and greenhouse gas emissions); and
``(F) such other activities as are determined appropriate
by the community, consistent with the purposes described in
subsection (a);
``(2) to formulate and analyze ideas for reducing
conventional energy usage and greenhouse gas emissions by the
community, including reduction of energy usage through--
``(A) housing insulation, automatic controls on lighting
and electronics, zone energy usage, and home energy
conservation practices;
``(B) transportation alternatives, vehicle options, transit
options, transportation conservation, and walk- and bike-to-
school programs;
``(C) community configuration alternatives to provide
pedestrian access to regular services; and
``(D) community options for alternative energy systems
(including alternative fuels, photovoltaic electricity, wind
energy, geothermal heat pump systems, and combined heat and
power);
``(3) to formulate and implement community strategies for
reducing conventional energy usage and greenhouse gas
emissions by the community;
``(4) to conduct assessments and to track and record the
results of energy system changes; and
``(5) to train rural community energy professionals to
provide expert support to community energy systems renewal
projects.
``(d) Federal Share.--The Federal cost of carrying out a
project under this section shall be 50 percent of the total
cost of the project.
``(e) Administration.--The Secretary shall--
``(1) issue, an annual basis, requests for proposals from
communities in rural areas for energy systems renewal
projects; and
``(2) establish criteria for program participation and
evaluation of projects carried out under this section,
including criteria based on--
``(A) the quality of the renewal projects proposed;
``(B) the probability of success of the community in
meeting the energy systems renewal goals of the community;
``(C) the projected energy savings (including oil savings)
resulting from the proposed projects; and
``(D) projected greenhouse gas emission reductions
resulting from the proposed projects.
``(f) Technical Assistance.--The Secretary, in consultation
with the Secretary of Energy, shall--
``(1) develop, and provide through the National Institute
of Food and Agriculture or State Energy Offices, information
and tools that communities in rural areas can use--
``(A) to assess the current energy systems of the
communities, including sources, uses, and impacts;
``(B) to identify and evaluate options for changes;
``(C) to develop strategies and plans for changes; and
``(D) to implement changes and assess the impact of the
changes; and
``(2) provide technical assistance and support to
communities in rural areas that receive grants under this
section to assist the communities in carrying out projects
under this section.
``(g) Report.--Not later than December 31, 2011, and
biennially thereafter, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that documents the best practices and
approaches used by communities in rural areas that receive
funds under this section.
``(h) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to make grants under this
section $5,000,000 for each of fiscal years 2008 through
2012.

``SEC. 9015. VOLUNTARY RENEWABLE BIOMASS CERTIFICATION
PROGRAM.

``(a) Establishment.--The Secretary, in consultation with
Administrator, shall establish a voluntary program to certify
renewable biomass that meets sustainable growing standards
designed--
``(1) to reduce greenhouse gases and improve soil carbon
content;
``(2) to protect wildlife habitat, and
``(3) to protect air, soil, and water quality.
``(b) Voluntary Certification Requirements.--To qualify for
certification under the program established under subsection
(a), a biomass crop shall be inspected and certified as
meeting the standards adopted under subsection (c) by an
inspector designated under subsection (d).
``(c) Production Standards.--
``(1) In general.--The Secretary shall adopt standards for
the certification of renewable biomass under subsection (b)
that will apply to those producers who elect to participate
in the voluntary certification program.
``(2) Requirement.--The standards under paragraph (1) shall
provide measurement of a numerical reduction in greenhouse
gases, improvement to soil carbon content, and reduction in
soil and water pollutants, based on the recommendations of an
advisory committee jointly established by the Secretary and
the Administrator.
``(d) Inspectors.--The Secretary shall designate inspectors
that the Secretary determines are qualified to carry out
inspections and certifications under subsection (b) in order
to certify renewable biomass under this section.
``(e) Designation.--A product produced from renewable
biomass that is certified under this section may be
designated as having been produced from certified renewable
biomass if--
``(1) the producer of the product verifies that the product
was produced from renewable biomass; and
``(2) the verification includes a copy of the certification
obtained in accordance with subsection (b).

``SEC. 9016. ADMINISTRATION.

``The Secretary shall designate an entity within the
Department of Agriculture to--
``(1) provide oversight and coordination of all activities
relating to renewable energy and biobased product development
within the Department;
``(2) act as a liaison between the Department and other
Federal, State, and local agencies to ensure coordination
among activities relating to renewable energy and biobased
product development;
``(3) assist agriculture researchers by evaluating the
market potential of new biobased products in the initial
phase of development;
``(4) collect and disseminate information relating to
renewable energy and biobased product development programs,
including research, within the Federal Government; and
``(5) establish and maintain a public database of best
practices to facilitate information sharing relating to--
``(A) renewable energy and biobased product development
from programs under this title and other programs; and
``(B) best practices for producing, collecting, harvesting,
storing, and transporting crops of renewable biomass, as
described under section 9004(d)(3)(B) of the Farm Security
and Rural Investment Act of 2002.

``SEC. 9017. BIOFUELS INFRASTRUCTURE STUDY.

``(a) In General.--The Secretary, in collaboration with the
Secretary of Energy, the Administrator, and the Secretary of
Transportation, shall--
``(1) conduct an assessment of the infrastructure needs for
expanding the domestic production, transport, and marketing
of biofuels and bioenergy;
``(2) formulate recommendations for infrastructure
development needs and approaches; and
``(3) submit to the appropriate committees of Congress a
report describing the assessment and recommendations.
``(b) Infrastructure Areas.--In carrying out subsection
(a), the Secretary shall consider--
``(1) biofuel transport and delivery infrastructure issues,
including shipment by rail or pipeline or barge;
``(2) biofuel storage needs;
``(3) biomass feedstock delivery needs, including adequacy
of rural roads;
``(4) biomass feedstock storage needs;
``(5) water resource needs, including water requirements
for biorefineries; and
``(6) such other infrastructure issues as the Secretary may
determine.

[[Page S14977]]

``(c) Considerations.--In carrying out subsection (a), the
Secretary shall consider--
``(1) estimated future biofuels production levels of--
``(A) 20,000,000,000 gallons per year to 40,000,000,000
gallons per year by 2020; and
``(B) 50,000,000,000 gallons per year to 75,000,000,000
gallons per year by 2030;
``(2) the feasibility of shipping biofuels through existing
pipelines;
``(3) the development of new biofuels pipelines, including
siting, financing, timing, and other economic issues;
``(4) the environmental implications of alternative
approaches to infrastructure development; and
``(5) the resource use and conservation characteristics of
alternative approaches to infrastructure development.
``(d) Implementation.--In carrying out this section, the
Secretary--
``(1) shall consult with individuals and entities with
interest or expertise in the areas described in subsections
(b) and (c); and
``(2) may issue a solicitation for a competition to select
a contractor to support the Secretary.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000 for
each of fiscal years 2008 and 2009.

``SEC. 9018. RURAL NITROGEN FERTILIZER STUDY.

``(a) Purposes.--The purposes of this section are--
``(1) to assess the feasibility of producing nitrogen
fertilizer from renewable energy resources in rural areas;
and
``(2) to formulate recommendations for a program to promote
rural nitrogen fertilizer production from renewable energy
resources in the future.
``(b) Study.--The Secretary shall--
``(1) conduct a study to assess and summarize the current
state of knowledge regarding the potential for the production
of nitrogen fertilizer from renewable energy sources in rural
areas;
``(2) identify the critical challenges to commercialization
of rural production of nitrogen fertilizer from renewables;
and
``(3) not later than 270 days after the date of enactment
of this section, submit to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
that summarizes the results of the activities described in
paragraphs (1) and (2).
``(c) Needs.--
``(1) In general.--Based on the results of the study
described in subsection (b), the Secretary shall identify the
critical needs to commercializing the rural production of
nitrogen fertilizer from renewables, including--
``(A) identifying alternative processes for renewables-to-
nitrogen fertilizer production;
``(B) identifying efficiency improvements that are
necessary for each component of renewables-to-nitrogen
fertilizer production processes to produce cost-competitive
nitrogen fertilizer;
``(C) identifying research and technology priorities for
the most promising technologies;
``(D) identifying economic analyses needed to better
understand the commercial potential of rural nitrogen
production from renewables;
``(E) identifying additional challenges impeding
commercialization, including--
``(i) cost competition from nitrogen fertilizer produced
using natural gas and coal;
``(ii) modifications or expansion needed to the currently-
installed nitrogen fertilizer (anhydrous ammonia) pipeline
and storage tank system to enable interconnection of on-farm
or rural renewables-to-nitrogen fertilizer systems;
``(iii) impact on nitrogen fertilizer (anhydrous ammonia)
transportation infrastructure and safety regulations;
``(iv) supply of competitively-priced renewable
electricity; and
``(v) impacts on domestic water supplies; and
``(F) determining greenhouse gas reduction benefits of
producing nitrogen fertilizer from renewable energy.
``(d) Program Recommendations.--As part of the report
described in subsection (b)(3) and based on the needs
identified in subsection (c), the Secretary shall provide
recommendations on--
``(1) the establishment of a research, development, and
demonstration program to support commercialization of rural
nitrogen production using renewables;
``(2) the appropriate contents of the program;
``(3) the appropriate approach to implementing the program,
including participants and funding plans; and
``(4) legislation to support commercialization of rural
nitrogen production using renewables.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000 for
fiscal year 2008.

``SEC. 9019. STUDY OF LIFE-CYCLE ANALYSIS OF BIOFUELS.

``(a) In General.--The Secretary, in consultation with the
Secretary of Energy and the Administrator, shall conduct a
study of--
``(1) published methods for evaluating the lifecycle
greenhouse gas emissions of conventional fuels and biofuels;
and
``(2) methods for performing simplified, streamlined
lifecycle analyses of the greenhouse gas emissions of
conventional fuels and biofuels.
``(b) Report.--Not later than 1 year after the date of
enactment of this section, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the results of the study
conducted under subsection (a), including recommendations for
a method for performing a simplified, streamlined lifecycle
analysis of the greenhouse gas emissions of biofuels and
fossil fuels that includes--
``(1) greenhouse gas emissions relating to the production,
extraction, transportation, storage, and waste disposal of
the fuels and the feedstocks of the fuels, including the
greenhouse gases associated with electrical and thermal
energy inputs;
``(2) greenhouse gas emissions relating to the
distribution, marketing, and use of the fuels; and
``(3) to the maximum extent practicable, direct and
indirect greenhouse gas emissions from changes in land use
and land cover that occur domestically or internationally as
a result of biofuel feedstock production.
``(c) Update.--Not later than 2 years after the date on
which the Secretary submits the report under subsection (b),
the Secretary shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate an update
containing recommendations for an improved method for
conducting lifecycle analysis of the greenhouse gas emissions
of biofuels and fossil fuels that takes into account advances
in the understanding of the emissions.

``SEC. 9020. E-85 FUEL PROGRAM.

``(a) Definitions.--In this section:
``(1) E-85 fuel.--The term `E-85 fuel' means a blend of
gasoline at least 85 percent (or any other percentage, but
not less than 70 percent, as determined by the Secretary, by
rule, to provide for requirements relating to cold start,
safety, or vehicle functions) of the content of which is
derived from ethanol.
``(2) Eligible facility.--The term `eligible facility'
means an ethanol production facility, the majority ownership
of which is comprised of agricultural producers.
``(b) Program.--The Secretary shall make grants under this
section to eligible facilities--
``(1) to install E-85 fuel infrastructure, including
infrastructure necessary--
``(A) for the direct retail sale of E-85 fuel, including E-
85 fuel pumps and storage tanks; and
``(B) to directly market E-85 fuel to gas retailers,
including in-line blending equipment, pumps, storage tanks,
and load-out equipment; and
``(2) to provide subgrants to direct retailers of E-85 fuel
that are located in a rural area (as defined in section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a))) for the purpose of installing E-85 fuel
infrastructure for the direct retail sale of E-85 fuel,
including E-85 fuel pumps and storage tanks.
``(c) Cost Sharing.--
``(1) Grants.--The amount of a grant under this section
shall be equal to 20 percent of the total costs of the
installation of the E-85 fuel infrastructure, as determined
by the Secretary.
``(2) Relationship to other federal funding.--The amount of
a grant that an eligible facility receives under this section
shall be reduced by the amount of other Federal funding that
the eligible facility receives for the same purpose, as
determined by the Secretary.
``(3) Limitation.--Not more than 70 percent of the total
costs of E-85 fuel infrastructure provided assistance under
this section shall be provided by the Federal Government and
State and local governments.
``(d) Authorization of Appropriations.--Subject to the
availability of appropriations, there is authorized to be
appropriated to carry out this section $20,000,000 for the
period of fiscal years 2008 through 2012, to remain available
until expended.

``SEC. 9021. RESEARCH AND DEVELOPMENT OF RENEWABLE ENERGY.

``(a) In General.--The Secretary, in conjunction with the
Colorado Renewable Energy Collaboratory, shall carry out a
research and development program relating to renewable
energy--
``(1) to conduct research on and develop high-quality
energy crops that--
``(A) have high energy production values;
``(B) are cost efficient for producers and refiners;
``(C) are well suited to high yields with minimal inputs in
arid and semiarid regions; and
``(D) are regionally appropriate;
``(2) to conduct research on and develop biorefining and
biofuels through multidisciplinary research, including
research relating to--
``(A) biochemical engineering;
``(B) process engineering;
``(C) thermochemical engineering;
``(D) product engineering; and
``(E) systems engineering;
``(3) to develop cost-effective methods for the harvesting,
handling, transport, and storage of cellulosic biomass
feedstocks;
``(4) to conduct research on and develop fertilizers from
biobased sources other than hydrocarbon fuels;
``(5) to develop energy- and water-efficient irrigation
systems;
``(6) to research and develop water-efficient biofuel
production technologies;

[[Page S14978]]

``(7) to research and develop additional biobased products;
``(8) in cooperation with the Department of Energy and the
Department of Defense, to develop storage and conversion
technologies for wind- and solar-generated power for small-
scale and utility-scale generation facilities; and
``(9) in cooperation with the Department of Energy, to
research fuel cell technologies for use in farm, ranch, and
rural applications.
``(b) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section $5,000,000 for each of fiscal years
2008 through 2012, to remain available until expended.
``(2) Additional funds.--In addition to funds made
available under paragraph (1), there are authorized to be
appropriated--
``(A) $110,000,000 to the Under Secretary for Research,
Education, and Economics, acting through the Agricultural
Research Service, for cellulosic biofuel research for each of
fiscal years 2008 through 2012; and
``(B) $110,000,000 to the Secretary and the Secretary of
Energy for the development of smaller-scale biorefineries and
biofuel plants for each of fiscal years 2008 through 2012.

``SEC. 9022. NORTHEAST DAIRY NUTRIENT MANAGEMENT AND ENERGY
DEVELOPMENT PROGRAM.

``(a) Definitions.--In this section:
``(1) Consortium.--The term `consortium' means a
collaboration of land-grant colleges or universities in the
Northeast region that have programs devoted to dairy manure
nutrient management and energy conversion from dairy manure.
``(2) Land-grant colleges and universities.--The term
`land-grant colleges and universities' has the meaning given
the term in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)).
``(3) Northeast region.--The term `Northeast region' means
the States of Connecticut, Delaware, Massachusetts, Maryland,
Maine, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, Vermont, and West Virginia.
``(4) Program.--The term `program' means the dairy nutrient
management and energy development program established under
subsection (b).
``(b) Establishment.--The Secretary shall establish a dairy
nutrient management and energy development program under
which the Secretary shall provide funds to the consortium to
carry out multistate, integrated research, extension, and
demonstration projects for nutrient management and energy
development in the Northeast Region.
``(c) Steering Committee.--
``(1) In general.--The consortium shall establish a
steering committee to administer the program.
``(2) Chairperson.--For each calendar year, or for such
other period as the consortium determines to be appropriate,
the consortium shall select a chairperson of the steering
committee in a manner that ensures that each member of the
consortium is represented by a chairperson on a rotating
basis.
``(3) Board.--
``(A) In general.--The steering committee shall establish a
board of directors to assist in the administration of the
program.
``(B) Composition.--The board shall consist of
representatives of--
``(i) dairy cooperatives and other producer groups;
``(ii) State departments of agriculture;
``(iii) conservation organizations; and
``(iv) other appropriate Federal and State agencies.
``(d) Use of Funds.--
``(1) Administrative costs.--The consortium may use not
more than 10 percent of the total amount of funds provided to
the consortium under this section to pay the administrative
costs of the program.
``(2) Grant program.--
``(A) In general.--The consortium shall use the amounts
provided under this section to provide grants to applicants,
including dairy cooperatives, producers and producer groups,
State departments of agriculture and other appropriate State
agencies, and institutions of higher education, to carry out
integrated research, extension, and demonstration projects in
the Northeast region to address manure nutrient management
and energy development.
``(B) Applications.--The steering committee established
under subsection (c)(1), in coordination with the board
established by the steering committee, shall annually publish
1 or more requests to receive applications for grants under
this paragraph.
``(C) Selection.--
``(i) In general.--The board of the steering committee
shall select applications submitted under subparagraph (B)
for grants under this paragraph--

``(I) on a competitive basis;
``(II) in accordance with such priority technical areas and
distribution requirements as the steering committee may
establish; and
``(III) in a manner that ensures, to the maximum extent
practicable, that an equal quantity of resources is provided
to each member of the consortium.

``(ii) Review.--Before selecting any application under
clause (i), the board shall ensure that the program proposed
in the application is subject to a merit review by an
independent panel of scientific experts with experience
relating to the program.
``(iii) Priority.--In selecting applications under clause
(i), the board shall give priority to applications for
programs that--

``(I) include multiorganizational partnerships, especially
partnerships that include producers; and
``(II) attract the most current and applicable science for
nutrient management and energy development that can be
applied in the Northeast region.

``(D) Cost sharing.--An applicant that receives a grant
under this paragraph shall provide not less than 20 percent
of the cost of the project carried out by the applicant.
``(e) Availability of Results.--The consortium shall ensure
that the results of each project carried out pursuant to the
program are made publicly available.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.

``SEC. 9023. FUTURE FARMSTEADS PROGRAM.

``(a) Establishment.--The Secretary shall establish a
program to equip, in each of 5 regions of the United States
chosen to represent different farming practices, a farm house
and its surrounding fields, facilities, and forested areas
with technologies to--
``(1) improve farm energy production and energy use
efficiencies;
``(2) provide working examples to farmers; and
``(3) serve as an education, demonstration, and research
facility that will teach graduate students whose focus of
research is related to either renewable energy or energy
conservation technologies.
``(b) Goals.--The goals of the program established under
subsection (a) shall be to--
``(1) advance farm energy use efficiencies and the on-farm
production of renewable energies, along with advanced
communication and control technologies with the latest in
energy capture and conversion techniques, thereby enhancing
rural energy independence and creating new revenues for rural
economies;
``(2) accelerate private sector and university research
into the efficient on-farm production of renewable fuels and
help educate the farming industry, students, and the general
public; and
``(3) accelerate energy independence, including the
production and the conservation of renewable energies on
farms.
``(c) Collaboration Partners.--The program under this
section shall be carried out in partnership with regional
land grant institutions, agricultural commodity commissions,
biofuels companies, sensor and controls companies, and
internet technology companies.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.

SEC. 9002. SENSE OF THE SENATE CONCERNING HIGHER LEVELS OF
ETHANOL BLENDED GASOLINE.

(a) Findings.--The Senate finds that, as of the date of
enactment of this Act--
(1) annual ethanol production capacity totals 6,800,000,000
gallons;
(2) current and planned construction of ethanol refineries
will likely increase annual ethanol production capacity to
12,000,000,000 to 13,000,000,000 gallons by December 31,
2009;
(3) under existing regulations, only gasoline blended with
up to 10 percent ethanol (commonly known as ``E-10'') may be
consumed by nonflexible fuel vehicles;
(4) the total market demand for E-10--
(A) is limited to 10 percent of domestic motor fuel
consumption; and
(B) is further constrained by State-administered
reformulated gasoline regulations and regional infrastructure
constraints;
(5) beyond the market demand for E-10, insufficient E-85
infrastructure exists to absorb the increased ethanol
production beyond 12,000,000,000 to 13,000,000,000 gallons in
the short term;
(6) the approval of intermediate blends of ethanol-blended
gasoline, such as E-13, E-15, E-20, and higher blends, is
critical to the uninterrupted growth of the United States
biofuels industry; and
(7) maintaining the growth of the United States biofuels
industry is a matter of national security and sustainable
economic growth.
(b) Sense of the Senate.--It is the sense of the Senate
that the Secretary should--
(1) collaborate with the Secretary of Energy, the Secretary
of Transportation, and the Administrator of the Environmental
Protection Agency in conducting a study of the economic and
environmental effects of intermediate blends of ethanol in
United States fuel supply;
(2) ensure that the approval of intermediate blends of
ethanol occurs after the appropriate tests have successfully
concluded proving the drivability, compatibility, emissions,
durability, and health effects of higher blends of ethanol-
blended gasoline; and
(3) ensure that the approval of intermediate blends of
ethanol-blended gasoline occurs by not later than 1 year
after the date of enactment of this Act.

SEC. 9003. CONFORMING AMENDMENTS.

(a) Biomass Research and Development Act of 2000.--Title
III of the Agricultural Risk Protection Act of 2000 (7 U.S.C.
7624 note; Public Law 106-224) is repealed.
(b) Marketing Program for Biobased Products.--
(1) Implementation.--
(A) In general.--The Secretary shall continue to carry out
the designation and labeling of biobased products in
accordance with

[[Page S14979]]

section 9002 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8102) as in effect on the day before the date
of enactment of this Act until the date on which the
Secretary is able to begin carrying out section 9002(a) of
that Act (as amended by section 9001), which shall begin not
later than 90 days after the date of enactment of this Act.
(B) Existing listings.--Biobased products designated and
labeled under section 9002 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8102) as in effect on the
day before the date of enactment of this Act shall continue
to be considered designated and labeled biobased products
after the date of enactment of this Act.
(C) Proposed item designations.--Notwithstanding any other
provision of this Act or an amendment made by this Act, the
Secretary shall have the authority to finalize the listings
of any item proposed (prior to the date of enactment of this
Act) to be designated in accordance with section 9002 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8102) as in effect on the day before the date of enactment of
this Act.
(2) Bioenergy education and awareness campaign.--Section
947 of the Energy Policy Act of 2005 (42 U.S.C. 16256) is
repealed.

TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS

Subtitle A--Marketing

SEC. 10001. LIVESTOCK MANDATORY REPORTING.

(a) Mandatory Reporting for Swine.--Section 232(c)(3) of
the Agricultural Marketing Act of 1946 (7 U.S.C. 1635j(c)(3))
is amended--
(1) in subparagraph (A), by striking ``2:00 p.m.'' and
inserting ``3:00 p.m.''; and
(2) in subparagraph (B), by striking ``3:00 p.m.'' and
inserting ``4:00 p.m.''.
(b) Mandatory Packer Reporting of Pork Products Sales.--
(1) In general.--Section 232 of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1635j) is amended by adding at the end
the following:
``(f) Mandatory Packer Reporting of Pork Products Sales.--
``(1) In general.--Beginning not earlier than the date on
which the report under section 10001(b)(2)(C) of the Food and
Energy Security Act of 2007 is submitted, the Secretary may
require the corporate officers or officially designated
representative of each packer processing plant to report to
the Secretary at least twice each reporting day (not less
than once before, and once after, 12:00 noon Central Time)
information on total pork products sales, including price and
volume information as specified by the Secretary.
``(2) Publication.--The Secretary shall make available to
the public any information required to be reported under
subparagraph (A) (including information on pork cuts and
retail-ready pork products) not less than twice each
reporting day.''.
(2) Study and report.--
(A) Study.--The Secretary shall conduct a study on the
effects of requiring packer processing plants to report to
the Secretary information on total pork products sales
(including price and volume information), including--
(i) the positive or negative economic effects on producers
and consumers; and
(ii) the effects of a confidentiality requirement on
mandatory reporting.
(B) Information.--The Secretary may collect such
information as is necessary to enable the Secretary to
conduct the study required under subparagraph (A).
(C) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on the results of the study conducted under
subparagraph (A).
(c) Publication of Information on Retail Purchase Prices
for Representative Meat Products.--Section 257(a) of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1636f(a)) is
amended by inserting ``and continuing not less than each
month thereafter'' after ``this subtitle''.

SEC. 10002. GRADING AND INSPECTION.

(a) Grading.--Section 203 of the Agricultural Marketing Act
of 1946 (7 U.S.C. 1622) is amended--
(1) by redesignating subsection (n) as subsection (o); and
(2) by inserting after subsection (m) the following:
``(n) Grading Program.--To establish, within the
Agricultural Marketing Service, a voluntary grading program
for farm-raised animals described in section 10806(a)(1) of
the Farm Security and Rural Investment Act of 2002 (21 U.S.C.
321d(a)(1)).''.
(b) Amenable Species.--Section 1(w) of the Federal Meat
Inspection Act (21 U.S.C. 601(w)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) farm-raised animals described in section 10806(a)(1)
of the Farm Security and Rural Investment Act of 2002 (21
U.S.C. 321d(a)(1)); and''.
(c) Existing Activities.--The Secretary shall ensure, to
the maximum extent practicable, that nothing in an amendment
made by this section duplicates or impedes any of the food
safety activities conducted by the Department of Commerce or
the Food and Drug Administration.

SEC. 10003. COUNTRY OF ORIGIN LABELING.

Subtitle D of the Agricultural Marketing Act of 1946 (7
U.S.C. 1638 et seq.) is amended--
(1) in section 281(2)(A)--
(A) in clause (v), by striking ``and'';
(B) in clause (vi), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(vii) meat produced from goats; and
``(viii) macadamia nuts.'';
(2) in section 282--
(A) in subsection (a), by striking paragraphs (2) and (3)
and inserting the following:
``(2) Designation of country of origin for beef, lamb,
pork, and goat meat.--
``(A) United states country of origin.--A retailer of a
covered commodity that is beef, lamb, pork, or goat meat may
designate the covered commodity as exclusively having a
United States country of origin only if the covered commodity
is derived from an animal that was--
``(i) exclusively born, raised, and slaughtered in the
United States;
``(ii) born and raised in Alaska or Hawaii and transported
for a period of not more than 60 days through Canada to the
United States and slaughtered in the United States; or
``(iii) present in the United States on or before January
1, 2008, and once present in the United States, remained
continuously in the United States.
``(B) Multiple countries of origin.--
``(i) In general.--A retailer of a covered commodity that
is beef, lamb, pork, or goat meat that is derived from an
animal that is--

``(I) not exclusively born, raised, and slaughtered in the
United States,
``(II) born, raised, or slaughtered in the United States,
and
``(III) not imported into the United States for immediate
slaughter,

may designate the country of origin of such covered commodity
as all of the countries in which the animal may have been
born, raised, or slaughtered.
``(ii) Relation to general requirement.--Nothing in this
subparagraph alters the mandatory requirement to inform
consumers of the country of origin of covered commodities
under paragraph (1).
``(C) Imported for immediate slaughter.--A retailer of a
covered commodity that is beef, lamb, pork, or goat meat that
is derived from an animal that is imported into the United
States for immediate slaughter shall designate the origin of
such covered commodity as--
``(i) the country from which the animal was imported; and
``(ii) the United States.
``(D) Foreign country of origin.--A retailer of a covered
commodity that is beef, lamb, pork, or goat meat that is
derived from an animal that is not born, raised, or
slaughtered in the United States shall designate a country
other than the United States as the country of origin of such
commodity.
``(E) Ground beef, pork, lamb, and goat.--The notice of
country of origin for ground beef, ground pork, ground lamb,
or ground goat shall include--
``(i) a list of all countries of origin of such ground
beef, ground pork, ground lamb, or ground goat; or
``(ii) a list of all reasonably possible countries of
origin of such ground beef, ground pork, ground lamb, or
ground goat.
``(3) Designation of country of origin for fish.--
``(A) In general.--A retailer of a covered commodity that
is farm-raised fish or wild fish may designate the covered
commodity as having a United States country of origin only if
the covered commodity--
``(i) in the case of farm-raised fish, is hatched, raised,
harvested, and processed in the United States; and
``(ii) in the case of wild fish, is--

``(I) harvested in the United States, a territory of the
United States, or a State, or by a vessel that is documented
under chapter 121 of title 46, United States Code, or
registered in the United States; and
``(II) processed in the United States, a territory of the
United States, or a State, including the waters thereof.

``(B) Designation of wild fish and farm-raised fish.--The
notice of country of origin for wild fish and farm-raised
fish shall distinguish between wild fish and farm-raised
fish.
``(4) Designation of country of origin for perishable
agricultural commodities, peanuts, and macadamia nuts.--
``(A) In general.--A retailer of a covered commodity that
is a perishable agricultural commodity, peanut, or macadamia
nut may designate the covered commodity as having a United
States country of origin only if the covered commodity is
exclusively produced in the United States.
``(B) State, region, locality of the united states.--With
respect to a covered commodity that is a perishable
agricultural commodity produced exclusively in the United
States, designation by a retailer of the State, region, or
locality of the United States where such commodity was
produced shall be sufficient to identify the United States as
the country of origin.''; and
(B) by striking subsection (d) and inserting the following:
``(d) Audit Verification System.--
``(1) In general.--The Secretary may conduct an audit of
any person that prepares, stores, handles, or distributes a
covered commodity for retail sale to verify compliance

[[Page S14980]]

with this subtitle (including the regulations promulgated
under section 284(b)).
``(2) Record requirements.--
``(A) In general.--A person subject to an audit under
paragraph (1) shall provide the Secretary with verification
of the country of origin of covered commodities. Records
maintained in the course of the normal conduct of the
business of such person, including animal health papers,
import or customs documents, or producer affidavits, may
serve as such verification.
``(B) Prohibition on requirement of additional records.--
The Secretary may not require a person that prepares, stores,
handles, or distributes a covered commodity to maintain a
record of the country of origin of a covered commodity other
than those maintained in the course of the normal conduct of
the business of such person.'';
(3) in section 283--
(A) by striking subsections (a) and (c);
(B) by redesignating subsection (b) as subsection (a);
(C) in subsection (a) (as so redesignated), by striking
``retailer'' and inserting ``retailer or person engaged in
the business of supplying a covered commodity to a
retailer''; and
(D) by adding at the end the following new subsection:
``(b) Fines.--If, on completion of the 30-day period
described in subsection (a)(2), the Secretary determines that
the retailer or person engaged in the business of supplying a
covered commodity to a retailer has--
``(1) not made a good faith effort to comply with section
282, and
``(2) continues to willfully violate section 282 with
respect to the violation about which the retailer or person
received notification under subsection (a)(1),

after providing notice and an opportunity for a hearing
before the Secretary with respect to the violation, the
Secretary may fine the retailer or person in an amount of not
more than $1,000 for each violation.''.

Subtitle B--Agricultural Fair Practices

SEC. 10101. DEFINITIONS.

Section 3 of the Agricultural Fair Practices Act of 1967 (7
U.S.C. 2302) is amended--
(1) by striking ``When used in this Act--'' and inserting
``In this Act:'';
(2) in subsection (a)--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively; and
(B) in subparagraph (D) (as so redesignated), by striking
``clause (1), (2), or (3) of this paragraph'' and inserting
``subparagraphs (A), (B), or (C)'';
(3) by striking subsection (d);
(4) by redesignating subsections (a), (b), (c), and (e) as
paragraphs (3), (4), (2), (1), respectively, indenting
appropriately, and moving those paragraphs so as to appear in
numerical order;
(5) in each paragraph (as so redesignated) that does not
have a heading, by inserting a heading, in the same style as
the heading in the amendment made by paragraph (6), the text
of which is comprised of the term defined in the paragraph;
(6) in paragraph (2) (as so redesignated)--
(A) by striking ``The term `association of producers'
means'' and inserting the following:
``(2) Association of producers.--
``(A) In general.--The term `association of producers'
means''; and
(B) by adding at the end the following:
``(B) Inclusion.--The term `association of producers'
includes an organization of agricultural producers dedicated
to promoting the common interest and general welfare of
producers of agricultural products.''; and
(7) by adding at the end the following:
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.''.

SEC. 10102. PROHIBITED PRACTICES.

Section 4 of the Agricultural Fair Practices of 1967 (7
U.S.C. 2303) is amended--
(1) by redesignating subsections (a), (b), (c), (d), (e),
and (f) as paragraphs (1), (2), (3), (4), (5), and (7),
respectively, and indenting appropriately;
(2) in paragraph (1) (as so redesignated)--
(A) by striking ``join and belong'' each place it appears
and inserting ``form, join, and belong''; and
(B) by striking ``joining or belonging'' and inserting
``forming, joining, or belonging''; and
(3) by inserting after paragraph (5) (as so redesignated)
the following:
``(6) To fail to bargain in good faith with an association
of producers; or''.

SEC. 10103. ENFORCEMENT.

The Agricultural Fair Practices Act of 1967 is amended--
(1) by striking sections 5 and 6 (7 U.S.C. 2304, 2305); and
(2) by inserting after section 4 the following:

``SEC. 5. ENFORCEMENT.

``(a) Civil Actions by the Secretary Against Handlers.--In
any case in which the Secretary has reasonable cause to
believe that a handler or group of handlers has engaged in
any act or practice that violates this Act, the Secretary may
bring a civil action in United States district court by
filing a complaint requesting preventive relief, including an
application for a permanent or temporary injunction,
restraining order, or other order, against the handler.
``(b) Civil Actions Against Handlers.--
``(1) Preventive relief.--
``(A) In general.--In any case in which any handler has
engaged, or there are reasonable grounds to believe that any
handler is about to engage, in any act or practice prohibited
by this Act, a civil action for preventive relief, including
an application for a permanent or temporary injunction,
restraining order, or other order, may be instituted by the
person aggrieved in United States district court.
``(B) Security.--The court may provide that no restraining
order or preliminary injunction shall issue unless security
is provided by the applicant, in such sum as the court
determines to be appropriate, for the payment of such costs
and damages as may be incurred or suffered by any party that
is found to have been wrongfully enjoined or restrained.
``(2) Damages.--
``(A) In general.--Any person injured in the business or
property of the person by reason of any violation of, or
combination or conspiracy to violate, this Act may bring a
civil action in United States district court to recover--
``(i) damages sustained by the person as a result of the
violation; and
``(ii) any additional penalty that the court may allow, but
not more than $1,000 per violation.
``(B) Limitation on actions.--A civil action under
subparagraph (A) shall be barred unless commenced within 4
years after the cause of action accrues.
``(3) Attorneys' fees.--In any action commenced under
paragraph (1) or (2), any person that has violated this Act
shall be liable to any person injured as a result of the
violation for the full amount of the damages sustained as a
result of the violation, including costs of the litigation
and reasonable attorneys' fees.
``(c) Jurisdiction of District Courts.--The district courts
of the United States shall--
``(1) have jurisdiction of proceedings instituted pursuant
to this section; and
``(2) exercise that jurisdiction without regard to whether
the aggrieved party shall have exhausted any administrative
or other remedies that may be provided by law.
``(d) Liability for Acts of Agents.--In the construction
and enforcement of this Act, the act, omission, or failure of
any officer, agent, or person acting for or employed by any
other person within the scope of the employment or office of
the officer, agent, or person, shall be considered to be the
act, omission, or failure of the other person.
``(e) Relationship to State Law.--Nothing in this Act--
``(1) changes or modifies State law in effect on the date
of enactment of this subsection; or
``(2) deprives a State court of jurisdiction.''.

SEC. 10104. RULES AND REGULATIONS.

The Agricultural Fair Practices Act of 1967 is amended by
inserting after section 5 (as added by section 10103) the
following:

``SEC. 6. RULES AND REGULATIONS.

``The Secretary may promulgate such rules and regulations
as are necessary to carry out this Act, including rules or
regulations necessary to clarify what constitutes fair and
normal dealing for purposes of the selection of customers by
handlers.''.

Subtitle C--Packers and Stockyards

SEC. 10201. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.

(a) In General.--The Packers and Stockyards Act, 1921 (7
U.S.C. 181 et seq.) is amended--
(1) by striking the title I heading and all that follows
through ``This Act'' and inserting the following:

``TITLE I--GENERAL PROVISIONS

``Subtitle A--Definitions

``SEC. 1. SHORT TITLE.

``This Act''; and
(2) by inserting after section 2 (7 U.S.C. 183) the
following:

``Subtitle B--Special Counsel for Agricultural Competition

``SEC. 11. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.

``(a) Establishment.--
``(1) In general.--There is established within the
Department of Agriculture an office to be known as the
`Office of Special Counsel for Agricultural Competition'
(referred to in this section as the `Office').
``(2) Duties.--The Office shall--
``(A) have responsibility for all duties and functions of
the Packers and Stockyards programs of the Department of
Agriculture;
``(B) investigate and prosecute violations of this Act and
the Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et
seq.);
``(C) serve as a liaison between, and act in consultation
with, the Department of Agriculture, the Department of
Justice, and the Federal Trade Commission with respect to
competition and trade practices in the food and agricultural
sector; and
``(D) maintain a staff of attorneys and other professionals
with the appropriate expertise.
``(b) Special Counsel for Agricultural Competition.--
``(1) In general.--The Office shall be headed by the
Special Counsel for Agricultural Competition (referred to in
this section as the `Special Counsel'), who shall be
appointed by the President, by and with the advice and
consent of the Senate.
``(2) Independence of special authority.--
``(A) In general.--The Special Counsel shall report to and
be under the general supervision of the Secretary.

[[Page S14981]]

``(B) Direction, control, and support.--The Special Counsel
shall be free from the direction and control of any person in
the Department of Agriculture other than the Secretary.
``(C) Prohibition on delegation.--The Secretary may not
delegate any duty described in subsection (a)(2) to any other
officer or employee of the Department other than the Special
Counsel.
``(D) Reporting requirement.--
``(i) In general.--Twice each year, the Special Counsel
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that shall include, for
the relevant reporting period, a description of--

``(I) the number of complaints that the Special Counsel has
received and closed;
``(II)(aa) the number of investigations and civil and
administrative actions that the Special Counsel has
initiated, carried out, and completed, including the number
of notices given to regulated entities for violations of this
Act or the Agricultural Fair Practices Act of 1967 (7 U.S.C.
2301 et seq.);
``(bb) the number and types of decisions agreed to; and
``(cc) the number of stipulation agreements; and
``(III) the number of investigations and civil and
administrative actions that the Secretary objected to or
prohibited from being carried out, and the stated purpose of
the Secretary for each objection or prohibition.

``(ii) Requirement.--The basis for each complaint,
investigation, or civil or administrative action described in
a report under clause (i) shall--

``(I) be organized by species; and
``(II) indicate if the complaint, investigation, or civil
or administration action was for anti-competitive, unfair, or
deceptive practices under this Act or was a violation of the
Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et
seq.).

``(E) Removal.--
``(i) In general.--The Special Counsel may be removed from
office by the President.
``(ii) Communication.--The President shall communicate the
reasons for any such removal to both Houses of Congress.
``(3) Prosecutorial authority.--Subject to paragraph (4),
the Special Counsel may commence, defend, or intervene in,
and supervise the litigation of, any civil or administrative
action authorized under this Act or the Agricultural Fair
Practices Act of 1967 (7 U.S.C. 2301 et seq.).
``(4) Procedure for exercise of authority to litigate or
appeal.--
``(A) In general.--Prior to commencing, defending, or
intervening in any civil action under this Act or the
Agricultural Fair Practices Act of 1967 (7 U.S.C. 2301 et
seq.), the Special Counsel shall give written notification
to, and attempt to consult with, the Attorney General with
respect to the proposed action.
``(B) Failure to respond.--If, not later than 45 days after
the date of provision of notification under subparagraph (A),
the Attorney General has failed to commence, defend, or
intervene in the proposed action, the Special Counsel may
commence, defend, or intervene in, and supervise the
litigation of, the action and any appeal of the action in the
name of the Special Counsel.
``(C) Authority of attorney general to intervene.--Nothing
in this paragraph precludes the Attorney General from
intervening on behalf of the United States in any civil
action under this Act or the Agricultural Fair Practices Act
of 1967 (7 U.S.C. 2301 et seq.), or in any appeal of such
action, as may be otherwise provided by law.
``(c) Relationship to Other Provisions.--Nothing in this
section modifies or otherwise effects subsections (a) and (b)
of section 406.''.
(b) Conforming Amendment.--Section 5315 of title 5, United
States Code, is amended by adding at the end the following:
``Special Counsel for Agricultural Competition.''.

SEC. 10202. INVESTIGATION OF LIVE POULTRY DEALERS.

(a) Removal of Poultry Slaughter Requirement From
Definitions.--Section 2(a) of the Packers and Stockyards Act,
1921 (7 U.S.C. 182(a)), is amended--
(1) by striking paragraph (8) and inserting the following:
``(8) Poultry grower.--
``(A) In general.--The term `poultry grower' means any
person engaged in the business of raising or caring for live
poultry under a poultry growing arrangement, regardless of
whether the poultry is owned by the person or by another
person.
``(B) Exclusion.--The term `poultry grower' does not
include an employee of the owner of live poultry described in
subparagraph (A).'';
(2) in paragraph (9), by striking ``and cares for live
poultry for delivery, in accord with another's instructions,
for slaughter'' and inserting ``or cares for live poultry in
accordance with the instructions of another person''; and
(3) in paragraph (10), by striking ``for the purpose of
either slaughtering it or selling it for slaughter by
another''.
(b) Administrative Enforcement Authority Over Live Poultry
Dealers.--Sections 203, 204, and 205 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 193, 194, 195), are amended by
inserting ``or live poultry dealer'' after ``packer'' each
place it appears.
(c) Authority to Request Temporary Injunction or
Restraining Order.--Section 408 of the Packers and Stockyards
Act, 1921 (7 U.S.C. 228a), is amended in the first sentence
by striking ``on account of poultry'' and inserting ``on
account of poultry or poultry care''.
(d) Violations by Live Poultry Dealers.--
(1) Penalty.--Section 203(b) of the Packers and Stockyards
Act, 1921 (7 U.S.C. 193(b)) is amended in the third sentence
by striking ``$10,000'' and inserting ``$22,000''.
(2) Repeals.--Sections 411, 412, and 413 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 228b-2, 228b-3, 228b-4)), are
repealed.

SEC. 10203. PRODUCTION CONTRACTS.

