[United States Statutes at Large, Volume 122, 110th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

122 STAT. 1651

Public Law 110-246
110th Congress

An Act


 
To provide for the continuation of agricultural and other programs of
the Department of Agriculture through fiscal year 2012, and for other
purposes. [NOTE: June 18, 2008 -  [H.R. 6124]]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress [NOTE: Food, Conservation, and
Energy Act of 2008. 7 USC 8701 note.] assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Food, Conservation,
and Energy Act of 2008''.
(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.
Sec. 3. Explanatory Statement.
Sec. 4. Repeal of duplicative enactment.

TITLE I--COMMODITY PROGRAMS

Sec. 1001. Definitions.

Subtitle A--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Base acres.
Sec. 1102. Payment yields.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Average crop revenue election program.
Sec. 1106. Producer agreement required as condition of provision of
payments.
Sec. 1107. Planting flexibility.
Sec. 1108. Special rule for long grain and medium grain rice.
Sec. 1109. Period of effectiveness.

Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for
loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains
and seed cotton.
Sec. 1210. Adjustments of loans.

Subtitle C--Peanuts

Sec. 1301. Definitions.
Sec. 1302. Base acres for peanuts for a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of
payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for
peanuts.

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122 STAT. 1652

Sec. 1308. Adjustments of loans.

Subtitle D--Sugar

Sec. 1401. Sugar program.
Sec. 1402. United States membership in the International Sugar
Organization.
Sec. 1403. Flexible marketing allotments for sugar.
Sec. 1404. Storage facility loans.
Sec. 1405. Commodity Credit Corporation storage payments.

Subtitle E--Dairy

Sec. 1501. Dairy product price support program.
Sec. 1502. Dairy forward pricing program.
Sec. 1503. Dairy export incentive program.
Sec. 1504. Revision of Federal marketing order amendment procedures.
Sec. 1505. Dairy indemnity program.
Sec. 1506. Milk income loss contract program.
Sec. 1507. Dairy promotion and research program.
Sec. 1508. Report on Department of Agriculture reporting procedures for
nonfat dry milk.
Sec. 1509. Federal Milk Marketing Order Review Commission.
Sec. 1510. Mandatory reporting of dairy commodities.

Subtitle F--Administration

Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Availability of quality incentive payments for covered
oilseed producers.
Sec. 1606. Personal liability of producers for deficiencies.
Sec. 1607. Extension of existing administrative authority regarding
loans.
Sec. 1608. Assignment of payments.
Sec. 1609. Tracking of benefits.
Sec. 1610. Government publication of cotton price forecasts.
Sec. 1611. Prevention of deceased individuals receiving payments under
farm commodity programs.
Sec. 1612. Hard white wheat development program.
Sec. 1613. Durum wheat quality program.
Sec. 1614. Storage facility loans.
Sec. 1615. State, county, and area committees.
Sec. 1616. Prohibition on charging certain fees.
Sec. 1617. Signature authority.
Sec. 1618. Modernization of Farm Service Agency.
Sec. 1619. Information gathering.
Sec. 1620. Leasing of office space.
Sec. 1621. Geographically disadvantaged farmers and ranchers.
Sec. 1622. Implementation.
Sec. 1623. Repeals.

TITLE II--CONSERVATION

Subtitle A--Definitions and Highly Erodible Land and Wetland
Conservation

Sec. 2001. Definitions relating to conservation title of Food Security
Act of 1985.
Sec. 2002. Review of good faith determinations related to highly
erodible land conservation.
Sec. 2003. Review of good faith determinations related to wetland
conservation.

Subtitle B--Conservation Reserve Program

Sec. 2101. Extension of conservation reserve program.
Sec. 2102. Land eligible for enrollment in conservation reserve.
Sec. 2103. Maximum enrollment of acreage in conservation reserve.
Sec. 2104. Designation of conservation priority areas.
Sec. 2105. Treatment of multi-year grasses and legumes.
Sec. 2106. Revised pilot program for enrollment of wetland and buffer
acreage in conservation reserve.
Sec. 2107. Additional duty of participants under conservation reserve
contracts.
Sec. 2108. Managed haying, grazing, or other commercial use of forage on
enrolled land and installation of wind turbines.
Sec. 2109. Cost sharing payments relating to trees, windbreaks,
shelterbelts, and wildlife corridors.
Sec. 2110. Evaluation and acceptance of contract offers, annual rental
payments, and payment limitations.

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Sec. 2111. Conservation reserve program transition incentives for
beginning farmers or ranchers and socially disadvantaged
farmers or ranchers.

Subtitle C--Wetlands Reserve Program

Sec. 2201. Establishment and purpose of wetlands reserve program.
Sec. 2202. Maximum enrollment and enrollment methods.
Sec. 2203. Duration of wetlands reserve program and lands eligible for
enrollment.
Sec. 2204. Terms of wetlands reserve program easements.
Sec. 2205. Compensation for easements under wetlands reserve program.
Sec. 2206. Wetlands reserve enhancement program and reserved rights
pilot program.
Sec. 2207. Duties of Secretary of Agriculture under wetlands reserve
program.
Sec. 2208. Payment limitations under wetlands reserve contracts and
agreements.
Sec. 2209. Repeal of payment limitations exception for State agreements
for wetlands reserve enhancement.
Sec. 2210. Report on implications of long-term nature of conservation
easements.

Subtitle D--Conservation Stewardship Program

Sec. 2301. Conservation stewardship program.

Subtitle E--Farmland Protection and Grassland Reserve

Sec. 2401. Farmland protection program.
Sec. 2402. Farm viability program.
Sec. 2403. Grassland reserve program.

Subtitle F--Environmental Quality Incentives Program

Sec. 2501. Purposes of environmental quality incentives program.
Sec. 2502. Definitions.
Sec. 2503. Establishment and administration of environmental quality
incentives program.
Sec. 2504. Evaluation of applications.
Sec. 2505. Duties of producers under environmental quality incentives
program.
Sec. 2506. Environmental quality incentives program plan.
Sec. 2507. Duties of the Secretary.
Sec. 2508. Limitation on environmental quality incentives program
payments.
Sec. 2509. Conservation innovation grants and payments.
Sec. 2510. Agricultural water enhancement program.

Subtitle G--Other Conservation Programs of the Food Security Act of 1985

Sec. 2601. Conservation of private grazing land.
Sec. 2602. Wildlife habitat incentive program.
Sec. 2603. Grassroots source water protection program.
Sec. 2604. Great Lakes Basin Program for soil erosion and sediment
control.
Sec. 2605. Chesapeake Bay watershed program.
Sec. 2606. Voluntary public access and habitat incentive program.

Subtitle H--Funding and Administration of Conservation Programs

Sec. 2701. Funding of conservation programs under Food Security Act of
1985.
Sec. 2702. Authority to accept contributions to support conservation
programs.
Sec. 2703. Regional equity and flexibility.
Sec. 2704. Assistance to certain farmers and ranchers to improve their
access to conservation programs.
Sec. 2705. Report regarding enrollments and assistance under
conservation programs.
Sec. 2706. Delivery of conservation technical assistance.
Sec. 2707. Cooperative conservation partnership initiative.
Sec. 2708. Administrative requirements for conservation programs.
Sec. 2709. Environmental services markets.
Sec. 2710. Agriculture conservation experienced services program.
Sec. 2711. Establishment of State technical committees and their
responsibilities.

Subtitle I--Conservation Programs Under Other Laws

Sec. 2801. Agricultural management assistance program.
Sec. 2802. Technical assistance under Soil Conservation and Domestic
Allotment Act.
Sec. 2803. Small watershed rehabilitation program.
Sec. 2804. Amendments to Soil and Water Resources Conservation Act of
1977.
Sec. 2805. Resource Conservation and Development Program.
Sec. 2806. Use of funds in Basin Funds for salinity control activities
upstream of Imperial Dam.

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Sec. 2807. Desert terminal lakes.

Subtitle J--Miscellaneous Conservation Provisions

Sec. 2901. High Plains water study.
Sec. 2902. Naming of National Plant Materials Center at Beltsville,
Maryland, in honor of Norman A. Berg.
Sec. 2903. Transition.
Sec. 2904. Regulations.

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. Generation and use of currencies by private voluntary
organizations and cooperatives.
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. General authorities and requirements.
Sec. 3015. Definitions.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Consolidation and modification of annual reports regarding
agricultural trade issues.
Sec. 3019. Expiration of assistance.
Sec. 3020. Authorization of appropriations.
Sec. 3021. Minimum level of nonemergency food assistance.
Sec. 3022. Coordination of foreign assistance programs.
Sec. 3023. Micronutrient fortification programs.
Sec. 3024. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

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

Sec. 3101. Export credit guarantee program.
Sec. 3102. Market access program.
Sec. 3103. Export enhancement program.
Sec. 3104. Foreign market development cooperator program.
Sec. 3105. Food for Progress Act of 1985.
Sec. 3106. McGovern-Dole International Food for Education and Child
Nutrition Program.

Subtitle C--Miscellaneous

Sec. 3201. Bill Emerson Humanitarian Trust.
Sec. 3202. Global Crop Diversity Trust.
Sec. 3203. Technical assistance for specialty crops.
Sec. 3204. Emerging markets and facility guarantee loan program.
Sec. 3205. Consultative Group to Eliminate the Use of Child Labor and
Forced Labor in Imported Agricultural Products.
Sec. 3206. Local and regional food aid procurement projects.

Subtitle D--Softwood Lumber

Sec. 3301. Softwood lumber.

TITLE IV--NUTRITION

Subtitle A--Food Stamp Program

PART I--Renaming of Food Stamp Act and Program

Sec. 4001. Renaming of Food Stamp Act and program.
Sec. 4002. Conforming amendments.

PART II--Benefit Improvements

Sec. 4101. Exclusion of certain military payments from income.

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122 STAT. 1655

Sec. 4102. Strengthening the food purchasing power of low-income
Americans.
Sec. 4103. Supporting working families with child care expenses.
Sec. 4104. Asset indexation, education, and retirement accounts.
Sec. 4105. Facilitating simplified reporting.
Sec. 4106. Transitional benefits option.
Sec. 4107. Increasing the minimum benefit.
Sec. 4108. Employment, training, and job retention.

PART III--Program Operations

Sec. 4111. Nutrition education.
Sec. 4112. Technical clarification regarding eligibility.
Sec. 4113. Clarification of split issuance.
Sec. 4114. Accrual of benefits.
Sec. 4115. Issuance and use of program benefits.
Sec. 4116. Review of major changes in program design.
Sec. 4117. Civil rights compliance.
Sec. 4118. Codification of access rules.
Sec. 4119. State option for telephonic signature.
Sec. 4120. Privacy protections.
Sec. 4121. Preservation of access and payment accuracy.
Sec. 4122. Funding of employment and training programs.

PART IV--Program Integrity

Sec. 4131. Eligibility disqualification.
Sec. 4132. Civil penalties and disqualification of retail food stores
and wholesale food concerns.
Sec. 4133. Major systems failures.

PART V--Miscellaneous

Sec. 4141. Pilot projects to evaluate health and nutrition promotion in
the supplemental nutrition assistance program.
Sec. 4142. Study on comparable access to supplemental nutrition
assistance for Puerto Rico.

Subtitle B--Food Distribution Programs

PART I--Emergency Food Assistance Program

Sec. 4201. Emergency food assistance.
Sec. 4202. Emergency food program infrastructure grants.

PART II--Food Distribution Program on Indian Reservations

Sec. 4211. Assessing the nutritional value of the FDPIR food package.

PART III--Commodity Supplemental Food Program

Sec. 4221. Commodity supplemental food program.

PART IV--Senior Farmers' Market Nutrition Program

Sec. 4231. Seniors farmers' market nutrition program.

Subtitle C--Child Nutrition and Related Programs

Sec. 4301. State performance on enrolling children receiving program
benefits for free school meals.
Sec. 4302. Purchases of locally produced foods.
Sec. 4303. Healthy food education and program replicability.
Sec. 4304. Fresh fruit and vegetable program.
Sec. 4305. Whole grain products.
Sec. 4306. Buy American requirements.
Sec. 4307. Survey of foods purchased by school food authorities.

Subtitle D--Miscellaneous

Sec. 4401. Bill Emerson National Hunger Fellows and Mickey Leland
International Hunger Fellows.
Sec. 4402. Assistance for community food projects.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404. Section 32 funds for purchase of fruits, vegetables, and nuts
to support domestic nutrition assistance programs.
Sec. 4405. Hunger-free communities.
Sec. 4406. Reauthorization of Federal food assistance programs.
Sec. 4407. Effective and implementation dates.

TITLE V--CREDIT

Subtitle A--Farm Ownership Loans

Sec. 5001. Direct loans.

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122 STAT. 1656

Sec. 5002. Conservation loan and loan guarantee program.
Sec. 5003. Limitations on amount of farm ownership loans.
Sec. 5004. Down payment loan program.
Sec. 5005. Beginning farmer or rancher and socially disadvantaged 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. Suspension of limitation on period for which borrowers are
eligible for guaranteed assistance.

Subtitle C--Emergency Loans

Sec. 5201. Eligibility of equine farmers and ranchers for emergency
loans.

Subtitle D--Administrative Provisions

Sec. 5301. Beginning farmer and rancher individual development accounts
pilot program.
Sec. 5302. Inventory sales preferences; loan fund set-asides.
Sec. 5303. Loan authorization levels.
Sec. 5304. Transition to private commercial or other sources of credit.
Sec. 5305. Extension of the right of first refusal to reacquire
homestead property to immediate family members of borrower-
owner.
Sec. 5306. Rural development and farm loan program activities.

Subtitle E--Farm Credit

Sec. 5401. Farm Credit System Insurance Corporation.
Sec. 5402. Technical correction.
Sec. 5403. Bank for cooperatives voting stock.
Sec. 5404. Premiums.
Sec. 5405. Certification of premiums.
Sec. 5406. Rural utility loans.
Sec. 5407. Equalization of loan-making powers of certain district
associations.

Subtitle F--Miscellaneous

Sec. 5501. Loans to purchasers of highly fractioned land.

TITLE VI--RURAL DEVELOPMENT

Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. SEARCH grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facility grants, loans, and loan guarantees.
Sec. 6005. Community facility grants to advance broadband.
Sec. 6006. Rural water and wastewater circuit rider program.
Sec. 6007. Tribal College and University essential community facilities.
Sec. 6008. Emergency and imminent community water assistance grant
program.
Sec. 6009. Water systems for rural and native villages in Alaska.
Sec. 6010. 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.
Sec. 6011. Interest rates for water and waste disposal facilities loans.
Sec. 6012. Cooperative equity security guarantee.
Sec. 6013. Rural cooperative development grants.
Sec. 6014. Grants to broadcasting systems.
Sec. 6015. Locally or regionally produced agricultural food products.
Sec. 6016. Appropriate technology transfer for rural areas.
Sec. 6017. Rural economic area partnership zones.
Sec. 6018. Definitions.
Sec. 6019. National rural development partnership.
Sec. 6020. Historic barn preservation.
Sec. 6021. Grants for NOAA weather radio transmitters.
Sec. 6022. Rural microentrepreneur assistance program.
Sec. 6023. Grants for expansion of employment opportunities for
individuals with disabilities in rural areas.
Sec. 6024. Health care services.
Sec. 6025. Delta Regional Authority.
Sec. 6026. Northern Great Plains Regional Authority.
Sec. 6027. Rural Business Investment Program.

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122 STAT. 1657

Sec. 6028. Rural Collaborative Investment Program.
Sec. 6029. Funding of pending rural development loan and grant
applications.

Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Energy efficiency programs.
Sec. 6102. Reinstatement of Rural Utility Services direct lending.
Sec. 6103. Deferment of payments to allows loans for improved energy
efficiency and demand reduction and for energy efficiency and
use audits.
Sec. 6104. Rural electrification assistance.
Sec. 6105. Substantially underserved trust areas.
Sec. 6106. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6107. Expansion of 911 access.
Sec. 6108. Electric loans for renewable energy.
Sec. 6109. Bonding requirements.
Sec. 6110. Access to broadband telecommunications services in rural
areas.
Sec. 6111. National Center for Rural Telecommunications Assessment.
Sec. 6112. Comprehensive rural broadband strategy.
Sec. 6113. Study on rural electric power generation.

Subtitle C--Miscellaneous

Sec. 6201. Distance learning and telemedicine.
Sec. 6202. Value-added agricultural market development program grants.
Sec. 6203. Agriculture innovation center demonstration program.
Sec. 6204. Rural firefighters and emergency medical service assistance
program.
Sec. 6205. Insurance of loans for housing and related facilities for
domestic farm labor.
Sec. 6206. Study of rural transportation issues.

Subtitle D--Housing Assistance Council

Sec. 6301. Short title.
Sec. 6302. Assistance to Housing Assistance Council.
Sec. 6303. Audits and reports.
Sec. 6304. Persons not lawfully present in the United States.
Sec. 6305. Limitation on use of authorized amounts.

TITLE VII--RESEARCH AND RELATED MATTERS

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

Sec. 7101. Definitions.
Sec. 7102. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7103. Specialty crop committee report.
Sec. 7104. Renewable energy committee.
Sec. 7105. Veterinary medicine loan repayment.
Sec. 7106. Eligibility of University of the District of Columbia for
grants and fellowships for food and agricultural sciences
education.
Sec. 7107. Grants to 1890 schools to expand extension capacity.
Sec. 7108. Expansion of food and agricultural sciences awards.
Sec. 7109. Grants and fellowships for food and agricultural sciences
education.
Sec. 7110. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from agricultural commodities and
forest products.
Sec. 7111. Policy research centers.
Sec. 7112. Education grants to Alaska Native-serving institutions and
Native Hawaiian-serving institutions.
Sec. 7113. Emphasis of human nutrition initiative.
Sec. 7114. Human nutrition intervention and health promotion research
program.
Sec. 7115. Pilot research program to combine medical and agricultural
research.
Sec. 7116. Nutrition education program.
Sec. 7117. Continuing animal health and disease research programs.
Sec. 7118. Cooperation among eligible institutions.
Sec. 7119. Appropriations for research on national or regional problems.
Sec. 7120. Animal health and disease research program.
Sec. 7121. Authorization level for extension at 1890 land-grant
colleges.
Sec. 7122. Authorization level for agricultural research at 1890 land-
grant colleges.
Sec. 7123. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including Tuskegee University.
Sec. 7124. Grants to upgrade agriculture and food sciences facilities at
the District of Columbia land-grant university.
Sec. 7125. Grants to upgrade agriculture and food sciences facilities
and equipment at insular area land-grant institutions.

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122 STAT. 1658

Sec. 7126. National research and training virtual centers.
Sec. 7127. Matching funds requirement for research and extension
activities of 1890 institutions.
Sec. 7128. Hispanic-serving institutions.
Sec. 7129. Hispanic-serving agricultural colleges and universities.
Sec. 7130. International agricultural research, extension, and
education.
Sec. 7131. Competitive grants for international agricultural science and
education programs.
Sec. 7132. Administration.
Sec. 7133. Research equipment grants.
Sec. 7134. University research.
Sec. 7135. Extension Service.
Sec. 7136. Supplemental and alternative crops.
Sec. 7137. New Era Rural Technology Program.
Sec. 7138. Capacity building grants for NLGCA Institutions.
Sec. 7139. Borlaug international agricultural science and technology
fellowship program.
Sec. 7140. Aquaculture assistance programs.
Sec. 7141. Rangeland research grants.
Sec. 7142. Special authorization for biosecurity planning and response.
Sec. 7143. Resident instruction and distance education grants program
for insular area institutions of higher education.

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

Sec. 7201. National genetics resources program.
Sec. 7202. National Agricultural Weather Information System.
Sec. 7203. Partnerships.
Sec. 7204. High-priority research and extension areas.
Sec. 7205. Nutrient management research and extension initiative.
Sec. 7206. Organic Agriculture Research and Extension Initiative.
Sec. 7207. Agricultural bioenergy feedstock and energy efficiency
research and extension initiative.
Sec. 7208. Farm business management and benchmarking.
Sec. 7209. Agricultural telecommunications program.
Sec. 7210. Assistive technology program for farmers with disabilities.
Sec. 7211. Research on honey bee diseases.
Sec. 7212. National Rural Information Center Clearinghouse.

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

Sec. 7301. Peer and merit review.
Sec. 7302. Partnerships for high-value agricultural product quality
research.
Sec. 7303. Precision agriculture.
Sec. 7304. Biobased products.
Sec. 7305. Thomas Jefferson Initiative for Crop Diversification.
Sec. 7306. Integrated research, education, and extension competitive
grants program.
Sec. 7307. Fusarium graminearum grants.
Sec. 7308. Bovine Johne's disease control program.
Sec. 7309. Grants for youth organizations.
Sec. 7310. Agricultural biotechnology research and development for
developing countries.
Sec. 7311. Specialty crop research initiative.
Sec. 7312. Food animal residue avoidance database program.
Sec. 7313. Office of pest management policy.

Subtitle D--Other Laws

Sec. 7401. Critical Agricultural Materials Act.
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7403. Smith-Lever Act.
Sec. 7404. Hatch Act of 1887.
Sec. 7405. Agricultural Experiment Station Research Facilities Act.
Sec. 7406. Agriculture and food research initiative.
Sec. 7407. Agricultural Risk Protection Act of 2000.
Sec. 7408. Exchange or sale authority.
Sec. 7409. Enhanced use lease authority pilot program.
Sec. 7410. Beginning farmer and rancher development program.
Sec. 7411. Public education regarding use of biotechnology in producing
food for human consumption.
Sec. 7412. McIntire-Stennis Cooperative Forestry Act.
Sec. 7413. Renewable Resources Extension Act of 1978.
Sec. 7414. National Aquaculture Act of 1980.

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122 STAT. 1659

Sec. 7415. Construction of Chinese Garden at the National Arboretum.
Sec. 7416. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Sec. 7417. Eligibility of University of the District of Columbia for
certain land-grant university assistance.

Subtitle E--Miscellaneous

PART I--General Provisions

Sec. 7501. Definitions.
Sec. 7502. Grazinglands research laboratory.
Sec. 7503. Fort Reno Science Park Research Facility.
Sec. 7504. Roadmap.
Sec. 7505. Review of plan of work requirements.
Sec. 7506. Budget submission and funding.

PART II--Research, Education, and Economics

Sec. 7511. Research, education, and economics.

PART III--New Grant and Research Programs

Sec. 7521. Research and education grants for the study of antibiotic-
resistant bacteria.
Sec. 7522. Farm and ranch stress assistance network.
Sec. 7523. Seed distribution.
Sec. 7524. Live virus foot and mouth disease research.
Sec. 7525. Natural products research program.
Sec. 7526. Sun grant program.
Sec. 7527. Study and report on food deserts.
Sec. 7528. Demonstration project authority for temporary positions.
Sec. 7529. Agricultural and rural transportation research and education.

TITLE VIII--FORESTRY

Subtitle A--Amendments to Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Long-term State-wide assessments and strategies for forest
resources.
Sec. 8003. Community forest and open space conservation program.
Sec. 8004. Assistance to the Federated States of Micronesia, the
Republic of the Marshall Islands, and the Republic of Palau.
Sec. 8005. Changes to Forest Resource Coordinating Committee.
Sec. 8006. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8007. Competition in programs under Cooperative Forestry Assistance
Act of 1978.
Sec. 8008. Competitive allocation of funds for cooperative forest
innovation partnership projects.

Subtitle B--Cultural and Heritage Cooperation Authority

Sec. 8101. Purposes.
Sec. 8102. Definitions.
Sec. 8103. Reburial of human remains and cultural items.
Sec. 8104. Temporary closure for traditional and cultural purposes.
Sec. 8105. Forest products for traditional and cultural purposes.
Sec. 8106. Prohibition on disclosure.
Sec. 8107. Severability and savings provisions.

Subtitle C--Amendments to Other Forestry-Related Laws

Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Emergency forest restoration program.
Sec. 8204. Prevention of illegal logging practices.
Sec. 8205. Healthy forests reserve program.

Subtitle D--Boundary Adjustments and Land Conveyance Provisions

Sec. 8301. Green Mountain National Forest boundary adjustment.
Sec. 8302. Land conveyances, Chihuahuan Desert Nature Park, New Mexico,
and George Washington National Forest, Virginia.
Sec. 8303. Sale and exchange of National Forest System land, Vermont.

Subtitle E--Miscellaneous Provisions

Sec. 8401. Qualifying timber contract options.

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122 STAT. 1660

Sec. 8402. Hispanic-serving institution agricultural land national
resources leadership program.

TITLE IX--ENERGY

Sec. 9001. Energy.
Sec. 9002. Biofuels infrastructure study.
Sec. 9003. Renewable fertilizer study.

TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

Sec. 10001. Definitions.

Subtitle A--Horticulture Marketing and Information

Sec. 10101. Independent evaluation of Department of Agriculture
commodity purchase process.
Sec. 10102. Quality requirements for clementines.
Sec. 10103. Inclusion of specialty crops in census of agriculture.
Sec. 10104. Mushroom promotion, research, and consumer information.
Sec. 10105. Food safety education initiatives.
Sec. 10106. Farmers' market promotion program.
Sec. 10107. Specialty crops market news allocation.
Sec. 10108. Expedited marketing order for Hass avocados for grades and
standards and other purposes.
Sec. 10109. Specialty crop block grants.

Subtitle B--Pest and Disease Management

Sec. 10201. Plant pest and disease management and disaster prevention.
Sec. 10202. National Clean Plant Network.
Sec. 10203. Plant protection.
Sec. 10204. Regulations to improve management and oversight of certain
regulated articles.
Sec. 10205. Pest and Disease Revolving Loan Fund.
Sec. 10206. Cooperative agreements relating to plant pest and disease
prevention activities.

Subtitle C--Organic Agriculture

Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data initiatives.
Sec. 10303. National Organic Program.

Subtitle D--Miscellaneous

Sec. 10401. National Honey Board.
Sec. 10402. Identification of honey.
Sec. 10403. Grant program to improve movement of specialty crops.
Sec. 10404. Market loss assistance for asparagus producers.

TITLE XI--LIVESTOCK

Sec. 11001. Livestock mandatory reporting.
Sec. 11002. Country of origin labeling.
Sec. 11003. Agricultural Fair Practices Act of 1967 definitions.
Sec. 11004. Annual report.
Sec. 11005. Production contracts.
Sec. 11006. Regulations.
Sec. 11007. Sense of Congress regarding pseudorabies eradication
program.
Sec. 11008. Sense of Congress regarding the cattle fever tick
eradication program.
Sec. 11009. National Sheep Industry Improvement Center.
Sec. 11010. Trichinae certification program.
Sec. 11011. Low pathogenic diseases.
Sec. 11012. Animal protection.
Sec. 11013. National Aquatic Animal Health Plan.
Sec. 11014. Study on bioenergy operations.
Sec. 11015. Interstate shipment of meat and poultry inspected by Federal
and State agencies for certain small establishments.
Sec. 11016. Inspection and grading.
Sec. 11017. Food safety improvement.

TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS

Subtitle A--Crop Insurance and Disaster Assistance

Sec. 12001. Definition of organic crop.
Sec. 12002. General powers.

[[Page 1661]]
122 STAT. 1661

Sec. 12003. Reduction in loss ratio.
Sec. 12004. Premiums adjustments.
Sec. 12005. Controlled business insurance.
Sec. 12006. Administrative fee.
Sec. 12007. Time for payment.
Sec. 12008. Catastrophic coverage reimbursement rate.
Sec. 12009. Grain sorghum price election.
Sec. 12010. Premium reduction authority.
Sec. 12011. Enterprise and whole farm units.
Sec. 12012. Payment of portion of premium for area revenue plans.
Sec. 12013. Denial of claims.
Sec. 12014. Settlement of crop insurance claims on farm-stored
production.
Sec. 12015. Time for reimbursement.
Sec. 12016. Reimbursement rate.
Sec. 12017. Renegotiation of Standard Reinsurance Agreement.
Sec. 12018. Change in due date for Corporation payments for underwriting
gains.
Sec. 12019. Malting barley.
Sec. 12020. Crop production on native sod.
Sec. 12021. Information management.
Sec. 12022. Research and development.
Sec. 12023. Contracts for additional policies and studies.
Sec. 12024. Funding from insurance fund.
Sec. 12025. Pilot programs.
Sec. 12026. Risk management education for beginning farmers or ranchers.
Sec. 12027. Coverage for aquaculture under noninsured crop assistance
program.
Sec. 12028. Increase in service fees for noninsured crop assistance
program.
Sec. 12029. Determination of certain sweet potato production.
Sec. 12030. Declining yield report.
Sec. 12031. Definition of basic unit.
Sec. 12032. Crop insurance mediation.
Sec. 12033. Supplemental agricultural disaster assistance.
Sec. 12034. Fisheries disaster assistance.

Subtitle B--Small Business Disaster Loan Program

Sec. 12051. Short title.
Sec. 12052. Definitions.

PART I--Disaster Planning and Response

Sec. 12061. Economic injury disaster loans to nonprofits.
Sec. 12062. Coordination of disaster assistance programs with FEMA.
Sec. 12063. Public awareness of disaster declaration and application
periods.
Sec. 12064. Consistency between administration regulations and standard
operating procedures.
Sec. 12065. Increasing collateral requirements.
Sec. 12066. Processing disaster loans.
Sec. 12067. Information tracking and follow-up system.
Sec. 12068. Increased deferment period.
Sec. 12069. Disaster processing redundancy.
Sec. 12070. Net earnings clauses prohibited.
Sec. 12071. Economic injury disaster loans in cases of ice storms and
blizzards.
Sec. 12072. Development and implementation of major disaster response
plan.
Sec. 12073. Disaster planning responsibilities.
Sec. 12074. Assignment of employees of the office of disaster assistance
and disaster cadre.
Sec. 12075. Comprehensive disaster response plan.
Sec. 12076. Plans to secure sufficient office space.
Sec. 12077. Applicants that have become a major source of employment due
to changed economic circumstances.
Sec. 12078. Disaster loan amounts.
Sec. 12079. Small business bonding threshold.

PART II--Disaster Lending

Sec. 12081. Eligibility for additional disaster assistance.
Sec. 12082. Additional economic injury disaster loan assistance.
Sec. 12083. Private disaster loans.
Sec. 12084. Immediate Disaster Assistance program.
Sec. 12085. Expedited disaster assistance loan program.
Sec. 12086. Gulf Coast Disaster Loan Refinancing Program.

PART III--Miscellaneous

Sec. 12091. Reports on disaster assistance.

[[Page 1662]]
122 STAT. 1662

TITLE XIII--COMMODITY FUTURES

Sec. 13001. Short title.

Subtitle A--General Provisions

Sec. 13101. Commission authority over agreements, contracts or
transactions in foreign currency.
Sec. 13102. Anti-fraud authority over principal-to-principal
transactions.
Sec. 13103. Criminal and civil penalties.
Sec. 13104. Authorization of appropriations.
Sec. 13105. Technical and conforming amendments.
Sec. 13106. Portfolio margining and security index issues.

Subtitle B--Significant Price Discovery Contracts on Exempt Commercial
Markets

Sec. 13201. Significant price discovery contracts.
Sec. 13202. Large trader reporting.
Sec. 13203. Conforming amendments.
Sec. 13204. Effective date.

TITLE XIV--MISCELLANEOUS

Subtitle A--Socially Disadvantaged Producers and Limited Resource
Producers

Sec. 14001. Improved program delivery by Department of Agriculture on
Indian reservations.
Sec. 14002. Foreclosure.
Sec. 14003. Receipt for service or denial of service from certain
Department of Agriculture agencies.
Sec. 14004. Outreach and technical assistance for socially disadvantaged
farmers or ranchers.
Sec. 14005. Accurate documentation in the Census of Agriculture and
certain studies.
Sec. 14006. Transparency and accountability for socially disadvantaged
farmers or ranchers.
Sec. 14007. Oversight and compliance.
Sec. 14008. Minority Farmer Advisory Committee.
Sec. 14009. National Appeals Division.
Sec. 14010. Report of civil rights complaints, resolutions, and actions.
Sec. 14011. Sense of Congress relating to claims brought by socially
disadvantaged farmers or ranchers.
Sec. 14012. Determination on merits of Pigford claims.
Sec. 14013. Office of Advocacy and Outreach.

Subtitle B--Agricultural Security

Sec. 14101. Short title.
Sec. 14102. Definitions.

Chapter 1--Agricultural Security

Sec. 14111. Office of Homeland Security.
Sec. 14112. Agricultural biosecurity communication center.
Sec. 14113. Assistance to build local capacity in agricultural
biosecurity planning, preparedness, and response.

Chapter 2--Other Provisions

Sec. 14121. Research and development of agricultural countermeasures.
Sec. 14122. Agricultural biosecurity grant program.

Subtitle C--Other Miscellaneous Provisions

Sec. 14201. Cotton classification services.
Sec. 14202. Designation of States for cotton research and promotion.
Sec. 14203. Grants to reduce production of methamphetamines from
anhydrous ammonia.
Sec. 14204. Grants to improve supply, stability, safety, and training of
agricultural labor force.
Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978.
Sec. 14206. Report on stored quantities of propane.
Sec. 14207. Prohibitions on dog fighting ventures.
Sec. 14208. Department of Agriculture conference transparency.
Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act
amendments.
Sec. 14210. Importation of live dogs.
Sec. 14211. Permanent debarment from participation in Department of
Agriculture programs for fraud.

[[Page 1663]]
122 STAT. 1663

Sec. 14212. Prohibition on closure or relocation of county offices for
the Farm Service Agency.
Sec. 14213. USDA Graduate School.
Sec. 14214. Fines for violations of the Animal Welfare Act.
Sec. 14215. Definition of central filing system.
Sec. 14216. Consideration of proposed recommendations of study on use of
cats and dogs in Federal research.
Sec. 14217. Regional economic and infrastructure development.
Sec. 14218. Coordinator for chronically underserved rural areas.
Sec. 14219. Elimination of statute of limitations applicable to
collection of debt by administrative offset.
Sec. 14220. Availability of excess and surplus computers in rural areas.
Sec. 14221. Repeal of section 3068 of the Water Resources Development
Act of 2007.
Sec. 14222. Domestic food assistance programs.
Sec. 14223. Technical correction.

TITLE XV--TRADE AND TAX PROVISIONS

Sec. 15001. Short title; etc.

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

Sec. 15101. Supplemental agricultural disaster assistance.

Subtitle B--Revenue Provisions for Agriculture Programs

Sec. 15201. Customs User Fees.
Sec. 15202. Time for payment of corporate estimated taxes.

Subtitle C--Tax Provisions

PART I--Conservation

subpart a--land and species preservation provisions

Sec. 15301. Exclusion of conservation reserve program payments from SECA
tax for certain individuals.
Sec. 15302. Two-year extension of special rule encouraging contributions
of capital gain real property for conservation purposes.
Sec. 15303. Deduction for endangered species recovery expenditures.

subpart b--timber provisions

Sec. 15311. Temporary reduction in rate of tax on qualified timber gain
of corporations.
Sec. 15312. Timber REIT modernization.
Sec. 15313. Mineral royalty income qualifying income for timber REITs.
Sec. 15314. Modification of taxable REIT subsidiary asset test for
timber REITs.
Sec. 15315. Safe harbor for timber property.
Sec. 15316. Qualified forestry conservation bonds.

PART II--Energy Provisions

subpart a--cellulosic biofuel

Sec. 15321. Credit for production of cellulosic biofuel.
Sec. 15322. Comprehensive study of biofuels.

subpart b--revenue provisions

Sec. 15331. Modification of alcohol credit.
Sec. 15332. Calculation of volume of alcohol for fuel credits.
Sec. 15333. Ethanol tariff extension.
Sec. 15334. Limitations on duty drawback on certain imported ethanol.

PART III--Agricultural Provisions

Sec. 15341. Increase in loan limits on agricultural bonds.
Sec. 15342. Allowance of section 1031 treatment for exchanges involving
certain mutual ditch, reservoir, or irrigation company stock.
Sec. 15343. Agricultural chemicals security credit.
Sec. 15344. 3-year depreciation for race horses that are 2-years old or
younger.
Sec. 15345. Temporary tax relief for Kiowa County, Kansas and
surrounding area.
Sec. 15346. Competitive certification awards modification authority.

PART IV--Other Revenue Provisions

Sec. 15351. Limitation on excess farm losses of certain taxpayers.

[[Page 1664]]
122 STAT. 1664

Sec. 15352. Modification to optional method of computing net earnings
from self-employment.
Sec. 15353. Information reporting for Commodity Credit Corporation
transactions.

PART V--Protection of Social Security

Sec. 15361. Protection of social security.

Subtitle D--Trade Provisions

PART I--Extension of Certain Trade Benefits

Sec. 15401. Short title.
Sec. 15402. Benefits for apparel and other textile articles.
Sec. 15403. Labor Ombudsman and technical assistance improvement and
compliance needs assessment and remediation program.
Sec. 15404. Petition process.
Sec. 15405. Conditions regarding enforcement of circumvention.
Sec. 15406. Presidential proclamation authority.
Sec. 15407. Regulations and procedures.
Sec. 15408. Extension of CBTPA.
Sec. 15409. Sense of Congress on interpretation of textile and apparel
provisions for Haiti.
Sec. 15410. Sense of Congress on trade mission to Haiti.
Sec. 15411. Sense of Congress on visa systems.
Sec. 15412. Effective date.

PART II--Miscellaneous Trade Provisions

Sec. 15421. Unused merchandise drawback.
Sec. 15422. Requirements relating to determination of transaction value
of imported merchandise.

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
SEC. 3. [NOTE: 7 USC 8701 note.]  EXPLANATORY STATEMENT.

The Joint Explanatory Statement submitted by the Committee of
Conference for the conference report to accompany H.R. 2419 of the 110th
Congress (House Report 110-627) shall be deemed to be part of the
legislative history of this Act and shall have the same effect with
respect to the implementation of this Act as it would have had with
respect to the implementation of H.R. 2419.
SEC. 4. [NOTE: 7 USC 8701 note.]  REPEAL OF DUPLICATIVE
ENACTMENT.

(a) In General.--The Act entitled ``An Act to provide for the
continuation of agricultural programs through fiscal year 2012, and for
other purposes'' (H.R. 2419 of the 110th Congress), and the amendments
made by that Act, are repealed, effective on the date of enactment of
that Act.
(b) Effective Date.--Except as otherwise provided in this Act, this
Act and the amendments made by this Act shall take effect on the earlier
of--
(1) the date of enactment of this Act; or
(2) the date of the enactment of the Act entitled ``An Act
to provide for the continuation of agricultural programs through
fiscal year 2012, and for other purposes'' (H.R. 2419 of the
110th Congress).

TITLE I--COMMODITY PROGRAMS

SEC. 1001. DEFINITIONS.

In this title (other than subtitle C):

[[Page 1665]]
122 STAT. 1665

(1) Average crop revenue election payment.--The term
``average crop revenue election payment'' means a payment made
to producers on a farm under section 1105.
(2) Base acres.--
(A) In general.--The term ``base acres'', with
respect to a covered commodity on a farm, means the
number of acres established under section 1101 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7911) as in effect on September 30, 2007, subject to any
adjustment under section 1101 of this Act.
(B) Peanuts.--The term ``base acres for peanuts''
has the meaning given the term in section 1301.
(3) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1104.
(4) Covered commodity.--The term ``covered commodity'' means
wheat, corn, grain sorghum, barley, oats, upland cotton, long
grain rice, medium grain rice, pulse crops, soybeans, and other
oilseeds.
(5) Direct payment.--The term ``direct payment'' means a
payment made to producers on a farm under section 1103.
(6) Effective price.--The term ``effective price'', with
respect to a covered commodity for a crop year, means the price
calculated by the Secretary under section 1104 to determine
whether counter-cyclical payments are required to be made for
that crop year.
(7) Extra long staple cotton.--The term ``extra long staple
cotton'' means cotton that--
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid of the species, or
other similar types of extra long staple cotton,
designated by the Secretary, having characteristics
needed for various end uses for which United States
upland cotton is not suitable and grown in irrigated
cotton-growing regions of the United States designated
by the Secretary or other areas designated by the
Secretary as suitable for the production of the
varieties or types; and
(B) is ginned on a roller-type gin or, if authorized
by the Secretary, ginned on another type gin for
experimental purposes.
(8) Loan commodity.--The term ``loan commodity'' means
wheat, corn, grain sorghum, barley, oats, upland cotton, extra
long staple cotton, long grain rice, medium grain rice,
soybeans, other oilseeds, graded wool, nongraded wool, mohair,
honey, dry peas, lentils, small chickpeas, and large chickpeas.
(9) Medium grain rice.--The term ``medium grain rice''
includes short grain rice.
(10) Other oilseed.--The term ``other oilseed'' means a crop
of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, crambe, sesame seed, or any oilseed designated by
the Secretary.
(11) Payment acres.--The term ``payment acres'' means, in
the case of direct payments and counter-cyclical payments--
(A) except as provided in subparagraph (B), 85
percent of the base acres of a covered commodity on a
farm on which direct payments or counter-cyclical
payments are made; and

[[Page 1666]]
122 STAT. 1666

(B) in the case of direct payments for each of the
2009 through 2011 crop years, 83.3 percent of the base
acres for the covered commodity on a farm on which
direct payments are made.
(12) Payment yield.--The term ``payment yield'' means the
yield established for direct payments and the yield established
for counter-cyclical payments under section 1102 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7912) as in
effect on September 30, 2007, or under section 1102 of this Act,
for a farm for a covered commodity.
(13) Producer.--
(A) In general.--The term ``producer'' means an
owner, operator, landlord, tenant, or sharecropper that
shares in the risk of producing a crop and is entitled
to share in the crop available for marketing from the
farm, or would have shared had the crop been produced.
(B) Hybrid seed.--In determining whether a grower of
hybrid seed is a producer, the Secretary shall--
(i) not take into consideration the existence
of a hybrid seed contract; and
(ii) ensure that program requirements do not
adversely affect the ability of the grower to
receive a payment under this title.
(14) Pulse crop.--The term ``pulse crop'' means dry peas,
lentils, small chickpeas, and large chickpeas.
(15) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(16) Target price.--The term ``target price'' means the
price per bushel, pound, or hundredweight (or other appropriate
unit) of a covered commodity used to determine the payment rate
for counter-cyclical payments.
(17) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
(18) United states premium factor.--The term ``United States
Premium Factor'' means the percentage by which the difference in
the United States loan schedule premiums for Strict Middling
(SM) 1\1/8\-inch upland cotton and for Middling (M) 1\3/32\-inch
upland cotton exceeds the difference in the applicable premiums
for comparable international qualities.

Subtitle A--Direct Payments and Counter-Cyclical Payments

SEC. 1101. [NOTE: 7 USC 8711.]  BASE ACRES.

(a) Adjustment of Base Acres.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for covered
commodities for a farm whenever any of the following
circumstances occurs:
(A) A conservation reserve contract entered into
under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with respect to the farm expires or is
voluntarily terminated, or was terminated or expired
during the period

[[Page 1667]]
122 STAT. 1667

beginning on October 1, 2007, and ending on the date of
enactment of this Act.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary, or was
released during the period beginning on October 1, 2007,
and ending on the date of enactment of this Act.
(C) The producer has eligible pulse crop acreage,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(D) The producer has eligible oilseed acreage as the
result of the Secretary designating additional oilseeds,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(2) Special conservation reserve acreage payment rules.--For
the crop year in which a base acres adjustment under
subparagraph (A) or (B) of paragraph (1) is first made, the
owner of the farm shall elect to receive either direct payments
and counter-cyclical payments with respect to the acreage added
to the farm under this subsection or a prorated payment under
the conservation reserve contract, but not both.

(b) Prevention of Excess Base Acres.--
(1) Required reduction.--If the sum of the base acres for a
farm, together with the acreage described in paragraph (2)
exceeds the actual cropland acreage of the farm, the Secretary
shall reduce the base acres for 1 or more covered commodities
for the farm or the base acres for peanuts for the farm so that
the sum of the base acres and acreage described in paragraph (2)
does not exceed the actual cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for peanuts for the farm.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
Federal conservation program for which payments are made
in exchange for not producing an agricultural commodity
on the acreage.
(D) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional oilseeds,
any eligible oilseed acreage, which shall be determined
in the same manner as eligible oilseed acreage under
section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for a
covered commodity or the base acres for peanuts for the farm
against which the reduction required by paragraph (1) will be
made.

[[Page 1668]]
122 STAT. 1668

(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the case
of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1302(b) when applying the
requirements of this subsection.

(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may reduce, at
any time, the base acres for any covered commodity for
the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in a manner
prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall proportionately
reduce base acres on a farm for covered commodities for
land that has been subdivided and developed for multiple
residential units or other nonfarming uses if the size
of the tracts and the density of the subdivision is such
that the land is unlikely to return to the previous
agricultural use, unless the producers on the farm
demonstrate that the land--
(i) remains devoted to commercial agricultural
production; or
(ii) is likely to be returned to the previous
agricultural use.
(B) [NOTE: Procedures.]  Requirement.--The
Secretary shall establish procedures to identify land
described in subparagraph (A).
(3) Review and report.--Each year, to ensure, to the maximum
extent practicable, that payments are received only by
producers, the Secretary shall submit to Congress a report that
describes the results of the actions taken under paragraph (2).

(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive direct payments,
counter-cyclical payments, or average crop revenue election
payments if the sum of the base acres of the farm is 10 acres or
less, as determined by the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a farm
owned by--
(A) 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)); or
(B) a limited resource farmer or rancher, as defined
by the Secretary.
(3) Data collection and publication.--The Secretary shall--
(A) collect and publish segregated data and survey
information about the farm profiles, utilization of
land, and crop production; and
(B) perform an evaluation on the supply and price of
fruits and vegetables based on the effects of suspension
of base acres under this section.

[[Page 1669]]
122 STAT. 1669

SEC. 1102. [NOTE: 7 USC 8712.]  PAYMENT YIELDS.

(a) Establishment and Purpose.--For the purpose of making direct
payments and counter-cyclical payments under this subtitle, the
Secretary shall provide for the establishment of a yield for each farm
for any designated oilseed or eligible pulse crop for which a payment
yield was not established under section 1102 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7912) in accordance with this
section.
(b) Payment Yields for Designated Oilseeds and Eligible Pulse
Crops.--
(1) Determination of average yield.--In the case of
designated oilseeds and eligible pulse crops, the Secretary
shall determine the average yield per planted acre for the
designated oilseed or pulse crop on a farm for the 1998 through
2001 crop years, excluding any crop year in which the acreage
planted to the designated oilseed or pulse crop was zero.
(2) Adjustment for payment yield.--
(A) In general.--The payment yield for a farm for a
designated oilseed or eligible pulse crop shall be equal
to the product of the following:
(i) The average yield for the designated
oilseed or pulse crop determined under paragraph
(1).
(ii) The ratio resulting from dividing the
national average yield for the designated oilseed
or pulse crop for the 1981 through 1985 crops by
the national average yield for the designated
oilseed or pulse crop for the 1998 through 2001
crops.
(B) No national average yield information
available.--To the extent that national average yield
information for a designated oilseed or pulse crop is
not available, the Secretary shall use such information
as the Secretary determines to be fair and equitable to
establish a national average yield under this section.
(3) Use of partial county average yield.--If the yield per
planted acre for a crop of a designated oilseed or pulse crop
for a farm for any of the 1998 through 2001 crop years was less
than 75 percent of the county yield for that designated oilseed
or pulse crop, the Secretary shall assign a yield for that crop
year equal to 75 percent of the county yield for the purpose of
determining the average under paragraph (1).
(4) No historic yield data available.--In the case of
establishing yields for designated oilseeds and eligible pulse
crops, if historic yield data is not available, the Secretary
shall use the ratio for dry peas calculated under paragraph
(2)(A)(ii) in determining the yields for designated oilseeds and
eligible pulse crops, as determined to be fair and equitable by
the Secretary.
SEC. 1103. [NOTE: 7 USC 8713.]  AVAILABILITY OF DIRECT PAYMENTS.

(a) Payment Required.--For each of the 2008 through 2012 crop years
of each covered commodity (other than pulse crops), the Secretary shall
make direct payments to producers on farms for which base acres and
payment yields are established.
(b) Payment Rate.--Except as provided in section 1105, the payment
rates used to make direct payments with respect to covered commodities
for a crop year shall be as follows:
(1) Wheat, $0.52 per bushel.

[[Page 1670]]
122 STAT. 1670

(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Long grain rice, $2.35 per hundredweight.
(8) Medium grain rice, $2.35 per hundredweight.
(9) Soybeans, $0.44 per bushel.
(10) Other oilseeds, $0.80 per hundredweight.

(c) Payment Amount.--The amount of the direct payment to be paid to
the producers on a farm for a covered commodity for a crop year shall be
equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.

(d) Time for Payment.--
(1) In general.--Except as provided in paragraph (2), in the
case of each of the 2008 through 2012 crop years, the Secretary
may not make direct payments before October 1 of the calendar
year in which the crop of the covered commodity is harvested.
(2) Advance payments.--
(A) Option.--
(i) In general.--At the option of the
producers on a farm, the Secretary shall pay in
advance up to 22 percent of the direct payment for
a covered commodity for any of the 2008 through
2011 crop years to the producers on a farm.
(ii) 2008 crop year.--If the producers on a
farm elect to receive advance direct payments
under clause (i) for a covered commodity for the
2008 crop year, as soon as practicable after the
election, the Secretary shall make the advance
direct payment to the producers on the farm.
(B) Month.--
(i) Selection.--Subject to clauses (ii) and
(iii), the producers on a farm shall select the
month during which the advance payment for a crop
year will be made.
(ii) Options.--The month selected may be any
month during the period--
(I) beginning on December 1 of the
calendar year before the calendar year
in which the crop of the covered
commodity is harvested; and
(II) ending during the month within
which the direct payment would otherwise
be made.
(iii) Change.--The producers on a farm may
change the selected month for a subsequent advance
payment by providing advance notice to the
Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year ceases
to be a producer on that farm, or the extent to which the
producer shares in the risk of producing a crop changes, before
the date the remainder of the direct payment is made, the
producer shall be responsible for repaying the

[[Page 1671]]
122 STAT. 1671

Secretary the applicable amount of the advance payment, as
determined by the Secretary.
SEC. 1104. [NOTE: 7 USC 8714.]  AVAILABILITY OF COUNTER-CYCLICAL
PAYMENTS.

(a) Payment Required.--Except as provided in section 1105, for each
of the 2008 through 2012 crop years for each covered commodity, the
Secretary shall make counter-cyclical payments to producers on farms for
which payment yields and base acres are established with respect to the
covered commodity if the Secretary determines that the effective price
for the covered commodity is less than the target price for the covered
commodity.
(b) Effective Price.--
(1) Covered commodities other than rice.--Except as provided
in paragraph (2), for purposes of subsection (a), the effective
price for a covered commodity is equal to the sum of the
following:
(A) The higher of the following:
(i) The national average market price received
by producers during the 12-month marketing year
for the covered commodity, as determined by the
Secretary.
(ii) The national average loan rate for a
marketing assistance loan for the covered
commodity in effect for the applicable period
under subtitle B.
(B) The payment rate in effect for the covered
commodity under section 1103 for the purpose of making
direct payments with respect to the covered commodity.
(2) Rice.--In the case of long grain rice and medium grain
rice, for purposes of subsection (a), the effective price for
each type or class of rice is equal to the sum of the following:
(A) The higher of the following:
(i) The national average market price received
by producers during the 12-month marketing year
for the type or class of rice, as determined by
the Secretary.
(ii) The national average loan rate for a
marketing assistance loan for the type or class of
rice in effect for the applicable period under
subtitle B.
(B) The payment rate in effect for the type or class
of rice under section 1103 for the purpose of making
direct payments with respect to the type or class of
rice.

(c) Target Price.--
(1) 2008 crop year.--For purposes of the 2008 crop year, the
target prices for covered commodities shall be as follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $5.80 per bushel.
(J) Other oilseeds, $10.10 per hundredweight.
(2) 2009 crop year.--For purposes of the 2009 crop year, the
target prices for covered commodities shall be as follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.

[[Page 1672]]
122 STAT. 1672

(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $5.80 per bushel.
(J) Other oilseeds, $10.10 per hundredweight.
(K) Dry peas, $8.32 per hundredweight.
(L) Lentils, $12.81 per hundredweight.
(M) Small chickpeas, $10.36 per hundredweight.
(N) Large chickpeas, $12.81 per hundredweight.
(3) Subsequent crop years.--For purposes of each of the 2010
through 2012 crop years, the target prices for covered
commodities shall be as follows:
(A) Wheat, $4.17 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.63 per bushel.
(D) Barley, $2.63 per bushel.
(E) Oats, $1.79 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $6.00 per bushel.
(J) Other oilseeds, $12.68 per hundredweight.
(K) Dry peas, $8.32 per hundredweight.
(L) Lentils, $12.81 per hundredweight.
(M) Small chickpeas, $10.36 per hundredweight.
(N) Large chickpeas, $12.81 per hundredweight.

(d) Payment Rate.--The payment rate used to make counter-cyclical
payments with respect to a covered commodity for a crop year shall be
equal to the difference between--
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection (b) for
the covered commodity.

(e) Payment Amount.--If counter-cyclical payments are required to be
paid under this section for any of the 2008 through 2012 crop years of a
covered commodity, the amount of the counter-cyclical payment to be paid
to the producers on a farm for that crop year shall be equal to the
product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.

(f) Time for Payments.--
(1) General rule.--Except as provided in paragraph (2), if
the Secretary determines under subsection (a) that counter-
cyclical payments are required to be made under this section for
the crop of a covered commodity, beginning October 1, or as soon
as practicable thereafter, after the end of the marketing year
for the covered commodity, the Secretary shall make the counter-
cyclical payments for the crop.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the 12-month
marketing year for a covered commodity, the Secretary
estimates that counter-cyclical payments will be
required for the crop of the covered commodity, the
Secretary shall

[[Page 1673]]
122 STAT. 1673

give producers on a farm the option to receive partial
payments of the counter-cyclical payment projected to be
made for that crop of the covered commodity.
(B) [NOTE: Deadlines.]  Election.--
(i) In general.--The Secretary shall allow
producers on a farm to make an election to receive
partial payments for a covered commodity under
subparagraph (A) at any time but not later than 60
days prior to the end of the marketing year for
that covered commodity.
(ii) Date of issuance.--The Secretary shall
issue the partial payment after the date of an
announcement by the Secretary but not later than
30 days prior to the end of the marketing year.
(3) Time for partial payments.--When the Secretary makes
partial payments for a covered commodity for any of the 2008
through 2010 crop years--
(A) the first partial payment shall be made after
completion of the first 180 days of the marketing year
for the covered commodity; and
(B) the final partial payment shall be made
beginning October 1, or as soon as practicable
thereafter, after the end of the applicable marketing
year for the covered commodity.
(4) Amount of partial payment.--
(A) First partial payment.--For each of the 2008
through 2010 crops of a covered commodity, the first
partial payment under paragraph (3) to the producers on
a farm may not exceed 40 percent of the projected
counter-cyclical payment for the covered commodity for
the crop year, as determined by the Secretary.
(B) Final payment.--The final payment for a covered
commodity for a crop year shall be equal to the
difference between--
(i) the actual counter-cyclical payment to be
made to the producers for the covered commodity
for that crop year; and
(ii) the amount of the partial payment made to
the producers under subparagraph (A).
(5) Repayment.--The producers on a farm that receive a
partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total of
the partial payments exceed the actual counter-cyclical payment
to be made for the covered commodity for that crop year.
SEC. 1105. [NOTE: 7 USC 8715.]  AVERAGE CROP REVENUE ELECTION
PROGRAM.