(a) Definitions.--Section 2(a) of the Packers and
Stockyards Act, 1921 (7 U.S.C. 182(a)) is amended--
(1) by striking ``When used in this Act--'' and inserting
``In this Act:'';
(2) by striking paragraph (1);
(3) by redesignating paragraphs (2), (3), (4), (5), (6),
(7), (8), (9), (10), (11), (12), (13), and (14) as paragraphs
(15), (6), (8), (9), (10), (13), (11), (12), (7), (2), (16),
(17), and (18), respectively, indenting appropriately, and
moving those paragraphs so as to appear in numerical order;
(4) in each paragraph (as so redesignated) that does not
have a heading, by inserting a heading, in the same style as
the heading in the amendment made by paragraph (5), the text
of which is comprised of the term defined in the paragraph;
(5) by inserting before paragraph (2) (as so designated)
the following:
``(1) Capital investment.--The term `capital investment'
means an investment in--
``(A) a structure, such as a building or manure storage
structure; or
``(B) machinery or equipment associated with producing
livestock or poultry that has a useful life of more than 1
year.'';
(6) by inserting after paragraph (2) (as so redesignated)
the following:
``(3) Contractor.--
``(A) In general.--The term `contractor' means a person
that, in accordance with a production contract, obtains
livestock or poultry that is produced by a contract producer.
``(B) Inclusions.--The term `contractor' includes--
``(i) a live poultry dealer; and
``(ii) a swine contractor.
``(4) Contract producer.--
``(A) In general.--The term `contract producer' means a
producer that produces livestock or poultry under a
production contract.
``(B) Inclusions.--The term `contract producer' includes--
``(i) a poultry grower; and
``(ii) a swine production contract grower.
``(5) Investment requirement.--The term `investment
requirement' means--
``(A) a provision in a production contract that requires a
contract producer to make a capital investment associated
with producing livestock or poultry that, but for the
production contract, the contract producer would not have
made; or
``(B) a representation by a contractor that results in a
contract producer making a capital investment.''; and
(7) by inserting after paragraph (13) (as so redesignated)
the following:
``(14) Production contract.--
``(A) In general.--The term `production contract' means a
written agreement that provides for--
``(i) the production of livestock or poultry by a contract
producer; or
``(ii) the provision of a management service relating to
the production of livestock or poultry by a contract
producer.
``(B) Inclusions.--The term `production contract'
includes--
``(i) a poultry growing arrangement;
``(ii) a swine production contract;
``(iii) any other contract between a contractor and a
contract producer for the production of livestock or poultry;
and
``(iv) a contract between a live poultry dealer and poultry
grower, swine contractor and swine production contract
grower, or contractor and contract producer for the provision
of a management service in the production of livestock or
poultry.''.
(b) Prohibitions Involving Production Contracts.--Title II
of the Packers and Stockyards Act, 1921 (7 U.S.C. 198 et
seq.), is amended by adding at the end the following:

``SEC. 208. PRODUCTION CONTRACTS.

``(a) Right of Contract Producers to Cancel Production
Contracts.--
``(1) In general.--A contract producer may cancel a
production contract by mailing a cancellation notice to the
contractor not later than the later of--
``(A) the date that is 3 business days after the date on
which the production contract is executed; or
``(B) any cancellation date specified in the production
contract.
``(2) Disclosure.--A production contract shall clearly
disclose--
``(A) the right of the contract producer to cancel the
production contract;
``(B) the method by which the contract producer may cancel
the production contract; and
``(C) the deadline for canceling the production contract.
``(b) Production Contracts Involving Investment
Requirements.--
``(1) Applicability.--This subsection applies only to a
production contract between a contract producer and a
contractor if the contract producer detrimentally relied on a

[[Page S14982]]

representation by the contractor or a provision in the
production contract that resulted in the contract producer
making a capital investment of $100,000 or more.
``(2) Restrictions on contract termination.--
``(A) Notice of termination.--Except as provided in
subparagraph (C), a contractor shall not terminate or cancel
a production contract unless the contractor provides the
contract producer with written notice of the intention of the
contractor to terminate or cancel the production contract at
least 90 days before the effective date of the termination or
cancellation.
``(B) Requirements.--The written notice required under
subparagraph (A) shall include alleged causes of the
termination.
``(C) Exceptions.--A contractor may terminate or cancel a
production contract at any time without notice as required
under subparagraph (A) if the basis for the termination or
cancellation is--
``(i) a voluntary abandonment of the contractual
relationship by the contract producer, such as a failure of
the contract producer to substantially perform under the
production contract;
``(ii) the conviction of the contract producer of an
offense of fraud or theft committed against the contractor;
``(iii) the natural end of the production contract in
accordance with the terms of the production contract; or
``(iv) because the well-being of the livestock or poultry
subject to the contract is in jeopardy once under the care of
the contract producer.
``(D) Right to cure.--
``(i) In general.--If, not later than 90 days after the
date on which the contract producer receives written notice
under subparagraph (A), the contract producer remedies each
cause of the breach of contract alleged in the written
notice, the contractor may not terminate or cancel a
production contract under this paragraph.
``(ii) No admission of breach.--The remedy or attempt to
remedy the causes for the breach of contract by the contract
producer under clause (i) does not constitute an admission of
breach of contract.
``(c) Additional Capital Investments in Production
Contracts.--
``(1) In general.--A contractor shall not require a
contract producer to make additional capital investments in
connection with a production contract that exceed the initial
investment requirements of the production contract.
``(2) Exceptions.--Notwithstanding paragraph (1), a
contractor may require additional capital investments if--
``(A)(i) the additional capital investments are offset by
reasonable additional consideration, including compensation
or a modification to the terms of the production contract;
and
``(ii) the contract producer agrees in writing that there
is acceptable and satisfactory consideration for the
additional capital investment; or
``(B) without the additional capital investments the well-
being of the livestock or poultry subject to the contract
would be in jeopardy.
``(d) No Effect on State Law.--Nothing in this section
preempts or otherwise affects any State law relating to
production contracts that establishes a requirement or
standard that is more stringent than a requirement or
standard under this section.

``SEC. 209. CHOICE OF LAW, JURISDICTION, AND VENUE.

``(a) Choice of Law.--Any provision in a livestock or
poultry production or marketing contract requiring the
application of the law of a State other than the State in
which the production occurs is void and unenforceable.
``(b) Jurisdiction.--A packer, live poultry dealer, or
swine contractor that enters into a production or marketing
contract with a producer shall be subject to personal
jurisdiction in the State in which the production occurs.
``(c) Venue.--Venue shall be determined on the basis of the
location of the production, unless the producer selects a
venue that is otherwise permitted by law.
``(d) Application.--This section shall apply to any
production or marketing contract entered into, amended,
altered, modified, renewed, or extended after the date of
enactment of this section.

``SEC. 210. ARBITRATION.

``(a) In General.--If a livestock or poultry contract
provides for the use of arbitration to resolve a controversy
under the livestock or poultry contract, arbitration may be
used to settle the controversy only if, after the controversy
arises, both parties consent in writing to use arbitration to
settle the controversy.
``(b) Application.--Subsection (a) shall apply to any
contract entered into, amended, altered, modified, renewed,
or extended after the date of enactment of this section.''.

SEC. 10204. RIGHT TO DISCUSS TERMS OF CONTRACT.

Section 10503(b) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 229b(b)) is amended--
(1) in paragraph (6), by striking ``or'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(8) a business associate of the party; or
``(9) a neighbor of the party or other producer.''.

SEC. 10205. ATTORNEYS' FEES.

Section 308(a) of the Packers and Stockyards Act, 1921 (7
U.S.C. 209(a)) is amended by inserting before the period at
the end the following: ``and for the costs of the litigation,
including reasonable attorneys' fees''.

SEC. 10206. APPOINTMENT OF OUTSIDE COUNSEL.

Section 407 of the Packers and Stockyards Act, 1921 (7
U.S.C. 228), is amended--
(1) in subsection (a), by inserting ``obtain the services
of attorneys who are not employees of the Federal
Government,'' before ``and make such expenditures''; and
(2) in subsection (c), by striking ``Senate Committee on
Agriculture and Forestry'' and inserting ``the Committee on
Agriculture, Nutrition, and Forestry of the Senate''.

SEC. 10207. PROHIBITION ON PACKERS OWNING, FEEDING, OR
CONTROLLING LIVESTOCK.

(a) In General.--Section 202 of the Packers and Stockyards
Act, 1921 (7 U.S.C. 192), is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f) Own or feed livestock directly, through a subsidiary,
or through an arrangement that gives the packer operational,
managerial, or supervisory control over the livestock, or
over the farming operation that produces the livestock, to
such an extent that the producer is no longer materially
participating in the management of the operation with respect
to the production of the livestock, except that this
subsection shall not apply to--
``(1) an arrangement entered into within 14 days (excluding
any Saturday or Sunday) before slaughter of the livestock by
a packer, a person acting through the packer, or a person
that directly or indirectly controls, or is controlled by or
under common control with, the packer;
``(2) a cooperative or entity owned by a cooperative, if a
majority of the ownership interest in the cooperative is held
by active cooperative members that--
``(A) own, feed, or control livestock; and
``(B) provide the livestock to the cooperative for
slaughter;
``(3) a packer that is not required to report to the
Secretary on each reporting day (as defined in section 212 of
the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a))
information on the price and quantity of livestock purchased
by the packer; or
``(4) a packer that owns 1 livestock processing plant;
or''.
(b) Effective Date.--
(1) In general.--Subject to paragraph (2), the amendments
made by subsection (a) take effect on the date of enactment
of this Act.
(2) Transition rules.--In the case of a packer that on the
date of enactment of this Act owns, feeds, or controls
livestock intended for slaughter in violation of section
202(f) of the Packers and Stockyards Act, 1921 (as amended by
subsection (a)), the amendments made by subsection (a) apply
to the packer--
(A) in the case of a packer of swine, beginning on the date
that is 18 months after the date of enactment of this Act;
and
(B) in the case of a packer of any other type of livestock,
beginning as soon as practicable, but not later than 180
days, after the date of enactment of this Act, as determined
by the Secretary.

SEC. 10208. REGULATIONS.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall
promulgate regulations to implement the amendments made by
this title, including--
(1) regulations providing a definition of the term
``unreasonable preference or advantage'' for purposes of
section 202(b) of the Packers and Stockyards Act, 1921 (7
U.S.C. 192(b)); and
(2) regulations requiring live poultry dealers to provide
written notice to poultry growers if the live poultry dealer
imposes an extended layout period in excess of 30 days, prior
to removal of the previous flock.
(b) Requirements.--Regulations promulgated pursuant to
subsection (a)(1) relating to unreasonable preference or
advantage shall strictly prohibit any preferences or
advantages based on the volume of business, except for
preferences or advantages that reflect actual, verifiable
lower costs (including transportation or other costs), as
determined by the Secretary, of procuring livestock from
larger-volume producers.

Subtitle D--Related Programs

SEC. 10301. SENSE OF CONGRESS REGARDING PSEUDORABIES
ERADICATION PROGRAM.

It is the sense of Congress that--
(1) the Secretary should recognize the threat that feral
swine pose to the domestic swine population and the entire
livestock industry;
(2) keeping the United States commercial swine herd free of
pseudorabies is essential to maintaining and growing pork
export markets;
(3) pseudorabies surveillance funding is necessary to
assist the swine industry in the monitoring, surveillance,
and eradication of pseudorabies, including the monitoring and
surveillance of other diseases effecting swine production and
trade; and
(4) pseudorabies eradication is a high priority that the
Secretary should carry out under the Animal Health Protection
Act (7 U.S.C. 8301 et seq.).

[[Page S14983]]

SEC. 10302. SENSE OF CONGRESS REGARDING CATTLE FEVER TICK
ERADICATION PROGRAM.

It is the sense of Congress that--
(1) the cattle fever tick and the southern cattle tick are
vectors of the causal agent of babesiosis, a severe and often
fatal disease of cattle; and
(2) implementing a national strategic plan for the cattle
fever tick eradication program is a high priority that the
Secretary should carry out--
(A) to prevent the entry of cattle fever ticks into the
United States;
(B) to enhance and maintain an effective surveillance
program to rapidly detect any fever tick incursions; and
(C) to research, identify, and procure the tools and
knowledge necessary to prevent and eradicate cattle ticks in
the United States.

SEC. 10303. NATIONAL SHEEP AND GOAT INDUSTRY IMPROVEMENT
CENTER.

(a) Name Change.--Section 375 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008j) is amended--
(1) in the section heading, by inserting ``and goat'' after
``national sheep''; and
(2) by inserting ``and Goat'' after ``National Sheep'' each
place it appears.
(b) Funding.--Section 375(e)(6) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2008j(e)(6)) is amended
by striking subparagraphs (B) and (C) and inserting the
following:
``(B) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section $1,000,000 for fiscal year 2008, to remain available
until expended.
``(C) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$10,000,000 for each of fiscal years 2008 through 2012.''.
(c) Repeal of Requirement to Privatize Revolving Fund.--
(1) In general.--Section 375 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008j) is amended by striking
subsection (j).
(2) Effective date.--The amendment made by paragraph (1)
takes effect on May 1, 2007.

SEC. 10304. TRICHINAE CERTIFICATION PROGRAM.

Section 10409 of the Animal Health Protection Act (7 U.S.C.
8308) is amended by adding at the end the following:
``(c) Trichinae Certification Program.--
``(1) Establishment.--Not later than 60 days after the date
of enactment of this subsection, the Secretary shall issue
final regulations to implement a trichinae certification
program.
``(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out the program
$1,250,000 for each of fiscal years 2008 through 2012.''.

SEC. 10305. PROTECTION OF INFORMATION IN THE ANIMAL
IDENTIFICATION SYSTEM.

The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is
amended--
(1) by redesignating sections 10416 through 10418 as
sections 10417 through 10419, respectively; and
(2) by inserting after section 10415 the following:

``SEC. 10416. DISCLOSURE OF INFORMATION UNDER A NATIONAL
ANIMAL IDENTIFICATION SYSTEM.

``(a) Definition of National Animal Identification
System.--In this section, the term `national animal
identification system' means a system for identifying or
tracing animals that is established by the Secretary.
``(b) Protection From Disclosure.--
``(1) In general.--Information obtained through a national
animal identification system shall not be disclosed except as
provided in this section.
``(2) Use.--Use of information described in paragraph (1)
by any individual or entity except as otherwise provided in
this section shall be considered a violation of this Act.
``(3) Waiver of privilege of protection.--The provision of
information to a national animal identification system under
this section or the disclosure of information pursuant to
this section shall not constitute a waiver of any applicable
privilege or protection under Federal law, including
protection of trade secrets.
``(c) Limited Release of Information.--The Secretary may
disclose information obtained through a national animal
identification system if--
``(1) the Secretary determines that livestock may be
threatened by a disease or pest;
``(2) the release of the information is related to an
action the Secretary may take under this subtitle; and
``(3) the Secretary determines that the disclosure of the
information to a government entity or person is necessary to
assist the Secretary in carrying out this subtitle or a
national animal identification system.
``(d) Required Disclosure of Information.--The Secretary
shall disclose information obtained through a national animal
identification system regarding particular animals to--
``(1) the person that owns or controls the animals, if the
person requests the information in writing;
``(2) the State Department of Agriculture for the purpose
of protection of animal health;
``(3) the Attorney General for the purpose of law
enforcement;
``(4) the Secretary of Homeland Security for the purpose of
homeland security;
``(5) the Secretary of Health and Human Services for the
purpose of protecting public health;
``(6) an entity pursuant to an order of a court of
competent jurisdiction; and
``(7) the government of a foreign country if disclosure of
the information is necessary to trace animals that pose a
disease or pest threat to livestock or a danger to human
health, as determined by the Secretary.
``(e) Disclosure Under State or Local Law.--Any information
relating to animal identification that a State or local
government obtains from the Secretary shall not be made
available by the State or local government pursuant to any
State or local law requiring disclosure of information or
records to the public.
``(f) Reporting Requirement.--To disclose information under
this section, the Secretary shall--
``(1) certify that the disclosure was necessary under this
section; and
``(2) submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a copy of the
certification.''.

SEC. 10306. LOW PATHOGENIC AVIAN INFLUENZA.

Sec. 10407(d)(2) of the Animal Health Protection Act (7
U.S.C. 8306(d)(2)) is amended--
(1) in subparagraph (A), by striking ``subparagraphs (B)
and (C),'' and inserting ``subparagraphs (B), (C), and
(D),'';
(2) by redesignating subparagraph (C) as subparagraph (D);
and
(3) by inserting after subparagraph (B) the following:
``(C) Low pathogenic avian influenza.--
``(i) Definition of eligible costs.--In this subparagraph,
the term `eligible costs' means costs determined eligible for
indemnity under part 56 of title 9, Code of Federal
Regulations, as in effect on the date of enactment of this
clause.
``(ii) Indemnities.--Subject to subparagraphs (B) and (D),
compensation to any owner or contract grower of poultry
participating in the voluntary control program for low
pathogenic avian influenza under the National Poultry
Improvement Plan, and payments to cooperating State agencies,
shall be made in an amount equal to 100 percent of the
eligible costs.''.

SEC. 10307. STUDY ON BIOENERGY OPERATIONS.

Not later than 180 days after the date of enactment of this
Act, the Secretary, acting through the Office of the Chief
Economist, shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
describing the potential economic issues (including potential
costs) associated with animal manure used in normal
agricultural operations and as a feedstock in bioenergy
production.

SEC. 10308. SENSE OF THE SENATE ON INDEMNIFICATION OF
LIVESTOCK PRODUCERS.

It is the sense of the Senate that the Secretary should
partner with the private insurance industry to implement an
approach for expediting the indemnification of livestock
producers in the case of catastrophic disease outbreaks.

TITLE XI--MISCELLANEOUS

Subtitle A--Agricultural Security

SEC. 11011. DEFINITIONS.

In this subtitle:
(1) Agent.--The term ``agent'' means a nuclear, biological,
or chemical substance that causes an agricultural disease.
(2) Agricultural biosecurity.--The term ``agricultural
biosecurity'' means protection from an agent that poses a
threat to--
(A) plant or animal health;
(B) public health, with respect to direct exposure to an
agricultural disease; or
(C) the environment, with respect to agriculture
facilities, farmland, air, and water in the immediate
vicinity of an area associated with an agricultural disease
or outbreak.
(3) Agricultural countermeasure.--
(A) In general.--The term ``agricultural countermeasure''
means a product, practice, or technology that is intended to
enhance or maintain the agricultural biosecurity of the
United States.
(B) Exclusions.--The term ``agricultural countermeasure''
does not include any product, practice, or technology used
solely for human medical incidents or public health
emergencies not related to agriculture.
(4) Agricultural disease.--The term ``agricultural
disease'' has the meaning given the term by the Secretary.
(5) Agricultural disease emergency.--The term
``agricultural disease emergency'' means an incident of
agricultural disease in which the Secretary, the Secretary of
Homeland Security, the Secretary of Health and Human
Services, the Administrator of the Environmental Protection
Agency (or the heads of other applicable Federal departments
or agencies), as appropriate, determines that prompt action
is needed to prevent significant damage to people, plants, or
animals.
(6) Agriculture.--The term ``agriculture'' means--
(A) the science and practice of activities relating to
food, feed, fiber, and energy production, processing,
marketing, distribution, use, and trade;
(B) nutrition, food science and engineering, and
agricultural economics;
(C) forestry, wildlife science, fishery science,
aquaculture, floriculture, veterinary medicine, and other
related natural resource sciences; and

[[Page S14984]]

(D) research and development activities relating to plant-
and animal-based products.
(7) Agroterrorist act.--The term ``agroterrorist act''
means an act that--
(A) causes or attempts to cause--
(i) damage to agriculture; or
(ii) injury to a person associated with agriculture; and
(B) is committed--
(i) to intimidate or coerce; or
(ii) to disrupt the agricultural industry.
(8) Animal.--The term ``animal'' means any member of the
animal kingdom (except a human).
(9) Department.--The term ``Department'' means the
Department of Agriculture.
(10) Development.--The term ``development'' means--
(A) research leading to the identification of products or
technologies intended for use as agricultural
countermeasures;
(B) the formulation, production, and subsequent
modification of those products or technologies;
(C) the conduct of preclinical and clinical studies;
(D) the conduct of field, efficacy, and safety studies;
(E) the preparation of an application for marketing
approval for submission to applicable agencies; and
(F) other actions taken by an applicable agency in a case
in which an agricultural countermeasure is procured or used
prior to issuance of a license or other form of approval.
(11) Director.--The term ``Director'' means the Director
for Homeland Security of the Department appointed under
section 11022(d)(2).
(12) HSPD-5.--The term ``HSPD-5'' means the Homeland
Security Presidential Directive 5, dated February 28, 2003
(relating to a comprehensive national incident management
system).
(13) HSPD-7.--The term ``HSPD-7'' means the Homeland
Security Presidential Directive 7, dated December 17, 2003
(relating to a national policy for Federal departments and
agencies to identify and prioritize critical infrastructure
and key resources and to protect the infrastructure and
resources from terrorist attacks).
(14) HSPD-8.--The term ``HSPD-8'' means the Homeland
Security Presidential Directive 8, dated December 17, 2003
(relating to the establishment of a national policy to
strengthen the preparedness of the United States to prevent
and respond to domestic terrorist attacks, major disasters,
and other emergencies).
(15) HSPD-9.--The term ``HSPD-9'' means the Homeland
Security Presidential Directive 9, dated January 30, 2004
(relating to the establishment of a national policy to defend
the agriculture and food system against terrorist attacks,
major disasters, and other emergencies).
(16) HSPD-10.--The term ``HSPD-10'' means the Homeland
Security Presidential Directive 10, dated April 28, 2004
(relating to the establishment of a national policy relating
to the biodefense of the United States).
(17) Office.--The term ``Office'' means the Office of
Homeland Security of the Department established by section
11022(d)(1).
(18) Other applicable federal departments or agencies.--The
term ``other applicable Federal departments or agencies''
means Federal departments or agencies that have a role, as
determined by the Secretary of Homeland Security, in
determining the need for prompt action against an
agricultural disease emergency, including--
(A) the Executive departments identified in section 101 of
title 5, United States Code;
(B) government corporations (as defined in section 103 of
title 5, United States Code); and
(C) independent establishments (as defined in section
104(1) of title 5, United States Code).
(19) Plant.--
(A) In general.--The term ``plant'' means any plant
(including any plant part) for or capable of propagation.
(B) Inclusions.--The term ``plant'' includes--
(i) a tree;
(ii) a tissue culture;
(iii) a plantlet culture;
(iv) pollen;
(v) a shrub;
(vi) a vine;
(vii) a cutting;
(viii) a graft;
(ix) a scion;
(x) a bud;
(xi) a bulb;
(xii) a root; and
(xiii) a seed.
(20) Qualified agricultural countermeasure.--The term
``qualified agricultural countermeasure'' means an
agricultural countermeasure that the Secretary, in
consultation with the Secretary of Homeland Security,
determines to be a priority in order to address an
agricultural biosecurity threat from--
(A) an agent placed on the Select Agents and Toxins list of
the Department;
(B) an agent placed on the Plant Protection and Quarantine
Select Agents and Toxins list of the Department; or
(C) an applicable agent placed on the Overlap Select Agents
and Toxins list of the Department and the Department of
Health and Human Services, in accordance with--
(i) part 331 of title 7, Code of Federal Regulations; and
(ii) part 121 of title 9, Code of Federal Regulations.
(21) Routine agricultural disease event.--The term
``routine agricultural disease event'' has the meaning given
the term by the Secretary.