(a) Availability and Election of Alternative Approach.--
(1) Availability of average crop revenue election
payments.--As an alternative to receiving counter-cyclical
payments under section 1104 or 1304 and in exchange for a 20-
percent reduction in direct payments under section 1103 or 1303
and a 30-percent reduction in marketing assistance loan rates
under section 1202 or 1307, with respect to all covered
commodities and peanuts on a farm, during each of the 2009,
2010, 2011, and 2012 crop years, the Secretary shall give the
producers on the farm an opportunity to make an irrevocable

[[Page 1674]]
122 STAT. 1674

election to instead receive average crop revenue election
(referred to in this section as ``ACRE'') payments under this
section for the initial crop year for which the election is made
through the 2012 crop year.
(2) Limitation.--
(A) In general.--The total number of planted acres
for which the producers on a farm may receive ACRE
payments under this section may not exceed the total
base acreage for all covered commodities and peanuts on
the farm.
(B) Election.--If the total number of planted acres
to all covered commodities and peanuts of the producers
on a farm exceeds the total base acreage of the farm,
the producers on the farm may choose which planted acres
to enroll in the program under this section.
(3) Election; time for election.--
(A) [NOTE: Notice.]  In general.--The Secretary
shall provide notice to producers regarding the
opportunity to make each of the elections 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.
(4) [NOTE: Notice.]  Election deadline.--Within the time
period and in the manner prescribed pursuant to paragraph (3),
all of the producers on a farm shall submit to the Secretary
notice of an election made under paragraph (1).
(5) Effect of failure to make election.--If all of the
producers on a farm fail to make an election under paragraph
(1), make different elections under paragraph (1), or fail to
timely notify the Secretary of the election made, as required by
paragraph (4), all of the producers on the farm shall be deemed
to have made the election to receive counter-cyclical payments
under section 1104 or 1304 for all covered commodities and
peanuts on the farm, and to otherwise not have made the election
described in paragraph (1), for the applicable crop years.

(b) Payments Required.--
(1) In general.--In the case of producers on a farm who make
an election under subsection (a) to receive ACRE payments for
any of the 2009 through 2012 crop years for all covered
commodities and peanuts, the Secretary shall make ACRE payments
available to the producers on a farm in accordance with this
subsection.
(2) ACRE payment.--
(A) In general.--Subject to paragraph (3), in the
case of producers on a farm described in paragraph (1),
the Secretary shall make ACRE payments available to the
producers on a farm for each 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

[[Page 1675]]
122 STAT. 1675

(ii) the ACRE 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 make ACRE
payments available to the producers on a farm in a State
for a crop year only if (as determined by the
Secretary)--
(i) the actual farm revenue for the crop year
for the covered commodity or peanuts, as
determined under subsection (e); is less than
(ii) the farm ACRE benchmark revenue for the
crop year for the covered commodity or peanuts, as
determined under subsection (f).
(3) Time for payments.--In the case of each of the 2009
through 2012 crop years, the Secretary shall make ACRE payments
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)(2)(A), the
amount of the actual State revenue for a crop year of a covered
commodity or peanuts shall equal the product obtained by
multiplying--
(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 national average market 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),
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) National average market price.--For purposes of
paragraph (1)(B), the national average market price for a crop
year for a covered commodity or peanuts in a State shall equal
the greater of--
(A) the national average market price received by
producers during the 12-month marketing year for the
covered commodity or peanuts, as determined by the
Secretary; or
(B) the marketing assistance loan rate for the
covered commodity or peanuts under section 1202 or 1307,
as reduced under subsection (a)(1).

(d) ACRE Program Guarantee.--
(1) Amount.--
(A) In general.--For purposes of subsection
(b)(2)(A) and subject to subparagraph (B), the ACRE
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--
(i) the benchmark State yield for each planted
acre for the crop year for the covered commodity
or

[[Page 1676]]
122 STAT. 1676

peanuts in a State determined under paragraph (2);
and
(ii) the ACRE program guarantee price for the
crop year for the covered commodity or peanuts
determined under paragraph (3).
(B) Minimum and maximum guarantee.--In the case of
each of the 2010 through 2012 crop years, the ACRE
program guarantee for a crop year for a covered
commodity or peanuts under subparagraph (A) shall not
decrease or increase more than 10 percent from the
guarantee for the preceding crop year.
(2) Benchmark state yield.--
(A) In general.--For purposes of paragraph
(1)(A)(i), subject to subparagraph (B), the benchmark
State yield for each planted acre for a crop year for a
covered commodity or peanuts in a State shall equal the
average yield per planted acre for the covered commodity
or peanuts in the State for the most recent 5 crop year
yields, excluding each of the crop years with the
highest and lowest yields, using National Agricultural
Statistics Service data.
(B) Assigned yield.--If the Secretary cannot
establish the benchmark 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
yield determined under subparagraph (A) is an
unrepresentative average yield for the State (as
determined by the Secretary), the Secretary shall assign
a benchmark State yield for each planted acre for the
crop year for the covered commodity or peanuts in the
State on the basis of--
(i) previous average yields for a period of 5
crop years, excluding each of the crop years with
the highest and lowest yields; or
(ii) benchmark State yields for planted acres
for the crop year for the covered commodity or
peanuts in similar States.
(3) ACRE program guarantee price.--For purposes of paragraph
(1)(A)(ii), the ACRE program guarantee price for a crop year for
a covered commodity or peanuts in a State shall be the simple
average of the national average market price received by
producers of the covered commodity or peanuts for the most
recent 2 crop years, as determined by the Secretary.
(4) States with irrigated and nonirrigated land.--In the
case of a State in which at least 25 percent of the acreage
planted to a covered commodity or peanuts in the State is
irrigated and at least 25 percent of the acreage planted to the
covered commodity or peanuts in the State is not irrigated, the
Secretary shall calculate a separate ACRE program guarantee for
the irrigated and nonirrigated areas of the State for the
covered commodity or peanuts.

(e) Actual Farm Revenue.--For purposes of subsection (b)(2)(B)(i),
the amount of the actual farm revenue for a crop year for a covered
commodity or peanuts shall equal the amount determined by multiplying--
(1) the actual yield for the covered commodity or peanuts of
the producers on the farm; and

[[Page 1677]]
122 STAT. 1677

(2) the national average market price for the crop year for
the covered commodity or peanuts determined under subsection
(c)(3).

(f) Farm ACRE Benchmark Revenue.--For purposes of subsection
(b)(2)(B)(ii), the farm ACRE benchmark revenue for the crop year for a
covered commodity or peanuts shall equal the sum obtained by adding--
(1) the amount determined by multiplying--
(A) the average yield per planted acre for the
covered commodity or peanuts of the producers on the
farm for the most recent 5 crop years, excluding each of
the crop years with the highest and lowest yields; and
(B) the ACRE program guarantee price for the
applicable crop year for the covered commodity or
peanuts in a State determined under subsection (d)(3);
and
(2) the amount of the per acre crop insurance premium
required to be paid by the producers on the farm for the
applicable crop year for the covered commodity or peanuts on the
farm.

(g) Payment Amount.--If ACRE payments are required to be paid for
any of the 2009 through 2012 crop years of a covered commodity or
peanuts under this section, the amount of the ACRE payment to be paid to
the producers on the farm for the crop year under this section shall be
equal to the product obtained by multiplying--
(1) the lesser of--
(A) the difference between--
(i) the ACRE program guarantee for the crop
year for the covered commodity or peanuts in the
State determined under subsection (d); and
(ii) the actual State revenue from the crop
year for the covered commodity or peanuts in the
State determined under subsection (c); and
(B) 25 percent of the ACRE program guarantee for the
crop year for the covered commodity or peanuts in the
State determined under subsection (d);
(2)(A) for each of the 2009 through 2011 crop years, 83.3
percent of the acreage planted or considered planted to the
covered commodity or peanuts for harvest on the farm in the crop
year; and
(B) for the 2012 crop year, 85 percent of the acreage
planted or considered planted to the covered commodity or
peanuts for harvest on the farm in the crop year; and
(3) the quotient obtained by dividing--
(A) the average yield per planted acre for the
covered commodity or peanuts of the producers on the
farm for the most recent 5 crop years, excluding each of
the crop years with the highest and lowest yields; by
(B) the benchmark State yield for the crop year, as
determined under subsection (d)(2).
SEC. 1106. [NOTE: 7 USC 8716.]  PRODUCER AGREEMENT REQUIRED AS
CONDITION OF PROVISION OF PAYMENTS.

(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive direct payments, counter-cyclical payments, or average
crop revenue election payments with respect to the farm, the

[[Page 1678]]
122 STAT. 1678

producers shall agree, 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.);
(C) to comply with the planting flexibility
requirements of section 1107;
(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 subtitle C, for an
agricultural or conserving use, and not for a
nonagricultural commercial, industrial, or residential
use, 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 in base acres for which direct
payments or counter-cyclical payments are made, or on
which average crop revenue election payments are based,
shall result in the termination of the direct payments,
counter-cyclical payments, or average crop revenue
election payments to the extent the payments are made or
based on the base acres, unless the transferee or owner
of the acreage 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 a direct payment,
counter-cyclical payment, or average crop revenue election
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) Reports.--
(1) Acreage reports.--As a condition on the receipt of any
benefits under this subtitle or subtitle B, 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) Production reports.--As a condition on the receipt of
any benefits under this subtitle or subtitle B, the Secretary
shall require producers on a farm that receive payments under
section 1105 to submit to the Secretary annual production

[[Page 1679]]
122 STAT. 1679

reports with respect to all covered commodities and peanuts
produced on the farm.
(3) Penalties.--No penalty with respect to benefits under
this subtitle or subtitle B shall be assessed against the
producers on a farm for an inaccurate acreage or production
report unless the producers on the farm knowingly and willfully
falsified the acreage or production 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 direct payments, counter-cyclical payments, or average crop
revenue election payments among the producers on a farm on a fair and
equitable basis.
SEC. 1107. [NOTE: 7 USC 8717.]  PLANTING FLEXIBILITY.

(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on base acres on a farm.
(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 direct payments and counter-cyclical
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) direct payments and counter-cyclical payments
shall be reduced by an acre for each acre planted to
such agricultural commodity.

[[Page 1680]]
122 STAT. 1680

(d) Planting Transferability Pilot Project.--
(1) Pilot project authorized.--Notwithstanding paragraphs
(1) and (2) of subsection (b) and in addition to the exceptions
provided in subsection (c), the Secretary shall carry out a
pilot project to permit the planting of cucumbers, green peas,
lima beans, pumpkins, snap beans, sweet corn, and tomatoes grown
for processing on base acres during each of the 2009 through
2012 crop years.
(2) Pilot project states and acres.--The number of base
acres eligible during each crop year for the pilot project under
paragraph (1) shall be--
(A) 9,000 acres in the State of Illinois;
(B) 9,000 acres in the State of Indiana;
(C) 1,000 acres in the State of Iowa;
(D) 9,000 acres in the State of Michigan;
(E) 34,000 acres in the State of Minnesota;
(F) 4,000 acres in the State of Ohio; and
(G) 9,000 acres in the State of Wisconsin.
(3) Contract and management requirements.--To be eligible
for selection to participate in the pilot project, the producers
on a farm shall--
(A) demonstrate to the Secretary that the producers
on the farm have entered into a contract to produce a
crop of a commodity specified in paragraph (1) for
processing;
(B) agree to produce the crop as part of a program
of crop rotation on the farm to achieve agronomic and
pest and disease management benefits; and
(C) provide evidence of the disposition of the crop.
(4) Temporary reduction in base acres.--The base acres on a
farm for a crop year shall be reduced by an acre for each acre
planted under the pilot program.
(5) Duration of reductions.--The reduction in the base acres
of a farm for a crop year under paragraph (4) shall expire at
the end of the crop year.
(6) Recalculation of base acres.--
(A) In general.--If the Secretary recalculates base
acres for a farm while the farm is included in the pilot
project, the planting and production of a crop of a
commodity specified in paragraph (1) on base acres for
which a temporary reduction was made under this section
shall be considered to be the same as the planting and
production of a covered commodity.
(B) Prohibition.--Nothing in this paragraph provides
authority for the Secretary to recalculate base acres
for a farm.
(7) Pilot impact evaluation.--
(A) In general.--The Secretary shall periodically
evaluate the pilot project conducted under this
subsection to determine the effects of the pilot project
on the supply and price of--
(i) fresh fruits and vegetables; and
(ii) fruits and vegetables for processing.
(B) Determination.--An evaluation under subparagraph
(A) shall include a determination as to whether--
(i) producers of fresh fruits and vegetables
are being negatively impacted; and

[[Page 1681]]
122 STAT. 1681

(ii) existing production capacities are being
supplanted.
(C) Report.--As soon as practicable after conducting
an 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 describes the results of the evaluation.
SEC. 1108. [NOTE: 7 USC 8718.]  SPECIAL RULE FOR LONG GRAIN AND
MEDIUM GRAIN RICE.

(a) Calculation Method.--Subject to subsections (b) and (c), for the
purposes of determining the amount of the counter-cyclical payments to
be paid to the producers on a farm for long grain rice and medium grain
rice under section 1104, the base acres of rice on the farm shall be
apportioned using the 4-year average of the percentages of acreage
planted in the applicable State to long grain rice and medium grain rice
during the 2003 through 2006 crop years, as determined by the Secretary.
(b) Producer Election.--As an alternative to the calculation method
described in subsection (a), the Secretary shall provide producers on a
farm the opportunity to elect to apportion rice base acres on the farm
using the 4-year average of--
(1) the percentages of acreage planted on the farm to long
grain rice and medium grain rice during the 2003 through 2006
crop years;
(2) the percentages of any acreage on the farm that the
producers were prevented from planting to long grain rice and
medium grain rice during the 2003 through 2006 crop years
because of drought, flood, other natural disaster, or other
condition beyond the control of the producers, as determined by
the Secretary; and
(3) in the case of a crop year for which a producer on a
farm elected not to plant to long grain and medium grain rice
during the 2003 through 2006 crop years, the percentages of
acreage planted in the applicable State to long grain rice and
medium grain rice, as determined by the Secretary.

(c) Limitation.--In carrying out this section, the Secretary shall
use the same total base acres, payment acres, and payment yields
established with respect to rice under sections 1101 and 1102 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7912), as
in effect on September 30, 2007, subject to any adjustment under section
1101 of this Act.
SEC. 1109. [NOTE: 7 USC 8719.]  PERIOD OF EFFECTIVENESS.

This subtitle shall be effective beginning with the 2008 crop year
of each covered commodity through the 2012 crop year.

Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

SEC. 1201. [NOTE: 7 USC 8731.]  AVAILABILITY OF NONRECOURSE
MARKETING ASSISTANCE LOANS FOR LOAN
COMMODITIES.

(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2008 through 2012 crops
of each loan commodity, the Secretary shall make available

[[Page 1682]]
122 STAT. 1682

to producers on a farm nonrecourse marketing assistance loans
for loan commodities produced on the farm.
(2) Terms and conditions.--The marketing assistance loans
shall be made under terms and conditions that are prescribed by
the Secretary and at the loan rate established under section
1202 for the loan commodity.

(b) Eligible Production.--The producers on a farm shall be eligible
for a marketing assistance loan under subsection (a) for any quantity of
a loan commodity produced on the farm.
(c) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under subsection
(a), the producer shall 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.) and applicable wetland protection requirements
under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.)
during the term of the loan.
SEC. 1202. [NOTE: 7 USC 8732.]  LOAN RATES FOR NONRECOURSE
MARKETING ASSISTANCE LOANS.

(a) 2008 Crop Year.--For purposes of the 2008 crop year, the loan
rate for a marketing assistance loan under section 1201 for a loan
commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per
pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight
for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $6.22 per hundredweight.
(13) In the case of lentils, $11.72 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of graded wool, $1.00 per pound.
(16) In the case of nongraded wool, $0.40 per pound.
(17) In the case of mohair, $4.20 per pound.
(18) In the case of honey, $0.60 per pound.

(b) 2009 Crop Year.--Except as provided in section 1105, for
purposes of the 2009 crop year, the loan rate for a marketing

[[Page 1683]]
122 STAT. 1683

assistance loan under section 1201 for a loan commodity shall be equal
to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per
pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight
for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.00 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.60 per pound.

(c) 2010 Through 2012 Crop Years.--Except as provided in section
1105, for purposes of each of the 2010 through 2012 crop years, the loan
rate for a marketing assistance loan under section 1201 for a loan
commodity shall be equal to the following:
(1) In the case of wheat, $2.94 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per
pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per hundredweight
for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.

[[Page 1684]]
122 STAT. 1684

(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.

(d) Single County Loan Rate for Other Oilseeds.--The Secretary shall
establish a single loan rate in each county for each kind of other
oilseeds described in subsections (a)(11), (b)(11), and (c)(11).
SEC. 1203. [NOTE: 7 USC 8733.]  TERM OF LOANS.

(a) Term of Loan.--In the case of each loan commodity, a marketing
assistance loan under section 1201 shall have a term of 9 months
beginning on the first day of the first month after the month in which
the loan is made.
(b) Extensions Prohibited.--The Secretary may not extend the term of
a marketing assistance loan for any loan commodity.
SEC. 1204. [NOTE: 7 USC 8734.]  REPAYMENT OF LOANS.

(a) General Rule.--The Secretary shall permit the producers on a
farm to repay a marketing assistance loan under section 1201 for a loan
commodity (other than upland cotton, long grain rice, medium grain rice,
extra long staple cotton, and confectionery and each other kind of
sunflower seed (other than oil sunflower seed)) at a rate that is the
lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283));
(2) a rate (as determined by the Secretary) that--
(A) is calculated based on average market prices for
the loan commodity during the preceding 30-day period;
and
(B) will minimize discrepancies in marketing loan
benefits across State boundaries and across county
boundaries; or
(3) a rate that the Secretary may develop using alternative
methods for calculating a repayment rate for a loan commodity
that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity;

[[Page 1685]]
122 STAT. 1685

(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally; and
(E) minimize discrepancies in marketing loan
benefits across State boundaries and across county
boundaries.

(b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium
Grain Rice.--The Secretary shall permit producers to repay a marketing
assistance loan under section 1201 for upland cotton, long grain rice,
and medium grain rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity, as
determined and adjusted by the Secretary in accordance with this
section.

(c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
marketing assistance loan for extra long staple cotton shall be at the
loan rate established for the commodity under section 1202, plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) [NOTE: Regulations.]  Prevailing World Market Price.--For
purposes of this section and section 1207, the Secretary shall prescribe
by regulation--
(1) a formula to determine the prevailing world market price
for each of upland cotton, long grain rice, and medium grain
rice; and
(2) a mechanism by which the Secretary shall announce
periodically those prevailing world market prices.

(e) Adjustment of Prevailing World Market Price for Upland Cotton,
Long Grain Rice, and Medium Grain Rice.--
(1) Rice.--The prevailing world market price for long grain
rice and medium grain rice determined under subsection (d) shall
be adjusted to United States quality and location.
(2) Cotton.--The prevailing world market price for upland
cotton determined under subsection (d)--
(A) shall be adjusted to United States quality and
location, with the adjustment to include--
(i) a reduction equal to any United States
Premium Factor for upland cotton of a quality
higher than Middling (M) 1\3/32\-inch; and
(ii) the average costs to market the
commodity, including average transportation costs,
as determined by the Secretary; and
(B) may be further adjusted, during the period
beginning on the date of enactment of this Act and
ending on July 31, 2013, if the Secretary determines the
adjustment is necessary to--
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of
upland cotton by the Federal Government;
(iii) ensure that upland cotton produced in
the United States can be marketed freely and
competitively, both domestically and
internationally; and

[[Page 1686]]
122 STAT. 1686

(iv) ensure an appropriate transition between
current-crop and forward-crop price quotations,
except that the Secretary may use forward-crop
price quotations prior to July 31 of a marketing
year only if--
(I) there are insufficient current-
crop price quotations; and
(II) the forward-crop price
quotation is the lowest such quotation
available.
(3) Guidelines for additional adjustments.--In making
adjustments under this subsection, the Secretary shall establish
a mechanism for determining and announcing the adjustments in
order to avoid undue disruption in the United States market.

(f) Repayment Rates for Confectionery and Other Kinds of Sunflower
Seeds.--The Secretary shall permit the producers on a farm to repay a
marketing assistance loan under section 1201 for confectionery and each
other kind of sunflower seed (other than oil sunflower seed) at a rate
that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the repayment rate established for oil sunflower seed.

(g) Payment of Cotton Storage Costs.--
(1) 2008 through 2011 crop years.--Effective for each of the
2008 through 2011 crop years, the Secretary shall provide cotton
storage payments in the same manner, and at the same rates as
the Secretary provided storage payments for the 2006 crop of
cotton, except that the rates shall be reduced by 10 percent.
(2) Subsequent crop years.--Beginning with the 2012 crop
year, the Secretary shall provide cotton storage payments in the
same manner, and at the same rates as the Secretary provided
storage payments for the 2006 crop of cotton, except that the
rates shall be reduced by 20 percent.

(h) Authority to Temporarily Adjust Repayment Rates.--
(1) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment rate
otherwise applicable under this section for marketing assistance
loans under section 1201 for a loan commodity.
(2) Duration.--Any adjustment made under paragraph (1) in
the repayment rate for marketing assistance loans for a loan
commodity shall be in effect on a short-term and temporary
basis, as determined by the Secretary.
SEC. 1205. [NOTE: 7 USC 8735.]  LOAN DEFICIENCY PAYMENTS.

(a) Availability of Loan Deficiency Payments.--
(1) In general.--Except as provided in subsection (d), the
Secretary may make loan deficiency payments available to
producers on a farm that, although eligible to obtain a
marketing assistance loan under section 1201 with respect to a
loan commodity, agree to forgo obtaining the loan for the
commodity in return for loan deficiency payments under this
section.
(2) Unshorn pelts, hay, and silage.--
(A) Marketing assistance loans.--Subject to
subparagraph (B), nongraded wool in the form of unshorn

[[Page 1687]]
122 STAT. 1687

pelts and hay and silage derived from a loan commodity
are not eligible for a marketing assistance loan under
section 1201.
(B) Loan deficiency payment.--Effective for the 2008
through 2012 crop years, the Secretary may make loan
deficiency payments available under this section to
producers on a farm that produce unshorn pelts or hay
and silage derived from a loan commodity.

(b) Computation.--A loan deficiency payment for a loan commodity or
commodity referred to in subsection (a)(2) shall be computed by
multiplying--
(1) the payment rate determined under subsection (c) for the
commodity; by
(2) the quantity of the commodity produced by the eligible
producers, excluding any quantity for which the producers obtain
a marketing assistance loan under section 1201.

(c) Payment Rate.--
(1) In general.--In the case of a loan commodity, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
the loan commodity; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.
(2) Unshorn pelts.--In the case of unshorn pelts, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
ungraded wool; exceeds
(B) the rate at which a marketing assistance loan
for ungraded wool may be repaid under section 1204.
(3) Hay and silage.--In the case of hay or silage derived
from a loan commodity, the payment rate shall be the amount by
which--
(A) the loan rate established under section 1202 for
the loan commodity from which the hay or silage is
derived; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.

(d) Exception for Extra Long Staple Cotton.--This section shall not
apply with respect to extra long staple cotton.
(e) Effective Date for Payment Rate Determination.--The Secretary
shall determine the amount of the loan deficiency payment to be made
under this section to the producers on a farm with respect to a quantity
of a loan commodity or commodity referred to in subsection (a)(2) using
the payment rate in effect under subsection (c) as of the date the
producers request the payment.
SEC. 1206. [NOTE: 7 USC 8736.]  PAYMENTS IN LIEU OF LOAN
DEFICIENCY PAYMENTS FOR GRAZED ACREAGE.

(a) Eligible Producers.--
(1) In general.--Effective for the 2008 through 2012 crop
years, in the case of a producer that would be eligible for a
loan deficiency payment under section 1205 for wheat, barley, or
oats, but that elects to use acreage planted to the wheat,
barley, or oats for the grazing of livestock, the Secretary
shall make a payment to the producer under this section if the
producer enters into an agreement with the Secretary to forgo

[[Page 1688]]
122 STAT. 1688

any other harvesting of the wheat, barley, or oats on that
acreage.
(2) Grazing of triticale acreage.--Effective for the 2008
through 2012 crop years, with respect to a producer on a farm
that uses acreage planted to triticale for the grazing of
livestock, the Secretary shall make a payment to the producer
under this section if the producer enters into an agreement with
the Secretary to forgo any other harvesting of triticale on that
acreage.

(b) Payment Amount.--
(1) In general.--The amount of a payment made under this
section to a producer on a farm described in subsection (a)(1)
shall be equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect, as of the date of the
agreement, for the county in which the farm is located;
by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the
farm with respect to which the producer elects to
forgo harvesting of wheat, barley, or oats; and
(ii) the payment yield in effect for the
calculation of direct payments under subtitle A
with respect to that loan commodity on the farm
or, in the case of a farm without a payment yield
for that loan commodity, an appropriate yield
established by the Secretary in a manner
consistent with section 1102 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7912).
(2) Grazing of triticale acreage.--The amount of a payment
made under this section to a producer on a farm described in
subsection (a)(2) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect for wheat, as of the
date of the agreement, for the county in which the farm
is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the
farm with respect to which the producer elects to
forgo harvesting of triticale; and
(ii) the payment yield in effect for the
calculation of direct payments under subtitle A
with respect to wheat on the farm or, in the case
of a farm without a payment yield for wheat, an
appropriate yield established by the Secretary in
a manner consistent with section 1102 of the Farm
Security and Rural Investment Act of 2002 (7
U.S.C. 7912).

(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan deficiency
payments are made under section 1205.
(2) Availability.--
(A) In general.--The Secretary shall establish an
availability period for the payments authorized by this
section.
(B) Certain commodities.--In the case of wheat,
barley, and oats, the availability period shall be
consistent

[[Page 1689]]
122 STAT. 1689

with the availability period for the commodity
established by the Secretary for marketing assistance
loans authorized by this subtitle.

(d) Prohibition on Crop Insurance Indemnity or Noninsured Crop
Assistance.--A 2008 through 2012 crop of wheat, barley, oats, or
triticale planted on acreage that a producer elects, in the agreement
required by subsection (a), to use for the grazing of livestock in lieu
of any other harvesting of the crop shall not be eligible for an
indemnity under a policy or plan of insurance authorized under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop
assistance under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).
SEC. 1207. [NOTE: 7 USC 8737.]  SPECIAL MARKETING LOAN
PROVISIONS FOR UPLAND COTTON.

(a) Special Import Quota.--
(1) Definition of special import quota.--In this subsection,
the term ``special import quota'' means a quantity of imports
that is not subject to the over-quota tariff rate of a tariff-
rate quota.
(2) Establishment.--
(A) [NOTE: President. Time period.]  In general.--
The President shall carry out an import quota program
during the period beginning on the date of enactment of
this Act through July 31, 2013, as provided in this
subsection.
(B) Program requirements.--Whenever the Secretary
determines and announces that for any consecutive 4-week
period, the Friday through Thursday average price
quotation for the lowest-priced United States growth, as
quoted for Middling (M) 1\3/32\-inch cotton, delivered
to a definable and significant international market, as
determined by the Secretary, exceeds the prevailing
world market price, there shall immediately be in effect
a special import quota.
(3) Quantity.--The quota shall be equal to 1 week's
consumption of cotton by domestic mills at the seasonally
adjusted average rate of the most recent 3 months for which data
are available.
(4) [NOTE: Deadlines.]  Application.--The quota shall
apply to upland cotton purchased not later than 90 days after
the date of the Secretary's announcement under paragraph (2) and
entered into the United States not later than 180 days after
that date.
(5) Overlap.--A special quota period may be established that
overlaps any existing quota period if required by paragraph (2),
except that a special quota period may not be established under
this subsection if a quota period has been established under
subsection (b).
(6) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act
(19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19
U.S.C. 2463(d)); and

[[Page 1690]]
122 STAT. 1690

(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(7) Limitation.--The quantity of cotton entered into the
United States during any marketing year under the special import
quota established under this subsection may not exceed the
equivalent of 10 week's consumption of upland cotton by domestic
mills at the seasonally adjusted average rate of the 3 months
immediately preceding the first special import quota established
in any marketing year.

(b) Limited Global Import Quota for Upland Cotton.--
(1) Definitions.--In this subsection:
(A) Supply.--The term ``supply'' means, using the
latest official data of the Bureau of the Census, the
Department of Agriculture, and the Department of the
Treasury--
(i) the carry-over of upland cotton at the
beginning of the marketing year (adjusted to 480-
pound bales) in which the quota is established;
(ii) production of the current crop; and
(iii) imports to the latest date available
during the marketing year.
(B) Demand.--The term ``demand'' means--
(i) the average seasonally adjusted annual
rate of domestic mill consumption of cotton during
the most recent 3 months for which data are
available; and
(ii) the larger of--
(I) average exports of upland cotton
during the preceding 6 marketing years;
or
(II) cumulative exports of upland
cotton plus outstanding export sales for
the marketing year in which the quota is
established.
(C) Limited global import quota.--The term ``limited
global import quota'' means a quantity of imports that
is not subject to the over-quota tariff rate of a
tariff-rate quota.
(2) [NOTE: President.]  Program.--The President shall
carry out an import quota program that provides that whenever
the Secretary determines and announces that the average price of
the base quality of upland cotton, as determined by the
Secretary, in the designated spot markets for a month exceeded
130 percent of the average price of the quality of cotton in the
markets for the preceding 36 months, notwithstanding any other
provision of law, there shall immediately be in effect a limited
global import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available or as
estimated by the Secretary.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12 months, the quantity of the quota next established
under this subsection shall be the smaller of 21 days of
domestic mill consumption calculated under subparagraph
(A) or the quantity required to increase the supply to
130 percent of the demand.

[[Page 1691]]
122 STAT. 1691

(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized
Tariff Schedule.
(D) Quota entry period.--When a quota is established
under this subsection, cotton may be entered under the
quota during the 90-day period beginning on the date the
quota is established by the Secretary.
(3) No overlap.--Notwithstanding paragraph (2), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(a).

(c) Economic Adjustment Assistance to Users of Upland Cotton.--
(1) In general.--Subject to paragraph (2), the Secretary
shall, on a monthly basis, provide economic adjustment
assistance to domestic users of upland cotton in the form of
payments for all documented use of that upland cotton during the
previous monthly period regardless of the origin of the upland
cotton.
(2) Value of assistance.--
(A) Beginning period.--During the period beginning
on August 1, 2008, and ending on July 31, 2012, the
value of the assistance provided under paragraph (1)
shall be 4 cents per pound.
(B) [NOTE: Effective date.]  Subsequent period.--
Effective beginning on August 1, 2012, the value of the
assistance provided under paragraph (1) shall be 3 cents
per pound.
(3) Allowable purposes.--Economic adjustment assistance
under this subsection shall be made available only to domestic
users of upland cotton that certify that the assistance shall be
used only to acquire, construct, install, modernize, develop,
convert, or expand land, plant, buildings, equipment,
facilities, or machinery.
(4) Review or audit.--The Secretary may conduct such review
or audit of the records of a domestic user under this subsection
as the Secretary determines necessary to carry out this
subsection.
(5) Improper use of assistance.--If the Secretary
determines, after a review or audit of the records of the
domestic user, that economic adjustment assistance under this
subsection was not used for the purposes specified in paragraph
(3), the domestic user shall be--
(A) liable to repay the assistance to the Secretary,
plus interest, as determined by the Secretary; and
(B) ineligible to receive assistance under this
subsection for a period of 1 year following the
determination of the Secretary.

[[Page 1692]]
122 STAT. 1692

SEC. 1208. [NOTE: 7 USC 8738.]  SPECIAL COMPETITIVE PROVISIONS
FOR EXTRA LONG STAPLE COTTON.

(a) [NOTE: Effective date. Termination date.]  Competitiveness
Program.--Notwithstanding any other provision of law, during the period
beginning on the date of enactment of this Act through July 31, 2013,
the Secretary shall carry out a program--
(1) to maintain and expand the domestic use of extra long
staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton produced
in the United States; and
(3) to ensure that extra long staple cotton produced in the
United States remains competitive in world markets.

(b) Payments Under Program; Trigger.--Under the program, the
Secretary shall make payments available under this section whenever--
(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is below the prevailing United
States price for a competing growth of extra long staple cotton;
and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is less than 134 percent of the
loan rate for extra long staple cotton.

(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long staple
cotton produced in the United States and exporters of extra long staple
cotton produced in the United States that enter into an agreement with
the Commodity Credit Corporation to participate in the program under
this section.
(d) Payment Amount.--Payments under this section shall be based on
the amount of the difference in the prices referred to in subsection
(b)(1) during the fourth week of the consecutive 4-week period
multiplied by the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such a
consecutive 4-week period.
SEC. 1209. [NOTE: 7 USC 8739.]  AVAILABILITY OF RECOURSE LOANS
FOR HIGH MOISTURE FEED GRAINS AND SEED
COTTON.

(a) High Moisture Feed Grains.--
(1) Definition of high moisture state.--In this subsection,
the term ``high moisture state'' means corn or grain sorghum
having a moisture content in excess of Commodity Credit
Corporation standards for marketing assistance loans made by the
Secretary under section 1201.
(2) Recourse loans available.--For each of the 2008 through
2012 crops of corn and grain sorghum, the Secretary shall make
available recourse loans, as determined by the Secretary, to
producers on a farm that--
(A) normally harvest all or a portion of their crop
of corn or grain sorghum in a high moisture state;
(B) present--
(i) certified scale tickets from an inspected,
certified commercial scale, including a licensed
warehouse,

[[Page 1693]]
122 STAT. 1693

feedlot, feed mill, distillery, or other similar
entity approved by the Secretary, pursuant to
regulations issued by the Secretary; or
(ii) field or other physical measurements of
the standing or stored crop in regions of the
United States, as determined by the Secretary,
that do not have certified commercial scales from
which certified scale tickets may be obtained
within reasonable proximity of harvest operation;
(C) [NOTE: Certification.]  certify that they were
the owners of the feed grain at the time of delivery to,
and that the quantity to be placed under loan under this
subsection was in fact harvested on the farm and
delivered to, a feedlot, feed mill, or commercial or on-
farm high-moisture storage facility, or to a facility
maintained by the users of corn and grain sorghum in a
high moisture state; and
(D) comply with deadlines established by the
Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection
within deadlines established by the Secretary.
(3) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain sorghum
of the same crop acquired by the producer equivalent to a
quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the producer's farm; by
(B) the lower of the farm program payment yield used
to make counter-cyclical payments under subtitle A or
the actual yield on a field, as determined by the
Secretary, that is similar to the field from which the
corn or grain sorghum was obtained.

(b) Recourse Loans Available for Seed Cotton.--For each of the 2008
through 2012 crops of upland cotton and extra long staple cotton, the
Secretary shall make available recourse seed cotton loans, as determined
by the Secretary, on any production.
(c) Repayment Rates.--Repayment of a recourse loan made under this
section shall be at the loan rate established for the commodity by the
Secretary, plus interest (determined in accordance with section 163 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7283)).
SEC. 1210. [NOTE: 7 USC 8740.]  ADJUSTMENTS OF LOANS.

(a) Adjustment Authority.--Subject to subsection (e), the Secretary
may make appropriate adjustments in the loan rates for any loan
commodity (other than cotton) for differences in grade, type, quality,
location, and other factors.
(b) Manner of Adjustment.--The adjustments under subsection (a)
shall, to the maximum extent practicable, be made in such a manner that
the average loan level for the commodity will, on the basis of the
anticipated incidence of the factors, be equal to the level of support
determined in accordance with this subtitle and subtitles B through E.
(c) Adjustment on County Basis.--
(1) In general.--The Secretary may establish loan rates for
a crop for producers in individual counties in a manner that
results in the lowest loan rate being 95 percent of the

[[Page 1694]]
122 STAT. 1694

national average loan rate, if those loan rates do not result in
an increase in outlays.
(2) Prohibition.--Adjustments under this subsection shall
not result in an increase in the national average loan rate for
any year.

(d) Adjustment in Loan Rate for Cotton.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan rate for cotton for differences in
quality factors.
(2) Revisions to quality adjustments for upland cotton.--
(A) [NOTE: Deadline.]  In general.--Not later than
180 days after the date of enactment of this Act, the
Secretary shall implement revisions in the
administration of the marketing assistance loan program
for upland cotton to more accurately and efficiently
reflect market values for upland cotton.
(B) Mandatory revisions.--Revisions under
subparagraph (A) shall include--
(i) the elimination of warehouse location
differentials;
(ii) the establishment of differentials for
the various quality factors and staple lengths of
cotton based on a 3-year, weighted moving average
of the weighted designated spot market regions, as
determined by regional production;
(iii) the elimination of any artificial split
in the premium or discount between upland cotton
with a 32 or 33 staple length due to micronaire;
and
(iv) a mechanism to ensure that no premium or
discount is established that exceeds the premium
or discount associated with a leaf grade that is 1
better than the applicable color grade.
(C) Discretionary revisions.--Revisions under
subparagraph (A) may include--
(i) the use of non-spot market price data, in
addition to spot market price data, that would
enhance the accuracy of the price information used
in determining quality adjustments under this
subsection;
(ii) adjustments in the premiums or discounts
associated with upland cotton with a staple length
of 33 or above due to micronaire with the goal of
eliminating any unnecessary artificial splits in
the calculations of the premiums or discounts; and
(iii) such other adjustments as the Secretary
determines appropriate, after consultations
conducted in accordance with paragraph (3).
(3) Consultation with private sector.--
(A) Prior to revision.--In making adjustments to the
loan rate for cotton (including any review of the
adjustments) as provided in this subsection, the
Secretary shall consult with representatives of the
United States cotton industry.
(B) Inapplicability of federal advisory committee
act.--The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to consultations under this subsection.

[[Page 1695]]
122 STAT. 1695

(4) Review of adjustments.--The Secretary may review the
operation of the upland cotton quality adjustments implemented
pursuant to this subsection and may make further revisions to
the administration of the loan program for upland cotton, by--
(A) revoking or revising any actions taken under
paragraph (2)(B); or
(B) revoking or revising any actions taken or
authorized to be taken under paragraph (2)(C).

(e) Rice.--The Secretary shall not make adjustments in the loan
rates for long grain rice and medium grain rice, except for differences
in grade and quality (including milling yields).

Subtitle C--Peanuts

SEC. 1301. [NOTE: 7 USC 8751.]  DEFINITIONS.

In this subtitle:
(1) Base acres for peanuts.--
(A) In general.--The term ``base acres for peanuts''
means the number of acres assigned to a farm pursuant to
section 1302 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7952), as in effect on September
30, 2007, subject to any adjustment under section 1302
of this Act.
(B) Covered commodities.--The term ``base acres'',
with respect to a covered commodity, has the meaning
given the term in section 1101.
(2) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1304.
(3) Direct payment.--The term ``direct payment'' means a
direct payment made to producers on a farm under section 1303.
(4) Effective price.--The term ``effective price'' means the
price calculated by the Secretary under section 1304 for peanuts
to determine whether counter-cyclical payments are required to
be made under that section for a crop year.
(5) Payment acres.--The term ``payment acres'' means, in the
case of direct payments and counter-cyclical payments--
(A) except as provided in subparagraph (B), 85
percent of the base acres of peanuts on a farm on which
direct payments or counter-cyclical payments are made;
and
(B) in the case of direct payments for each of the
2009 through 2011 crop years, 83.3 percent of the base
acres for peanuts on a farm on which direct payments are
made.
(6) Payment yield.--The term ``payment yield'' means the
yield established for direct payments and the yield established
for counter-cyclical payments under section 1302 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7952), as in
effect on September 30, 2007, for a farm for peanuts.
(7) Producer.--
(A) In general.--The term ``producer'' means an
owner, operator, landlord, tenant, or sharecropper that
shares in the risk of producing a crop on a farm and is
entitled to share in the crop available for marketing

[[Page 1696]]
122 STAT. 1696

from the farm, or would have shared had the crop been
produced.
(B) Hybrid seed.--In determining whether a grower of
hybrid seed is a producer, the Secretary shall--
(i) not take into consideration the existence
of a hybrid seed contract; and
(ii) ensure that program requirements do not
adversely affect the ability of the grower to
receive a payment under this subtitle.
(8) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(9) Target price.--The term ``target price'' means the price
per ton of peanuts used to determine the payment rate for
counter-cyclical payments.
(10) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
SEC. 1302. [NOTE: 7 USC 8752.]  BASE ACRES FOR PEANUTS FOR A
FARM.

(a) Adjustment of Base Acreage for Peanuts.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for peanuts for a
farm whenever any of the following circumstances occur:
(A) A conservation reserve contract entered into
under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with respect to the farm expires or is
voluntarily terminated, or was terminated or expired
during the period beginning on October 1, 2007, and
ending on the date of enactment of this Act.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary, or was
released during the period beginning on October 1, 2007,
and ending on the date of enactment of this Act.
(C) The producer has eligible pulse crop acreage,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(D) The producer has eligible oilseed acreage as the
result of the Secretary designating additional oilseeds,
which shall be determined in the same manner as eligible
oilseed acreage under section 1101(a)(2) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(2) Special conservation reserve acreage payment rules.--For
the crop year in which a base acres for peanuts adjustment under
subparagraph (A) or (B) of paragraph (1) is first made, the
owner of the farm shall elect to receive either direct payments
and counter-cyclical payments with respect to the acreage added
to the farm under this subsection or a prorated payment under
the conservation reserve contract, but not both.

(b) Prevention of Excess Base Acres for Peanuts.--
(1) Required reduction.--If the sum of the base acres for
peanuts for a farm, together with the acreage described in
paragraph (2), exceeds the actual cropland acreage of the

[[Page 1697]]
122 STAT. 1697

farm, the Secretary shall reduce the base acres for peanuts for
the farm or the base acres for 1 or more covered commodities for
the farm so that the sum of the base acres for peanuts and
acreage described in paragraph (2) does not exceed the actual
cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for the farm for a covered
commodity.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
Federal conservation program for which payments are made
in exchange for not producing an agricultural commodity
on the acreage.
(D) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional oilseeds,
any eligible oilseed acreage, which shall be determined
in the same manner as eligible oilseed acreage under
section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for peanuts
or the base acres for covered commodities against which the
reduction required by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the case
of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1101(b) when applying the
requirements of this subsection.

(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may reduce, at
any time, the base acres for peanuts for the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in a manner
prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall proportionately
reduce base acres on a farm for peanuts for land that
has been subdivided and developed for multiple
residential units or other nonfarming uses if the size
of the tracts and the density of the subdivision is such
that the land is unlikely to return to the previous
agricultural use, unless the producers on the farm
demonstrate that the land--
(i) remains devoted to commercial agricultural
production; or
(ii) is likely to be returned to the previous
agricultural use.
(B) [NOTE: Procedures.]  Requirement.--The
Secretary shall establish procedures to identify land
described in subparagraph (A).

[[Page 1698]]
122 STAT. 1698

(3) Review and report.--Each year, to ensure, to the maximum
extent practicable, that payments are received only by
producers, the Secretary shall submit to Congress a report that
describes the results of the actions taken under paragraph (2).

(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive direct payments,
counter-cyclical payments, or average crop revenue election
payments if the sum of the base acres of the farm is 10 acres or
less, as determined by the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a farm
owned by--
(A) 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)); or
(B) a limited resource farmer or rancher, as defined
by the Secretary.
(3) Data collection and publication.--The Secretary shall--
(A) collect and publish segregated data and survey
information about the farm profiles, utilization of
land, and crop production; and
(B) perform an evaluation on the supply and price of
fruits and vegetables based on the effects of suspension
of base acres under this section.
SEC. 1303. [NOTE: 7 USC 8753.]  AVAILABILITY OF DIRECT PAYMENTS
FOR PEANUTS.

(a) Payment Required.--For each of the 2008 through 2012 crop years
for peanuts, the Secretary shall make direct payments to the producers
on a farm for which a payment yield and base acres for peanuts are
established.
(b) Payment Rate.--Except as provided in section 1105, the payment
rate used to make direct payments with respect to peanuts for a crop
year shall be equal to $36 per ton.
(c) Payment Amount.--The amount of the direct payment to be paid to
the producers on a farm for peanuts for a crop year shall be equal to
the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres on the farm.
(3) The payment yield for the farm.

(d) Time for Payment.--
(1) In general.--Except as provided in paragraph (2), in the
case of each of the 2008 through 2012 crop years, the Secretary
may not make direct payments under this section before October 1
of the calendar year in which the crop is harvested.
(2) Advance payments.--
(A) Option.--
(i) In general.--At the option of the
producers on a farm, the Secretary shall pay in
advance up to 22 percent of the direct payment for
peanuts for any of the 2008 through 2011 crop
years to the producers on a farm.
(ii) 2008 crop year.--If the producers on a
farm elect to receive advance direct payments
under clause

[[Page 1699]]
122 STAT. 1699

(i) for peanuts for the 2008 crop year, as soon as
practicable after the election, the Secretary
shall make the advance direct payment to the
producers on the farm.
(B) Month.--
(i) Selection.--Subject to clauses (ii) and
(iii), the producers on a farm shall select the
month during which the advance payment for a crop
year will be made.
(ii) Options.--The month selected may be any
month during the period--
(I) beginning on December 1 of the
calendar year before the calendar year
in which the crop of peanuts is
harvested; and
(II) ending during the month within
which the direct payment would otherwise
be made.
(iii) Change.--The producers on a farm may
change the selected month for a subsequent advance
payment by providing advance notice to the
Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year ceases
to be a producer on that farm, or the extent to which the
producer shares in the risk of producing a crop changes, before
the date the remainder of the direct payment is made, the
producer shall be responsible for repaying the Secretary the
applicable amount of the advance payment, as determined by the
Secretary.
SEC. 1304. [NOTE: 7 USC 8754.]  AVAILABILITY OF COUNTER-CYCLICAL
PAYMENTS FOR PEANUTS.

(a) Payment Required.--Except as provided in section 1105, for each
of the 2008 through 2012 crop years for peanuts, the Secretary shall
make counter-cyclical payments to producers on farms for which payment
yields and base acres for peanuts are established if the Secretary
determines that the effective price for peanuts is less than the target
price for peanuts.
(b) Effective Price.--For purposes of subsection (a), the effective
price for peanuts is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price for peanuts
received by producers during the 12-month marketing year
for peanuts, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for peanuts in effect for the applicable
period under this subtitle.
(2) The payment rate in effect for peanuts under section
1303 for the purpose of making direct payments.

(c) Target Price.--For purposes of subsection (a), the target price
for peanuts shall be equal to $495 per ton.
(d) Payment Rate.--The payment rate used to make counter-cyclical
payments for a crop year shall be equal to the difference between--
(1) the target price for peanuts; and
(2) the effective price determined under subsection (b) for
peanuts.

(e) Payment Amount.--If counter-cyclical payments are required to be
paid for any of the 2008 through 2012 crops of

[[Page 1700]]
122 STAT. 1700

peanuts, the amount of the counter-cyclical payment to be paid to the
producers on a farm for that crop year shall be equal to the product of
the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres on the farm.
(3) The payment yield for the farm.

(f) Time for Payments.--
(1) General rule.--Except as provided in paragraph (2), if
the Secretary determines under subsection (a) that counter-
cyclical payments are required to be made under this section for
a crop of peanuts, beginning October 1, or as soon as
practicable after the end of the marketing year, the Secretary
shall make the counter-cyclical payments for the crop.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the 12-month
marketing year, the Secretary estimates that counter-
cyclical payments will be required under this section
for a crop year, the Secretary shall give producers on a
farm the option to receive partial payments of the
counter-cyclical payment projected to be made for the
crop.
(B) [NOTE: Deadline.]  Election.--
(i) In general.--The Secretary shall allow
producers on a farm to make an election to receive
partial payments under subparagraph (A) at any
time but not later than 60 days prior to the end
of the marketing year for the crop.
(ii) Date of issuance.--The Secretary shall
issue the partial payment after the date of an
announcement by the Secretary but not later than
30 days prior to the end of the marketing year.
(3) Time for partial payments.--When the Secretary makes
partial payments for any of the 2008 through 2010 crop years--
(A) the first partial payment shall be made after
completion of the first 180 days of the marketing year
for that crop; and
(B) the final partial payment shall be made
beginning October 1, or as soon as practicable
thereafter, after the end of the applicable marketing
year for that crop.
(4) Amount of partial payments.--
(A) First partial payment.--For each of the 2008
through 2010 crop years, the first partial payment under
paragraph (3) to the producers on a farm may not exceed
40 percent of the projected counter-cyclical payment for
the crop year, as determined by the Secretary.
(B) Final payment.--The final payment for a crop
year shall be equal to the difference between--
(i) the actual counter-cyclical payment to be
made to the producers for that crop year; and
(ii) the amount of the partial payment made to
the producers under subparagraph (A).
(5) Repayment.--The producers on a farm that receive a
partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total of
the partial payments exceed the actual counter-cyclical payment
to be made for that crop year.

[[Page 1701]]
122 STAT. 1701

SEC. 1305. [NOTE: 7 USC 8755.]  PRODUCER AGREEMENT REQUIRED AS
CONDITION ON PROVISION OF PAYMENTS.

(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive direct payments or counter-cyclical payments under this
subtitle, or average crop revenue election payments under
section 1105, with respect to the farm, the producers shall
agree, 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.);
(C) to comply with the planting flexibility
requirements of section 1306;
(D) to use the land on the farm, in a quantity equal
to the attributable base acres for peanuts and any base
acres for the farm under subtitle A, for an agricultural
or conserving use, and not for a nonagricultural
commercial, industrial, or residential use, 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 in the base acres for peanuts for
which direct payments or counter-cyclical payments are
made, or on which average crop revenue election payments
are based, shall result in the termination of the direct
payments, counter-cyclical payments, or average crop
revenue election payments to the extent the payments are
made or based on the base acres, unless the transferee
or owner of the acreage 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 a direct payment,
counter-cyclical payment, or average crop revenue election
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.--

[[Page 1702]]
122 STAT. 1702

(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
this 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 direct payments, counter-cyclical payments, or average crop
revenue election payments under section 1105 among the producers on a
farm on a fair and equitable basis.
SEC. 1306. [NOTE: 7 USC 8756.]  PLANTING FLEXIBILITY.

(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on the base acres for peanuts on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on base
acres for peanuts 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 for peanuts.
(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 peanuts 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 the base acres for peanuts, except that direct payments and
counter-cyclical 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

[[Page 1703]]
122 STAT. 1703

(B) direct payments and counter-cyclical payments
shall be reduced by an acre for each acre planted to
such agricultural commodity.
SEC. 1307. [NOTE: 7 USC 8757.]  MARKETING ASSISTANCE LOANS AND
LOAN DEFICIENCY PAYMENTS FOR PEANUTS.

(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2008 through 2012 crops
of peanuts, the Secretary shall make available to producers on a
farm nonrecourse marketing assistance loans for peanuts produced
on the farm.
(2) Terms and conditions.--The loans shall be made under
terms and conditions that are prescribed by the Secretary and at
the loan rate established under subsection (b).
(3) Eligible production.--The producers on a farm shall be
eligible for a marketing assistance loan under this subsection
for any quantity of peanuts produced on the farm.
(4) Options for obtaining loan.--A marketing assistance loan
under this subsection, and loan deficiency payments under
subsection (e), may be obtained at the option of the producers
on a farm through--
(A) a designated marketing association or marketing
cooperative of producers that is approved by the
Secretary; or
(B) the Farm Service Agency.
(5) Storage of loan peanuts.--As a condition on the
Secretary's approval of an individual or entity to provide
storage for peanuts for which a marketing assistance loan is
made under this section, the individual or entity shall agree--
(A) to provide such storage on a nondiscriminatory
basis; and
(B) to comply with such additional requirements as
the Secretary considers appropriate to accomplish the
purposes of this section and promote fairness in the
administration of the benefits of this section.
(6) Storage, handling, and associated costs.--
(A) In general.--Beginning with the 2008 crop of
peanuts, to ensure proper storage of peanuts for which a
loan is made under this section, the Secretary shall pay
handling and other associated costs (other than storage
costs) incurred at the time at which the peanuts are
placed under loan, as determined by the Secretary.
(B) Redemption and forfeiture.--The Secretary
shall--
(i) require the repayment of handling and
other associated costs paid under subparagraph (A)
for all peanuts pledged as collateral for a loan
that is redeemed under this section; and
(ii) pay storage, handling, and other
associated costs for all peanuts pledged as
collateral that are forfeited under this section.
(7) Marketing.--A marketing association or cooperative may
market peanuts for which a loan is made under this section in
any manner that conforms to consumer needs, including the
separation of peanuts by type and quality.

[[Page 1704]]
122 STAT. 1704

(b) Loan Rate.--Except as provided in section 1105, the loan rate
for a marketing assistance loan for peanuts under subsection (a) shall
be equal to $355 per ton.
(c) Term of Loan.--
(1) In general.--A marketing assistance loan for peanuts
under subsection (a) shall have a term of 9 months beginning on
the first day of the first month after the month in which the
loan is made.
(2) Extensions prohibited.--The Secretary may not extend the
term of a marketing assistance loan for peanuts under subsection
(a).

(d) Repayment Rate.--
(1) In general.--The Secretary shall permit producers on a
farm to repay a marketing assistance loan for peanuts under
subsection (a) at a rate that is the lesser of--
(A) the loan rate established for peanuts under
subsection (b), plus interest (determined in accordance
with section 163 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7283)); or
(B) a rate that the Secretary determines will--
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of
peanuts by the Federal Government;
(iii) minimize the cost incurred by the
Federal Government in storing peanuts; and
(iv) allow peanuts produced in the United
States to be marketed freely and competitively,
both domestically and internationally.
(2) Authority to temporarily adjust repayment rates.--
(A) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment
rate otherwise applicable under this subsection for
marketing assistance loans for peanuts under subsection
(a).
(B) Duration.--An adjustment made under subparagraph
(A) in the repayment rate for marketing assistance loans
for peanuts shall be in effect on a short-term and
temporary basis, as determined by the Secretary.

(e) Loan Deficiency Payments.--
(1) Availability.--The Secretary may make loan deficiency
payments available to producers on a farm that, although
eligible to obtain a marketing assistance loan for peanuts under
subsection (a), agree to forgo obtaining the loan for the
peanuts in return for loan deficiency payments under this
subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the payment rate determined under paragraph (3)
for peanuts; by
(B) the quantity of the peanuts produced by the
producers, excluding any quantity for which the
producers obtain a marketing assistance loan under
subsection (a).
(3) Payment rate.--For purposes of this subsection, the
payment rate shall be the amount by which--
(A) the loan rate established under subsection (b);
exceeds

[[Page 1705]]
122 STAT. 1705

(B) the rate at which a loan may be repaid under
subsection (d).
(4) Effective date for payment rate determination.--The
Secretary shall determine the amount of the loan deficiency
payment to be made under this subsection to the producers on a
farm with respect to a quantity of peanuts using the payment
rate in effect under paragraph (3) as of the date the producers
request the payment.

(f) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under subsection
(a), the producer shall 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.) and applicable wetland protection requirements
under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.)
during the term of the loan.
(g) Reimbursable Agreements and Payment of Administrative
Expenses.--The Secretary may implement any reimbursable agreements or
provide for the payment of administrative expenses under this subtitle
only in a manner that is consistent with such activities in regard to
other commodities.
SEC. 1308. [NOTE: 7 USC 8758.]  ADJUSTMENTS OF LOANS.