PART I--GENERAL AUTHORITY AND INTERAGENCY COORDINATION

SEC. 11021. POLICY.

(a) Effect of Part.--Nothing in this part alters or
otherwise impedes--
(1) any authority of the Department or other applicable
Federal departments and agencies to perform the
responsibilities provided to the Department or other
applicable Federal departments and agencies pursuant to
Federal law; or
(2) the ability of the Secretary to carry out this part.
(b) Cooperation.--The Secretary shall cooperate with the
Secretary of Homeland Security with respect to the
responsibilities of the Secretary of Homeland Security and
applicable presidential guidance, including HSPD-5, HSPD-7,
HSPD-8, HSPD-9, and HSPD-10.

SEC. 11022. INTERAGENCY COORDINATION.

(a) Leadership.--The Secretary of Homeland Security shall
serve as the principal Federal official to lead, coordinate,
and integrate, to the maximum extent practicable, efforts by
Federal departments and agencies, State, local, and tribal
governments, and the private sector to enhance the protection
of critical infrastructure and key resources of the
agriculture and food system.
(b) Sector-Specific Agency.--
(1) In general.--In accordance with guidance provided by
the Secretary of Homeland Security under subsection (a)--
(A) the Secretary shall serve as the sector-specific lead
official on efforts described in subsection (a) relating to
agriculture, agricultural disease, meat, poultry, and egg
food products, and for efforts relating to authorities
pursuant to the Animal Health Protection Act (7 U.S.C. 8301
et seq.) and the Plant Protection Act (7 U.S.C. 7701 et
seq.); and
(B) the Secretary shall work in coordination with the
Secretary of Health and Human Services during any incident
relating to a zoonotic disease in which the applicable agent
originated--
(i) as an agricultural disease; or
(ii) from a plant or animal population directly related to
agriculture.
(2) Effect of subsection.--Nothing in this subsection
impedes any authority of the Secretary of Homeland Security
as the principal Federal official for domestic incident
management pursuant to HSPD-5.
(c) Coordination of Response.--
(1) Routine agricultural disease events.--To the maximum
extent practicable, the Secretary shall work in consultation
with the Secretary of Homeland Security in response to any
routine domestic incident relating to a potential or actual
agricultural disease.
(2) Agricultural biosecurity threats.--If a routine
domestic incident of agricultural disease is determined by
the Secretary or the Secretary of Homeland Security to pose a
significant threat to the agricultural biosecurity of the
United States, the Secretary of Homeland Security shall serve
as the principal Federal official to lead and coordinate the
appropriate Federal response to the incident.
(d) Office of Homeland Security.--
(1) Establishment.--There is established in the Department
the Office of Homeland Security.
(2) Director.--The Secretary shall appoint as the head of
the Office a Director for Homeland Security.
(3) Responsibilities.--The Director shall be responsible
for--
(A) coordinating all homeland security activities of the
Department, including integration and coordination, in
consultation with the Office of Emergency Management and
Homeland Security of the Animal and Plant Health Inspection
Service and the Office of Food Defense and Emergency Response
of the Food Safety and Inspection Service, of interagency
emergency response plans for--
(i) agricultural disease emergencies;
(ii) agroterrorist acts; or
(iii) other threats to agricultural biosecurity;
(B) acting as the primary liaison on behalf of the
Department with other Federal agencies on coordination
efforts and interagency activities pertaining to agricultural
biosecurity;
(C) advising the Secretary on policies, regulations,
processes, budget, and actions pertaining to homeland
security; and
(D) providing to State and local government officials
timely updates and actionable information about threats,
incidents, potential protective measures, and best practices
relevant to homeland security issues in agriculture.
(4) Agricultural biosecurity communication center.--
(A) Establishment.--The Secretary shall establish in the
Department a central communication center--
(i) to collect and disseminate information regarding, and
prepare for, agricultural disease emergencies, agroterrorist
acts, and other threats to agricultural biosecurity; and
(ii) to coordinate the activities described in clause (i)
among agencies and offices within the Department.

[[Page S14985]]

(B) Response.--Any response by the Secretary to an
agricultural threat to agricultural biosecurity shall be
carried out under the direction of the Secretary of Homeland
Security, in accordance with subsection (c).
(C) Authority of the secretary.--In establishing the
central communication center under subparagraph (A), the
Secretary may use the existing resources and infrastructure
of the Emergency Operations Center of the Animal and Plant
Health Inspection Service located in Riverdale, Maryland.
(D) Relation to existing department of homeland security
communication systems.--
(i) Consistency and coordination.--The center established
under subparagraph (A) shall, to the maximum extent
practicable, share and coordinate the dissemination of timely
information with--

(I) the National Operations Center and the National
Coordinating Center of the Department of Homeland Security;
and
(II) other appropriate Federal communication systems, as
determined by the Secretary of Homeland Security.

(ii) Avoiding redundancies.--Nothing in this paragraph
impedes, conflicts with, or duplicates any activity carried
out by--

(I) the National Biosurveillance Integration Center of the
Department of Homeland Security;
(II) the National Response Coordination Center of the
Department of Homeland Security;
(III) the National Infrastructure Coordination Center of
the Department of Homeland Security; or
(IV) any other communication system under the authority of
the Secretary of Homeland Security.

(E) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as are
necessary to carry out this subsection for each of fiscal
years 2008 through 2012.

SEC. 11023. SUBMISSION OF INTEGRATED FOOD DEFENSE PLAN.

Consistent with HSPD-9, the Secretary, the Secretary of
Homeland Security, and the Secretary of Health and Human
Services shall submit to the President and Congress an
integrated plan for the defense of the food system of the
United States.

SEC. 11024. TRANSFER OF CERTAIN AGRICULTURAL INSPECTION
FUNCTIONS OF DEPARTMENT.

(a) Definition of Function.--In this section, the term
``function'' does not include any quarantine activity carried
out under the laws specified in subsection (c).
(b) Transfer of Agricultural Import and Entry Inspection
Functions.--There shall be transferred to the Secretary of
Homeland Security the functions of the Secretary relating to
agricultural import and entry inspection activities under the
laws specified in subsection (c).
(c) Covered Animal and Plant Protection Laws.--The laws
referred to in subsection (a) are the following:
(1) The eighth paragraph under the heading ``Bureau of
animal industry'' in the Act of March 4, 1913 (commonly known
as the ``Virus-Serum-Toxin Act'') (21 U.S.C. 151 et seq.).
(2) Section 1 of the Act of August 31, 1922 (commonly known
as the ``Honeybee Act'') (7 U.S.C. 281).
(3) Title III of the Federal Seed Act (7 U.S.C. 1581 et
seq.).
(4) The Plant Protection Act (7 U.S.C. 7701 et seq.).
(5) The Animal Health Protection Act (7 U.S.C. 8301 et
seq.).
(6) The Lacey Act Amendments of 1981 (16 U.S.C. 3371 et
seq.).
(7) Section 11 of the Endangered Species Act of 1973 (16
U.S.C. 1540).
(d) Coordination of Regulations.--
(1) Compliance with department regulations.--The authority
transferred pursuant to subsection (b) shall be exercised by
the Secretary of Homeland Security in accordance with the
regulations, policies, and procedures issued by the Secretary
regarding the administration of the laws specified in
subsection (c).
(2) Rulemaking coordination.--The Secretary shall
coordinate with the Secretary of Homeland Security in any
case in which the Secretary prescribes regulations, policies,
or procedures for administering the functions transferred
under subsection (b) under a law specified in subsection (c).
(3) Effective administration.--The Secretary of Homeland
Security, in consultation with the Secretary, may issue such
directives and guidelines as are necessary to ensure the
effective use of personnel of the Department of Homeland
Security to carry out the functions transferred pursuant to
subsection (b).
(e) Transfer Agreement.--
(1) Agreement.--
(A) In general.--Before the end of the transition period
(as defined in section 1501 of the Homeland Security Act of
2002 (6 U.S.C. 541)), the Secretary and the Secretary of
Homeland Security shall enter into an agreement to effectuate
the transfer of functions required by subsection (b).
(B) Revision.--The Secretary and the Secretary of Homeland
Security may jointly revise the agreement as necessary after
that transition period.
(2) Required terms.--The agreement required by this
subsection shall specifically address the following:
(A) The supervision by the Secretary of the training of
employees of the Secretary of Homeland Security to carry out
the functions transferred pursuant to subsection (b).
(B) The transfer of funds to the Secretary of Homeland
Security under subsection (f).
(3) Cooperation and reciprocity.--The Secretary and the
Secretary of Homeland Security may include as part of the
agreement the following:
(A) Authority for the Secretary of Homeland Security to
perform functions delegated to the Animal and Plant Health
Inspection Service of the Department regarding the protection
of domestic livestock and plants, but not transferred to the
Secretary of Homeland Security pursuant to subsection (b).
(B) Authority for the Secretary to use employees of the
Department of Homeland Security to carry out authorities
delegated to the Animal and Plant Health Inspection Service
regarding the protection of domestic livestock and plants.
(f) Periodic Transfer of Funds to Department of Homeland
Security.--
(1) Transfer of funds.--Out of funds collected by fees
authorized under sections 2508 and 2509 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C.
136, 136a), the Secretary shall transfer, from time to time
in accordance with the agreement under subsection (e), to the
Secretary of Homeland Security funds for activities carried
out by the Secretary of Homeland Security for which the fees
were collected.
(2) Limitation.--The proportion of fees collected pursuant
to those sections that are transferred to the Secretary of
Homeland Security under this subsection may not exceed the
proportion of the costs incurred by the Secretary of Homeland
Security to all costs incurred to carry out activities funded
by the fees.
(g) Transfer of Department Employees.--Not later than the
completion of the transition period (as defined in section
1501 of the Homeland Security Act of 2002 (6 U.S.C. 541)),
the Secretary shall transfer to the Secretary of Homeland
Security not more than 3,200 full-time equivalent positions
of the Department.
(h) Effect of Transfer.--
(1) Existing authority.--Nothing in the transfer of
functions under subsection (b) preempts any authority of the
Department as described in section 11022(b)(1).
(2) Limitation on transfer.--
(A) Imports.--The Secretary shall retain responsibility for
all other activities of the Agricultural Quarantine and
Inspection Program regarding imports, including activities
relating to--
(i) preclearance of commodities;
(ii) trade protocol verification;
(iii) fumigation;
(iv) quarantine;
(v) diagnosis;
(vi) eradication;
(vii) indemnification; and
(viii) other sanitary and phytosanitary measures carried
out pursuant to the Animal Health Protection Act (7 U.S.C.
8301 et seq.) and the Plant Protection Act (7 U.S.C. 7701 et
seq.).
(B) Export, interstate, and intrastate activities.--The
Department shall retain responsibility for all functions
regarding export, interstate, and intrastate activities.
(C) Training.--The Department shall retain responsibility
for all agricultural inspection training.
(i) Conforming Amendment.--Section 421 of the Homeland
Security Act of 2002 (6 U.S.C. 231) is amended by striking
``SEC. 421'' and all that follows through ``(h) Protection of
Inspection Animals.--Title V'' and inserting the following:

``SEC. 421. PROTECTION OF INSPECTION ANIMALS.

``Title V''.

PART II--AGRICULTURAL QUARANTINE INSPECTION PROGRAM IMPROVEMENT

SEC. 11031. DEFINITIONS.

In this part:
(1) Program.--The term ``program'' means the agricultural
quarantine inspection program.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Administrator of the
Animal and Plant Health Inspection Service.

SEC. 11032. JOINT TASK FORCE.

(a) Establishment.--Not later than 30 days after the date
of enactment of this Act, the Secretary and the Secretary of
Homeland Security shall establish a Joint Task Force to
provide coordinated central planning for the program.
(b) Composition.--The Joint Task Force shall be composed of
employees of the Animal and Plant Health Inspection Service
and Customs and Border Protection of the Department of
Homeland Security, appointed by the Secretary and the
Secretary of Homeland Security, respectively.
(c) Duties.--The Joint Task Force shall--
(1) prepare, and not less than biannually revise as
necessary, a strategic plan for the program;
(2) establish performance measures that accurately gauge
the success of the program;
(3) establish annual operating goals and plans for the
program at national, regional, and port levels;
(4) establish and regularly revise as necessary a training
program to ensure that all employees of Customs and Border
Protection involved in agricultural inspection and quarantine
activities have the skills, knowledge, and abilities
necessary to protect the agricultural biosecurity of the
United States;
(5) ensure effective and regular communications with all
stakeholders under the program;

[[Page S14986]]

(6) maintain effective and regular communication between
the Animal and Plant Health Inspection Service and Customs
and Border Protection in carrying out the program;
(7) establish and carry out mechanisms to collect data to
inform program planning and decisionmaking under the program;
(8) ensure access for employees of the Animal and Plant
Health Inspection Service who, as determined by the
Secretary, in consultation with the Secretary of Homeland
Security--
(A) have met all applicable Customs and Border Protection
security-related requirements; and
(B) to adequately perform the duties of the employees,
require access to--
(i) each secure area of any terminal for screening
passengers or cargo; and
(ii) each database relating to cargo manifests or any
databases that may relate to the program;
(9) ensure the ability of the program to operate in case of
emergencies; and
(10) establish a quality assurance program for the program,
with performance standards and regular reviews of each port
of entry to determine compliance with the quality standards.

SEC. 11033. ADVISORY BOARD.

(a) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Secretary and the Secretary of
Homeland Security shall establish a board to be known as the
``Agricultural Quarantine Inspection Program Advisory Board''
(referred to in this section as the ``Advisory Board'').
(b) Membership.--
(1) In general.--The Advisory Board shall consist of 11
members representing the Federal Government, State
governments, and stakeholders, including--
(A) 2 members representing the Department, appointed by the
Secretary, who shall serve as cochairperson of the Advisory
Board;
(B) 1 member representing the Department of Homeland
Security, appointed by the Secretary of Homeland Security,
who shall serve as cochairperson of the Advisory Board;
(C) 1 member representing Customs and Border Protection
agriculture specialists, appointed by the Secretary of
Homeland Security, who shall serve as cochairperson of the
Advisory Board;
(D) 1 member representing the National Plant Board,
appointed by the Secretary based on nominations submitted by
the Board;
(E) 1 member representing the United States Animal Health
Association, appointed by the Secretary based on 1 or more
nominations submitted by the Association;
(F) 1 member representing the National Association of State
Departments of Agriculture, appointed by the Secretary based
on 1 or more nominations submitted by the Association;
(G) 2 members representing stakeholders of organizations,
associations, societies, councils, federations, groups, and
companies, appointed by the Secretary from 2 or more
nominations submitted by the stakeholders; and
(H) 2 members representing stakeholders of organizations,
associations, societies, councils, federations, groups, and
companies, appointed by the Secretary of Homeland Security
from 2 or more nominations submitted by the stakeholders.
(2) Terms of service.--The term of a member of the Advisory
Board shall be 2 years, except that, of the members initially
appointed to the Board, the term of \1/2\ of the members (as
determined jointly by the Secretary and the Secretary of
Homeland Security) shall be 1 year.
(c) Duties.--The Advisory Board shall--
(1) advise the Secretary and the Secretary of Homeland
Security--
(A) on policies and other issues related to the mission of
the program; and
(B) on appropriate mechanisms to ensure that interested
stakeholders in the agriculture industry, State and local
governments, and the general public have formal opportunities
to provide comments on the program; and
(2) in the case of the cochairpersons of the Advisory
Board--
(A) coordinate the advice and concerns of the members of
the Advisory Board; and
(B) at least twice a year, submit the views of the Advisory
Board to the Secretary and the Secretary of Homeland
Security.
(d) Meetings.--The meetings of the Advisory Board shall
take place at least twice a year, with the option of
conducting the meetings in Washington, District of Columbia,
and a Customs and Border Protection port on an alternating
basis.

SEC. 11034. REPORTS TO CONGRESS.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter through
September 30, 2012, the Administrator of the Animal and Plant
Health Inspection Service and the Commissioner of Customs and
Border Protection, shall jointly submit to the committees
described in subsection (b) a report on--
(1) the resource needs for import and entry agricultural
inspections, including the number of inspectors required;
(2) the adequacy of inspection and monitoring procedures
and facilities in the United States;
(3) new and emerging technologies and practices, including
recommendations regarding the technologies and practices, to
improve import and entry agricultural inspections; and
(4) questions or concerns raised by the Joint Task Force
established under section 11032 and by the Agricultural
Quarantine Inspection Program Advisory Board established
under section 11033.
(b) Committees.--The Secretary and the Secretary of
Homeland Security shall jointly submit the report required
under subsection (a) to--
(1) the Committee on Agriculture, Nutrition, and Forestry
of the Senate;
(2) the Committee on Agriculture of the House of
Representatives;
(3) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
(4) the Committee on Homeland Security of the House of
Representatives.
(c) Satisfaction of Requirement.--The Administrator of the
Animal and Plant Health Inspection Service and the
Commissioner of Customs and Border Protection may satisfy the
reporting requirement described in subsection (a) by
submitting to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a copy of each relevant provision
relating to appropriations or authorization requests for the
applicable fiscal year.

SEC. 11035. PORT RISK COMMITTEES.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary and the Secretary of
Homeland Security shall jointly create Port Risk Committees
to service the agriculture mission for each port of entry
into the United States that the Secretary of Homeland
Security, in consultation with the Secretary, determines to
be appropriate.
(b) Membership.--Each Committee may include representatives
from--
(1) the Animal and Plant Health Inspection Service,
appointed by the Secretary;
(2) Customs and Border Protection, appointed by the
Secretary of Homeland Security;
(3) the Department of Health and Human Services, appointed
by the Secretary of Health and Human Services;
(4) State and local governments, appointed jointly by the
Secretary, the Secretary of Homeland Security, and the
Secretary of Health and Human Services; and
(5) other stakeholders, appointed jointly by the Secretary,
the Secretary of Homeland Security, and the Secretary of
Health and Human Services, who shall--
(A) act as nonvoting members of the Committee; and
(B) only observe and provide information and comments with
respect to activities of the Committee.
(c) Duties.--Each Committee shall examine issues affecting
the local port of entry of the Committee to determine actions
necessary to mitigate risks of threats to the agricultural
biosecurity of the United States.
(d) Report.--The Committees shall report regularly to
regional-level officials of the Animal and Plant Health
Inspection Service and to field office officials of Customs
and Border Protection.

SEC. 11036. EMERGENCY RESPONSE PLANNING AT PORTS OF ENTRY.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary and the Secretary of
Homeland Security shall develop a comprehensive plan to
identify and deploy trained and certified personnel in
emergency response activities.
(b) Plan.--The plan shall include a strategy for rapid
identification and deployment of resources and a standard
operating procedure to implement when significant
agricultural pests and diseases are detected at ports of
entry.
(c) Continuity of Operations Plans.--The Secretary and the
Secretary of Homeland Security, acting through Customs and
Border Protection, shall coordinate and share national
continuity of operations plans and plans for ports of entry.

SEC. 11037. PLANT PEST IDENTIFICATION JOINT PLAN.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary and the Secretary of
Homeland Security shall prepare a joint plan to establish
standards of service for--
(1) plant pest and disease identification;
(2) inspection techniques training; and
(3) discard authority.
(b) Contents.--The plan shall--
(1) formalize plant pest and disease identification and
inspection training of Customs and Border Protection
agriculture specialists for all pathways, including
conveyances, passengers, cargo, mail, and rail; and
(2) establish performance-related criteria for the
appropriate Department of Homeland Security personnel to
enable enhanced discard authority and improve plant pest and
disease interception.

SEC. 11038. LIAISON OFFICER POSITIONS.

(a) Customs and Border Protection.--
(1) In general.--The Secretary shall establish a program
liaison officer position who is physically located in the
same building as the highest ranking Customs and Border
Protection official with primary responsibility for the
agricultural inspection functions of Customs and Border
Protection.
(2) Employee.--The liaison officer shall be an employee of
the Animal and Plant Health Inspection Service.
(3) Space and staff.--Customs and Border Protection shall
provide appropriate space for the liaison officer and
commensurate support staff.
(4) Expenses.--The Secretary shall bear all costs for
salary, benefits, and other expenses of the liaison officer.

[[Page S14987]]

(b) Animal and Plant Health Inspection Service.--
(1) In general.--The Secretary, acting through Customs and
Border Protection, shall establish a program liaison officer
position who is physically located in the same building as
the highest ranking Animal and Plant Health Inspection
Service official with primary responsibility for the
agricultural inspection functions of the Service.
(2) Employee.--The liaison officer shall be an employee of
Customs and Border Protection.
(3) Space and staff.--The Animal and Plant Health
Inspection Service shall provide appropriate space for the
liaison officer and commensurate support staff.
(4) Expenses.--Customs and Border Protection shall bear all
costs for salary, benefits, and other expenses of the liaison
officer.
(c) Communications.--The liaison officers shall ensure
daily communication between designated officials of the
Animal and Plant Health Inspection Service and Customs and
Border Protection.

PART III--MISCELLANEOUS

SEC. 11041. DESIGNATION AND EXPEDITED REVIEW AND APPROVAL OF
QUALIFIED AGRICULTURAL COUNTERMEASURES.