(a) Adjustment Authority.--The Secretary may make appropriate
adjustments in the loan rates for peanuts for differences in grade,
type, quality, location, and other factors.
(b) Manner of Adjustment.--The adjustments under subsection (a)
shall, to the maximum extent practicable, be made in such a manner that
the average loan level for peanuts will, on the basis of the anticipated
incidence of the factors, be equal to the level of support determined in
accordance with this subtitle and subtitles B, D, and E.
(c) Adjustment on County Basis.--
(1) In general.--Subject to paragraph (2), the Secretary may
establish loan rates for a crop of peanuts for producers in
individual counties in a manner that results in the lowest loan
rate being 95 percent of the national average loan rate, if
those loan rates do not result in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection shall
not result in an increase in the national average loan rate for
any year.

Subtitle D--Sugar

SEC. 1401. [NOTE: Loans.]  SUGAR PROGRAM.

(a) In General.--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;

[[Page 1706]]
122 STAT. 1706

``(4) 18.75 cents per pound for raw cane sugar for the 2011
crop year; and
``(5) 18.75 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 equal to--
``(1) 22.9 cents per pound for refined beet sugar for the
2008 crop year; and
``(2) a rate 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) for each of the 2009 through 2012 crop years.

``(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 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 first loan was 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 May 13,
2002, 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.--

[[Page 1707]]
122 STAT. 1707

``(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 (c).

``(f) 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.

[[Page 1708]]
122 STAT. 1708

``(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.--If a reduction in the
quantity of production accepted under subparagraph (A)
involves sugar beets or sugarcane that has already been
planted, the sugar beets or sugarcane so planted may not
be 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.

``(g) 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) Collection of information on mexico.--
``(A) Collection.--The Secretary shall collect--

[[Page 1709]]
122 STAT. 1709

``(i) information on 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.
``(B) Publication.--The data 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 to be reported by paragraph
(1), (2), or (3), or furnishing willfully false information,
shall be subject to a civil penalty of not more than $10,000 for
each such violation.
``(6) [NOTE: Publication.]  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.

``(h) 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.
``(i) Effective Period.--This section shall be effective only for
the 2008 through 2012 crops of sugar beets and sugarcane.''.
(b) [NOTE: 7 USC 7272 note.]  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 section 156 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272), as in effect on the day before the date of enactment of this Act.
SEC. 1402. [NOTE: Deadline. 7 USC 3602 note.]  UNITED STATES
MEMBERSHIP IN THE INTERNATIONAL SUGAR
ORGANIZATION.

The Secretary shall work with the Secretary of State to restore
United States membership in the International Sugar Organization not
later than 1 year after the date of enactment of this Act.
SEC. 1403. 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 (1), (2), (3), and (4) as
paragraphs (2), (4), (5), and (6), respectively;
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Human consumption.--The term `human consumption', when
used in the context of a reference to sugar (whether in the form
of sugar, in-process sugar, syrup, molasses, or in some other
form) for human consumption, includes sugar for use in human
food, beverages, or similar products.''; and
(3) by inserting after paragraph (2) (as so redesignated)
the following:
``(3) 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--

[[Page 1710]]
122 STAT. 1710

``(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);
``(ii) with respect to any integrated
processor and refiner, the movement of raw cane
sugar into the refining process; and
``(iii) the sale of sugar for the production
of ethanol or other bioenergy product, if the
disposition of the sugar is administered by the
Secretary under section 9010 of the Farm Security
and Rural Investment Act of 2002.
``(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. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

``(a) Sugar Estimates.--
``(1) [NOTE: Deadlines.]  In general.--Not later than
August 1 before the beginning of each of the 2008 through 2012
crop years for sugarcane and sugar beets, the Secretary shall
estimate--
``(A) the quantity of sugar that will be subject to
human consumption in the United States during the crop
year;
``(B) the quantity of sugar that would provide for
reasonable carryover stocks;
``(C) the quantity of sugar that will be available
from carry-in stocks for human consumption in the United
States during the crop year;
``(D) the quantity of sugar that will be available
from the domestic processing of sugarcane, sugar beets,
and in-process beet sugar; and
``(E) the quantity of sugars, syrups, and molasses
that will be imported for human consumption or to be
used for the extraction of sugar for human consumption
in the United States during the crop year, whether the
articles are under a tariff-rate quota or are in excess
or outside of a tariff-rate quota.
``(2) Exclusion.--The estimates under this subsection shall
not apply to sugar imported for the production of polyhydric
alcohol or to any sugar refined and reexported in refined form
or in products containing sugar.
``(3) Reestimates.--The Secretary shall make reestimates of
sugar consumption, stocks, production, and imports for a crop
year as necessary, but not later than the beginning of each of
the second through fourth quarters of the crop year.

``(b) Sugar Allotments.--
``(1) Establishment.--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 or sugar beets or in-process
beet sugar (whether the sugar beets or in-process beet sugar was
produced domestically or imported) at a level that is--

[[Page 1711]]
122 STAT. 1711

``(A) sufficient to maintain raw and refined sugar
prices above forfeiture levels so that there will be 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 for domestic human consumption for the
crop year.
``(2) Products.--The Secretary may include sugar products,
the majority content of which is sucrose for human consumption,
derived from sugar cane, sugar beets, molasses, or sugar in the
allotments established under paragraph (1) if the Secretary
determines it to be appropriate for purposes of this part.

``(c) Coverage of Allotments.--
``(1) [NOTE: Applicability.]  In general.--The marketing
allotments under this part shall apply to the marketing by
processors of sugar intended for domestic human consumption that
has been processed from sugar cane, sugar beets, or in-process
beet sugar, whether such sugar beets or in-process beet sugar
was produced domestically or imported.
``(2) Exceptions.--Consistent with the administration of
marketing allotments for each of the 2002 through 2007 crop
years, the marketing allotments shall not apply to sugar sold--
``(A) to facilitate the exportation of the sugar to
a foreign country, except that the exports of sugar
shall not be eligible to receive credits under reexport
programs for refined sugar or sugar containing products
administered by the Secretary;
``(B) to enable another processor to fulfill an
allocation established for that processor; or
``(C) for uses other than domestic human
consumption, except for the sale of sugar for the
production of ethanol or other bioenergy if the
disposition of the sugar is administered by the
Secretary under section 9010 of the Farm Security and
Rural Investment Act of 2002.
``(3) [NOTE: Deadline. Reports.]  Requirement.--The sale
of sugar described in paragraph (2)(B) shall be--
``(A) made prior to May 1; and
``(B) reported to the Secretary.

``(d) 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
consumption 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.''.

[[Page 1712]]
122 STAT. 1712

(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 forfeiture levels to avoid forfeiture of
sugar to the Commodity Credit Corporation; but
``(B) not less than a quantity equal to 85 percent
of the estimated quantity of sugar for domestic human
consumption for the crop year.
``(2) Adjustment.--Subject to paragraph (1), the Secretary
shall adjust the overall allotment quantity to maintain--
``(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.'';
(2) in subsection (d)(2), by inserting ``or in-process beet
sugar'' before the period at the end;
(3) in subsection (g)(1)--
(A) by striking ``(1) in general.--The Secretary''
and inserting the following:
``(1) Adjustments.--
``(A) In general.--Subject to subparagraph (B), the
Secretary''; and
(B) by adding at the end the following:
``(B) Limitation.--In carrying out subparagraph (A),
the Secretary may not reduce the overall allotment
quantity to a quantity of less than 85 percent of the
estimated quantity of sugar for domestic human
consumption for the crop year.''; and
(4) 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)(F), by striking ``Except as otherwise
provided in section 359f(c)(8), if'' and inserting ``If''; and
(2) in paragraph (2), by striking subparagraphs (G), (H),
and (I) and inserting the following:
``(G) Sale of factories of a processor to another
processor.--
``(i) Effect of sale.--Subject to
subparagraphs (E) and (F), if 1 or more factories
of a processor of beet sugar (but not all of the
assets of the processor) are sold to another
processor of beet sugar during a crop year, the
Secretary shall assign a pro rata portion of the
allocation of the seller to the allocation of the
buyer to reflect the historical contribution of
the production of the sold 1 or more factories to
the total allocation of the seller, unless the
buyer and the seller have agreed upon the transfer
of a different portion of the allocation of the
seller, in which case,

[[Page 1713]]
122 STAT. 1713

the Secretary shall transfer that portion agreed
upon by the buyer and seller.
``(ii) Application of allocation.--The
assignment of the allocation under clause (i)
shall apply--
``(I) during the remainder of the
crop year for which the sale described
in clause (i) occurs; and
``(II) during each subsequent crop
year.
``(iii) Use of other factories to fill
allocation.--If the assignment of the allocation
under clause (i) to the buyer for the 1 or more
purchased factories cannot be filled by the
production of the 1 or more purchased factories,
the remainder of the allocation may be filled by
beet sugar produced by the buyer from other
factories of the buyer.
``(H) New entrants starting production, reopening,
or acquiring an existing factory with production
history.--
``(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,

[[Page 1714]]
122 STAT. 1714

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 1 or more sold
factories to the total allocation of the
current allocation holder, unless the
new entrant and current allocation
holder have agreed upon the transfer of
a different portion of the allocation of
the current allocation holder, in which
case, the Secretary shall transfer that
portion agreed upon by the new entrant
and 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

[[Page 1715]]
122 STAT. 1715

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)'';
(5) in the first sentence of paragraph (6)(C) (as so
redesignated), by inserting ``for sugar'' before ``in excess of
the farm's proportionate share''; and
(6) 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) Transfer authorized.--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 acreage base
established under section 359f(c) that has been or is
converted to nonagricultural use on or after May 13,
2002, may be transferred to other land suitable for the
production of sugarcane that can be delivered to a
processor in a proportionate share State in accordance
with this paragraph.
``(B) [NOTE: Deadline.]  Notification.--Not later
than 90 days after the Secretary becomes aware of a
conversion of any sugarcane acreage base to a
nonagricultural use, the Secretary shall notify the 1 or
more affected landowners of the transferability of the
applicable sugarcane acreage base.
``(C) Initial transfer period.--The owner of the
base attributable to the acreage at the time of the
conversion shall be afforded 90 days from the date of
the receipt of the notification under subparagraph (B)
to transfer the base to 1 or more farms owned by the
owner.
``(D) [NOTE: Notification. Time period.]  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
acreage base 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

[[Page 1716]]
122 STAT. 1716

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 acreage base to other farms in
the county that are eligible and capable of
accepting the acreage base, based on a random
drawing from among the requests received under
clause (ii).
``(F) Statewide reallocation.--
``(i) In general.--Any acreage base 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 in the State
representing counties with farms eligible for
assignment of the base, based on a random drawing.
``(ii) Allocation.--Any county committee
receiving acreage base under this subparagraph
shall allocate the acreage base to eligible farms
using the process described in subparagraph (E).
``(G) Status of reassigned base.--After acreage base
has been reassigned in accordance with this
subparagraph, the acreage base 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 acreage base
being transferred.''.

(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.

[[Page 1717]]
122 STAT. 1717

(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. [NOTE: 7 USC 1359kk.]  ADMINISTRATION OF TARIFF
RATE QUOTAS.

``(a) Establishment.--
``(1) In general.--Except as provided in paragraph (2) and
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 at the minimum
level necessary to comply with obligations under international
trade agreements that have been approved by Congress.
``(2) Exception.--Paragraph (1) shall not apply to specialty
sugar.

``(b) [NOTE: Deadlines.]  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), including an increase in the
tariff-rate quota for raw cane sugar to accommodate the
reassignment to imports; and
``(B) if there is still a shortage of sugar in the
United States market, and marketing of domestic sugar
has been maximized, and domestic raw cane sugar refining
capacity 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), including an increase in the tariff-rate
quota for raw cane sugar to accommodate the reassignment
to imports; 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. [NOTE: 7 USC 1359ll.]  PERIOD OF EFFECTIVENESS.

``(a) In General.--This part shall be effective only for the 2008
through 2012 crop years for sugar.

[[Page 1718]]
122 STAT. 1718

``(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.''.
SEC. 1404. 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''; and
(4) in paragraph (3) (as redesignated by paragraph (2)), by
inserting ``other'' after ``on such''.
SEC. 1405. 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. [NOTE: 7 USC 7287.]  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.''.

Subtitle E--Dairy

SEC. 1501. [NOTE: 7 USC 8771.]  DAIRY PRODUCT PRICE SUPPORT
PROGRAM.

(a) Definition of Net Removals.--In this section, the term ``net
removals'' means--
(1) the sum of--
(A) the quantity of a product described in
subsection (b) purchased by the Commodity Credit
Corporation under this section; and
(B) the quantity of the product exported under
section 153 of the Food Security Act of 1985 (15 U.S.C.
713a-14); less
(2) the quantity of the product sold for unrestricted use by
the Commodity Credit Corporation.

(b) [NOTE: Time period.]  Support Activities.--During the period
beginning on January 1, 2008, and ending 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.

(c) Purchase Price.--To carry out subsection (b) during the period
specified in that subsection, the Secretary shall purchase--
(1) cheddar cheese in blocks at not less than $1.13 per
pound;

[[Page 1719]]
122 STAT. 1719

(2) cheddar cheese in barrels at not less than $1.10 per
pound;
(3) butter at not less than $1.05 per pound; and
(4) nonfat dry milk at not less than $0.80 per pound.

(d) Temporary Price Adjustment to Avoid Excess Inventories.--
(1) Adjustments authorized.--The Secretary may adjust the
minimum purchase prices established under subsection (c) only as
permitted under this subsection.
(2) Cheese inventories in excess of 200,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
200,000,000 pounds of cheese, but do not exceed 400,000,000
pounds, the Secretary may reduce the purchase prices under
paragraphs (1) and (2) of subsection (c) during the immediately
following month by not more than 10 cents per pound.
(3) Cheese inventories in excess of 400,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
400,000,000 pounds of cheese, the Secretary may reduce the
purchase prices under paragraphs (1) and (2) of subsection (c)
during the immediately following month by not more than 20 cents
per pound.
(4) Butter inventories in excess of 450,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
450,000,000 pounds of butter, but do not exceed 650,000,000
pounds, the Secretary may reduce the purchase price under
subsection (c)(3) during the immediately following month by not
more than 10 cents per pound.
(5) Butter inventories in excess of 650,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
650,000,000 pounds of butter, the Secretary may reduce the
purchase price under subsection (c)(3) during the immediately
following month by not more than 20 cents per pound.
(6) Nonfat dry milk inventories in excess of 600,000,000
pounds.--If net removals for a period of 12 consecutive months
exceed 600,000,000 pounds of nonfat dry milk, but do not exceed
800,000,000 pounds, the Secretary may reduce the purchase price
under subsection (c)(4) during the immediately following month
by not more than 5 cents per pound.
(7) Nonfat dry milk inventories in excess of 800,000,000
pounds.--If net removals for a period of 12 consecutive months
exceed 800,000,000 pounds of nonfat dry milk, the Secretary may
reduce the purchase price under subsection (c)(4) during the
immediately following month by not more than 10 cents per pound.

(e) Uniform Purchase Price.--The prices that the Secretary pays for
cheese, butter, or nonfat dry milk, respectively, under subsection (b)
shall be uniform for all regions of the United States.
(f) Sales From Inventories.--In the case of each commodity specified
in subsection (c) that is available for unrestricted use in the
inventory of the Commodity Credit Corporation, the Secretary may sell
the commodity at the market prices prevailing for that commodity at the
time of sale, except that the sale price may not be less than 110
percent of the minimum purchase price specified in subsection (c) for
that commodity.

[[Page 1720]]
122 STAT. 1720

SEC. 1502. [NOTE: 7 USC 8772.]  DAIRY FORWARD PRICING PROGRAM.

(a) Program Required.--The Secretary 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.
(b) Minimum Milk Price Requirements.--Payments made by milk handlers
to milk producers and cooperative associations of producers, and prices
received by milk producers and cooperative associations, in accordance
with the terms of a forward price contract authorized by subsection (a),
shall be treated as satisfying--
(1) all uniform and minimum milk price requirements of
subparagraphs (B) and (F) of paragraph (5) of section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937;
and
(2) the total payment requirement of subparagraph (C) of
that paragraph.

(c) Milk Covered by Program.--
(1) [NOTE: Applicability.]  Covered milk.--The program
shall apply only with respect to the marketing of federally
regulated milk that--
(A) is not classified as Class I milk or otherwise
intended for fluid use; and
(B) is in the current of interstate or foreign
commerce or directly burdens, obstructs, or affects
interstate or foreign commerce in federally regulated
milk.
(2) Relation to class i milk.--To assist milk handlers in
complying with paragraph (1)(A) without having to segregate or
otherwise individually track the source and disposition of milk,
a milk handler may allocate milk receipts from producers,
cooperatives, and other sources that are not subject to a
forward contract to satisfy the obligations of the handler with
regard to Class I milk usage.

(d) Voluntary Program.--
(1) In general.--A milk handler may not require
participation in a forward pricing contract as a condition of
the handler receiving milk from a producer or cooperative
association of producers.
(2) Pricing.--A producer or cooperative association
described in paragraph (1) may continue to have their milk
priced in accordance with the minimum payment provisions of the
Federal milk marketing order.
(3) Complaints.--
(A) In general.--The Secretary shall investigate
complaints made by producers or cooperative associations
of coercion by handlers to enter into forward contracts.
(B) Action.--If the Secretary finds evidence of
coercion, the Secretary shall take appropriate action.

(e) Duration.--
(1) [NOTE: Deadline.]  New contracts.--No forward price
contract may be entered into under the program established under
this section after September 30, 2012.
(2) [NOTE: Termination date.]  Application.--No forward
contract entered into under the program may extend beyond
September 30, 2015.

[[Page 1721]]
122 STAT. 1721

SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM.

(a) Extension.--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) Compliance With Trade Agreements.--Section 153 of the Food
Security Act of 1985 (15 U.S.C. 713a-14) is amended--
(1) in subsection (c), by striking paragraph (3) and
inserting the following:
``(3) the maximum volume of dairy product exports allowable
consistent with the obligations of the United States under the
Uruguay Round Agreements approved under section 101 of the
Uruguay Round Agreements Act (19 U.S.C. 3511) is exported under
the program each year (minus the volume sold under section 1163
of this Act during that year), except to the extent that the
export of such a volume under the program would, in the judgment
of the Secretary, exceed the limitations on the value permitted
under subsection (f); and''; and.
(2) in subsection (f), by striking paragraph (1) and
inserting the following:
``(1) Funds and commodities.--Except as provided in
paragraph (2), the Commodity Credit Corporation shall in each
year use money and commodities for the program under this
section in the maximum amount consistent with the obligations of
the United States under the Uruguay Round Agreements approved
under section 101 of the Uruguay Round Agreements Act (19 U.S.C.
3511), minus the amount expended under section 1163 of this Act
during that year.''.
SEC. 1504. 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) [NOTE: Deadline.]  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

[[Page 1722]]
122 STAT. 1722

the date of enactment of this subparagraph, as
determined by the Secretary.
``(C) [NOTE: Deadlines.]  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) [NOTE: Notice.]  issue a
notice providing an action plan and
expected timeframes for completion of
the hearing not more than 120 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) Requirement.--A post-hearing brief may
be filed under this paragraph not later than 60
days after the date of an amendment hearing
regarding a milk marketing order.
``(iii) Recommended decisions.--A recommended
decision on a proposed amendment to an order shall
be issued not later than 90 days after the
deadline for the submission of post-hearing
briefs.
``(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 (iii).
``(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 affect milk prices.
``(F) Avoiding duplication.--The Secretary shall not
be required to hold a hearing on any amendment proposed
to be made to a milk marketing order in response to an
application for a hearing on the proposed amendment if--
``(i) [NOTE: Deadline.]  the application
requesting the hearing is received by the
Secretary not later than 90 days after the date on
which the Secretary has announced the decision on
a previously proposed amendment to that order; and
``(ii) the 2 proposed amendments are
essentially the same, as determined by the
Secretary.
``(G) Monthly feed and fuel costs for make
allowances.--As part of any hearing to adjust make
allowances under marketing orders commencing prior to
September 30, 2012, the Secretary shall--

[[Page 1723]]
122 STAT. 1723

``(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. 1505. DAIRY INDEMNITY PROGRAM.

Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 1506. [NOTE: 7 USC 8773.]  MILK INCOME LOSS CONTRACT
PROGRAM.

(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) [NOTE: Contracts.]  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 (e);
(2) the amount equal to--
(A) $16.94 per hundredweight, as adjusted under
subsection (d); 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 Rate Adjustment for Feed Prices.--
(1) [NOTE: Time period.]  Initial adjustment authority.--
During the period beginning on January 1, 2008, and ending on
August 31, 2012, if the National Average Dairy Feed Ration Cost
for a month during that period is greater than $7.35 per
hundredweight,

[[Page 1724]]
122 STAT. 1724

the amount specified in subsection (c)(2)(A) used to determine
the payment rate for that month shall be increased by 45 percent
of the percentage by which the National Average Dairy Feed
Ration Cost exceeds $7.35 per hundredweight.
(2) Subsequent adjustment authority.--For any month
beginning on or after September 1, 2012, if the National Average
Dairy Feed Ration Cost for the month is greater than $9.50 per
hundredweight, the amount specified in subsection (c)(2)(A) used
to determine the payment rate for that month shall be increased
by 45 percent of the percentage by which the National Average
Dairy Feed Ration Cost exceeds $9.50 per hundredweight.
(3) National average dairy feed ration cost.--For each
month, the Secretary shall calculate a National Average Dairy
Feed Ration Cost per hundredweight using the same procedures
(adjusted to a hundredweight basis) used to calculate the feed
components of the estimated price of 16% Mixed Dairy Feed per
pound noted on page 33 of the USDA March 2008 Agricultural
Prices publication (including the data and factors noted in
footnote 4).

(e) 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) [NOTE: Time periods.]  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, 2,985,000 pounds for
each fiscal year; and
(iii) [NOTE: Effective date.]  effective
beginning September 1, 2012, 2,400,000 pounds per
fiscal year.
(B) [NOTE: Applicability.]  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.

(f) [NOTE: Deadline.]  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.

(g) [NOTE: Contracts. Time period.]  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.

(h) Duration of Contract.--
(1) In general.--Except as provided in paragraph (2), any
contract entered into by producers on a dairy farm under this

[[Page 1725]]
122 STAT. 1725

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.
SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM.

(a) Extension of Dairy Promotion and Research Authority.--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''.
(b) Definition of United States for Promotion Program.--Section 111
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is
amended--
(1) by striking subsection (l) and inserting the following:

``(l) the term `United States', when used in a geographical sense,
means all of the States, the District of Columbia, and the Commonwealth
of Puerto Rico;''; and
(2) in subsection (m), by striking ``(as defined in
subsection (l))''.

(c) Definition of United States for Research Program.--Section 130
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4531)) is
amended by striking paragraph (12) and inserting the following:
``(12) the term `United States', when used in a geographical
sense, means all of the States, the District of Columbia, and
the Commonwealth of Puerto Rico.''.

(d) Assessment Rate for Imported Dairy Products.--Section 113(g) of
the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is
amended by striking paragraph (3) and inserting the following:
``(3) Rate.--
``(A) In general.--The rate of assessment for milk
produced in the United States prescribed by the order
shall be 15 cents per hundredweight of milk for
commercial use or the equivalent thereof, as determined
by the Secretary.
``(B) Imported dairy products.--The rate of
assessment for imported dairy products prescribed by the
order shall be 7.5 cents per hundredweight of milk for
commercial use or the equivalent thereof, as determined
by the Secretary.''.

(e) Time and Method of Importer Payments.--Section 113(g)(6) of the
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)(6)) is
amended--
(1) by striking subparagraph (B); and
(2) by redesignating subparagraph (C) as subparagraph (B).

(f) Refund of Assessments on Certain Imported Dairy Products.--
Section 113(g) of the Dairy Production Stabilization

[[Page 1726]]
122 STAT. 1726

Act of 1983 (7 U.S.C. 4504(g)) is amended by adding at the end the
following:
``(7) Refund of assessments on certain imported products.--
``(A) In general.--An importer shall be entitled to
a refund of any assessment paid under this subsection on
imported dairy products imported under a contract
entered into prior to the date of enactment of the Food,
Conservation, and Energy Act of 2008.
``(B) Expiration.--Refunds under subparagraph (A)
shall expire 1 year after the date of enactment of the
Food, Conservation, and Energy Act of 2008.''.
SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING
PROCEDURES FOR NONFAT DRY MILK.

Not later than 90 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 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 enactment of
this Act.
SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

(a) Establishment.--Subject to the availability of appropriations 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 establishment of the commission; and
(2) non-Federal milk marketing order systems.

(b) Elements of Review and Evaluation.--As part of the review and
evaluation under subsection (a), 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 American dairy
producers in world markets;
(3) ensuring the competitiveness and transparency in dairy
pricing;
(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 serves the interests of dairy producers, consumers, and
dairy processors; and
(7) evaluating the nutritional composition of milk,
including the potential benefits and costs of adjusting the milk
content standards.

(c) Membership.--
(1) Composition.--The commission shall consist of 14
members.
(2) Members.--As soon as practicable after the date on which
funds are first made available to carry out this section,

[[Page 1727]]
122 STAT. 1727

the Secretary shall appoint members to the commission according
to the following requirements:
(A) At least 1 member shall represent a national
consumer organization.
(B) At least 4 members shall represent land-grant
universities or NLGCA Institutions (as defined in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103)) with accredited dairy economic programs, with at
least 2 of those members being experts in the field of
economics.
(C) At least 1 member shall represent the food and
beverage retail sector.
(D) 4 dairy producers and 4 dairy processors,
appointed so as to balance geographical distribution of
milk production and dairy processing, reflect all
segments of dairy processing, and represent all regions
of the United States equitably, including States that
operate outside of a Federal milk marketing order.
(3) Chair.--The commission shall elect 1 of the appointed
members of the commission to serve as chairperson for the
duration of the proceedings of the commission.
(4) Vacancy.--Any vacancy occurring before the termination
of the commission shall be filled in the same manner as the
original appointment.
(5) Compensation.--Members 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.

(d) 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 (b) as the
commission considers to be appropriate.
(2) Opinions.--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.

(e) Advisory Nature.--The commission is wholly advisory in nature,
and the recommendations of the commission are nonbinding.
(f) 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.
(g) Administrative Assistance.--The Secretary shall provide
administrative support to the commission, and expend to carry out this
section such funds as necessary from budget authority available to the
Secretary.
(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

[[Page 1728]]
122 STAT. 1728

(i) Termination.--The commission shall terminate effective on the
date of the submission of the report under subsection (d).
SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES.

(a) Electronic Reporting.--Section 273 of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1637b) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:

``(d) Electronic Reporting.--
``(1) In general.--Subject to the availability of funds
under paragraph (3), the Secretary shall establish an electronic
reporting system to carry out this section.
``(2) Frequency of reports.--After the establishment of the
electronic reporting system in accordance with paragraph (1),
the Secretary shall increase the frequency of the reports
required under this section.
``(3) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
subsection.''.

(b) Quarterly Audits.--Section 273(c) of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1637b(c)) is amended by striking paragraph (3) and
inserting the following:
``(3) Verification.--
``(A) In general.--The Secretary shall take such
actions as the Secretary considers necessary to verify
the accuracy of the information submitted or reported
under this subtitle.
``(B) Quarterly audits.--The Secretary shall
quarterly conduct an audit of information submitted or
reported under this subtitle and compare such
information with other related dairy market
statistics.''.

Subtitle F--Administration

SEC. 1601. [NOTE: 7 USC 8781.]  ADMINISTRATION GENERALLY.

(a) Use of Commodity Credit Corporation.--Except as otherwise
provided in this title, the Secretary shall use the funds, facilities,
and authorities of the Commodity Credit Corporation to carry out this
title.
(b) Determinations by Secretary.--A determination made by the
Secretary under this title shall be final and conclusive.
(c) Regulations.--
(1) [NOTE: Deadline.]  In general.--Except as otherwise
provided in this subsection, not later than 90 days after the
date of 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),

[[Page 1729]]
122 STAT. 1729

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.
(4) Interim regulations.--Notwithstanding paragraphs (1) and
(2), the Secretary shall implement the amendments made by
sections 1603 and 1604 for the 2009 crop, fiscal, or program
year, as appropriate, through the promulgation of an interim
rule.

(d) Adjustment Authority Related to Trade Agreements Compliance.--
(1) Required determination; adjustment.--If the Secretary
determines that expenditures under this title 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) [NOTE: Reports.]  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, Conservation, and
Energy Act of 2008.''.
SEC. 1602. [NOTE: Time period. 7 USC 8782.]  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, peanuts, 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

[[Page 1730]]
122 STAT. 1730

through 2012 crops of covered commodities, peanuts, 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).
(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. 1603. 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, Conservation, and Energy Act of 2008''.
(b) Revision of Limitations.--
(1) Definitions.--Section 1001(a) of the Food Security Act
of 1985 (7 U.S.C. 1308(a)) is amended--
(A) in the matter preceding paragraph (1), by
inserting ``through section 1001F''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 a
person to whom a member in the farming operation is related as
lineal ancestor, lineal descendant, sibling, spouse, or
otherwise by marriage.
``(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 Payments, Counter-Cyclical Payments, and
ACRE 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

[[Page 1731]]
122 STAT. 1731

entity (except a joint venture or a general partnership) for any
crop year under subtitle A of title I of the Food, Conservation,
and Energy Act of 2008 for 1 or more covered commodities (except
for peanuts) may not exceed--
``(A) in the case of a person or legal entity that
does not participate in the average crop revenue
election program under section 1105 of that Act,
$40,000; or
``(B) in the case of a person or legal entity that
participates in the average crop revenue election
program under section 1105 of that Act, an amount equal
to--
``(i) the payment limit specified in
subparagraph (A); less
``(ii) the amount of the reduction in direct
payments under section 1105(a)(1) of that Act.
``(2) Counter-cyclical payments.--In the case of a person or
legal entity (except a joint venture or a general partnership)
that does not participate in the average crop revenue election
program under section 1105 of the Food, Conservation, and Energy
Act of 2008, the total amount of counter-cyclical payments
received, directly or indirectly, by the person or legal entity
for any crop year under subtitle A of title I of that Act for 1
or more covered commodities (except for peanuts) may not exceed
$65,000.
``(3) ACRE and counter-cyclical payments.--In the case of a
person or legal entity (except a joint venture or a general
partnership) that participates in the average crop revenue
election program under section 1105 of the Food, Conservation,
and Energy Act of 2008, the total amount of average crop revenue
election payments and counter-cyclical payments received,
directly or indirectly, by the person or legal entity for any
crop year for 1 or more covered commodities (except for peanuts)
may not exceed the sum of--
``(A) $65,000; and
``(B) the amount by which the direct payment
limitation is reduced under paragraph (1)(B).

``(c) Limitation on Direct Payments, Counter-Cyclical Payments, and
ACRE 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 Food, Conservation, and
Energy Act of 2008 for peanuts may not exceed--
``(A) in the case of a person or legal entity that
does not participate in the average crop revenue
election program under section 1105 of that Act,
$40,000; or
``(B) in the case of a person or legal entity that
participates in the average crop revenue election
program under section 1105 of that Act, an amount equal
to--
``(i) the payment limit specified in
subparagraph (A); less
``(ii) the amount of the reduction in direct
payments under section 1105(a)(1) of that Act.
``(2) Counter-cyclical payments.--In the case of a person or
legal entity (except a joint venture or a general partnership)
that does not participate in the average crop revenue election
program under section 1105 of the Food, Conservation, and

[[Page 1732]]
122 STAT. 1732

Energy Act of 2008, the total amount of counter-cyclical
payments received, directly or indirectly, by the person or
legal entity for any crop year under subtitle C of title I of
that Act for peanuts may not exceed $65,000.
``(3) ACRE and counter-cyclical payments.--In the case of a
person or legal entity (except a joint venture or a general
partnership) that participates in the average crop revenue
election program under section 1105 of the Food, Conservation,
and Energy Act of 2008, the total amount of average crop revenue
election payments received, directly or indirectly, by the
person or legal entity for any crop year for peanuts may not
exceed the sum of--
``(A) $65,000; and
``(B) the amount by which the direct payment
limitation is reduced under paragraph (1)(B).

``(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 Food, Conservation, and Energy Act of 2008.''.
(3) Direct attribution.--Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended--
(A) by striking subsections (e) and (f) and
redesignating subsection (g) as subsection (h); and
(B) by inserting after subsection (d) the following:

``(e) Attribution of Payments.--
``(1) In general.--In implementing subsections (b) and (c)
and a program described in paragraphs (1)(C) and (2)(B) of
section 1001D(b), 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) [NOTE: Regulations.]  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

[[Page 1733]]
122 STAT. 1733

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 person 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) [NOTE: Applicability.]  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.

[[Page 1734]]
122 STAT. 1734

``(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) 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.--
``(A) In general.--Notwithstanding subsection (d), a
Federal agency shall not be eligible to receive any
payment, benefit, or loan under title I of the Food,
Conservation, and Energy Act of 2008 or title XII of
this Act.
``(B) Land rental.--A lessee of land owned by a
Federal agency may receive a payment described in
subsection (b), (c), or (d) if the lessee otherwise
meets all applicable criteria.
``(6) State and local governments.--
``(A) In general.--Notwithstanding subsection (d),
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 any
payment, benefit, or

[[Page 1735]]
122 STAT. 1735

loan under title I of the Food, Conservation, and Energy
Act of 2008 or title XII of this Act.
``(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), (c), and (d) if the lessee otherwise
meets 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.

``(g) Public Schools.--
``(1) In general.--Notwithstanding subsection (f)(6)(A), a
State or local government, or political subdivision or agency of
the government, shall be eligible, subject to the limitation in
paragraph (2), to receive a payment described in subsection (b)
or (c) for land owned by the State or local government, or
political subdivision or agency of the government, that is used
to maintain a public school.
``(2) Limitation.--
``(A) In general.--For each State, the total amount
of payments described in subsections (b) and (c) that
are received collectively by the State and local
government and all political subdivisions or agencies of
those governments shall not exceed $500,000.
``(B) Exception.--The limitation in subparagraph (A)
shall not apply to States with a population of less than
1,500,000.''.

(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

[[Page 1736]]
122 STAT. 1736

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 person, 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;

[[Page 1737]]
122 STAT. 1737

``(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

[[Page 1738]]
122 STAT. 1738

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) [NOTE: Fraud. Regulations.]  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, failed to disclose material information 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.
``(2) Cash rent tenant.--Payments otherwise payable to a
person or legal entity shall be denied in a pro rata manner if
the person or legal entity is a cash rent tenant on a farm owned
or under the control of a person or legal entity with respect to
which a determination has been made under subsection (a) or (b).

``(d) Joint and Several Liability.--Any legal entity (including
partnerships and joint ventures) and any member of any legal entity
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).

[[Page 1739]]
122 STAT. 1739

``(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) Conforming Amendment to Apply Direct Attribution to NAP.--
(1) In general.--Section 196(i) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is
amended--
(A) by striking paragraphs (1) and (2) and inserting
the following:
``(1) Definitions.--In this subsection, the terms `legal
entity' and `person' have the meanings given those terms in
section 1001(a) of the Food Security Act of 1985 (7 U.S.C.
1308(a)).
``(2) Payment limitation.--The total amount of payments
received, directly or indirectly, by a person or legal entity
(excluding a joint venture or general partnership) for any crop
year may not exceed $100,000.'';
(B) by striking paragraph (4) and inserting the
following:
``(4) Adjusted gross income limitation.--A person or legal
entity that has an average adjusted gross income in excess of
the average adjusted gross income limitation applicable under
section 1001D(b)(1)(A) of the Food Security Act of 1985 (7
U.S.C. 1308-3a(b)(1)(A)), or a successor provision, shall not be
eligible to receive noninsured crop disaster assistance under
this section.''; and
(C) in paragraph (5)--
(i) by striking ``necessary to ensure'' and
inserting ``necessary--
``(A) to ensure''; and
(ii) by striking ``this subsection.'' and
inserting the following: ``this subsection; and
``(B) to ensure that payments under this section are
attributed to a person or legal entity (excluding a
joint venture or general partnership) in accordance with
the terms and conditions of sections 1001 through 1001D
of the Food Security Act of 1985 (7 U.S.C. 1308 et
seq.), as determined by the Secretary.''.
(2) [NOTE: 7 USC 7333 note.]  Transition.--Section 196(i)
of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333(i)), as in effect on September 30, 2007, shall apply
with respect to the 2007 and 2008 crops of any eligible crop.

(g) Conforming Amendments.--
(1) Section 1009(e) of the Food Security Act of 1985 (7
U.S.C. 1308a(e)) is amended in the second sentence by striking
``of $50,000''.
(2) Section 609(b)(1) of the Emergency Livestock Feed
Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by
inserting ``(before the amendment made by section 1703(a) of the
Food, Conservation, and Energy Act of 2008)'' after ``1985''.
(3) Section 524(b)(3) of the Federal Crop Insurance Act (7
U.S.C. 1524(b)(3)) is amended by inserting ``(before the
amendment made by section 1703(a) of the Food, Conservation, and
Energy Act of 2008)'' after ``1308(5)))''.

[[Page 1740]]
122 STAT. 1740

(4) Section 10204(c)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by
inserting ``(before the amendment made by section 1703(a) of the
Food, Conservation, and Energy Act of 2008)'' after ``1308)''.
(5) Section 1271(c)(3)(A) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A))
is amended by inserting ``(before the amendment made by section
1703(a) of the Food, Conservation, and Energy Act of 2008)''
after ``1308)''.
(6) Section 291(2) of the Trade Act of 1974 (19 U.S.C.
2401(2)) is amended by inserting ``(before the amendment made by
section 1703(a) of the Food, Conservation, and Energy Act of
2008)'' before the period at the end.

(h) [NOTE: Applicability. 7 USC 1308 note.]  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 September 30, 2007, shall continue to
apply with respect to the 2007 and 2008 crops of any covered commodity
or peanuts.
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

(a) In General.--Section 1001D of the Food Security Act of 1985 (7
U.S.C. 1308-3a(e)) is amended to read as follows:
``SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.

``(a) Definitions.--
``(1) In general.--In this section:
``(A) Average adjusted gross income.--The term
`average adjusted gross income', with respect to a
person or legal entity, means the average of the
adjusted gross income or comparable measure of the
person or legal entity over the 3 taxable years
preceding the most immediately preceding complete
taxable year, as determined by the Secretary.
``(B) Average adjusted gross farm income.--The term
`average adjusted gross farm income', with respect to a
person or legal entity, means the average of the portion
of adjusted gross income of the person or legal entity
that is attributable to activities related to farming,
ranching, or forestry for the 3 taxable years described
in subparagraph (A), as determined by the Secretary in
accordance with subsection (c).
``(C) Average adjusted gross nonfarm income.--The
term `average adjusted gross nonfarm income', with
respect to a person or legal entity, means the
difference between--
``(i) the average adjusted gross income of the
person or legal entity; and
``(ii) the average adjusted gross farm income
of the person or legal entity.
``(2) Special rules for certain persons and legal
entities.--In the case of a legal entity that is not required to
file a Federal income tax return or a person or legal entity
that did not have taxable income in 1 or more of the taxable
years used to determine the average under subparagraph (A) or
(B) of paragraph (1), the Secretary shall provide, by
regulation, a method for determining the average adjusted gross
income, the average adjusted gross farm income, and the average
adjusted gross nonfarm income of the person or legal entity for
purposes of this section.

[[Page 1741]]
122 STAT. 1741

``(3) Allocation of income.--On the request of any person
filing a joint tax return, the Secretary shall provide for the
allocation of average adjusted gross income, average adjusted
gross farm income, and average adjusted gross nonfarm income
among the persons filing the return if--
``(A) the person provides a certified statement by a
certified public accountant or attorney that specifies
the method by which the average adjusted gross income,
average adjusted gross farm income, and average adjusted
gross nonfarm income would have been declared and
reported had the persons filed 2 separate returns; and
``(B) the Secretary determines that the method
described in the statement is consistent with the
information supporting the filed joint tax return.

``(b) Limitations.--
``(1) Commodity programs.--
``(A) Nonfarm limitation.--Notwithstanding any other
provision of law, a person or legal entity shall not be
eligible to receive any benefit described in
subparagraph (C) during a crop, fiscal, or program year,
as appropriate, if the average adjusted gross nonfarm
income of the person or legal entity exceeds $500,000.
``(B) Farm limitation.--Notwithstanding any other
provision of law, a person or legal entity shall not be
eligible to receive a direct payment under subtitle A or
C of title I of the Food, Conservation, and Energy Act
of 2008 during a crop year, if the average adjusted
gross farm income of the person or legal entity exceeds
$750,000.
``(C) [NOTE: Applicability.]  Covered benefits.--
Subparagraph (A) applies with respect to the following:
``(i) A direct payment or counter-cyclical
payment under subtitle A or C of title I of the
Food, Conservation, and Energy Act of 2008 or an
average crop revenue election payment under
subtitle A of title I of that Act.
``(ii) A marketing loan gain or loan
deficiency payment under subtitle B or C of title
I of the Food, Conservation, and Energy Act of
2008.
``(iii) A payment or benefit under section 196
of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7333).
``(iv) A payment or benefit under section 1506
of the Food, Conservation, and Energy Act of 2008.
``(v) A payment or benefit under title IX of
the Trade Act of 1974 or subtitle B of the Federal
Crop Insurance Act.
``(2) Conservation programs.--
``(A) Limits.--
``(i) In general.--Notwithstanding any other
provision of law, except as provided in clause
(ii), a person or legal entity shall not be
eligible to receive any benefit described in
subparagraph (B) during a crop, fiscal, or program
year, as appropriate, if the average adjusted
gross nonfarm income of the person or legal entity
exceeds $1,000,000, unless not less than 66.66
percent of the average adjusted gross income

[[Page 1742]]
122 STAT. 1742

of the person or legal entity is average adjusted
gross farm income.
``(ii) [NOTE: Waiver authority.]
Exception.--The Secretary may waive the limitation
established under clause (i) on a case-by-case
basis if the Secretary determines that
environmentally sensitive land of special
significance would be protected.
``(B) [NOTE: Applicability.]  Covered benefits.--
Subparagraph (A) applies with respect to the following:
``(i) A payment or benefit under title XII of
this Act.
``(ii) A payment or benefit under title II of
the Farm Security and Rural Investment Act of 2002
(Public Law 107-171; 116 Stat. 223) or title II of
the Food, Conservation, and Energy Act of 2008.
``(iii) A payment or benefit under section
524(b) of the Federal Crop Insurance Act (7 U.S.C.
1524(b)).

``(c) Income Determination.--
``(1) In general.--In determining the average adjusted gross
farm income of a person or legal entity, the Secretary shall
include income or benefits derived from or related to--
``(A) the production of crops, including specialty
crops (as defined in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public
Law 108-465)) and unfinished raw forestry products;
``(B) the production of livestock (including cattle,
elk, reindeer, bison, horses, deer, sheep, goats, swine,
poultry, fish, and other aquacultural products used for
food, honeybees, and other animals designated by the
Secretary) and products produced by, or derived from,
livestock;
``(C) the production of farm-based renewable energy
(as defined in section 9001 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8101));
``(D) the sale, including the sale of easements and
development rights, of farm, ranch, or forestry land,
water or hunting rights, or environmental benefits;
``(E) the rental or lease of land or equipment used
for farming, ranching, or forestry operations, including
water or hunting rights;
``(F) the processing (including packing), storing
(including shedding), and transporting of farm, ranch,
and forestry commodities, including renewable energy;
``(G) the feeding, rearing, or finishing of
livestock;
``(H) the sale of land that has been used for
agriculture;
``(I) payments or other benefits received under any
program authorized under title I of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.)
or title I of the Food, Conservation, and Energy Act of
2008;
``(J) payments or other benefits received under any
program authorized under title XII of this Act, title II
of the Farm Security and Rural Investment Act of 2002
(Public Law 107-171; 116 Stat. 223), or title II of the
Food, Conservation, and Energy Act of 2008;
``(K) payments or other benefits received under
section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333);

[[Page 1743]]
122 STAT. 1743

``(L) payments or other benefits received under
title IX of the Trade Act of 1974 or subtitle B of the
Federal Crop Insurance Act;
``(M) risk management practices, including benefits
received under a program authorized under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.) (including a
catastrophic risk protection plan offered under section
508(b) of that Act (7 U.S.C. 1508(b))); and
``(N) any other activity related to farming,
ranching, or forestry, as determined by the Secretary.
``(2) Income derived from farming, ranching, or forestry.--
In determining the average adjusted gross farm income of a
person or legal entity, in addition to the inclusions described
in paragraph (1), the Secretary shall include any income
reported on the Schedule F or other schedule used by the person
or legal entity to report income from farming, ranching, or
forestry operations to the Internal Revenue Service, to the
extent such income is not already included under paragraph (1).
``(3) Special rule.--If not less than 66.66 percent of the
average adjusted gross income of a person or legal entity is
derived from farming, ranching, or forestry operations described
in paragraphs (1) and (2), in determining the average adjusted
gross farm income of the person or legal entity, the Secretary
shall also include--
``(A) the sale of equipment to conduct farm, ranch,
or forestry operations; and
``(B) the provision of production inputs and
services to farmers, ranchers, foresters, and farm
operations.

``(d) Enforcement.--
``(1) [NOTE: Deadline.]  In general.--To comply with
subsection (b), at least once every 3 years a person or legal
entity shall provide to the Secretary--
``(A) [NOTE: Certification.]  a certification by a
certified public accountant or another third party that
is acceptable to the Secretary that the average adjusted
gross income, average adjusted gross farm income, and
average adjusted gross nonfarm income of the person or
legal entity does not exceed the applicable limitation
specified in that subsection; or
``(B) information and documentation regarding the
average adjusted gross income, average adjusted gross
farm income, and average adjusted gross nonfarm income
of the person or legal entity through other procedures
established by the Secretary.
``(2) Denial of program benefits.--If the Secretary
determines that a person or legal entity has failed to comply
with this section, the Secretary shall deny the issuance of
applicable payments and benefits specified in paragraphs (1)(C)
and (2)(B) of subsection (b) to the person or legal entity,
under similar terms and conditions as described in section
1001B.
``(3) [NOTE: Procedures.]  Audit.--The Secretary shall
establish statistically valid procedures under which the
Secretary shall conduct targeted audits of such persons or legal
entities as the Secretary determines are most likely to exceed
the limitations under subsection (b).

``(e) Commensurate Reduction.--In the case of a payment or benefit
described in paragraphs (1)(C) and (2)(B) of subsection

[[Page 1744]]
122 STAT. 1744

(b) made in a crop, program, or fiscal year, as appropriate, to an
entity, general partnership, or joint venture, the amount of the payment
or benefit shall be reduced by an amount that is commensurate with the
direct and indirect ownership interest in the entity, general
partnership, or joint venture of each person who has an average adjusted
gross income, average adjusted gross farm income, or average adjusted
gross nonfarm income in excess of the applicable limitation specified in
subsection (b).
``(f) Effective Period.--This section shall apply only during the
2009 through 2012 crop, program, or fiscal years, as appropriate.''.
(b) [NOTE: Applicability. 7 USC 1308-3a note.]  Transition.--
Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a), as in
effect on September 30, 2007, shall apply with respect to the 2007 and
2008 crop, fiscal, or program year, as appropriate, for each program
described in paragraphs (1)(C) and (2)(B) of subsection (b) of that
section (as amended by subsection (a)).
SEC. 1605. [NOTE: 7 USC 8783.]  AVAILABILITY OF QUALITY
INCENTIVE PAYMENTS FOR COVERED OILSEED
PRODUCERS.

(a) Incentive Payments Required.--Subject to subsection (b) and the
availability of appropriations under subsection (h), the Secretary shall
use funds made available under subsection (h) 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.--A proponent 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) how use of the oilseed enhances human health;
(B) the impediments to commercial use of the
oilseed;
(C) each oilseed variety described in subsection (b)
and the value of the oilseed variety as a matter of
public policy;
(D) a range for the base price and premiums per
bushel or hundredweight to be paid to producers;
(E) 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;

[[Page 1745]]
122 STAT. 1745

(F) the period of time, not to exceed 4 years,
during which incentive payments are to be provided to
producers; and
(G) 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.
(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 paid to covered producers.

(e) Administration.--
(1) In general.--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.
(2) Prorated payments.--If funding provided for a crop year
is less than the amount otherwise approved by the Secretary or
for which approval is sought, the Secretary shall prorate the
payments or approvals in a manner determined by the Secretary so
that the total payments do not exceed the funding level.

(f) Proprietary Information.--The Secretary shall protect
proprietary information provided to the Secretary for the purpose of
administering this section.
(g) Program Compliance and Penalties.--
(1) Guarantee.--The proponent, if approved, shall be
required to guarantee that the oilseed on which a payment is
made by the Secretary under this section is used for human
consumption as described in the proposal, as approved by the
Secretary.
(2) Noncompliance.--If oilseeds on which a payment is made
by the Secretary under this section are not actually used for
the purpose the payment is made, the proponent shall be required
to pay to the Secretary an amount equal to, as determined by the
Secretary--
(A) in the case of an inadvertent failure, twice the
amount of the payment made by the Secretary under this
section to the producer of the oilseeds; and
(B) in any other case, up to twice the full value of
the oilseeds involved.
(3) Documentation.--The Secretary may require such
assurances and documentation as may be needed to enforce the
guarantee.
(4) Additional penalties.--
(A) In general.--In addition to payments required
under paragraph (2), the Secretary may impose penalties
on additional persons that use oilseeds the use of which
is restricted under this section for a purpose other
than the intended use.
(B) Amount.--The amount of a penalty under this
paragraph shall--
(i) be in an amount determined appropriated by
the Secretary; but
(ii) not to exceed twice the full value of the
oilseeds.

[[Page 1746]]
122 STAT. 1746

(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 2009 through 2012.
SEC. 1606. 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, Conservation, and Energy Act of 2008''.
SEC. 1607. 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--
(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, Conservation,
and Energy Act of 2008''; and
(2) in subsection (c), by adding at the end the following:
``(3) Termination of authority.--The authority to carry out
paragraph (1) terminates effective ending with the 2009 crop
year.''.
SEC. 1608. [NOTE: 7 USC 8784.]  ASSIGNMENT OF PAYMENTS.

(a) [NOTE: Applicability.]  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 this title.

(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. 1609. [NOTE: 7 USC 8785.]  TRACKING OF BENEFITS.

As soon as practicable after the date of enactment of this Act, the
Secretary may track the benefits provided, directly or indirectly, to
individuals and entities under titles I and II and the amendments made
by those titles.
SEC. 1610. 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. 1611. [NOTE: 7 USC 8786.]  PREVENTION OF DECEASED
INDIVIDUALS RECEIVING PAYMENTS UNDER
FARM COMMODITY PROGRAMS.

(a) [NOTE: Deadline.]  Regulations.--Not later than 180 days after
the date of enactment of this Act, the Secretary shall promulgate
regulations that--
(1) describe the circumstances under which, in order to
allow for the settlement of estates and for related purposes,
payments may be issued in the name of a deceased individual; and

[[Page 1747]]
122 STAT. 1747

(2) preclude the issuance of payments to, and on behalf of,
deceased individuals that were not eligible for the payments.

(b) Coordination.--At least twice each year, the Secretary shall
reconcile the social security numbers of all individuals who receive
payments under this title, whether directly or indirectly, with the
Social Security Administration to determine if the individuals are
alive.
SEC. 1612. [NOTE: 7 USC 8787.]  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.--Subject to the availability of
appropriations, 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.
(2) Payments.--
(A) In general.--Subject to subparagraphs (B) and
(C) and subsection (c), if funds are made available for
any of the 2009 through 2012 crops of hard white wheat,
the Secretary shall make available incentive payments to
producers of those crops.
(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.

[[Page 1748]]
122 STAT. 1748

(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $35,000,000 for the period of
fiscal years 2009 through 2012.
SEC. 1613. [NOTE: 7 USC 8788.]  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 2009 through 2012.
SEC. 1614. [NOTE: 7 USC 8789.]  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 1 partial
disbursement of loan principal and 1 final disbursement 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) require the borrower to provide loan security to the
Secretary, in the form of--
(A) a lien on the real estate parcel on which the
storage facility is located; or
(B) such other security as is acceptable to the
Secretary;
(2) under such rules and regulations as the Secretary may
prescribe, 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 by an amount determined appropriate by
the Secretary; or

[[Page 1749]]
122 STAT. 1749

(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. 1615. 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.
``(III) Representation of socially
disadvantaged farmers and ranchers.--
The [NOTE: Procedures.]  Secretary
shall develop procedures to maintain
representation of socially disadvantaged
farmers and ranchers 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. 1616. 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.''.

[[Page 1750]]
122 STAT. 1750

SEC. 1617. [NOTE: 7 USC 8790.]  SIGNATURE AUTHORITY.

(a) In General.--In carrying out this title and title II and
amendments made by those titles, if the Secretary approves a document,
the Secretary shall not subsequently determine the document is
inadequate or invalid because of the lack of authority of any person
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 person signing
the program document knowingly and willfully falsified the evidence of
signature authority or a signature.
(b) Affirmation.--
(1) In general.--Nothing in this section prohibits the
Secretary from asking a proper party to affirm any document that
otherwise would be considered approved under subsection (a).
(2) No retroactive effect.--A denial of benefits based on a
lack of affirmation under paragraph (1) shall not be retroactive
with respect to third-party producers who were not the subject
of the erroneous representation of authority, if the third-party
producers--
(A) relied on the prior approval by the Secretary of
the documents in good faith; and
(B) substantively complied with all program
requirements
SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY.

Not later [NOTE: Deadline. Reports.]  than 180 days after the date
of enactment of this Act, the Secretary shall transmit to 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 a report
prepared by a third party that describes--
(1) the data processing and information technology
challenges experienced in local offices of the Farm Service
Agency;
(2) the impact of those challenges on service to producers,
on efficiency of personnel, and on implementation of this Act;
(3) the need for information technology system upgrades of
the Farm Service Agency relative to other agencies of the
Department of Agriculture;
(4) the detailed plan needed to fulfill the needs of the
Department that are identified in paragraph (3), including
hardware, software, and infrastructure requirements;
(5) the estimated cost and timeframe for long-term
modernization and stabilization of Farm Service Agency
information technology systems;
(6) the benefits associated with such modernization and
stabilization; and
(7) an evaluation of the existence of appropriate oversight
within the Department to ensure that funds needed for systems
upgrades can be appropriately managed.
SEC. 1619. [NOTE: 7 USC 8791.]  INFORMATION GATHERING.

(a) Geospatial Systems.--The Secretary shall ensure that all the
geospatial data of the agencies of the Department of Agriculture are
portable and standardized.
(b) Limitation on Disclosures.--

[[Page 1751]]
122 STAT. 1751

(1) Definition of agricultural operation.--In this
subsection, the term ``agricultural operation'' includes the
production and marketing of agricultural commodities and
livestock.
(2) Prohibition.--Except as provided in paragraphs (3) and
(4), the Secretary, any officer or employee of the Department of
Agriculture, or any contractor or cooperator of the Department,
shall not disclose--
(A) information provided by an agricultural producer
or owner of agricultural land concerning the
agricultural operation, farming or conservation
practices, or the land itself, in order to participate
in programs of the Department; or
(B) geospatial information otherwise maintained by
the Secretary about agricultural land or operations for
which information described in subparagraph (A) is
provided.
(3) Authorized disclosures.--
(A) Limited release of information.--If the
Secretary determines that the information described in
paragraph (2) will not be subsequently disclosed except
in accordance with paragraph (4), the Secretary may
release or disclose the information to a person or
Federal, State, local, or tribal agency working in
cooperation with the Secretary in any Department
program--
(i) when providing technical or financial
assistance with respect to the agricultural
operation, agricultural land, or farming or
conservation practices; or
(ii) when responding to a disease or pest
threat to agricultural operations, if the
Secretary determines that a threat to agricultural
operations exists and the disclosure of
information to a person or cooperating government
entity is necessary to assist the Secretary in
responding to the disease or pest threat as
authorized by law.
(4) Exceptions.--Nothing in this subsection affects--
(A) the disclosure of payment information (including
payment information and the names and addresses of
recipients of payments) under any Department program
that is otherwise authorized by law;
(B) the disclosure of information described in
paragraph (2) if the information has been transformed
into a statistical or aggregate form without naming
any--
(i) individual owner, operator, or producer;
or
(ii) specific data gathering site; or
(C) the disclosure of information described in
paragraph (2) pursuant to the consent of the
agricultural producer or owner of agricultural land.
(5) Condition of other programs.--The participation of the
agricultural producer or owner of agricultural land in, or
receipt of any benefit under, any program administered by the
Secretary may not be conditioned on the consent of the
agricultural producer or owner of agricultural land under
paragraph (4)(C).
(6) Waiver of privilege or protection.--The disclosure of
information under paragraph (2) shall not constitute a waiver of
any applicable privilege or protection under Federal law,
including trade secret protection.