(a) Designation of Certain Agricultural Countermeasures.--
The Secretary and the Secretary of Homeland Security, in
coordination with the Secretary of Health and Human Services,
the Administrator of the Environmental Protection Agency, and
the heads of other applicable Federal departments or
agencies, and in consultation with the Director of the Office
of Science and Technology Policy in the Executive Office of
the President, shall designate a list of qualified
agricultural countermeasures to protect against the
intentional introduction or natural occurrence of
agricultural disease emergencies.
(b) Expedited Review and Approval of Qualified
Countermeasures.--A qualified agricultural countermeasure
designated under subsection (a) shall be--
(1) granted expedited review for approval; and
(2) if the qualified agricultural countermeasure meets the
requirements for approval under that expedited review
process, promptly approved by the appropriate Federal
department or agency for use or further testing.
(c) Delisting of Agriculture Countermeasures.--The
Secretary and the Secretary of Homeland Security, in
coordination with the Secretary of Health and Human Services,
the Administrator of the Environmental Protection Agency, and
the heads of other applicable Federal departments or
agencies, and in consultation with the Director of the Office
of Science and Technology Policy in the Executive Office of
the President, may delist qualified agricultural
countermeasures that are no longer effective in maintaining
or enhancing the agricultural biosecurity of the United
States.

SEC. 11042. AGRICULTURAL DISEASE EMERGENCY DETECTION AND
RESPONSE.

(a) Emergency Determination.--
(1) In general.--The Secretary of Homeland Security, in
consultation with the Secretary and the Secretary of Health
and Human Services, shall--
(A) assess potential vulnerabilities to the agricultural
biosecurity of the United States; and
(B) determine the incidence or outbreak of which
agricultural diseases would constitute an emergency--
(i) to identify respective interagency priorities; and
(ii) to assist the Department of Homeland Security to
establish biological threat awareness capacities pursuant to
HSPD-9 and HSPD-10.
(2) Notification by other federal entities.--On a
determination by the Secretary of Homeland Security under
paragraph (1)(B), each Federal department and agency shall
notify the Secretary of Homeland Security, the Secretary, and
the Secretary of Health and Human Services of specific
emergency procedures to be deployed in the event of an
outbreak of an agricultural disease, including--
(A) any regulations promulgated to address the outbreak;
and
(B) a timetable for implementation of the regulations.
(3) Information sharing.--The Secretary of Homeland
Security may make notifications under paragraph (2) available
to the Secretary, in order for the Secretary to meet the
incident management activities and goals set forth in the
Food and Agriculture Incident Annex of the National Response
Plan.
(4) State and local coordination.--On receipt by the
Secretary of Homeland Security of notification of special
emergency procedures required by other Federal departments or
agencies, the Secretary of Homeland Security, in consultation
with the Secretary and the Secretary of Health and Human
Services, shall--
(A) notify State, local, and tribal governments, as
appropriate, of the emergency procedures; and
(B) institute test exercises to determine the effectiveness
of the emergency procedures in geographical areas of
significance, as determined by the Secretary of Homeland
Security, in consultation with Secretary.
(b) Disease Detection.--The Secretary and the Secretary of
Homeland Security shall--
(1) develop and deploy an advanced surveillance system to
detect entry into the United States of agricultural
biological threat agents that are likely to cause an
agricultural disease emergency;
(2) develop national and international standards and
implementation guidelines to be used in monitoring those
agricultural biological threat agents;
(3) enhance animal and plant health laboratory networks in
existence as of the date of enactment of this Act to increase
the diagnostic capability for detecting those biological
threat agents; and
(4) integrate the data and information obtained through the
activities carried out under paragraphs (1) through (3) with
the National Biosurveillance Integration Center of the
Department of Homeland Security.
(c) Onsite Rapid Diagnostic Tools.--
(1) Development.--The Secretary, in consultation with the
Secretary of Homeland Security and the Secretary of Health
and Human Services, shall develop onsite rapid diagnostic
tools to enable rapid diagnosis of incidents of agricultural
diseases that would constitute an agricultural disease
emergency at the site of the incident or outbreak.
(2) Validation testing of tools.--In developing on-site
rapid diagnostic tools under paragraph (1), the Secretary, in
consultation with the Secretary of Homeland Security and the
Secretary of Health and Human Services, shall conduct
validation testing to ensure that each tool--
(A) identifies the agent for which the tool was developed;
and
(B) will function properly if administered in the field by
persons with varying levels of expertise in diagnostic
testing, zoonotic disease surveillance, or agricultural
disease emergencies.
(d) Emergency Response.--
(1) In general.--The Secretary shall work with State
agriculture departments to ensure a coordinated response with
State and local agencies responsible for early agricultural
disease detection and control.
(2) Evaluation.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall prepare and submit
to the appropriate committees of Congress an evaluation of
the current staff, budgets, and capabilities of regional
coordinators of the Animal and Plant Health Inspection
Service to identify areas of potential vulnerability or
additional resource needs for emergency response capabilities
in specific geographical areas.
(e) Best Practices.--
(1) Agricultural biosecurity task force.--The Secretary
shall establish in the Department an agricultural biosecurity
task force to identify best practices for use in carrying out
a State or regional agricultural biosecurity program.
(2) Information available.--The Secretary, in coordination
with the Secretary of Homeland Security, shall make available
information regarding best practices for use in implementing
a State or regional agricultural biosecurity program,
including training exercises for emergency response providers
and animal and plant disease specialists.
(f) Foreign Animal Disease as Prerequisite for Veterinarian
Accreditation.--The Secretary shall require candidates for
veterinarian accreditation from the Department to receive
training in foreign animal disease detection and response.

SEC. 11043. NATIONAL PLANT DISEASE RECOVERY SYSTEM AND
NATIONAL VETERINARY STOCKPILE.

(a) National Plant Disease Recovery System.--
(1) Establishment.--The Secretary, in coordination with the
Secretary of Homeland Security, and in consultation with the
Secretary of Health and Human Services and the Administrator
of the Environmental Protection Agency, shall work with State
and local governments and the private sector to establish a
national plant disease recovery system to be used to respond
to an outbreak of plant disease that poses a significant
threat to agricultural biosecurity.
(2) Requirements.--The national plant disease recovery
system shall include agricultural countermeasures to be made
available within a single growing season for crops of
particular economic significance, as determined by the
Secretary, in coordination with the Secretary of Homeland
Security.
(b) National Veterinary Stockpile.--The Secretary, in
coordination with the Secretary of Homeland Security, and in
consultation with the Secretary of Health and Human Services
and the Administrator of the Environmental Protection Agency,
shall work with State and local governments and the private
sector to establish a national veterinary stockpile, which
shall be used by the Secretary, in coordination with the
Secretary of Homeland Security--
(1) to make agricultural countermeasures available to any
State veterinarian not later than 24 hours after submission
of an official request for assistance by the State
veterinarian, unless the Secretary and the Secretary of
Homeland Security cannot accommodate such a request due to an
emergency; and
(2) to leverage, where appropriate, the mechanisms and
infrastructure of the Strategic National Stockpile.

SEC. 11044. RESEARCH AND DEVELOPMENT OF AGRICULTURAL
COUNTERMEASURES.

(a) Grant Program.--
(1) In general.--The Secretary shall establish a grant
program to stimulate basic and applied research and
development activity for qualified agricultural
countermeasures.

[[Page S14988]]

(2) Competitive grants.--In carrying out this section, the
Secretary shall develop a process through which to award
grants on a competitive basis.
(3) Waiver in emergencies.--The Secretary may waive the
requirement in paragraph (2), if--
(A) the Secretary has declared a plant or animal disease
emergency under the Plant Protection Act (7 U.S.C. 7701 et
seq.) or the Animal Health Protection Act (7 U.S.C. 8301 et
seq.); and
(B) the waiver would lead to the rapid development of a
qualified agricultural countermeasure, as determined by the
Secretary.
(b) Use of Foreign Disease Permissible.--The Secretary
shall permit the use of foreign animal and plant disease
agents, and accompanying data, in research and development
activities funded under this section if the Secretary
determines that the diseases or data are necessary to
demonstrate the safety and efficacy of an agricultural
countermeasure in development.
(c) Coordination on Advanced Development.--The Secretary
shall ensure that the Secretary of Homeland Security is
provided information, on a quarterly basis, describing each
grant provided by the Secretary for the purpose of
facilitating the acceleration and expansion of the advanced
development of agricultural countermeasures.
(d) Scope.--Nothing in this section impedes the ability of
the Secretary of Homeland Security to administer grants for
basic and applied research and advanced development
activities for qualified agricultural countermeasures.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $50,000,000 for
each of fiscal years 2008 through 2012.

SEC. 11045. VETERINARY WORKFORCE GRANT PROGRAM.

(a) In General.--The Secretary shall establish a grant
program to increase the number of veterinarians trained in
agricultural biosecurity.
(b) Considerations for Funding Awarded.--The Secretary
shall establish procedures to ensure that grants are
competitively awarded under the program based on--
(1) the ability of an applicant to increase the number of
veterinarians who are trained in agricultural biosecurity
practice areas determined by the Secretary;
(2) the ability of an applicant to increase research
capacity in areas of agricultural biosecurity determined by
the Secretary to be a priority; or
(3) any other consideration the Secretary determines to be
appropriate.
(c) Use of Funds.--Amounts received under this section may
be used by a grantee to pay--
(1) costs associated with construction and the acquisition
of equipment, and other capital costs relating to the
expansion of schools of veterinary medicine, departments of
comparative medicine, departments of veterinary science, or
entities offering residency training programs; or
(2) capital costs associated with the expansion of academic
programs that offer postgraduate training for veterinarians
or concurrent training for veterinary students in specific
areas of specialization.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as are
necessary to carry out this section for each of fiscal years
2008 through 2012.

SEC. 11046. ASSISTANCE TO BUILD LOCAL CAPACITY IN
AGRICULTURAL BIOSECURITY PLANNING,
PREPAREDNESS, AND RESPONSE.

(a) Advanced Training Programs.--
(1) Grant assistance.--The Secretary shall provide grant
assistance to support the development and expansion of
advanced training programs in agricultural biosecurity
planning and response for food science professionals and
veterinarians.
(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as are
necessary to carry out this subsection for each of fiscal
years 2008 through 2012.
(b) Assessment of Response Capability.--
(1) Grant and loan assistance.--The Secretary shall provide
grant and low-interest loan assistance to States for use in
assessing agricultural disease response capability.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $25,000,000
for each of fiscal years 2008 through 2012.

SEC. 11047. BORDER INSPECTIONS OF AGRICULTURAL PRODUCTS.

(a) Inspection.--
(1) In general.--The Secretary of Homeland Security, in
consultation with the Secretary and the Secretary of Health
and Human Services, shall coordinate with Federal
intelligence officials to identify agricultural products that
are imported from countries that have known capabilities to
carry out an agroterrorist act.
(2) Priority.--
(A) In general.--Agricultural products imported from
countries described in paragraph (1) shall be given priority
status in the inspection process.
(B) Effect of threats.--If a credible and specific threat
of an intended agroterrorist act is identified by Federal
intelligence officials, each border inspection of a product
that could be a pathway for the agroterrorist act shall be
intensified.
(b) Coordination in Border Inspection.--In conducting
inspections of agricultural products at the border, the
Secretary, the Secretary of Homeland Security, and the
Secretary of Health and Human Services shall use a compatible
communication system in order to better coordinate the
inspection process.

SEC. 11048. LIVE VIRUS OF FOOT AND MOUTH DISEASE RESEARCH.

(a) In General.--The Secretary shall issue a permit
required under section 12 of the Act of May 29, 1884 (21
U.S.C. 113a) to the Secretary of Homeland Security for work
on the live virus of foot and mouth disease at the National
Bio and Agro-Defense Laboratory (referred to in this section
as the ``NBAF'').
(b) Limitation.--The permit shall be valid unless the
Secretary finds that the study of live foot and mouth disease
virus at the NBAF is not being carried out in accordance with
the regulations issued by the Secretary pursuant to the
Agricultural Bioterrorism Protection Act of 2002 (7 U.S.C.
8401 et seq.).
(c) Authority.--The suspension, revocation, or other
impairment of the permit issued under this section--
(1) shall be made by the Secretary; and
(2) is a nondelegable function.

Subtitle B--Other Programs

SEC. 11051. FORECLOSURE.

(a) In General.--Section 307 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1927) is amended by adding at
the end the following:
``(f) Moratorium.--
``(1) In general.--Effective beginning on the date of
enactment of this subsection, there shall be in effect a
moratorium on all loan acceleration and foreclosure
proceedings instituted by the Department for any case in
which--
``(A) there is pending against the Department a claim of
discrimination by a farmer or rancher related to a loan
acceleration or foreclosure; or
``(B) a farmer or rancher files a claim of discrimination
against the Department related to a loan acceleration or
foreclosure.
``(2) Waiver of interest and offsets.--During the period of
the moratorium, the Secretary shall waive the accrual of
interest and offsets on all loans made under this subtitle
for which loan acceleration or foreclosure proceedings have
been instituted as described in paragraph (1).
``(3) Termination of moratorium.--The moratorium shall
terminate with respect to a claim of discrimination by a
farmer or rancher on the earlier of--
``(A) the date the Secretary resolves the claim; or
``(B) if the farmer or rancher appeals the decision of the
Secretary on the claim to a court of competent jurisdiction,
the date that the court renders a final decision on the
claim.
``(4) Failure to prevail.--If a farmer or rancher does not
prevail on a claim of discrimination described in paragraph
(1), the farmer or rancher shall be liable for any interest
and offsets that accrued during the period that the loan was
in abeyance.''.
(b) Foreclosure Report.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Inspector General of the
Department of Agriculture (referred to in this subsection as
the ``Inspector General'') shall determine whether decisions
of the Department to implement foreclosure proceedings with
respect to loans made under subtitle A of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1922 et seq.) to
socially disadvantaged farmers or ranchers during the 5-year
period preceding the date of enactment of this Act were
consistent and in conformity with the applicable laws
(including regulations) governing loan foreclosures.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Inspector General shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the determination of the
Inspector General under paragraph (1).

SEC. 11052. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY
DISADVANTAGED FARMERS AND RANCHERS.

(a) In General.--Section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279)) is
amended--
(1) in subsection (a)--
(A) by striking paragraph (2) and inserting the following:
``(2) Requirements.--The outreach and technical assistance
program under paragraph (1) shall be used exclusively--
``(A) to enhance coordination of the outreach, technical
assistance, and education efforts authorized under
agriculture programs; and
``(B) to assist the Secretary in--
``(i) reaching socially disadvantaged farmers and ranchers
and prospective socially disadvantaged farmers and ranchers
in a culturally and linguistically appropriate manner; and
``(ii) improving the participation of those farmers and
ranchers in Department programs, as determined under section
2501A.'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking ``entity to provide
information'' and inserting ``entity that has demonstrated an
ability to carry out the requirements described in paragraph
(2) to provide outreach''; and
(ii) by adding at the end the following:
``(D) Renewal of contracts.--The Secretary may provide for
renewal of a grant, contract, or other agreement under this
section with an eligible entity that--

[[Page S14989]]

``(i) has previously received funding under this section;
``(ii) has demonstrated an ability to carry out the
requirements described in paragraph (2); and
``(iii) demonstrates to the satisfaction of the Secretary
that the entity will continue to fulfill the purposes of this
section.
``(E) Review of proposals.--Notwithstanding subparagraph
(D), the Secretary shall promulgate a regulation to establish
criteria for the review process for grants and cooperative
agreements (including multiyear grants), which shall include
a review eligible entities on an individual basis.
``(F) Report.--The Secretary shall submit to Congress, and
make publically available, an annual report that describes--
``(i) the accomplishments of the program under this
section; and
``(ii) any gaps or problems in service delivery as reported
by grantees.''; and
(C) in paragraph (4)--
(i) by striking subparagraph (A), and inserting the
following:
``(A) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this subsection $15,000,000 for each of fiscal years 2008
through 2012.'';
(ii) in subparagraph (B), by striking ``authorized to be
appropriated under subparagraph (A)'' and inserting ``made
available under subparagraph (A)''; and
(iii) by adding at the end the following:
``(C) Limitation on use of funds for administrative
expenses.--Not more than 5 percent of the amounts made
available under this paragraph for a fiscal year may be used
for expenses related to administering the program under this
section.''; and
(2) in subsection (e)(5)(A)--
(A) in clause (i), by striking ``has demonstrated
experience in'' and inserting ``has a reputation for, and has
demonstrated experience in,''; and
(B) in clause (ii)--
(i) by inserting ``and on behalf of'' before ``socially'';
and
(ii) by striking ``2-year'' and inserting ``3-year''.
(b) Coordination With Outreach.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall develop a plan to
join and relocate--
(A) the outreach and technical assistance program
established under section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279); and
(B) the Office of Outreach of the Department of
Agriculture.
(2) Consultation.--In preparing the plan under paragraph
(1), the Secretary shall, in consultation with eligible
entities under section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279)--
(A) decide the most appropriate permanent location for the
programs described in paragraph (1); and
(B) locate both programs together at that location.
(3) Report.--After the relocation described in this
subsection is completed, the Secretary shall submit to
Congress a report that includes information describing the
new location of the programs.

SEC. 11053. ADDITIONAL CONTRACTING AUTHORITY.

Section 2501(a)(3) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(a)(3)) (as amended by
section 11052(a)(1)(B)(ii)) is amended by adding at the end
the following:
``(G) Additional contracting authority.--
``(i) In general.--The Secretary shall provide to the
Office of Outreach of the Department of Agriculture, the
Natural Resources Conservation Service, the Farm Service
Agency, the Risk Management Agency, the Forest Service, the
Food Safety and Inspection Service, and such other agencies
and programs as the Secretary determines to be necessary, the
authority to make grants and enter into contracts and
cooperative agreements with community-based organizations
that meet the definition of an eligible entity under
subsection (e).
``(ii) Matching funds.--The Secretary is not required to
require matching funds for a grant made, or a contract or
cooperative agreement entered into, under this subparagraph.
``(iii) Interagency funding.--Notwithstanding any other
provision of law (including regulations), any Federal agency
may participate in any grant made, or contract or cooperative
agreement entered into, under this subsection by contributing
funds, if the head of the agency determines that the
objectives of the grant, contract, or cooperative agreement
will further the authorized programs of the contributing
agency.''.

SEC. 11054. IMPROVED PROGRAM DELIVERY BY THE DEPARTMENT OF
AGRICULTURE ON INDIAN RESERVATIONS.

Section 2501(g)(1) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended by
striking the second sentence.

SEC. 11055. ACCURATE DOCUMENTATION IN THE CENSUS OF
AGRICULTURE AND CERTAIN STUDIES.

Section 2501 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279) is amended by adding at the
end the following:
``(h) Accurate Documentation.--The Secretary shall ensure,
to the maximum extent practicable, that the Census of
Agriculture and studies carried out by the Economic Research
Service accurately document the number, location, and
economic contributions of socially disadvantaged farmers and
ranchers in agricultural production.''.

SEC. 11056. IMPROVED DATA REQUIREMENTS.

Section 2501A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279-1) is amended by striking
subsection (c) and inserting the following:
``(c) Compilation of Program Participation Data.--
``(1) Annual requirement.--For each county and State in the
United States, the Secretary of Agriculture (referred to in
this section as the `Secretary') shall annually compile
program application and participation rate data regarding
socially disadvantaged farmers and ranchers by computing for
each program of the Department of Agriculture that serves
agricultural producers or landowners--
``(A) raw numbers of applicants and participants by race,
ethnicity, and gender, subject to appropriate privacy
protections, as determined by the Secretary; and
``(B) the application and participation rate, by race,
ethnicity, and gender, as a percentage of the total
participation rate of all agricultural producers and
landowners.
``(2) Authority to collect data.--The heads of the agencies
of the Department of Agriculture shall collect and transmit
to the Secretary any data, including data on race, gender,
and ethnicity, that the Secretary determines to be necessary
to carry out paragraph (1).
``(3) Report.--Using the technologies and systems of the
National Agricultural Statistics Service, the Secretary shall
compile and present the data required under paragraph (1) for
each program described in that paragraph in a manner that
includes the raw numbers and participation rates for--
``(A) the entire United States;
``(B) each State; and
``(C) each county in each State.
``(d) Limitations on Use of Data.--
``(1) In general.--In carrying out this section, the
Secretary shall not disclose the names or individual data of
any program participant.
``(2) Authorized uses.--The data under this section shall
be used exclusively for the purposes described in subsection
(a).
``(3) Limitation.--Except as otherwise provided, the data
under this section shall not be used for the evaluation of
individual applications for assistance.''.

SEC. 11057. RECEIPT FOR SERVICE OR DENIAL OF SERVICE.

Section 2501A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279-1) (as amended by section
11056) is amended by adding at the end the following:
``(e) Receipt for Service or Denial of Service.--In any
case in which a farmer or rancher, or a prospective farmer or
rancher, in person or in writing, requests from the Farm
Service Agency or the Natural Resources Conservation Service
of the Department of Agriculture any benefit or service
offered by the Department to agricultural producers or
landowners, and at the time of the request requests a
receipt, the Secretary of Agriculture shall issue, on the
date of the request, a receipt to the farmer or rancher, or
prospective farmer or rancher, that contains--
``(1) the date, place, and subject of the request; and
``(2) the action taken, not taken, or recommended to the
farmer or rancher or prospective farmer or rancher.''.

SEC. 11058. NATIONAL APPEALS DIVISION.

Section 280 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 7000) is amended--
(1) by striking ``On the return'' and inserting the
following:
``(a) In General.--On the return''; and
(2) by adding at the end the following:
``(b) Reports.--
``(1) In general.--Not later than 180 days after the date
of enactment of this subsection, and every 180 days
thereafter, the head of each agency shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate, and publish on the website of the Department, a
report that includes--
``(A) a description of all cases returned to the agency
during the period covered by the report pursuant to a final
determination of the Division;
``(B) the status of implementation of each final
determination; and
``(C) if the final determination has not been implemented--
``(i) the reason that the final determination has not been
implemented; and
``(ii) the projected date of implementation of the final
determination.
``(2) Updates.--Each month, the head of each agency shall
publish on the website of the Department any updates to the
reports submitted under paragraph (1).''.

SEC. 11059. FARMWORKER COORDINATOR.

(a) In General.--Subtitle B of title II of the Department
of Agriculture Reorganization Act of 1994 is amended by
inserting after section 226A (7 U.S.C. 6933) the following:

``SEC. 226B. FARMWORKER COORDINATOR.

``(a) Establishment.--The Secretary shall establish within
the Department the position of Farmworker Coordinator
(referred to in this section as the `Coordinator').
``(b) Duties.--The Secretary shall delegate to the
Coordinator responsibility for--

[[Page S14990]]

``(1) assisting in administering the program established by
section 2281 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (42 U.S.C. 5177a);
``(2) serving as a liaison to community-based nonprofit
organizations that represent and have demonstrated experience
serving low-income migrant and seasonal farmworkers;
``(3) coordinating with the Department, other Federal
agencies, and State and local governments to ensure that
farmworker needs are assessed and met during declared
disasters and other emergencies;
``(4) consulting with the Office of Small Farm
Coordination, Office of Outreach, Outreach Coordinators, and
other entities to better integrate farmworker perspectives,
concerns, and interests into the ongoing programs of the
Department;
``(5) consulting with appropriate institutions on research,
program improvements, or agricultural education opportunities
that assist low-income and migrant seasonal farmworkers; and
``(6) ensuring that farmworkers have access to services and
support to enter agriculture as producers.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.
(b) Conforming Amendment.--Section 296(b) of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b))
(as amended by section 7401(c)(1)) is amended by adding at
the end the following:
``(7) the authority of the Secretary to establish in the
Department a position of Farmworker Coordinator in accordance
with section 226B.''.

SEC. 11060. CONGRESSIONAL BIPARTISAN FOOD SAFETY COMMISSION.

(a) Commission.--
(1) Establishment.--
(A) In general.--There is established a commission to be
known as the ``Congressional Bipartisan Food Safety
Commission'' (referred to in this section as the
``Commission'').
(B) Purpose.--The purpose of the Commission shall be to act
in a bipartisan, consensus-driven fashion--
(i) to review the food safety system of the United States;
(ii) to prepare a report that--

(I) summarizes information about the food safety system as
in effect as of the date of enactment of this Act; and
(II) makes recommendations on ways--

(aa) to modernize the food safety system of the United
States;
(bb) to harmonize and update food safety statutes;
(cc) to improve Federal, State, local, and interagency
coordination of food safety personnel, activities, budgets,
and leadership;
(dd) to best allocate scarce resources according to risk;
(ee) to ensure that regulations, directives, guidance, and
other standards and requirements are based on best-available
science and technology;
(ff) to emphasize preventative rather than reactive
strategies; and
(gg) to provide to Federal agencies funding mechanisms
necessary to effectively carry out food safety
responsibilities; and
(iii) to draft specific statutory language, including
detailed summaries of the language and budget
recommendations, that would implement the recommendations of
the Commission.
(2) Membership.--
(A) Composition.--The Commission shall be composed of 19
members.
(B) Eligibility.--Members of the Commission shall--
(i) have specialized training, education, or significant
experience in at least 1 of the areas of--

(I) food safety research;
(II) food safety law and policy; and
(III) program design and implementation;

(ii) consist of--

(I) the Secretary of Agriculture (or a designee);
(II) the Secretary of Health and Human Services (or a
designee);
(III) 1 Member of the House of Representatives; and
(IV) 1 Member of the Senate; and
(V) 15 additional members that include, to the maximum
extent practicable, representatives of--

(aa) consumer organizations;
(bb) agricultural and livestock production;
(cc) public health professionals;
(dd) State regulators;
(ee) Federal employees; and
(ff) the livestock and food manufacturing and processing
industry.
(C) Appointments.--
(i) In general.--The appointment of the members of the
Commission shall be made not later than 60 days after the
date of enactment of this Act.
(ii) Certain appointments.--Of the members of the
Commission described in subparagraph (B)(ii)(V)--

(I) 2 shall be appointed by the President;
(II) 7 shall be appointed by a working group consisting
of--

(aa) the Chairman of each of the Committee on Agriculture,
Nutrition, and Forestry and the Committee on Health,
Education, Labor, and Pensions of the Senate;
(bb) the Chairman of each of the Committee on Agriculture
and the Committee on Energy and Commerce of the House of
Representatives;
(cc) the Speaker of the House of Representatives; and
(dd) the Majority Leader of the Senate; and

(III) 6 shall be appointed by a working group consisting
of--

(aa) the Ranking Member of each of the Committees described
in items (aa) and (bb) of subclause (II);
(bb) the Minority Leader of the House of Representatives;
and
(cc) the Minority Leader of the Senate.
(D) Term.--A member of the Commission shall be appointed
for the life of the Commission.
(E) Vacancies.--A vacancy on the Commission--
(i) shall not affect the powers of the Commission; and
(ii) shall be filled in the same manner as the original
appointment was made.
(3) Meetings.--
(A) Initial meeting.--Except as provided in subparagraph
(B), the initial meeting of the Commission shall be conducted
in Washington, District of Columbia, not later than 30 days
after the date of appointment of the final member of the
Commission under paragraph (2)(C).
(B) Meeting for partial appointment.--If, as of the date
that is 90 days after the date of enactment of this Act, all
members of the Commission have not been appointed under
paragraph (2)(C), but at least 8 members have been appointed,
the Commission may hold the initial meeting of the
Commission.
(C) Other meetings.--The Commission shall--
(i) hold a series of at least 5 stakeholder meetings to
solicit public comment, including--

(I) at least 1 stakeholder meeting, to be held in
Washington, District of Columbia; and
(II) at least 4 stakeholder meetings, to be held in various
regions of the United States; and

(ii) meet at the call of--

(I) the Chairperson;
(II) the Vice-Chairperson; or
(III) a majority of the members of the Commission.

(D) Public participation; information.--To the maximum
extent practicable--
(i) each meeting of the Commission shall be open to the
public; and
(ii) all information from a meeting of the Commission shall
be recorded and made available to the public.
(E) Quorum.--With respect to meetings of the Commission--
(i) a majority of the members of the Commission shall
constitute a quorum for the conduct of business of the
Commission; but
(ii) for the purpose of a stakeholder meeting described in
subparagraph (C)(i), 4 or more members of the Commission
shall constitute a quorum.
(F) Facilitator.--The Commission shall contract with a
nonpolitical, disinterested third-party entity to serve as a
meeting facilitator.
(4) Chairperson and vice-chairperson.--At the initial
meeting of the Commission, the members of the Commission
shall select from among the members a Chairperson and Vice-
Chairperson of the Commission.
(b) Duties.--
(1) Recommendations.--The Commission shall review and
consider the statutes, studies, and reports described in
paragraph (2) for the purpose of understanding the food
safety system of the United States in existence as of the
date of enactment of this Act.
(2) Statutes, studies, and reports.--The statutes, studies,
and reports referred to in paragraph (1) are--
(A) with respect with respect to laws administered by the
Secretary of Agriculture--
(i) the Federal Seed Act (7 U.S.C. 1551 et seq.);
(ii) the Agricultural Marketing Act of 1946 (7 U.S.C. 1621
et seq.);
(iii) the Animal Health Protection Act (7 U.S.C. 8301 et
seq.);
(iv) the Lacey Act Amendments of 1981 (16 U.S.C. 3371 et
seq.);
(v) the Poultry Products Inspection Act (21 U.S.C. 451 et
seq.);
(vi) the Federal Meat Inspection Act (21 U.S.C. 601 et
seq.); and
(vii) the Egg Products Inspection Act (21 U.S.C. 1031 et
seq.);
(B) with respect to laws administered by the Secretary of
the Treasury, the Federal Alcohol Administration Act (27
U.S.C. 201 et seq.);
(C) with respect to laws administered by the Federal Trade
Commission, the Act of September 26, 1914 (15 U.S.C. 41 et
seq.);
(D) with respect to laws administered by the Secretary of
Health and Human Services--
(i) chapters I through IV of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 301 et seq.);
(ii) the Public Health Service Act (42 U.S.C. 201 et seq.);
(iii) the Import Milk Act (21 U.S.C. 141 et seq.);
(iv) the Food Additives Amendment of 1958 (Public Law 85-
929; 52 Stat. 1041);
(v) the Fair Packaging and Labeling Act (Public Law 89-755;
80 Stat. 1296);
(vi) the Infant Formula Act of 1980 (21 U.S.C. 301 note;
Public Law 96-359);
(vii) the Pesticide Monitoring Improvements Act of 1988
(Public Law 100-418; 102 Stat. 1411);
(viii) the Nutrition Labeling and Education Act of 1990 (21
U.S.C. 301 note; Public Law 101-535);

[[Page S14991]]

(ix) the Food and Drug Administration Modernization Act of
1997 (21 U.S.C. 301 note; Public Law 105-115); and
(x) the Public Health Security and Bioterrorism
Preparedness and Response Act of 2002 (21 U.S.C. 201 note;
Public Law 107-188);
(E) with respect to laws administered by the Attorney
General, the Federal Anti-Tampering Act (18 U.S.C. 1365 note;
Public Law 98-127);
(F) with respect to laws administered by the Administrator
of the Environmental Protection Agency--
(i) the Federal Insecticide, Fungicide, and Rodenticide Act
(7 U.S.C. 136 et seq.);
(ii) the Food Quality Protection Act of 1996 (7 U.S.C. 136
note; Public Law 104-170);
(iii) the Toxic Substances Control Act (15 U.S.C. 2601 et
seq.); and
(iv) the Safe Drinking Water Act of 1974 (42 U.S.C. 201
note; Public Law 93-523); and
(G) with respect to laws administered by the Secretary of
Transportation, chapter 57 of subtitle II of title 49, United
States Code (relating to sanitary food transportation); and
(H) with respect to Government studies on food safety--
(i) the report of the National Academies of Science
entitled ``Ensuring Safe Food from Production to
Consumption'' and dated 1998;
(ii) the report of the National Academies of Science
entitled ``Scientific Criteria to Ensure Safe Food'' and
dated 2003;
(iii) reports of the Office of the Inspector General of the
Department of Agriculture, including--

(I) report 24601-0008-CH, entitled ``Egg Products
Processing Inspection'' and dated September 18, 2007;
(II) report 24005-1-AT, entitled ``Food Safety and
Inspection Service - State Meat and Poultry Inspection
Programs'' and dated September 27, 2006;
(III) report 24601-06-CH, entitled ``Food Safety and
Inspection Service's In-Plant Performance System'' and dated
March 28, 2006;
(IV) report 24601-05-AT, entitled ``Hazard Analysis and
Critical Control Point Implementation at Very Small Plants''
and dated June 24, 2005;
(V) report 24601-04-HY, entitled ``Food Safety and
Inspection Service Oversight of the 2004 Recall by Quaker
Maid Meats, Inc.'' and dated May 18, 2005;
(VI) report 24501-01-FM, entitled ``Food Safety and
Inspection Service Application Controls - Performance Based
Inspection System'' and dated November 24, 2004;
(VII) report 24601-03-CH, entitled ``Food Safety and
Inspection Service Use of Food Safety Information'' and dated
September 30, 2004;
(VIII) report 24601-03-HY, entitled ``Food Safety and
Inspection Service Effectiveness Checks for the 2002
Pilgrim's Pride Recall'' and dated June 29, 2004;
(IX) report 24601-02-HY, entitled ``Food Safety and
Inspection Service Oversight of the Listeria Outbreak in the
Northeastern United States'' and dated June 9, 2004;
(X) report 24099-05-HY, entitled ``Food Safety and
Inspection Service Imported Meat and Poultry Equivalence
Determinations Phase III'' and dated December 29, 2003;
(XI) report 24601-2-KC, entitled ``Food Safety and
Inspection Service - Oversight of Production Process and
Recall at Conagra Plant (Establishment 969)'' and dated
September 30, 2003;
(XII) report 24601-1-Ch, entitled ``Laboratory Testing Of
Meat And Poultry Products'' and dated June 21, 2000;
(XIII) report 24001-3-At, 24601-1-Ch, 24099-3-Hy, 24601-4-
At, entitled ``Food Safety and Inspection Service: HACCP
Implementation, Pathogen Testing Program, Foreign Country
Equivalency, Compliance Activities'' and dated June 21, 2000;
and
(XIV) report 24001-3-At, entitled ``Implementation of the
Hazard Analysis and Critical Control Point System'' and dated
June 21, 2000; and

(I) with respect to reports prepared by the Government
Accountability Office, the reports designated--
(i) GAO-05-212;
(ii) GAO-02-47T;
(iii) GAO/T-RCED-94-223;
(iv) GAO/RCED-99-80;
(v) GAO/T-RCED-98-191;
(vi) GAO/RCED-98-103;
(vii) GAO-07-785T;
(viii) GAO-05-51;
(ix) GAO/T-RCED-94-311;
(x) GAO/RCED-92-152;
(xi) GAO/T-RCED-99-232;
(xii) GAO/T-RCED-98-271;
(xiii) GAO-07-449T;
(xiv) GAO-05-213;
(xv) GAO-04-588T;
(xvi) GAO/RCED-00-255;
(xvii) GAO/RCED-00-195; and
(xviii) GAO/T-RCED-99-256.
(3) Report.--Not later than 360 days after the date on
which the Commission first meets, the Commission shall submit
to the President and Congress a report that includes the
report and summaries, statutory language recommendations, and
budget recommendations described in clauses (ii) and (iii) of
subsection (a)(1)(B).
(c) Powers of the Commission.--
(1) Hearings.--The Commission or, at the direction of the
Commission, any member of the Commission, may, for the
purpose of carrying out this section--
(A) hold such hearings, meet and act at such times and
places, take such testimony, receive such evidence, and
administer such oaths; and
(B) require the attendance and testimony of such witnesses
and the production of such books, records, correspondence,
memoranda, papers, documents, tapes, and materials;
as the Commission or member considers advisable.
(2) Information from federal agencies.--
(A) In general.--The Commission may secure directly, from
any Federal agency, such information as the Commission
considers necessary to carry out this section.
(B) Provision of information.--
(i) In general.--Subject to subparagraph (C), on the
request of the Commission, the head of a Federal agency
described in subparagraph (A) shall expeditiously furnish
information requested by the Commission to the Commission.
(ii) Administration.--The furnishing of information by a
Federal agency to the Commission shall not be considered a
waiver of any exemption available to the agency under section
552 of title 5, United States Code.
(C) Information to be kept confidential.--For purposes of
section 1905 of title 18, United States Code--
(i) the Commission shall be considered an agency of the
Federal Government; and
(ii) any individual employed by an individual, entity, or
organization that is a party to a contract with the
Commission under this section shall be considered an employee
of the Commission.
(d) Commission Personnel Matters.--
(1) Members.--
(A) Non-federal employees.--A member of the Commission who
is not an officer or employee of the Federal Government shall
be compensated at a rate equal to the daily equivalent of the
annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties
of the Commission.
(B) Federal employees.--A member of the Commission who is
an officer or employee of the Federal Government shall serve
without compensation in addition to the compensation received
for the services of the member as an officer or employee of
the Federal Government.
(C) Travel expenses.--A member of the Commission shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business
of the member in the performance of the duties of the
Commission.
(2) Staff.--
(A) Executive director.--Not later than 30 days after the
Chairperson and Vice-Chairperson of the Commission are
selected under subsection (a)(4), the Chairperson and Vice-
Chairperson shall jointly select an individual to serve as
executive director of the Commission.
(B) Additional staff.--The Chairperson of the Commission
may, without regard to the civil service laws (including
regulations), appoint and terminate the appointment of such
other additional personnel as are necessary to enable the
Commission to perform the duties of the Commission.
(C) Confirmation of executive director.--The employment of
an executive director under this paragraph shall be subject
to confirmation by the Commission.
(D) Compensation.--
(i) In general.--Except as provided in clause (ii), the
Chairperson of the Commission may fix the compensation of the
executive director and other personnel without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
title 5, United States Code, relating to classification of
positions and General Schedule pay rates.
(ii) Maximum rate of pay.--The rate of pay for the
executive director and other personnel shall not exceed the
rate payable for level II of the Executive Schedule under
section 5316 of title 5, United States Code.
(3) Detail of federal government employees.--
(A) In general.--An employee of the Federal Government may
be detailed to the Commission, without reimbursement, for
such period of time as is permitted by law.
(B) Civil service status.--The detail of the employee shall
be without interruption or loss of civil service status or
privilege.
(4) Procurement of temporary and intermittent services.--
The Chairperson, Vice-Chairperson, and executive director of
the Commission may procure temporary and intermittent
services in accordance with section 3109(b) of title 5,
United States Code, at rates for individuals that do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under
section 5316 of that title.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
(f) Termination.--The Commission shall terminate on the
date that is 60 days after the date on which the Commission
submits the report under subsection (b)(2).

SEC. 11061. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND
SEASONAL FARMWORKERS.

Section 2281 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (42 U.S.C. 5177a) is amended to read as
follows:

``SEC. 2281. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT
AND SEASONAL FARMWORKERS.

``(a) Definitions.--In this section:

[[Page S14992]]

``(1) Eligible entity.--The term `eligible entity' means a
public agency, community-based organization, or network of
community-based organizations with tax-exempt status under
section 501(c)(3) of the Internal Revenue Code of 1986, that
has at least 5 years of demonstrated experience in
representing and providing emergency services to low-income
migrant or seasonal farmworkers
``(2) Low-income migrant or seasonal farmworker.--The term
`low-income migrant or seasonal farmworker' means an
individual--
``(A) who has, during any consecutive 12-month period
within the preceding 24-month period, performed farm work for
wages;
``(B) who has received not less than \1/2\ of the total
income of the individual from, or been employed at least \1/
2\ of total work time in, farm work; and
``(C) whose annual family income during the 12-month period
described in paragraph (1) does not exceed the higher of, as
determined by the Secretary--
``(i) 185 percent of the most recent annual Federal Poverty
Income Guidelines published by the Department of Health and
Human Services; or
``(ii) 70 percent of the lower living standard income
level.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(b) Grants Available.--The Secretary may make grants to
eligible entities if the Secretary determines that a local,
State, or national emergency or disaster has caused low-
income migrant or seasonal farmworkers--
``(1) to lose income;
``(2) to be unable to work; or
``(3) to stay home or return home in anticipation of work
shortages.
``(c) Use of Funds.--As a condition of receiving a grant
under subsection (b), an eligible entity shall use the grant
to provide emergency services to low-income migrant or
seasonal farmworkers, with a focus on--
``(1) assistance that allows low-income migrant or seasonal
farmworkers to meet or access other resources to meet short-
term emergency family needs for food, clothing, employment,
transportation, and housing;
``(2) assistance that allows low-income and migrant
seasonal farmworkers to remain in a disaster area; and
``(3) such other priorities that the Secretary determines
to be appropriate.
``(d) Disaster Fund.--
``(1) In general.--The Secretary shall maintain a disaster
fund of $2,000,000 to be used for immediate assistance for
events described in subsection (b).
``(2) Funding.--There are authorized to be appropriated to
the Secretary such sums as are necessary to maintain the
disaster fund at $2,000,000 for each of fiscal years 2008
through 2012.''.

SEC. 11062. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES
FROM ANHYDROUS AMMONIA.

(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a producer of agricultural commodities;
(B) a cooperative association, a majority of the members of
which produce or process agricultural commodities; or
(C) a person in the trade or business of--
(i) selling an agricultural product (including an
agricultural chemical) at retail, predominantly to farmers
and ranchers; or
(ii) aerial and ground application of an agricultural
chemical.
(2) Nurse tank.--The term ``nurse tank'' shall be
considered to be a cargo tank (within the meaning of section
173.315(m) of title 49, Code of Federal Regulations, as in
effect as of the date of the enactment of this Act).
(b) Grant Authority.--The Secretary may make a grant to an
eligible entity to enable the eligible entity to obtain and
add to an anhydrous ammonia fertilizer nurse tank a physical
lock or a substance to reduce the amount of methamphetamine
that can be produced from any anhydrous ammonia removed from
the nurse tank.
(c) Grant Amount.--The amount of a grant made under this
section to an eligible entity shall be the product obtained
by multiplying--
(1) an amount not less than $40 and not more than $60, as
determined by the Secretary; and
(2) the number of fertilizer nurse tanks of the eligible
entity.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to make grants under this
section $15,000,000 for the period of fiscal years 2008
through 2012.

SEC. 11063. INVASIVE SPECIES MANAGEMENT, HAWAII.