[[Page 1752]]
122 STAT. 1752

SEC. 1620. LEASING OF OFFICE SPACE.

Not later [NOTE: Deadline. Reports.]  than 1 year after the date
of enactment of this Act, the Secretary shall submit to 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 a report that
describes--
(1) the costs and time associated with complying with
leasing procedures of the General Services Administration
relative to the previous independent leasing procedures of the
Department of Agriculture;
(2) the additional staffing needs associated with complying
with those procedures; and
(3) the value added to the leasing process and the ability
of the Department to secure best-value leases by complying with
the General Services Administration leasing procedures.
SEC. 1621. [NOTE: 7 USC 8792.]  GEOGRAPHICALLY DISADVANTAGED
FARMERS AND RANCHERS.

(a) Definitions.--In this section:
(1) Agricultural commodity.--The term ``agricultural
commodity'' has the meaning given the term in section 102 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5602).
(2) Geographically disadvantaged farmer or rancher.--The
term ``geographically disadvantaged farmer or rancher'' has the
meaning given the term in section 10906(a) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 2204 note; Public Law
107-171).

(b) Authorization.--Subject to the availability of funds under
subsection (d), the Secretary may provide geographically disadvantaged
farmers or ranchers direct reimbursement payments for activities
described in subsection (c).
(c) Transportation.--
(1) In general.--Subject to paragraphs (2) and (3), the
Secretary may provide direct reimbursement payments to a
geographically disadvantaged farmer or rancher to transport an
agricultural commodity, or inputs used to produce an
agricultural commodity, during a fiscal year.
(2) Proof of eligibility.--To be eligible to receive
assistance under paragraph (1), a geographically disadvantaged
farmer or rancher shall demonstrate to the Secretary that
transportation of the agricultural commodity or inputs occurred
over a distance of more than 30 miles, as determined by the
Secretary.
(3) Amount.--
(A) In general.--Subject to paragraph (2), the
amount of direct reimbursement payments made to a
geographically disadvantaged farmer or rancher under
this section for a fiscal year shall equal the product
obtained by multiplying--
(i) the amount of costs incurred by the
geographically disadvantaged farmer or rancher for
transportation of the agricultural commodity or
inputs during the fiscal year; and
(ii)(I) the percentage of the allowance for
that fiscal year under section 5941 of title 5,
United States Code,

[[Page 1753]]
122 STAT. 1753

for Federal employees stationed in Alaska and
Hawaii; or
(II) in the case of an insular area (as
defined in section 1404 of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)), a comparable
percentage of the allowance for the fiscal year,
as determined by the Secretary.
(B) Limitation.--The total amount of direct
reimbursement payments provided by the Secretary under
this section shall not exceed $15,000,000 for a fiscal
year.

(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 2009 through 2012.
SEC. 1622. [NOTE: 7 USC 8793.]  IMPLEMENTATION.

The Secretary shall make available to the Farm Service Agency to
carry out this title $50,000,000.
SEC. 1623. 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.

TITLE II--CONSERVATION

Subtitle A--Definitions and Highly Erodible Land and Wetland
Conservation

SEC. 2001. DEFINITIONS RELATING TO CONSERVATION TITLE OF FOOD
SECURITY ACT OF 1985.

(a) Beginning Farmer or Rancher.--Section 1201(a) of the Food
Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
(1) by redesignating paragraphs (2) through (6), (7) through
(11), (12), (13) through (15), (16), (17), and (18) as
paragraphs (3) through (7), (9) through (13), (15), (20) through
(22), (24), (26), and (27), respectively; and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning given the term in section
343(a)(8) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)(8)).''.

(b) Farm.--Section 1201(a) of the Food Security Act of 1985 (16
U.S.C. 3801(a)) is amended by inserting after paragraph (7), as
redesignated by subsection (a)(1), the following new paragraph:
``(8) Farm.--The term `farm' means a farm that--
``(A) is under the general control of one operator;
``(B) has one or more owners;
``(C) consists of one or more tracts of land,
whether or not contiguous;

[[Page 1754]]
122 STAT. 1754

``(D) is located within a county or region, as
determined by the Secretary; and
``(E) may contain lands that are incidental to the
production of perennial crops, including conserving
uses, forestry, and livestock, as determined by the
Secretary.''.

(c) Indian Tribe.--Section 1201(a) of the Food Security Act of 1985
(16 U.S.C. 3801(a)) is amended by inserting after paragraph (13), as
redesignated by subsection (a)(1), the following new paragraph:
``(14) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b(e)).''.

(d) Integrated Pest Management; Livestock; Nonindustrial Private
Forest Land; Person and Legal Entity.--Section 1201(a) of the Food
Security Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting after
paragraph (15), as redesignated by subsection (a)(1), the following new
paragraphs:
``(16) Integrated pest management.--The term `integrated
pest management' means a sustainable approach to managing pests
by combining biological, cultural, physical, and chemical tools
in a way that minimizes economic, health, and environmental
risks.
``(17) Livestock.--The term `livestock' means all animals
raised on farms, as determined by the Secretary.
``(18) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land, as
determined by the Secretary, that--
``(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.
``(19) Person and legal entity.--For purposes of applying
payment limitations under subtitle D, the terms `person' and
`legal entity' have the meanings given those terms in section
1001(a) of this Act (7 U.S.C. 1308(a)).''.

(e) Socially Disadvantaged Farmer or Rancher.--Section 1201(a) of
the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended by
inserting after paragraph (22), as redesignated by subsection (a)(1),
the following new paragraph:
``(23) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning given
the term in section 2501(e)(2) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)(2)).''.

(f) Technical Assistance.--Section 1201(a) of the Food Security Act
of 1985 (16 U.S.C. 3801(a)) is amended by inserting after paragraph
(24), as redesignated by subsection (a)(1), the following new paragraph:
``(25) Technical assistance.--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. The term
includes the following:

[[Page 1755]]
122 STAT. 1755

``(A) 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.
``(B) 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.''.
SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO HIGHLY
ERODIBLE LAND CONSERVATION.

Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) is
amended by striking subsection (f) and inserting the following new
subsection:
``(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 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

[[Page 1756]]
122 STAT. 1756

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.''.
SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO WETLAND
CONSERVATION.

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 new
paragraph:
``(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 B--Conservation Reserve Program

SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM.

Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a))
is amended--
(1) by striking ``2007 calendar year'' and inserting ``2012
fiscal year''; and
(2) by inserting before the period the following: ``and to
address issues raised by State, regional, and national
conservation initiatives''; and
SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION RESERVE.

Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 3831(b))
is amended--
(1) in paragraph (1)(B)--
(A) by striking ``Farm Security and Rural Investment
Act of 2002'' and inserting ``Food, Conservation, and
Energy Act of 2008''; and
(B) by striking the period at the end and inserting
a semicolon; and
(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 ``or'' after
the semicolon at the end.
SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION RESERVE.

Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d))
is amended--
(1) by striking ``2007 calendar years'' and inserting ``2009
fiscal years'';

[[Page 1757]]
122 STAT. 1757

(2) by striking ``( 16 U.S.C.'' and inserting ``(16
U.S.C.''; and
(3) by adding at the end the following new sentence:
``During fiscal years 2010, 2011, and 2012, the Secretary may
maintain up to 32,000,000 acres in the conservation reserve at
any 1 time.''.
SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS.

Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 3831(f))
is amended by striking ``the Chesapeake Bay Region (Pennsylvania,
Maryland, and Virginia)'' and inserting ``the Chesapeake Bay Region''.
SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES.

Subsection (g) of section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amended to read as follows:
``(g) Multi-Year Grasses and Legumes.--
``(1) In general.--For purposes of this subchapter, alfalfa
and other multi-year grasses and legumes in a rotation practice,
approved by the Secretary, shall be considered agricultural
commodities.
``(2) Cropping history.--Alfalfa, when grown as part of a
rotation practice, as determined by the Secretary, is an
agricultural commodity subject to the cropping history criteria
under subsection (b)(1)(B) for the purpose of determining
whether highly erodible cropland has been planted or considered
planted for 4 of the 6 years referred to in such subsection.''.
SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND
BUFFER ACREAGE IN CONSERVATION RESERVE.

(a) Revised Program.--
(1) In general.--Title XII of the Food Security Act of 1985
is amended by inserting after section 1231 (16 U.S.C. 3831) the
following new section:
``SEC. 1231B. [NOTE: 16 USC 3831b.]  PILOT PROGRAM FOR
ENROLLMENT OF WETLAND AND BUFFER
ACREAGE IN CONSERVATION RESERVE.

``(a) Program Required.--
``(1) In general.--During the 2008 through 2012 fiscal
years, the Secretary shall carry out a program in each State
under which the Secretary shall enroll eligible acreage
described in subsection (b).
``(2) 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 program established under this section.

``(b) Eligible Acreage.--
``(1) Wetland and related land.--Subject to subsections (c)
and (d), an owner or operator may enroll in the conservation
reserve, pursuant to the program established under this section,
land--
``(A) that is wetland (including a converted wetland
described in section 1222(b)(1)(A)) that had a cropping
history during at least 3 of the immediately preceding
10 crop years;
``(B) on which a constructed wetland is to be
developed that will receive flow from a row crop
agriculture drainage

[[Page 1758]]
122 STAT. 1758

system and is designed to provide nitrogen removal in
addition to other wetland functions;
``(C) that was devoted to commercial pond-raised
aquaculture in any year during the period of calendar
years 2002 through 2007; or
``(D) that, after January 1, 1990, and before
December 31, 2002, was--
``(i) cropped during at least 3 of 10 crop
years; and
``(ii) subject to the natural overflow of a
prairie wetland.
``(2) Buffer acreage.--Subject to subsections (c) and (d),
an owner or operator may enroll in the conservation reserve,
pursuant to the program established under this section, buffer
acreage that--
``(A) with respect to land described in subparagraph
(A), (B), or (C) of paragraph (1)--
``(i) is contiguous to such land
``(ii) is used to protect such land; and
``(iii) is of such width as the Secretary
determines is necessary to protect such land,
taking into consideration and accommodating the
farming practices (including the straightening of
boundaries to accommodate machinery) used with
respect to the cropland that surrounds such land;
and
``(B) with respect to land described in subparagraph
(D) of paragraph (1), enhances a wildlife benefit to the
extent practicable in terms of upland to wetland ratios,
as determined by the Secretary.

``(c) Program Limitations.--
``(1) Acreage limitation.--The Secretary may enroll in the
conservation reserve, pursuant to the program established under
this section, not more than--
``(A) 100,000 acres in any State; and
``(B) a total of 1,000,000 acres.
``(2) Relationship to maximum enrollment.--Subject to
paragraph (3), any acreage enrolled in the conservation reserve
under this section shall be considered acres maintained in the
conservation reserve.
``(3) Relationship to other enrolled acreage.--Acreage
enrolled in the conservation reserve under this section shall
not affect for any fiscal year the quantity of--
``(A) acreage enrolled to establish conservation
buffers as part of the program announced on March 24,
1998 (63 Fed. Reg. 14109); or
``(B) acreage enrolled into the conservation reserve
enhancement program announced on May 27, 1998 (63 Fed.
Reg. 28965).
``(4) Review; potential increase in enrollment acreage.--The
Secretary shall conduct a review of the program established
under this section with respect to each State that has enrolled
land in the conservation reserve pursuant to the program. As a
result of the review, the Secretary may increase the number of
acres that may be enrolled in a State under the program to not
more than 200,000 acres, notwithstanding paragraph (1)(A).

``(d) Owner or Operator Enrollment Limitations.--

[[Page 1759]]
122 STAT. 1759

``(1) Wetland and related land.--
``(A) Wetlands and constructed wetlands.--The
maximum size of any land described in subparagraph (A)
or (B) of subsection (b)(1) that an owner or operator
may enroll in the conservation reserve, pursuant to the
program established under this section, shall be 40
contiguous acres.
``(B) Flooded farmland.--The maximum size of any
land described in subparagraph (D) of subsection (b)(1)
that an owner or operator may enroll in the conservation
reserve, pursuant to the program established under this
section, shall be 20 contiguous acres.
``(C) Coverage.--All acres described in subparagraph
(A) or (B), including acres that are ineligible for
payment, shall be covered by the conservation contract.
``(2) Buffer acreage.--The maximum size of any buffer
acreage described in subsection (b)(2) that an owner or operator
may enroll in the conservation reserve under this section shall
be determined by the Secretary in consultation with the State
Technical Committee.
``(3) Tracts.--Except for land described in subsection
(b)(1)(C) and buffer acreage related to such land, the maximum
size of any eligible acreage described in subsection (b)(1) in a
tract of an owner or operator enrolled in the conservation
reserve under this section shall be 40 acres.

``(e) Duties of Owners and Operators.--During the term of a contract
entered into under the program established under this section, an owner
or operator shall agree--
``(1) to restore the hydrology of the wetland within the
eligible acreage to the maximum extent practicable, as
determined by the Secretary;
``(2) to establish vegetative cover (which may include
emerging vegetation in water and bottomland hardwoods, cypress,
and other appropriate tree species) on the eligible acreage, as
determined by the Secretary;
``(3) to a general prohibition of commercial use of the
enrolled land; and
``(4) to carry out other duties described in section 1232.

``(f) Duties of the Secretary.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), in return for a contract entered into under this section,
the Secretary shall--
``(A) make payments to the owner or operator based
on rental rates for cropland; and
``(B) provide assistance to the owner or operator in
accordance with sections 1233 and 1234.
``(2) Contract offers and payments.--The Secretary shall use
the method of determination described in section 1234(c)(2)(B)
to determine the acceptability of contract offers and the amount
of rental payments under this section.
``(3) Incentives.--The amounts payable to owners and
operators in the form of rental payments under contracts entered
into under this section shall reflect incentives that are
provided to owners and operators to enroll filterstrips in the
conservation reserve under section 1234.''.
(2) Repeal of superceded program.--Section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended--
(A) by striking subsection (h); and

[[Page 1760]]
122 STAT. 1760

(B) by redesignating subsections (i) and (j) as
subsections (h) and (i), respectively.

(b) Conforming Changes to Emergency Forestry Conservation Reserve
Program.--Subsection (k) of section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) is amended--
(1) by striking ``(k) Emergency Forestry Conservation
Reserve Program.--'' and inserting the following:
``SEC. 1231A. [NOTE: 16 USC 3831a.]  EMERGENCY FORESTRY
CONSERVATION RESERVE PROGRAM.'';
(2) by striking ``subsection'' each place it appears (other
than paragraph (3)(C)(ii)) and inserting ``section'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c), respectively;
(4) in subsection (a), as so redesignated, by redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2),
respectively; and
(5) in subsection (c), as so redesignated--
(A) by redesignating subparagraphs (A) through (I)
as paragraphs (1) through (9), respectively;
(B) in paragraph (1), as so redesignated, by
striking ``subparagraph (B)'' and ``subparagraph (G)''
and inserting ``paragraph (2)'' and ``paragraph (7)'',
respectively;
(C) in paragraph (3), as so redesignated--
(i) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively; and
(ii) by striking ``subsection (d)'' and
inserting ``section 1231(d)'';
(D) in paragraph (4), as so redesignated, by
redesignating clauses (i) and (ii) as subparagraphs (A)
and (B), respectively;
(E) in paragraph (5), as so redesignated--
(i) by redesignating clauses (i) through (v)
as subparagraphs (A) through (E), respectively,
and subclauses (I) and (II) as clauses (i) and
(ii), respectively;
(ii) in subparagraph (B), as so redesignated,
by striking ``clause (i)(I)'' and inserting
``subparagraph (A)(i)''; and
(iii) in subparagraph (C), as so redesignated,
by striking ``clause (i)(II)'' and inserting
``subparagraph (A)(ii)''; and
(F) in paragraph (9), as so redesignated, by
redesignating clauses (i) through (iii) as subparagraphs
(A) through (C), respectively, and subclauses (I)
through (III) as clauses (i) through (iii),
respectively.
SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER CONSERVATION
RESERVE CONTRACTS.

Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 3832(a))
is amended--
(1) by redesignating paragraphs (5) through (10) as
paragraphs (6) through (11), respectively; and
(2) by inserting after paragraph (4) the following new
paragraph:
``(5) to undertake management on the land as needed
throughout the term of the contract to implement the
conservation plan;''.

[[Page 1761]]
122 STAT. 1761

SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COMMERCIAL USE OF
FORAGE ON ENROLLED LAND AND INSTALLATION
OF WIND TURBINES.

(a) General Prohibition; Exceptions.--Section 1232(a) of the Food
Security Act of 1985 (16 U.S.C. 3832(a)) is amended by striking
paragraph (8), as redesignated by section 2107, and inserting the
following new paragraph:
``(8) not to conduct any harvesting or grazing, nor
otherwise make commercial use of the forage, on land that is
subject to the contract, nor adopt any similar practice
specified in the contract by the Secretary as a practice that
would tend to defeat the purposes of the contract, except that
the Secretary may permit, consistent with the conservation of
soil, water quality, and wildlife habitat (including habitat
during nesting seasons for birds in the area)--
``(A) managed harvesting (including the managed
harvesting of biomass), except that in permitting
managed harvesting, the Secretary, in coordination with
the State technical committee--
``(i) shall develop appropriate vegetation
management requirements; and
``(ii) shall identify periods during which
managed harvesting may be conducted;
``(B) harvesting and grazing or other commercial use
of the forage on the land that is subject to the
contract in response to a drought or other emergency;
``(C) routine grazing or prescribed grazing for the
control of invasive species, except that in permitting
such routine grazing or prescribed grazing, the
Secretary, in coordination with the State technical
committee--
``(i) shall develop appropriate vegetation
management requirements and stocking rates for the
land that are suitable for continued routine
grazing; and
``(ii) shall establish the frequency during
which routine grazing may be conducted, taking
into consideration regional differences such as--
``(I) climate, soil type, and
natural resources;
``(II) the number of years that
should be required between routine
grazing activities; and
``(III) how often during a year in
which routine grazing is permitted that
routine grazing should be allowed to
occur; and
``(D) the installation of wind turbines, except that
in permitting the installation of wind turbines, the
Secretary shall determine the number and location of
wind turbines that may be installed, taking into
account--
``(i) the location, size, and other physical
characteristics of the land;
``(ii) the extent to which the land contains
wildlife and wildlife habitat; and
``(iii) the purposes of the conservation
reserve program under this subchapter;''.

(b) Rental Payment Reduction.--Section 1232 of the Food Security Act
of 1985 (16 U.S.C. 3832) is amended by adding at the end the following
new subsection:
``(d) Rental Payment Reduction for Certain Authorized Uses of
Enrolled Land.--In the case of an authorized activity

[[Page 1762]]
122 STAT. 1762

under subsection (a)(8) on land that is subject to a contract under this
subchapter, the Secretary shall reduce the rental payment otherwise
payable under the contract by an amount commensurate with the economic
value of the authorized activity.''.
SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES, WINDBREAKS,
SHELTERBELTS, AND WILDLIFE CORRIDORS.

Section 1234(b) of the Food Security Act of 1985 (16 U.S.C. 3834(b))
is amended by striking paragraph (3) and inserting the following new
paragraph:
``(3) Trees, windbreaks, shelterbelts, and wildlife
corridors.--
``(A) Applicability.--This paragraph applies to--
``(i) land devoted to the production of
hardwood trees, windbreaks, shelterbelts, or
wildlife corridors under a contract entered into
under this subchapter after November 28, 1990;
``(ii) land converted to such production under
section 1235A; and
``(iii) land on which an owner or operator
agrees to conduct thinning authorized by section
1232(a)(9), if the thinning is necessary to
improve the condition of resources on the land.
``(B) Payments.--
``(i) Percentage.--In making cost share
payments to an owner or operator of land described
in subparagraph (A), the Secretary shall pay 50
percent of the reasonable and necessary costs
incurred by the owner or operator for maintaining
trees or shrubs, including the cost of replanting
(if the trees or shrubs were lost due to
conditions beyond the control of the owner or
operator) or thinning.
``(ii) Duration.--The Secretary shall make
payments as described in clause (i) for a period
of not less than 2 years, but not more than 4
years, beginning on the date of--
``(I) the planting of the trees or
shrubs; or
``(II) the thinning of existing
stands to improve the condition of
resources on the land.''.
SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS, ANNUAL
RENTAL PAYMENTS, AND PAYMENT
LIMITATIONS.

(a) Evaluation and Acceptance of Contract Offers.--Section 1234(c)
of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended by
striking paragraph (3) and inserting the following new paragraph:
``(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, or wildlife
habitat or provide other environmental benefits.
``(B) Establishment of different criteria in various
states and regions.--The Secretary may establish

[[Page 1763]]
122 STAT. 1763

different criteria for determining the acceptability of
contract offers in various States and regions of the
United States based on the extent to which water quality
or wildlife habitat may be improved or erosion may be
abated.
``(C) Local preference.--In determining the
acceptability of contract offers for new enrollments,
the Secretary shall accept, to the maximum extent
practicable, 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 if, as determined by the
Secretary, the land would provide at least equivalent
conservation benefits to land under competing offers.''.

(b) Annual Survey of Dryland and Irrigated Cash Rental Rates.--
(1) Annual estimates required.--Section 1234(c) of the Food
Security Act of 1985 (16 U.S.C. 3834(c)) is amended by adding at
the end the following new paragraph:
``(5) Rental rates.--
``(A) Annual estimates.--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) [NOTE: Web site.]  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.''.
(2) [NOTE: Deadline. 16 USC 3834 note.]  First survey.--
The first survey required by paragraph (5) of section 1234(c) of
the Food Security Act of 1985 (16 U.S.C. 3834(c)), as added by
subsection (a), shall be conducted not later than 1 year after
the date of enactment of this Act.

(c) Payment Limitations.--Section 1234(f) of the Food Security Act
of 1985 (16 U.S.C. 3834(f)) is amended--
(1) in paragraph (1), by striking ``made to a person'' and
inserting ``received by a person or legal entity, directly or
indirectly,'';
(2) by striking paragraph (2); and
(3) in paragraph (4), by striking ``any person'' and
inserting ``any person or legal entity''.
SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCENTIVES FOR
BEGINNING FARMERS OR RANCHERS AND
SOCIALLY DISADVANTAGED FARMERS OR
RANCHERS.

(a) Contract Modification Authority.--Section 1235(c)(1)(B) of the
Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is amended--
(1) in clause (ii), by striking ``or'' at the end;
(2) by redesignating clause (iii) as clause (iv); and
(3) by inserting after clause (ii) the following new clause:
``(iii) to facilitate a transition of land
subject to the contract from a retired or retiring
owner or operator to a beginning farmer or rancher
or socially disadvantaged farmer or rancher for
the purpose of returning some or all of the land
into production using sustainable grazing or crop
production methods; or''.

[[Page 1764]]
122 STAT. 1764

(b) Transition Option.--Section 1235 of the Food Security Act of
1985 (16 U.S.C. 3835) is amended by adding at the end the following new
subsection:
``(f) Transition Option for Certain Farmers or Ranchers.--
``(1) [NOTE: Contracts.]  Duties of the secretary.--In the
case of a contract modification approved in order to facilitate
the transfer, as described in subsection (c)(1)(B)(iii), of land
to a beginning farmer or rancher or socially disadvantaged
farmer or rancher (in this subsection referred to as a `covered
farmer or rancher'), the Secretary shall--
``(A) [NOTE: Effective date.]  beginning on the
date that is 1 year before the date of termination of
the contract--
``(i) allow the covered farmer or rancher, in
conjunction with the retired or retiring owner or
operator, to make conservation and land
improvements; and
``(ii) allow the covered farmer or rancher to
begin the certification process under the Organic
Foods Production Act of 1990 (7 U.S.C. 6501 et
seq.);
``(B) beginning on the date of termination of the
contract, require the retired or retiring owner or
operator to sell or lease (under a long-term lease or a
lease with an option to purchase) to the covered farmer
or rancher the land subject to the contract for
production purposes;
``(C) require the covered farmer or rancher to
develop and implement a conservation plan;
``(D) provide to the covered farmer or rancher an
opportunity to enroll in the conservation stewardship
program or the environmental quality incentives program
by not later than the date on which the farmer or
rancher takes possession of the land through ownership
or lease; and
``(E) continue to make annual payments to the
retired or retiring owner or operator for not more than
an additional 2 years after the date of termination of
the contract, if the retired or retiring owner or
operator is not a family member (as defined in section
1001A(b)(3)(B) of this Act) of the covered farmer or
rancher.
``(2) Reenrollment.--The Secretary shall provide a covered
farmer or rancher with the option to reenroll any applicable
partial field conservation practice that--
``(A) is eligible for enrollment under the
continuous signup requirement of section 1231(h)(4)(B);
and
``(B) is part of an approved conservation plan.''.

Subtitle C--Wetlands Reserve Program

SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS RESERVE PROGRAM.

Subsection (a) of section 1237 of the Food Security Act of 1985 (16
U.S.C. 3837) is amended to read as follows:
``(a) Establishment and Purposes.--
``(1) Establishment.--The Secretary shall establish a
wetlands reserve program to assist owners of eligible lands in
restoring and protecting wetlands.

[[Page 1765]]
122 STAT. 1765

``(2) Purposes.--The purposes of the wetlands reserve
program are to restore, protect, or enhance wetlands on private
or tribal lands that are eligible under subsections (c) and
(d).''.
SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS.

Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 3837(b))
is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) Maximum enrollment.--The total number of acres
enrolled in the wetlands reserve program shall not exceed
3,041,200 acres.'';
(2) in paragraph (2), by striking ``The Secretary'' and
inserting ``Subject to paragraph (3), the Secretary''; and
(3) by adding at the end the following new paragraph:
``(3) [NOTE: Contracts.]  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--
``(A) a 30-year contract (the value of which shall
be equivalent to the value of a 30-year easement);
``(B) restoration cost-share agreements; or
``(C) any combination of the options described in
subparagraphs (A) and (B).''.
SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS ELIGIBLE
FOR ENROLLMENT.

(a) In General.--Section 1237(c) of the Food Security Act of 1985
(16 U.S.C. 3837(c)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``2007 calendar'' and inserting
``2012 fiscal''; and
(B) by inserting ``private or tribal'' before
``land'' the second place it appears;
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) such land is--
``(A) farmed wetland or converted wetland, together
with the adjacent land that is functionally dependent on
the wetlands, except that converted wetland with respect
to which the conversion was not commenced prior to
December 23, 1985, shall not be eligible to be enrolled
in the program under this section; or
``(B) cropland or grassland that was used for
agricultural production prior to flooding from the
natural overflow of a closed basin lake or pothole, as
determined by the Secretary, together (where
practicable) with the adjacent land that is functionally
dependent on the cropland or grassland; and''.

(b) Change of Ownership.--Section 1237E(a) of the Food Security Act
of 1985 (16 U.S.C. 3837e(a)) is amended by striking ``in the preceding
12 months'' and inserting ``during the preceding 7-year period''.
(c) Annual Survey and Reallocation.--Section 1237F of the Food
Security Act of 1985 (16 U.S.C. 3837f) is amended by adding at the end
the following new subsection:
``(c) Prairie Pothole Region Survey and Reallocation.--

[[Page 1766]]
122 STAT. 1766

``(1) Survey.--The Secretary shall conduct a survey during
fiscal year 2008 and each subsequent fiscal year for the purpose
of determining interest and allocations for the Prairie Pothole
Region to enroll eligible land described in section
1237(c)(2)(B).
``(2) Annual adjustment.--The Secretary shall make an
adjustment to the allocation for an interested State for a
fiscal year, based on the results of the survey conducted under
paragraph (1) for the State during the previous fiscal year.''.
SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS.