(a) Definitions.--In this section:
(1) Secretaries.--The term ``Secretaries'' means--
(A) the Secretary of the Interior;
(B) the Secretary of Agriculture; and
(C) the Secretary of Homeland Security.
(2) Secretary concerned.--The term ``Secretary concerned''
means--
(A) the Secretary of the Interior, with respect to matters
under the jurisdiction of the Department of the Interior;
(B) the Secretary of Agriculture, with respect to matters
under the jurisdiction of the Department of Agriculture; and
(C) the Secretary of Homeland Security, with respect to
matters under the jurisdiction of the Department of Homeland
Security.
(3) State.--The term ``State'' means the State of Hawaii.
(b) Controlling Introduction and Spread of Invasive Species
and Diseases in the State.--
(1) Consultation and cooperation.--The Secretaries
concerned shall--
(A) with respect to restricting the introduction or
movement of invasive species and diseases into the State,
consult and cooperate with the State; and
(B) in carrying out the activities described in this
subsection, consult and cooperate with appropriate agencies
and officers with experience relating to quarantine
procedures, natural resources, conservation, and law
enforcement of--
(i) the Department of Homeland Security;
(ii) the Department of Commerce;
(iii) the United States Treasury; and
(iv) the State.
(2) Development of collaborative federal and state
procedures.--The Secretaries, in collaboration with the
State, shall--
(A) develop procedures to minimize the introduction of
invasive species into the State; and
(B) submit to Congress annual reports describing progress
made and results achieved in carrying out the procedures.
(3) Expedited consideration of state and local control
proposals.--
(A) Expedited process.--Not later than 1 year after the
date of enactment of this Act, the Secretaries shall
establish an expedited process for the State and political
subdivisions of the State under which the State and political
subdivisions may, through the submission of an application,
seek approval of the Secretary concerned to impose a general
or specific prohibition or restriction on the introduction or
movement of invasive species or diseases from domestic or
foreign locations to the State that is in addition to the
applicable prohibition or restriction imposed by the
Secretary concerned.
(B) Review period.--Not later than 60 days after the date
of receipt by the Secretary concerned of an application under
subparagraph (A) that the Secretary concerned determines to
be a completed application, the Secretary concerned shall--
(i) review the completed application;
(ii) assess each potential risk with respect to the
completed application; and
(iii) approve or disapprove the completed application.
(4) Response to emergency threats.--
(A) In general.--The State may carry out an emergency
action to impose a prohibition or restriction on the entry of
an invasive species or disease that is in addition to the
applicable prohibition or restriction imposed by the
Secretary concerned if--
(i) the State has submitted to the Secretary concerned a
completed application under paragraph (3) that is pending
approval by the Secretary concerned; and
(ii) an emergency or imminent threat from an invasive
species or disease occurs in the State during the period in
which the completed application described in clause (i) is
pending approval by the Secretary concerned.
(B) Notice.--Before carrying out an emergency action under
subparagraph (A), the State shall provide written notice to
the Secretary concerned.
(C) Period of emergency action.--If, by the date that is 10
days after the date of receipt of a written notice under
subparagraph (B), the Secretary concerned does not object to
the emergency action that is the subject of the notice, the
State may carry out the emergency action during the 60-day
period beginning on that date.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretaries such sums as are
necessary to carry out this section for each of fiscal years
2008 through 2012.

SEC. 11064. OVERSIGHT AND COMPLIANCE.

The Secretary, acting through the Assistant Secretary for
Civil Rights of the Department of Agriculture, shall use the
reports described in subsection (c) of section 2501A of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279-1) (as amended by section 11056) in the conduct
of oversight and evaluation of civil rights compliance.

SEC. 11065. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS,
AND ACTIONS.

Each year, the Secretary shall--
(1) prepare a report that describes, for each agency of the
Department of Agriculture--
(A) the number of civil rights complaints filed that relate
to the agency, including whether a complaint is a program
complaint or an employment complaint;
(B) the length of time the agency took to process each
civil rights complaint;
(C) the number of proceedings brought against the agency,
including the number of complaints described in paragraph (1)
that were resolved with a finding of discrimination; and
(D) the number and type of personnel actions taken by the
agency following resolution of civil rights complaints;
(2) submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a copy of the report; and
(3) make the report available to the public by posting the
report on the website of the Department.

[[Page S14993]]

SEC. 11066. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND
TRAINING OF AGRICULTURAL LABOR FORCE.

(a) Definition of Eligible Entity.--In this section, the
term ``eligible entity'' means a nonprofit, community-based
organization, or a consortium of nonprofit, community-based
organizations, agricultural labor organizations, farmer or
rancher cooperatives, and public entities, that has the
capacity (including demonstrated experience in providing
training, housing, or emergency services to migrant and
seasonal farmworkers) to assist agricultural employers and
farmworkers with improvements in the supply, stability,
safety, and training of the agricultural labor force.
(b) Grants.--
(1) In general.--The Secretary may provide grants to
eligible entities for use in providing services to assist
farmworkers in securing, retaining, upgrading, or returning
from agricultural jobs.
(2) Eligible services.--The services referred to in
paragraph (1) include--
(A) agricultural upgrading and cross training;
(B) the provision of agricultural labor market information;
(C) transportation;
(D) short-term housing, including housing for unaccompanied
farmworkers and at migrant rest stops;
(E) travelers' aid;
(F) workplace literacy and assistance with English as a
second language;
(G) health and safety instruction, including ways of
safeguarding the food supply of the United States; and
(H) limited emergency and financial assistance, in cases in
which the Secretary determines that a national, State, or
local emergency or disaster has caused migrant or seasonal
farmworkers to lose income or employment.
(3) Emergency assistance.--Any emergency services provided
using funds from a grant in accordance with paragraph
(2)(H)--
(A) shall be consistent with section 2281 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (as amended
by section 11061);
(B) shall be focused on assistance to allow low-income
farmworkers and their families to meet short-term needs for
such food, clothing, employment, transportation, and housing
as are necessary to regain employment or return home; and
(C) may include such other types of assistance as the
Secretary determines to be appropriate.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.

SEC. 11067. INTERSTATE SHIPMENT OF MEAT AND POULTRY INSPECTED
BY FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL
ESTABLISHMENTS.

(a) Meat and Meat Products.--The Federal Meat Inspection
Act (21 U.S.C. 601 et seq.) is amended by adding at the end
the following:

``TITLE V--INSPECTIONS BY FEDERAL AND STATE AGENCIES

``SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL
AND STATE AGENCIES FOR CERTAIN SMALL
ESTABLISHMENTS.

``(a) Definitions.--
``(1) Appropriate state agency.--The term `appropriate
State agency' means a State agency described in section
301(b).
``(2) Designated personnel.--The term `designated
personnel' means inspection personnel of a State agency that
have undergone all necessary inspection training and
certification to assist the Secretary in the administration
and enforcement of this Act, including regulations.
``(3) Eligible establishment.--The term `eligible
establishment' means an establishment that is in compliance
with--
``(A) the State inspection program of the State in which
the establishment is located; and
``(B) this Act.
``(4) Meat item.--The term `meat item' means--
``(A) a portion of meat; and
``(B) a meat food product.
``(5) Selected establishment.--The term `selected
establishment' means an eligible establishment that is
selected by the Secretary, in coordination with the
appropriate State agency of the State in which the eligible
establishment is located, under subsection (b) to ship
carcasses, portions of carcasses, and meat items in
interstate commerce.
``(b) Authority of Secretary to Allow Shipments.--
``(1) In general.--Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the
State in which an establishment is located, may select the
establishment to ship carcasses, portions of carcasses, and
meat items in interstate commerce, and place on each carcass,
portion of a carcass, and meat item shipped in interstate
commerce a Federal mark, stamp, tag, or label of inspection,
if the establishment--
``(A) is an eligible establishment; and
``(B) is located in a State that has designated personnel
to inspect the eligible establishment.
``(2) Prohibited establishments.--In carrying out paragraph
(1), the Secretary, in coordination with an appropriate State
agency, shall not select an establishment that--
``(A) on average, employs more than 25 employees (including
supervisory and nonsupervisory employees), as defined by the
Secretary;
``(B) as of the date of enactment of this section, ships in
interstate commerce carcasses, portions of carcasses, or meat
items that are inspected by the Secretary in accordance with
this Act;
``(C)(i) is a Federal establishment;
``(ii) was a Federal establishment that was reorganized on
a later date under the same name or a different name or
person by the person, firm, or corporation that controlled
the establishment as of the date of enactment of this
section; or
``(iii) was a State establishment as of the date of
enactment of this section that--
``(I) as of the date of enactment of this section, employed
more than 25 employees; and
``(II) was reorganized on a later date by the person, firm,
or corporation that controlled the establishment as of the
date of enactment of this section;
``(D) is in violation of this Act;
``(E) is located in a State that does not have a State
inspection program; or
``(F) is the subject of a transition carried out in
accordance with a procedure developed by the Secretary under
paragraph (3)(A).
``(3) Establishments that employ more than 25 employees.--
``(A) Development of procedure.--The Secretary may develop
a procedure to transition to a Federal establishment any
establishment under this section that, on average,
consistently employs more than 25 employees.
``(B) Eligibility of certain establishments.--
``(i) In general.--A State establishment that employs more
than 25 employees but less than 35 employees as of the date
of enactment of this section may be selected as a selected
establishment under this subsection.
``(ii) Procedures.--A State establishment shall be subject
to the procedures established under subparagraph (A)
beginning on the date that is 3 years after the effective
date described in subsection (j).
``(c) Reimbursement of State Costs.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall reimburse a State for costs related to the
inspection of selected establishments in the State in
accordance with Federal requirements in an amount of not less
than 60 percent of eligible State costs.
``(2) Microbiological verification testing.--The Secretary
may reimburse a State for 100 percent of eligible State costs
relating to the inspection of selected establishments in the
State, if the State provides additional microbiological
verification testing of the selected establishments, using
standards under this Act, that is in excess of the typical
verification testing frequency of the Federal Government with
respect to Federal establishments.
``(d) Coordination Between Federal and State Agencies.--
``(1) In general.--The Secretary shall designate an
employee of the Federal Government as State coordinator for
each appropriate State agency--
``(A) to provide oversight and enforcement of this title;
and
``(B) to oversee the training and inspection activities of
designated personnel of the State agency.
``(2) Supervision.--A State coordinator shall be under the
direct supervision of the Secretary.
``(3) Duties of state coordinator.--
``(A) In general.--A State coordinator shall visit selected
establishments with a frequency that is appropriate to ensure
that selected establishments are operating in a manner that
is consistent with this Act (including regulations and
policies under this Act).
``(B) Quarterly reports.--A State coordinator shall, on a
quarterly basis, submit to the Secretary a report that
describes the status of each selected establishment that is
under the jurisdiction of the State coordinator with respect
to the level of compliance of each selected establishment
with the requirements of this Act.
``(C) Immediate notification requirement.--If a State
coordinator determines that any selected establishment that
is under the jurisdiction of the State coordinator is in
violation of any requirement of this Act, the State
coordinator shall--
``(i) immediately notify the Secretary of the violation;
and
``(ii) deselect the selected establishment or suspend
inspection at the selected establishment.
``(4) Performance evaluations.--Performance evaluations of
State coordinators designated under this subsection shall be
conducted by the Secretary as part of the Federal agency
management control system.
``(e) Audits.--
``(1) Periodic audits conducted by inspector general of the
department of agriculture.--Not later than 2 years after the
effective date described in subsection (j), and not less
often than every 2 years thereafter, the Inspector General of
the Department of Agriculture shall conduct an audit of each
activity taken by the Secretary under this section for the
period covered by the audit to determine compliance with this
section.
``(2) Audit conducted by comptroller general of the united
states.--Not earlier than 3 years, nor later than 5 years,
after the date of enactment of this section, the Comptroller
General of the United States shall

[[Page S14994]]

conduct an audit of the implementation of this section to
determine--
``(A) the effectiveness of the implementation of this
section; and
``(B) the number of selected establishments selected by the
Secretary under this section.
``(f) Inspection Training Division.--
``(1) Establishment.--Not later than 180 days after the
effective date described in subsection (j), the Secretary
shall establish in the Food Safety and Inspection Service of
the Department of Agriculture an inspection training division
to coordinate the initiatives of any other appropriate agency
of the Department of Agriculture to provide--
``(A) outreach, education, and training to very small or
certain small establishments (as defined by the Secretary);
and
``(B) grants to appropriate State agencies to provide
outreach, technical assistance, education, and training to
very small or certain small establishments (as defined by the
Secretary).
``(2) Personnel.--The inspection training division shall be
comprised of individuals that, as determined by the
Secretary--
``(A) are of a quantity sufficient to carry out the duties
of the inspection training division; and
``(B) possess appropriate qualifications and expertise
relating to the duties of the inspection training division.
``(g) Transition Grants.--The Secretary may provide grants
to appropriate State agencies to assist the appropriate State
agencies in helping establishments covered by title III to
transition to selected establishments.
``(h) Violations.--Any selected establishment that the
Secretary determines to be in violation of any requirement of
this Act shall be transitioned to a Federal establishment in
accordance with a procedure developed by the Secretary under
subsection (b)(3)(A).
``(i) Effect.--Nothing in this section limits the
jurisdiction of the Secretary with respect to the regulation
of meat and meat products under this Act.
``(j) Effective Date.--
``(1) In general.--This section takes effect on the date on
which the Secretary, after providing a period of public
comment (including through the conduct of public meetings or
hearings), promulgates final regulations to carry out this
section.
``(2) Requirement.--Not later than 18 months after the date
of enactment of this section, the Secretary shall promulgate
final regulations in accordance with paragraph (1).''.
(b) Poultry and Poultry Products.--The Poultry Products
Inspection Act (21 U.S.C. 451 et seq.) is amended by adding
at the end the following:

``SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY
FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL
ESTABLISHMENTS.

``(a) Definitions.--
``(1) Appropriate state agency.--The term `appropriate
State agency' means a State agency described in section
5(a)(1).
``(2) Designated personnel.--The term `designated
personnel' means inspection personnel of a State agency that
have undergone all necessary inspection training and
certification to assist the Secretary in the administration
and enforcement of this Act, including regulations.
``(3) Eligible establishment.--The term `eligible
establishment' means an establishment that is in compliance
with--
``(A) the State inspection program of the State in which
the establishment is located; and
``(B) this Act.
``(4) Poultry item.--The term `poultry item' means--
``(A) a portion of poultry; and
``(B) a poultry product.
``(5) Selected establishment.--The term `selected
establishment' means an eligible establishment that is
selected by the Secretary, in coordination with the
appropriate State agency of the State in which the eligible
establishment is located, under subsection (b) to ship
poultry items in interstate commerce.
``(b) Authority of Secretary to Allow Shipments.--
``(1) In general.--Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the
State in which an establishment is located, may select the
establishment to ship poultry items in interstate commerce,
and place on each poultry item shipped in interstate commerce
a Federal mark, stamp, tag, or label of inspection, if the
establishment--
``(A) is an eligible establishment; and
``(B) is located in a State that has designated personnel
to inspect the eligible establishment.
``(2) Prohibited establishments.--In carrying out paragraph
(1), the Secretary, in coordination with an appropriate State
agency, shall not select an establishment that--
``(A) on average, employs more than 25 employees (including
supervisory and nonsupervisory employees), as defined by the
Secretary;
``(B) as of the date of enactment of this section, ships in
interstate commerce carcasses, poultry items that are
inspected by the Secretary in accordance with this Act;
``(C)(i) is a Federal establishment;
``(ii) was a Federal establishment as of the date of
enactment of this section, and was reorganized on a later
date under the same name or a different name or person by the
person, firm, or corporation that controlled the
establishment as of the date of enactment of this section; or
``(iii) was a State establishment as of the date of
enactment of this section that--
``(I) as of the date of enactment of this section, employed
more than 25 employees; and
``(II) was reorganized on a later date by the person, firm,
or corporation that controlled the establishment as of the
date of enactment of this section;
``(D) is in violation of this Act;
``(E) is located in a State that does not have a State
inspection program; or
``(F) is the subject of a transition carried out in
accordance with a procedure developed by the Secretary under
paragraph (3)(A).
``(3) Establishments that employ more than 25 employees.--
``(A) Development of procedure.--The Secretary may develop
a procedure to transition to a Federal establishment any
establishment under this section that, on average,
consistently employs more than 25 employees.
``(B) Eligibility of certain establishments.--
``(i) In general.--A State establishment that employs more
than 25 employees but less than 35 employees as of the date
of enactment of this section may be selected as a selected
establishment under this subsection.
``(ii) Procedures.--A State establishment shall be subject
to the procedures established under subparagraph (A)
beginning on the date that is 3 years after the effective
date described in subsection (i).
``(c) Reimbursement of State Costs.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall reimburse a State for costs related to the
inspection of selected establishments in the State in
accordance with Federal requirements in an amount of not less
than 60 percent of eligible State costs.
``(2) Microbiological verification testing.--The Secretary
may reimburse a State for 100 percent of eligible State costs
relating to the inspection of selected establishments in the
State, if the State provides additional microbiological
verification testing of the selected establishments, using
standards under this Act, that is in excess of the typical
verification testing frequency of the Federal Government with
respect to Federal establishments.
``(d) Coordination Between Federal and State Agencies.--
``(1) In general.--The Secretary shall designate an
employee of the Federal Government as State coordinator for
each appropriate State agency--
``(A) to provide oversight and enforcement of this section;
and
``(B) to oversee the training and inspection activities of
designated personnel of the State agency.
``(2) Supervision.--A State coordinator shall be under the
direct supervision of the Secretary.
``(3) Duties of state coordinator.--
``(A) In general.--A State coordinator shall visit selected
establishments with a frequency that is appropriate to ensure
that selected establishments are operating in a manner that
is consistent with this Act (including regulations and
policies under this Act).
``(B) Quarterly reports.--A State coordinator shall, on a
quarterly basis, submit to the Secretary a report that
describes the status of each selected establishment that is
under the jurisdiction of the State coordinator with respect
to the level of compliance of each selected establishment
with the requirements of this Act.
``(C) Immediate notification requirement.--If a State
coordinator determines that any selected establishment that
is under the jurisdiction of the State coordinator is in
violation of any requirement of this Act, the State
coordinator shall--
``(i) immediately notify the Secretary of the violation;
and
``(ii) deselect the selected establishment or suspend
inspection at the selected establishment.
``(4) Performance evaluations.--Performance evaluations of
State coordinators designated under this subsection shall be
conducted by the Secretary as part of the Federal agency
management control system.
``(e) Audits.--
``(1) Periodic audits conducted by inspector general of the
department of agriculture.--Not later than 2 years after the
effective date described in subsection (i), and not less
often than every 2 years thereafter, the Inspector General of
the Department of Agriculture shall conduct an audit of each
activity taken by the Secretary under this section for the
period covered by the audit to determine compliance with this
section.
``(2) Audit conducted by comptroller general of the united
states.--Not earlier than 3 years, nor later than 5 years,
after the date of enactment of this section, the Comptroller
General of the United States shall conduct an audit of the
implementation of this section to determine--
``(A) the effectiveness of the implementation of this
section; and
``(B) the number of selected establishments selected by the
Secretary under this section.
``(f) Transition Grants.--The Secretary may provide grants
to appropriate State agencies to assist the appropriate State
agencies in helping establishments covered by this Act to
transition to selected establishments.

[[Page S14995]]

``(g) Violations.--Any selected establishment that the
Secretary determines to be in violation of any requirement of
this Act shall be transitioned to a Federal establishment in
accordance with a procedure developed by the Secretary under
subsection (b)(3)(A).
``(h) Effect.--Nothing in this section limits the
jurisdiction of the Secretary with respect to the regulation
of poultry and poultry products under this Act.
``(i) Effective Date.--
``(1) In general.--This section takes effect on the date on
which the Secretary, after providing a period of public
comment (including through the conduct of public meetings or
hearings), promulgates final regulations to carry out this
section.
``(2) Requirement.--Not later than 18 months after the date
of enactment of this section, the Secretary shall promulgate
final regulations in accordance with paragraph (1).''.

SEC. 11068. PREVENTION AND INVESTIGATION OF PAYMENT AND FRAUD
AND ERROR.

Section 1113 of the Right to Financial Privacy Act of 1978
(12 U.S.C. 3413) is amended by striking subsection (k) and
inserting the following:
``(k) Disclosure Necessary for Proper Administration of
Programs of Certain Government Authorities.--
``(1) Disclosure to government authorities.--Nothing in
this title shall apply to the disclosure by the financial
institution of the financial records of any customer to the
Department of the Treasury, the Social Security
Administration, the Railroad Retirement Board, or any other
Government authority that certifies, disburses, or collects
payments, when the disclosure of such information is
necessary to, and such information is used solely for the
purposes of--
``(A) the proper administration of section 1441 of the
Internal Revenue Code of 1986 (26 U.S.C. 1441);
``(B) the proper administration of title II of the Social
Security Act (42 U.S.C. 401 et seq.);
``(C) the proper administration of the Railroad Retirement
Act of 1974 (45 U.S.C. 231 et seq.);
``(D) the verification of the identify of any person in
connection with the issuance of a Federal payment or
collection of funds by a Government authority; or
``(E) the investigation or recovery of an improper Federal
payment or collection of funds, or an improperly negotiated
Treasury check.
``(2) Limitations on subsequent disclosure.--
Notwithstanding any other provision of law, any request
authorized by paragraph (1), and the information contained
therein, may be used by the financial institution and its
agents solely for the purpose of providing the customer's
financial records to the Government authority requesting the
information and shall be barred from redisclosure by the
financial institution or its agents. Any Government authority
receiving information pursuant to paragraph (1) may not
disclose or use the information except for the purposes set
forth in such paragraph.''.

SEC. 11069. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE
TO COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.

(a) Elimination.--Section 3716 of title 31, United States
Code, is amended by striking subsection (e) and inserting the
following:
``(e)(1) Notwithstanding any other provision of law,
regulation, or administrative limitation, no limitation on
the period within which an offset may be initiated or taken
pursuant to this section shall be effective.
``(2) This section does not apply when a statute explicitly
prohibits using administrative offset or setoff to collect
the claim or type of claim involved.''.
(b) Application of Amendment.--The amendment made by
subsection (a) shall apply to any debt outstanding on or
after the date of the enactment of this Act.

SEC. 11070. STORED QUANTITIES OF PROPANE.

Section 550(a) of the Department of Homeland Security
Appropriations Act, 2007 (6 U.S.C. 121 note; Public Law 109-
295), is amended by striking ``Commission.'' and inserting
the following:

``Commission: Provided further, That the Secretary shall not
apply interim or final regulations relating to stored
threshold quantities of propane for sale, storage, or use on
homestead property, agricultural operations, or small
business concerns (as defined in section 3 of the Small
Business Act (15 U.S.C. 632)) that are located in rural areas
(as defined in section 520 of the Housing Act of 1949 (42
U.S.C. 1490)), unless the Secretary submits to Congress a
report describing an immediate or imminent threat against
such a stored quantity of propane: Provided further, That
nothing in this section exempts the Secretary from
implementing any interim or final regulation relating to
stored threshold quantities of propane for sale, use, or
storage in an area that is not a rural areas (as so
defined).''.

SEC. 11071. CLOSURE OF CERTAIN COUNTY FSA OFFICES.

(a) Definition of Critical Access County FSA Office.--
(1) In general.--In this section, the term ``critical
access county FSA office'' means an office of the Farm
Service Agency that, during the period described in paragraph
(2), is--
(A) proposed to be closed;
(B) proposed to be closed with the closure delayed until
after January 1, 2008, due to additional review pursuant to
the third proviso of matter under the heading ``salaries and
expenses'' under the heading ``Farm Service Agency'' of the
Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2006 (Public Law
109-97; 119 Stat. 2131); or
(C) included on a list of critical access county FSA
offices determined in accordance with that Act and submitted
to the Committee on Agriculture, Nutrition, and Forestry of
the Senate by the Secretary on October 24, 2007.
(2) Description of period.--The period referred to in
paragraph (1) is the period beginning on November 10, 2005,
and ending on December 31, 2007.
(3) Exception.--The term ``critical access county FSA
office'' does not include any office of the Farm Service
Agency that--
(A) is located not more than 20 miles from another office
of the Farm Service Agency, unless the office is located
within an identified limited-resource area consisting of at
least 4 contiguous high-poverty counties; or
(B) employs no full-time equivalent employees as of the
date of enactment of this Act.
(b) Extension of Period of Operation.--
(1) In general.--Notwithstanding any other provision of
law, except as provided in paragraph (3), none of the funds
made available to the Secretary by any Act may be used to pay
the salaries or expenses of any officer or employee of the
Department of Agriculture to close any critical access county
FSA office during the period beginning on November 1, 2007,
and ending on September 30, 2012.
(2) Number of employees.--
(A) In general.--Subject to subparagraphs (B) and (C), the
Secretary shall ensure that each critical access county FSA
office in each State maintains a staff level of not less than
3 full-time equivalent employees during the period described
in paragraph (1).
(B) Staffing flexibility.--Notwithstanding subparagraph (A)
and subject to subparagraph (C), an employee required to meet
the staff level of a critical access county FSA office in a
State as described in subparagraph (A) may be employed at any
other county office of the Farm Service Agency in that State,
as the Secretary determines to be appropriate.
(C) Minimum staffing level.--A critical access county FSA
office shall be staffed by not less than 1 full-time
equivalent employee during the period described in paragraph
(1).
(3) Exception.--The Secretary may close a critical access
county FSA office only on concurrence in the determination to
close the critical access county FSA office by--
(A) Congress; and
(B) the applicable State Farm Service Agency committee.
______

SA 3816. Mr. LUGAR submitted an amendment intended to be proposed by
him to the bill H.R. 2419, to provide for the continuation of
agricultural programs through fiscal year 2012, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of subtitle C of title III, add the following:

SEC. 32__. CORRECTIVE LEGISLATION.

(a) Definition of Joint Resolution.--In this section, the
term ``joint resolution'' means only a joint resolution
introduced during the 90-day period beginning on the date on
which the report referred to in subsection (b) is received by
Congress (excluding days either House of Congress is
adjourned for more than 3 days during a session of Congress),
the matter after the resolving clause of which is as follows:
``That Congress approves the draft legislation included in
the report required under section __(b) of the Food and
Energy Security Act of 2007 submitted by the President to
Congress on ____, and the legislation shall have force and
effect.'' (The blank spaces being appropriately filled in).
(b) Report.--Not later than 90 days after the date of final
adjudication of any appeals by the President relating to a
finding that any United States commodity program is in
violation of a trading rule of the World Trade Organization,
the President may submit to each House of Congress a report
that includes--
(1) a notification of any effective date of sanctions to be
imposed for failure to correct the violation; and
(2) draft legislation for use in correcting the violation.
(c) Congressional Action.--Subject to subsection (f), if
Congress receives a notification described in subsection
(b)(1), the approval of Congress of the draft legislation
submitted under subsection (b)(2) shall be effective if, and
only if, a joint resolution is enacted into law pursuant to
subsections (d) and (e).
(d) Procedural Provisions.--
(1) In general.--The requirements of this subsection are
met if--
(A) a joint resolution is adopted under subsection (e); and
(B)(i) Congress transmits the joint resolution to the
President before the end of the 90-day period beginning on
the date on which Congress receives the report of the
President under subsection (b); and
(ii)(I) the President signs the joint resolution; or
(II) if the President vetoes the joint resolution, each
House of Congress votes to override that veto on or before
the later of--

[[Page S14996]]

(aa) the last day of the 90-day period referred to in
clause (i); or
(bb) the last day of the 15-day period beginning on the
date on which Congress receives the veto message from the
President.
(2) Introduction.--A joint resolution to which this
subsection applies may be introduced at any time on or after
the date on which Congress receives the report of the
President under subsection (b).
(e) Joint Resolution.--
(1) Procedures.--
(A) In general.--Joint resolutions--
(i) may be introduced in either House of Congress by any
Member of such House; and
(ii) shall be referred--

(I) to the Committee on Agriculture of the House of
Representatives, if the joint resolution is introduced in the
House of Representatives; or
(II) to the Committee on Agriculture, Nutrition, and
Forestry of the Senate, if the joint resolution is introduced
in the Senate.

(B) Application of section 151 of the trade act of 1974.--
Subject to the provisions of this subsection, the provisions
of subsections (c), (d), (f), and (g) of section 151 of the
Trade Act of 1974 (19 U.S.C. 2191(c), (d), (f), and (g))
shall apply to joint resolutions to the same extent as such
provisions apply to implementing bills under that section.
(C) Discharge of committee.--If a committee of either House
to which a joint resolution has been referred has not
reported the joint resolution by the close of the 45th day
after its introduction--
(i) the committee shall be automatically discharged from
further consideration of the joint resolution; and
(ii) the joint resolution shall be placed on the
appropriate calendar.
(D) Floor consideration.--It shall not be in order for--
(i) the Senate to consider any joint resolution unless the
joint resolution has been reported by the Committee on
Agriculture, Nutrition, or Forestry of the Senate or the
committee has been discharged under subparagraph (C);
(ii) the House of Representatives to consider any joint
resolution unless the joint resolution has been reported by
the Committee on Agriculture of the House of Representatives
or the committee has been discharged under subparagraph (C);
or
(iii) either House to consider any joint resolution or take
any action under clause (i) or (ii) of subsection (d)(1)(B),
if the President has notified the appropriate committees that
the decision to impose sanctions described in subsection
(b)(1) has been withdrawn and the sanctions have not actually
been imposed.
(E) Consideration in the house.--A motion in the House of
Representatives to proceed to the consideration of a joint
resolution may only be made on the second legislative day
after the calendar day on which the Member making the motion
announces his or her intention to do so.
(2) Consideration of second resolution not in order.--It
shall not be in order in either the House of Representatives
or the Senate to consider another joint resolution under this
section (other than a joint resolution received from the
other House), if that House has previously voted on a joint
resolution under this section with respect to the same
presidential notification described in subsection (b)(1).
(3) Computation of time period.--For the purpose of
subsection (d)(1)(B)(ii)(II) and paragraph (1)(C), the 90-day
period, the 15-day period, and the 45 days referred to in
those provisions shall be computed by excluding--
(A) the days on which either House is not in session
because of an adjournment of more than 3 days to a day
certain or an adjournment of the Congress sine die; and
(B) any Saturday and Sunday, not excluded under
subparagraph (A), when either House is not in session.
(4) Rules of house of representatives and senate.--This
subsection is enacted by Congress--
(A) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and such
procedures supersede other rules only to the extent that such
procedures are inconsistent with such other rules; and
(B) with the full recognition of the constitutional right
of either House to change the rules (so far as relating to
the procedures of that House) at any time, in the same
manner, and to the same extent as any other rule of that
House.
(f) Intervening Enactment.--A joint resolution shall not be
required under this section if, during the period beginning
on the date on which the President submits to Congress draft
legislation under subsection (b)(2) and ending on the date on
which Congress enacts a joint resolution under subsection
(e), a law containing or preempting the draft legislation is
enacted.
______

SA 3817. Mr. DURBIN submitted an amendment intended to be proposed to
amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss,
Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes; which was ordered to lie on the table; as follows:

Beginning on page 108, strike line 3 and all that follows
through page 123, line 8 and insert the following:
(A) the 2009, 2010, 2011, and 2012 crop years;
(B) the 2010, 2011, and 2012 crop years;
(C) the 2011 and 2012 crop years; or
(D) the 2012 crop year.
(2) Election; time for election.--
(A) In general.--The Secretary shall provide notice to
producers regarding the opportunity to make the election
described in paragraph (1).
(B) Notice requirements.--The notice shall include--
(i) notice of the opportunity of the producers on a farm to
make the election; and
(ii) information regarding the manner in which the election
must be made and the time periods and manner in which notice
of the election must be submitted to the Secretary.
(3) Election deadline.--Within the time period and in the
manner prescribed pursuant to paragraph (2), the producers on
a farm shall submit to the Secretary notice of the election
made under paragraph (1).
(4) Effect of failure to make election.--If the producers
on a farm fail to make the election under paragraph (1) or
fail to timely notify the Secretary of the election made, as
required by paragraph (3), the producers shall be deemed to
have made the election to receive payments and loans under
subtitle A for all covered commodities and peanuts on the
farm for the applicable crop year.
(b) Payments Required.--
(1) In general.--In the case of producers on a farm who
make the election under subsection (a) to receive average
crop revenue payments, for any of the 2009 through 2012 crop
years for all covered commodities and peanuts, the Secretary
shall make average crop revenue payments available to the
producers on a farm in accordance with this subsection.
(2) Fixed payment component.--Subject to paragraph (3), in
the case of producers on a farm described in paragraph (1),
the Secretary shall make average crop revenue payments
available to the producers on a farm for each crop year in an
amount equal to not less than the product obtained by
multiplying--
(A) $15 per acre; and
(B) 100 percent of the lower of--
(i) the quantity of base acres on the farm for all covered
commodities and peanuts (as adjusted in accordance with the
terms and conditions of section 1101 or 1302, as determined
by the Secretary); or
(ii) the average of the acreage planted or considered
planted to the covered commodity or peanuts for harvest on
the farm during the 2002 through 2007 crop years.
(3) Revenue component.--
(A) In general.--Subject to subparagraph (B), the Secretary
shall increase the amount of the average crop revenue
payments available to the producers on a farm in a State for
a crop year if--
(i) the actual State revenue for the crop year for the
covered commodity or peanuts in the State determined under
subsection (c); is less than
(ii) the average crop revenue program guarantee for the
crop year for the covered commodity or peanuts in the State
determined under subsection (d).
(B) Individual loss.--The Secretary shall increase the
amount of the average crop revenue payments available to the
producers on a farm in a State for a crop year only if (as
determined by the Secretary)--
(i) the sum obtained by adding--

(I) the amount determined by multiplying--

(aa) the actual yield for the covered commodity or peanuts
of the producers on the farm; and
(bb) the average crop revenue program harvest price for the
crop year for the covered commodity or peanuts determined
under subsection (c)(3); and

(II) the amount of the crop insurance premium for the crop
year for the covered commodity or peanuts of the producers on
the farm; is less than

(ii) the amount determined by multiplying--

(I) the yield used to calculate crop insurance coverage for
the covered commodity or peanuts on the farm under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (commonly
referred to as ``actual production history''); and
(II) the pre-planting price for the applicable crop year
for the covered or peanuts in a State determined under
subsection (d)(3).

(4) Time for payments.--In the case of each of the 2009
through 2012 crop years, the Secretary shall make--
(A) [__ percent] of the total quantity of payments under
the fixed payment component described in paragraph (2) not
earlier than October 1 of the calendar year in which the crop
of the covered commodity or peanuts is harvested;
(B) the remainder of payments under the fixed payment
component described in paragraph (2) on October 1, or as soon
as practicable thereafter, after the end of the applicable
marketing year for the covered commodity or peanuts; and
(C) payments under the revenue component described in
paragraph (3) beginning October 1, or as soon as practicable
thereafter, after the end of the applicable marketing year
for the covered commodity or peanuts.
(c) Actual State Revenue.--
(1) In general.--For purposes of subsection (b)(3)(A), the
amount of the actual State revenue for a crop year of a
covered commodity shall equal the product obtained by
multiplying--

[[Page S14997]]

(A) the actual State yield for each planted acre for the
crop year for the covered commodity or peanuts determined
under paragraph (2); and
(B) the average crop revenue program harvest price for the
crop year for the covered commodity or peanuts determined
under paragraph (3).
(2) Actual state yield.--For purposes of paragraph (1)(A)
and subsection (d)(1)(A), the actual State yield for each
planted acre for a crop year for a covered commodity or
peanuts in a State shall equal (as determined by the
Secretary)--
(A) the quantity of the covered commodity or peanuts that
is produced in the State during the crop year; divided by
(B) the number of acres that are planted to the covered
commodity or peanuts in the State during the crop year.
(3) Average crop revenue program harvest price.--
(A) In general.--For purposes of paragraph (1)(B), subject
to subparagraph (B), the average crop revenue program harvest
price for a crop year for a covered commodity or peanuts in a
State shall equal the harvest price that is used to calculate
revenue under revenue coverage plans that are offered for the
crop year for the covered commodity or peanuts in the State
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
(B) Assigned price.--If the Secretary cannot establish the
harvest price for a crop year for a covered commodity or
peanuts in a State in accordance with subparagraph (A), the
Secretary shall assign a price for the covered commodity or
peanuts in the State on the basis of comparable price data.
(d) Average Crop Revenue Program Guarantee.--
(1) In general.--Except as provided in paragraph (4), the
average crop revenue program guarantee for a crop year for a
covered commodity or peanuts in a State shall equal 90
percent of the product obtained by multiplying--
(A) the expected State yield for each planted acre for the
crop year for the covered commodity or peanuts in a State
determined under paragraph (2); and
(B) the average crop revenue program pre-planting price for
the crop year for the covered commodity or peanuts determined
under paragraph (3).
(2) Expected state yield.--
(A) In general.--For purposes of paragraph (1)(A), subject
to subparagraph (B), the expected State yield for each
planted acre for a crop year for a covered commodity or
peanuts in a State shall equal the projected yield for the
crop year for the covered commodity or peanuts in the State,
based on a linear regression trend of the yield per acre
planted to the covered commodity or peanuts in the State
during the 1980 through 2006 period using National
Agricultural Statistics Service data.
(B) Assigned yield.--If the Secretary cannot establish the
expected State yield for each planted acre for a crop year
for a covered commodity or peanuts in a State in accordance
with subparagraph (A) or if the linear regression trend of
the yield per acre planted to the covered commodity or
peanuts in the State (as determined under subparagraph (A))
is negative, the Secretary shall assign an expected State
yield for each planted acre for the crop year for the covered
commodity or peanuts in the State on the basis of expected
State yields for planted acres for the crop year for the
covered commodity or peanuts in similar States.
(3) Average crop revenue program pre-planting price.--
(A) In general.--For purposes of paragraph (1)(B), subject
to subparagraphs (B) and (C), the average crop revenue
program pre-planting price for a crop year for a covered
commodity or peanuts in a State shall equal the average price
that is used to calculate revenue under revenue coverage
plans that are offered for the covered commodity in the State
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
for the crop year and the preceding 2 crop years.
(B) Assigned price.--If the Secretary cannot establish the
pre-planting price for a crop year for a covered commodity or
peanuts in a State in accordance with subparagraph (A), the
Secretary shall assign a price for the covered commodity or
peanuts in the State on the basis of comparable price data.
(C) Minimum and maximum price.--In the case of each of the
2010 through 2012 crop years, the average crop revenue
program pre-planting price for a crop year for a covered
commodity or peanuts under subparagraph (A) shall not
decrease or increase more than 15 percent from the pre-
planting price for the preceding year.
(4) States with irrigated and nonirrigated land.--In the
case of a State in which at least 25 percent of the planted
acreage in the State is under irrigation and at least 25
percent of the planted acreage in the State is not under
irrigation, the Secretary shall calculate a separate average
crop revenue program guarantee for the irrigated and
nonirrigated areas of the State.
(e) Payment Amount.--Subject to subsection (f), if average
crop revenue payments are required to be paid for any of the
2009 through 2012 crop years of a covered commodity or
peanuts under subsection (b)(3), in addition to the amount
payable under subsection (b)(2), the amount of the average
crop revenue payment to be paid to the producers on the farm
for the crop year under this section shall be increased by an
amount equal to the product obtained by multiplying--
(1) the difference between--
(A) the average crop revenue program guarantee for the crop
year for the covered commodity or peanuts in the State
determined under subsection (d); and
(B) the actual State revenue from the crop year for the
covered commodity or peanuts in the State determined under
subsection (c);
(2) 100 percent of the acreage planted or considered
planted to the covered commodity or peanuts for harvest on
the farm in the crop year;
(3) the quotient obtained by dividing--
(A) the expected county yield for the crop year, determined
for the county in the same manner as the expected State yield
is determined for a State under subsection (d)(2); by
(B) the expected State yield for the crop year, as
determined under subsection (d)(2); and
(4) 90 percent.
(f) Limitation on Payment Amount.--The amount of the
average crop revenue payment to be paid to the producers on a
farm for a crop year of a covered commodity or peanuts under
subsection (e) shall not exceed 30 percent of the average
crop revenue program guarantee for the crop year for the
covered commodity or peanuts in a State determined under
subsection (d)(1).
(g) Recourse Loans.--For each of the 2009 through 2012
crops of a covered commodity or peanuts, the Secretary shall
make available to producers on a farm who elect to receive
payments under this section recourse loans, as determined by
the Secretary, on any production of the covered commodity.

SEC. 1402. PRODUCER AGREEMENT AS CONDITION OF AVERAGE CROP
REVENUE PAYMENTS.

(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive average crop revenue payments with respect to the
farm, the producers shall agree, and in the case of
subparagraph (C), the Farm Service Agency shall certify,
during the crop year for which the payments are made and in
exchange for the payments--
(A) to comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.); and
(C) that the individuals or entities receiving payments are
producers;
(D) to use the land on the farm, in a quantity equal to the
attributable base acres for the farm and any base acres for
peanuts for the farm under part III of subtitle A, for an
agricultural or conserving use, and not for a nonagricultural
commercial, industrial, or residential use (including land
subdivided and developed into residential units or other
nonfarming uses, or that is otherwise no longer intended to
be used in conjunction with a farming operation), as
determined by the Secretary; and
(E) to effectively control noxious weeds and otherwise
maintain the land in accordance with sound agricultural
practices, as determined by the Secretary, if the
agricultural or conserving use involves the noncultivation of
any portion of the land referred to in subparagraph (D).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the
Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph (2), a
transfer of (or change in) the interest of the producers on a
farm for which average crop revenue payments are made shall
result in the termination of the payments, unless the
transferee or owner of the farm agrees to assume all
obligations under subsection (a).
(B) Effective date.--The termination shall take effect on
the date determined by the Secretary.
(2) Exception.--If a producer entitled to an average crop
revenue payment dies, becomes incompetent, or is otherwise
unable to receive the payment, the Secretary shall make the
payment, in accordance with rules issued by the Secretary.
(c) Acreage Reports.--
(1) In general.--As a condition on the receipt of any
benefits under this subtitle, the Secretary shall require
producers on a farm to submit to the Secretary annual acreage
reports with respect to all cropland on the farm.
(2) Penalties.--No penalty with respect to benefits under
subtitle shall be assessed against the producers on a farm
for an inaccurate acreage report unless the producers on the
farm knowingly and willfully falsified the acreage report.
(d) Tenants and Sharecroppers.--In carrying out this
subtitle, the Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for
the sharing of average crop revenue payments among the
producers on a farm on a fair and equitable basis.
(f) Audit and Report.--Each year, to ensure, to the maximum
extent practicable,

[[Page S14998]]

that payments are received only by producers, the Secretary
shall--
(1) conduct an audit of average crop revenue payments; and
(2) submit to Congress a report that describes the results
of that audit.

SEC. 1403. PLANTING FLEXIBILITY.

(a) Permitted Crops.--Subject to subsection (b), any
commodity or crop may be planted on base acres on a farm for
which the producers on a farm elect to receive average crop
revenue payments (referred to in this section as ``base
acres'').
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres unless the commodity, if planted, is destroyed
before harvest.
(2) Treatment of trees and other perennials.--The planting
of an agricultural commodity specified in paragraph (3) that
is produced on a tree or other perennial plant shall be
prohibited on base acres.
(3) Covered agricultural commodities.--Paragraphs (1) and
(2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b)
shall not limit the planting of an agricultural commodity
specified in paragraph (3) of that subsection--
(1) in any region in which there is a history of double-
cropping of covered commodities with agricultural commodities
specified in subsection (b)(3), as determined by the
Secretary, in which case the double-cropping shall be
permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on base acres, except that average crop revenue
payments shall be reduced by an acre for each acre planted to
such an agricultural commodity; or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a specific
agricultural commodity specified in subsection (b)(3), except
that--
(A) the quantity planted may not exceed the average annual
planting history of such agricultural commodity by the
producers on the farm in the 1991 through 1995 or 1998
through 2001 crop years (excluding any crop year in which no
plantings were made), as determined by the Secretary; and
(B) average crop revenue payments shall be reduced by an
acre for each acre planted to such agricultural commodity.
(d) Planting Transferability Pilot Project.--Producers on a
farm that elect to receive average crop revenue payments
shall be eligible to participate in the pilot program
established under section 1106(d) under the same terms and
conditions as producers that receive direct payments and
counter-cyclical payments.
(e) Production of Fruits or Vegetables for Processing.--
(1) In general.--Subject to paragraphs (2) through (4),
effective beginning with the 2009 crop
On page 1374, between lines 14 and 15, insert the
following:
``(iii) 100 percent of the amount of the revenue component
of any average crop revenue payments made to the producer
under section 1401(b)(3) of the Food and Energy Security Act
of 2007;''.
______

SA 3818. Mr. STEVENS submitted an amendment intended to be proposed
to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr.
Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to
provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes; which was ordered to lie on the
table; as follows:

On page 247, line 17, insert ``seafood, farm-raised
aquaculture,'' after ``nursery crops,''.

____________________