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 new clause:
``(iii) to meet habitat needs of specific
wildlife species; and''.
SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS RESERVE
PROGRAM.

Subsection (f) of section 1237A of the Food Security Act of 1985 (16
U.S.C. 3837a) is amended to read as follows:
``(f) Compensation.--
``(1) [NOTE: Effective date.]  Determination.--Effective
on the date of the enactment of the Food, Conservation, and
Energy Act of 2008, the Secretary shall pay as compensation for
a conservation easement acquired under this subchapter the
lowest of--
``(A) the fair market value of the land, as
determined by the Secretary, using the Uniform Standards
of Professional Appraisal Practices or an area-wide
market analysis or survey;
``(B) the amount corresponding to a geographical
cap, as determined by the Secretary in regulations; or
``(C) the offer made by the landowner.
``(2) Form of payment.--Compensation for an easement shall
be provided by the Secretary in the form of a cash payment, in
an amount determined under paragraph (1) and specified in the
easement agreement.
``(3) Payment schedule for easements.--
``(A) Easements valued at $500,000 or less.--For
easements valued at $500,000 or less, the Secretary may
provide easement payments in not more than 30 annual
payments.
``(B) Easements in excess of $500,000.--For
easements valued at more than $500,000, the Secretary
may provide easement payments in at least 5, but not
more than 30 annual payments, except that, if the
Secretary determines it would further the purposes of
the program, the Secretary may make a lump sum payment
for such an easement.
``(4) Restoration agreement payment limitation.--Payments
made to a person or legal entity, directly or indirectly,
pursuant to a restoration cost-share agreement under this
subchapter may not exceed, in the aggregate, $50,000 per year.
``(5) Enrollment procedure.--Lands may be enrolled under
this subchapter through the submission of bids under a procedure
established by the Secretary.''.

[[Page 1767]]
122 STAT. 1767

SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM AND RESERVED
RIGHTS PILOT PROGRAM.

Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is
amended by adding at the end the following new subsection:
``(h) Wetlands Reserve Enhancement Program.--
``(1) Program authorized.--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 pilot program.--
``(A) Reservation of grazing rights.--As part of the
wetlands reserve enhancement program, the Secretary
shall carry out a pilot program for land in which a
landowner may reserve grazing rights in the warranty
easement deed restriction if the Secretary determines
that the reservation and use of the grazing rights--
``(i) is compatible with the land subject to
the easement;
``(ii) is consistent with the long-term
wetland protection and enhancement goals for which
the easement was established; and
``(iii) complies with a conservation plan.
``(B) Duration.--The pilot program established under
this paragraph shall terminate on September 30, 2012.''.
SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE UNDER WETLANDS
RESERVE PROGRAM.

Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is
amended--
(1) in subsection (a)(1), by inserting ``including necessary
maintenance activities,'' after ``values,''; and
(2) by striking subsection (c) and inserting the following
new subsection:

``(c) Ranking of Offers.--
``(1) Conservation benefits and funding considerations.--
When evaluating offers from landowners, the Secretary may
consider--
``(A) the conservation benefits of obtaining an
easement or other interest in the land;
``(B) the cost-effectiveness of each easement or
other interest in eligible land, so as to maximize the
environmental benefits per dollar expended; and
``(C) whether the landowner or another person is
offering to contribute financially to the cost of the
easement or other interest in the land to leverage
Federal funds.
``(2) Additional considerations.--In determining the
acceptability of easement offers, the Secretary may take into
consideration--
``(A) the extent to which the purposes of the
easement program would be achieved on the land;
``(B) the productivity of the land; and
``(C) the on-farm and off-farm environmental threats
if the land is used for the production of agricultural
commodities.''.

[[Page 1768]]
122 STAT. 1768

SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE CONTRACTS
AND AGREEMENTS.

Section 1237D(c)(1) of the Food Security Act of 1985 (16 U.S.C.
3837d(c)(1)) is amended--
(1) by striking ``The total amount of easement payments made
to a person'' and inserting ``The total amount of payments that
a person or legal entity may receive, directly or indirectly,'';
and
(2) by inserting ``or under 30-year contracts'' before the
period at the end.
SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE
AGREEMENTS FOR WETLANDS RESERVE
ENHANCEMENT.

Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C.
3837d(c)) is amended by striking paragraph (4).
SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF
CONSERVATION EASEMENTS.

(a) Report Required.--Not later than January 1, 2010, 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 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.
(b) Inclusions.--The report required by subsection (a) shall include
the following:
(1) 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.
(2) An assessment of the extent to which the oversight of
the conservation easement agreements impacts the availability of
resources, including technical assistance.
(3) An assessment of the uses and value of agreements with
partner organizations.
(4) Any other relevant information relating to costs or
other effects that would be helpful to the Committees referred
to in subsection (a).

Subtitle D--Conservation Stewardship Program

SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM.

(a) Establishment of Program.--Chapter 2 of subtitle D of title XII
of the Food Security Act of 1985 is amended--
(1) by redesignating subchapters B (farmland protection
program) and C [NOTE: 16 USC 3838h et seq., 3838n et seq.]
(grassland reserve program) as subchapters C and D,
respectively; and
(2) by inserting after subchapter A the following new
subchapter:

``Subchapter B--Conservation Stewardship Program

``SEC. 1238D. [NOTE: 16 USC 3838d.]  DEFINITIONS.

``In this subchapter:

[[Page 1769]]
122 STAT. 1769

``(1) Conservation activities.--
``(A) In general.--The term `conservation
activities' means conservation systems, practices, or
management measures that are designed to address a
resource concern.
``(B) Inclusions.--The term `conservation
activities' includes--
``(i) structural measures, vegetative
measures, and land management measures, including
agriculture drainage management systems, as
determined by the Secretary; and
``(ii) planning needed to address a resource
concern.
``(2) Conservation measurement tools.--The term
`conservation measurement tools' means procedures to estimate
the level of environmental benefit to be achieved by a producer
in implementing conservation activities, including indices or
other measures developed by the Secretary.
``(3) Conservation stewardship plan.--The term `conservation
stewardship plan' means a plan that--
``(A) identifies and inventories resource concerns;
``(B) establishes benchmark data and conservation
objectives;
``(C) describes conservation activities to be
implemented, managed, or improved; and
``(D) includes a schedule and evaluation plan for
the planning, installation, and management of the new
and existing conservation activities.
``(4) Priority resource concern.--The term `priority
resource concern' means a resource concern that is identified at
the State level, in consultation with the State Technical
Committee, as a priority for a particular watershed or area of
the State.
``(5) Program.--The term `program' means the conservation
stewardship program established by this subchapter.
``(6) Resource concern.--The term `resource concern' means a
specific natural resource impairment or problem, as determined
by the Secretary, that--
``(A) represents a significant concern in a State or
region; and
``(B) is likely to be addressed successfully through
the implementation of conservation activities by
producers on land eligible for enrollment in the
program.
``(7) Stewardship threshold.--The term `stewardship
threshold' means the level of natural resource conservation and
environmental management required, as determined by the
Secretary using conservation measurement tools, to improve and
conserve the quality and condition of a resource concern.
``SEC. 1238E. [NOTE: 16 USC 3838e.]  CONSERVATION STEWARDSHIP
PROGRAM.

``(a) Establishment and Purpose.--During each of fiscal years 2009
through 2012, the Secretary shall carry out a conservation stewardship
program to encourage producers to address resource concerns in a
comprehensive manner--
``(1) by undertaking additional conservation activities; and
``(2) by improving, maintaining and managing existing
conservation activities.

``(b) Eligible Land.--

[[Page 1770]]
122 STAT. 1770

``(1) In general.--Except as provided in subsection (c), the
following land is eligible for enrollment in the program:
``(A) Private agricultural land (including cropland,
grassland, prairie land, improved pastureland,
rangeland, and land used for agro-forestry).
``(B) Agricultural land under the jurisdiction of an
Indian tribe.
``(C) Forested land that is an incidental part of an
agricultural operation.
``(D) Other private agricultural land (including
cropped woodland, marshes, and agricultural land used
for the production of livestock) on which resource
concerns related to agricultural production could be
addressed by enrolling the land in the program, as
determined by the Secretary.
``(2) Special rule for nonindustrial private forest land.--
Nonindustrial private forest land is eligible for enrollment in
the program, except that not more than 10 percent of the annual
acres enrolled nationally in any fiscal year may be
nonindustrial private forest land.
``(3) Agricultural operation.--Eligible land shall include
all acres of an agricultural operation of a producer, whether or
not contiguous, that are under the effective control of the
producer at the time the producer enters into a stewardship
contract, and is operated by the producer with equipment, labor,
management, and production or cultivation practices that are
substantially separate from other agricultural operations, as
determined by the Secretary.

``(c) Exclusions.--
``(1) Land enrolled in other conservation programs.--Subject
to paragraph (2), the following land is not be eligible for
enrollment in the program:
``(A) Land enrolled in the conservation reserve
program.
``(B) Land enrolled in the wetlands reserve program.
``(C) Land enrolled in the grassland reserve
program.
``(2) Conversion to cropland.--Land used for crop production
after the date of enactment of the Food, Conservation, and
Energy Act of 2008 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 shall not be the basis for any payment
under the program, unless the land does not meet the requirement
because--
``(A) the land had previously been enrolled in the
conservation reserve program;
``(B) the land has been maintained using long-term
crop rotation practices, as determined by the Secretary;
or
``(C) the land is incidental land needed for
efficient operation of the farm or ranch, as determined
by the Secretary.
``SEC. 1238F. [NOTE: 16 USC 3838f.]  STEWARDSHIP CONTRACTS.

``(a) Submission of Contract Offers.--To be eligible to participate
in the conservation stewardship program, a producer shall submit to the
Secretary for approval a contract offer that--
``(1) demonstrates to the satisfaction of the Secretary that
the producer, at the time of the contract offer, is meeting

[[Page 1771]]
122 STAT. 1771

the stewardship threshold for at least one resource concern; and
``(2) would, at a minimum, meet or exceed the stewardship
threshold for at least 1 priority resource concern by the end of
the stewardship contract by--
``(A) installing and adopting additional
conservation activities; and
``(B) improving, maintaining, and managing
conservation activities in place at the operation of the
producer at the time the contract offer is accepted by
the Secretary.

``(b) Evaluation of Contract Offers.--
``(1) Ranking of applications.--In evaluating contract
offers made by producers to enter into contracts under the
program, the Secretary shall rank applications based on--
``(A) the level of conservation treatment on all
applicable priority resource concerns at the time of
application, based to the maximum extent practicable on
conservation measurement tools;
``(B) the degree to which the proposed conservation
treatment on applicable priority resource concerns
effectively increases conservation performance, based to
the maximum extent possible on conservation measurement
tools;
``(C) the number of applicable priority resource
concerns proposed to be treated to meet or exceed the
stewardship threshold by the end of the contract;
``(D) the extent to which other resource concerns,
in addition to priority resource concerns, will be
addressed to meet or exceed the stewardship threshold by
the end of the contract period; and
``(E) the extent to which the actual and anticipated
environmental benefits from the contract are provided at
the least cost relative to other similarly beneficial
contract offers.
``(2) Prohibition.--The Secretary may not assign a higher
priority to any application because the applicant is willing to
accept a lower payment than the applicant would otherwise be
eligible to receive.
``(3) Additional criteria.--The Secretary may develop and
use such additional criteria for evaluating applications to
enroll in the program that the Secretary determines are
necessary to ensure that national, State, and local conservation
priorities are effectively addressed.

``(c) Entering Into Contracts.--After a determination that a
producer is eligible for the program under subsection (a), and a
determination that the contract offer ranks sufficiently high under the
evaluation criteria under subsection (b), the Secretary shall enter into
a conservation stewardship contract with the producer to enroll the land
to be covered by the contract.
``(d) Contract Provisions.--
``(1) Term.--A conservation stewardship contract shall be
for a term of 5 years.
``(2) Provisions.--The conservation stewardship contract of
a producer shall--
``(A) state the amount of the payment the Secretary
agrees to make to the producer for each year of the
conservation stewardship contract under section
1238G(e);

[[Page 1772]]
122 STAT. 1772

``(B) require the producer--
``(i) to implement during the term of the
conservation stewardship contract the conservation
stewardship plan approved by the Secretary;
``(ii) to maintain, and make available to the
Secretary at such times as the Secretary may
request, appropriate records showing the effective
and timely implementation of the conservation
stewardship contract; and
``(iii) not to engage in any activity during
the term of the conservation stewardship contract
on the eligible land covered by the contract that
would interfere with the purposes of the
conservation stewardship contract;
``(C) permit all economic uses of the land that--
``(i) maintain the agricultural nature of the
land; and
``(ii) are consistent with the conservation
purposes of the conservation stewardship contract;
``(D) include 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 condition, as determined by the Secretary;
and
``(E) include such other provisions as the Secretary
determines necessary to ensure the purposes of the
program are achieved.

``(e) Contract Renewal.--At the end of an initial conservation
stewardship contract of a producer, the Secretary may allow the producer
to renew the contract for one additional five-year period if the
producer--
``(1) demonstrates compliance with the terms of the existing
contract; and
``(2) agrees to adopt new conservation activities, as
determined by the Secretary.

``(f) Modification.--The Secretary may allow a producer to modify a
stewardship contract if the Secretary determines that the modification
is consistent with achieving the purposes of the program.
``(g) Contract Termination.--
``(1) Voluntary termination.--A producer may terminate a
conservation stewardship contract if the Secretary determines
that termination would not defeat the purposes of the program.
``(2) Involuntary termination.--The Secretary may terminate
a contract under this subchapter if the Secretary determines
that the producer violated the contract.
``(3) Repayment.--If a contract is terminated, the Secretary
may, consistent with the purposes of the program--
``(A) allow the producer to retain payments already
received under the contract; or
``(B) require repayment, in whole or in part, of
payments already received and assess liquidated damages.
``(4) Change of interest in land subject to a contract.--
``(A) In general.--Except as provided in paragraph
(B), a change in the interest of a producer in land
covered by a contract under this chapter shall result in
the termination of the contract with regard to that
land.

[[Page 1773]]
122 STAT. 1773

``(B) Transfer of duties and rights.--Subparagraph
(A) shall not apply if--
``(i) within a reasonable period of time (as
determined by the Secretary) after the date of the
change in the interest in land covered by a
contract under the program, 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 the program.

``(h) Coordination With Organic Certification.--The Secretary shall
establish a transparent means by which producers may initiate organic
certification under the Organic Foods Production Act of 1990 (7 U.S.C.
6501 et. seq.) while participating in a contract under this subchapter.
``(i) On-Farm Research and Demonstration or Pilot Testing.--The
Secretary may approve a contract offer under this subchapter that
includes--
``(1) on-farm conservation research and demonstration
activities; and
``(2) pilot testing of new technologies or innovative
conservation practices.
``SEC. 1238G. [NOTE: 16 USC 3838g.]  DUTIES OF THE SECRETARY.

``(a) In General.--To achieve the conservation goals of a contract
under the conservation stewardship program, the Secretary shall--
``(1) make the program available to eligible producers on a
continuous enrollment basis with 1 or more ranking periods, one
of which shall occur in the first quarter of each fiscal year;
``(2) identify not less than 3 nor more than 5 priority
resource concerns in a particular watershed or other appropriate
region or area within a State; and
``(3) develop reliable conservation measurement tools for
purposes of carrying out the program.

``(b) Allocation to States.--The Secretary shall allocate acres to
States for enrollment, based--
``(1) primarily on each State's proportion of eligible acres
under section 1238E(b)(1) to the total number of eligible acres
in all States; and
``(2) also on consideration of--
``(A) the extent and magnitude of the conservation
needs associated with agricultural production in each
State;
``(B) the degree to which implementation of the
program in the State is, or will be, effective in
helping producers address those needs; and
``(C) other considerations to achieve equitable
geographic distribution of funds, as determined by the
Secretary.

``(c) Specialty Crop and Organic Producers.--The Secretary shall
ensure that outreach and technical assistance are available, and program
specifications are appropriate to enable specialty crop and organic
producers to participate in the program.

[[Page 1774]]
122 STAT. 1774

``(d) [NOTE: Time period.]  Acreage Enrollment Limitation.--During
the period beginning on October 1, 2008, and ending on September 30,
2017, the Secretary shall, to the maximum extent practicable--
``(1) enroll in the program an additional 12,769,000 acres
for each fiscal year; and
``(2) manage the program to achieve a national average rate
of $18 per acre, which shall include the costs of all financial
assistance, technical assistance, and any other expenses
associated with enrollment or participation in the program.

``(e) Conservation Stewardship Payments.--
``(1) Availability of payments.--The Secretary shall provide
a payment under the program to compensate the producer for--
``(A) installing and adopting additional
conservation activities; and
``(B) improving, maintaining, and managing
conservation activities in place at the operation of the
producer at the time the contract offer is accepted by
the Secretary.
``(2) Payment amount.--The amount of the conservation
stewardship payment shall be determined by the Secretary and
based, to the maximum extent practicable, on the following
factors:
``(A) Costs incurred by the producer associated with
planning, design, materials, installation, labor,
management, maintenance, or training.
``(B) Income forgone by the producer.
``(C) Expected environmental benefits as determined
by conservation measurement tools.
``(3) Exclusions.--A payment to a producer under this
subsection shall not be provided for--
``(A) the design, construction, or maintenance of
animal waste storage or treatment facilities or
associated waste transport or transfer devices for
animal feeding operations; or
``(B) conservation activities for which there is no
cost incurred or income forgone to the producer.
``(4) Timing of payments.--
``(A) In general.--The Secretary shall make payments
as soon as practicable after October 1 of each fiscal
year for activities carried out in the previous fiscal
year.
``(B) Additional activities.--The Secretary shall
make payments to compensate producers for installation
of additional practices at the time at which the
practices are installed and adopted.

``(f) Supplemental Payments for Resource-Conserving Crop
Rotations.--
``(1) Availability of payments.--The Secretary shall provide
additional payments to producers that, in participating in the
program, agree to adopt resource-conserving crop rotations to
achieve beneficial crop rotations as appropriate for the land of
the producers.
``(2) Beneficial crop rotations.--The Secretary shall
determine whether a resource-conserving crop rotation is a
beneficial crop rotation eligible for additional payments under
paragraph (1), based on whether the resource-conserving crop
rotation is designed to provide natural resource conservation
and production benefits.

[[Page 1775]]
122 STAT. 1775

``(3) Eligibility.--To be eligible to receive a payment
described in paragraph (1), a producer shall agree to adopt and
maintain beneficial resource-conserving crop rotations for the
term of the contract.
``(4) Resource-conserving crop rotation.--In this
subsection, the term `resource-conserving crop rotation' means a
crop rotation that--
``(A) includes at least 1 resource conserving crop
(as defined by the Secretary);
``(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.

``(g) Payment Limitations.--A person or legal entity may not
receive, directly or indirectly, payments under this subchapter that, in
the aggregate, exceed $200,000 for all contracts entered into during any
5-year period, excluding funding arrangements with federally recognized
Indian tribes or Alaska Native corporations, regardless of the number of
contracts entered into under the program by the person or entity.
``(h) Regulations.--The Secretary shall promulgate regulations
that--
``(1) prescribe such other rules as the Secretary determines
to be necessary to ensure a fair and reasonable application of
the limitations established under subsection (g); and
``(2) otherwise enable the Secretary to carry out the
program.

``(i) [NOTE: Contracts.]  Data.--The Secretary shall maintain
detailed and segmented data on contracts and payments under the program
to allow for quantification of the amount of payments made for--
``(1) the installation and adoption of additional
conservation activities and improvements to conservation
activities in place on the operation of a producer at the time
the conservation stewardship offer is accepted by the Secretary;
``(2) participation in research, demonstration, and pilot
projects; and
``(3) the development and periodic assessment and evaluation
of conservation plans developed under this subchapter.''.

(b) Termination of Conservation Security Program Authority; Effect
on Existing Contracts.--Section 1238A of the Food Security Act of 1985
(16 U.S.C. 3838a) is amended by adding at the end the following new
subsection:
``(g) Prohibition on Conservation Security Program Contracts; Effect
on Existing Contracts.--
``(1) Prohibition.--A conservation security contract may not
be entered into or renewed under this subchapter after September
30, 2008.
``(2) Exception.--This subchapter, and the terms and
conditions of the conservation security program, shall continue
to apply to--
``(A) conservation security contracts entered into
on or before September 30, 2008; and
``(B) any conservation security contract entered
into after that date, but for which the application for
the contract was received during the 2008 sign-up
period.

[[Page 1776]]
122 STAT. 1776

``(3) Effect on payments.--The Secretary shall make payments
under this subchapter with respect to conservation security
contracts described in paragraph (2) during the remaining term
of the contracts.
``(4) Regulations.--A contract described in paragraph (2)
may not be administered under the regulations issued to carry
out the conservation stewardship program.''.

(c) Reference to Redesignated Subchapter.--Section 1238A(b)(3)(C) of
title XII of the Food Security Act of 1985 (16 U.S.C. 3838a(b)(3)(C)) is
amended by striking ``subchapter C'' and inserting ``subchapter D''.

Subtitle E--Farmland Protection and Grassland Reserve

SEC. 2401. 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
new paragraph:
``(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)--
(i) by striking ``that--'' and inserting
``that is subject to a pending offer for purchase
from an eligible entity and--''; and
(ii) by striking clauses (i) and (ii) and
inserting the following new clauses:
``(i) has prime, unique, or other productive
soil;
``(ii) contains historical or archaeological
resources; or
``(iii) the protection of which will further 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; and

[[Page 1777]]
122 STAT. 1777

(ii) by striking clause (v) and inserting the
following new clauses:
``(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 such land
is necessary for the efficient administration of a
conservation easement, as determined by the
Secretary.''.

(b) Farmland Protection.--Section 1238I of the Food Security Act of
1985 (16 U.S.C. 3838i) is amended to read as follows:
``SEC. 1238I. FARMLAND PROTECTION PROGRAM.

``(a) Establishment.--The Secretary shall establish and carry out a
farmland protection program under which the Secretary shall facilitate
and provide funding for the purchase of conservation easements or other
interests in eligible land.
``(b) Purpose.--The purpose of the program is to protect the
agricultural use and related conservation values of eligible land by
limiting nonagricultural uses of that land.
``(c) Cost-Share Assistance.--
``(1) Provision of assistance.--The Secretary shall provide
cost-share assistance to eligible entities for purchasing a
conservation easement or other interest in eligible land.
``(2) Federal share.--The share of the cost provided by the
Secretary for purchasing a conservation easement or other
interest in eligible land shall not exceed 50 percent of the
appraised fair market value of the conservation easement or
other interest in eligible land.
``(3) Non-federal share.--
``(A) Share provided by eligible entity.--The
eligible entity shall provide a share of the cost of
purchasing a conservation easement or other interest in
eligible land in an amount that is not less than 25
percent of the acquisition purchase price.
``(B) Landowner contribution.--As part of the non-
Federal share of the cost of purchasing a conservation
easement or other interest in eligible land, 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 or other
interest in land will be purchased.

``(d) [NOTE: Effective date.]  Determination of Fair Market
Value.--Effective on the date of enactment of the Food, Conservation,
and Energy Act of 2008, the fair market value of the conservation
easement or other interest in eligible land shall be determined on the
basis of an appraisal using an industry approved method, selected by the
eligible entity and approved by the Secretary.

``(e) Bidding Down Prohibited.--If the Secretary determines that 2
or more applications for cost-share assistance are comparable in
achieving the purpose of the program, the Secretary shall not assign a
higher priority to any 1 of those applications solely on the basis of
lesser cost to the program.
``(f) Condition on Assistance.--

[[Page 1778]]
122 STAT. 1778

``(1) Conservation plan.--Any highly erodible cropland for
which a conservation easement or other interest is purchased
using cost-share assistance provided under the program shall be
subject to a conservation plan that requires, at the option of
the Secretary, the conversion of the cropland to less intensive
uses.
``(2) Contingent right of enforcement.--The Secretary shall
require the inclusion of a contingent right of enforcement for
the Secretary in the terms of a conservation easement or other
interest in eligible land that is purchased using cost-share
assistance provided under the program.

``(g) Agreements With Eligible Entities.--
``(1) In general.--The Secretary shall enter into agreements
with eligible entities to stipulate the terms and conditions
under which the eligible entity is permitted to use cost-share
assistance provided under subsection (c).
``(2) Length of agreements.--An agreement under this
subsection shall be for a term that is--
``(A) in the case of an eligible entity certified
under the process described in subsection (h), a minimum
of five years; and
``(B) for all other eligible entities, at least
three, but not more than five years.
``(3) Substitution of qualified projects.--An agreement
shall allow, upon mutual agreement of the parties, substitution
of qualified projects that are identified at the time of the
proposed substitution.
``(4) Minimum requirements.--An eligible entity shall be
authorized to use its own terms and conditions, as approved by
the Secretary, for conservation easements and other purchases of
interests in land, so long as such terms and conditions--
``(A) are consistent with the purposes of the
program;
``(B) permit effective enforcement of the
conservation purposes of such easements or other
interests; and
``(C) include a limit on the impervious surfaces to
be allowed that is consistent with the agricultural
activities to be conducted.
``(5) Effect of violation.--If a violation occurs of a term
or condition of an agreement entered into under this
subsection--
``(A) the agreement shall remain in force; and
``(B) the Secretary may require the eligible entity
to refund all or part of any payments received by the
entity under the program, with interest on the payments
as determined appropriate by the Secretary.

``(h) Certification of Eligible Entities.--
``(1) Certification process.--The Secretary shall establish
a process under which the Secretary may--
``(A) directly certify eligible entities that meet
established criteria;
``(B) enter into long-term agreements with certified
entities, as authorized by subsection (g)(2)(A); and
``(C) accept proposals for cost-share assistance to
certified entities for the purchase of conservation
easements or other interests in eligible land throughout
the duration of such agreements.

[[Page 1779]]
122 STAT. 1779

``(2) Certification criteria.--In order to be certified, an
eligible entity shall demonstrate to the Secretary that the
entity will maintain, at a minimum, for the duration of the
agreement--
``(A) a plan for administering easements that is
consistent with the purpose of this subchapter;
``(B) the capacity and resources to monitor and
enforce conservation easements or other interests in
land; and
``(C) policies and procedures to ensure--
``(i) the long-term integrity of conservation
easements or other interests in eligible land;
``(ii) timely completion of acquisitions of
easements or other interests in eligible land; and
``(iii) timely and complete evaluation and
reporting to the Secretary on the use of funds
provided by the Secretary under the program.
``(3) Review and revision.--
``(A) Review.--The Secretary shall conduct a review
of eligible entities certified under paragraph (1) every
three years to ensure that such entities are meeting the
criteria established under paragraph (2).
``(B) Revocation.--If the Secretary finds that the
certified entity no longer meets the criteria
established under paragraph (2), the Secretary may--
``(i) allow the certified entity a specified
period of time, at a minimum 180 days, in which to
take such actions as may be necessary to meet the
criteria; and
``(ii) revoke the certification of the entity,
if after the specified period of time, the
certified entity does not meet the criteria
established in paragraph (2).''.
SEC. 2402. 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. 2403. GRASSLAND RESERVE PROGRAM.

Subchapter D of chapter 2 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3838n et seq.), as redesignated by
section 2301(a)(1), is amended to read as follows:

``Subchapter D--Grassland Reserve Program

``SEC. 1238N. [NOTE: 16 USC 3838n.]  GRASSLAND RESERVE PROGRAM.

``(a) Establishment and Purpose.--The Secretary shall establish a
grassland reserve program (referred to in this subchapter as the
`program') for the purpose of assisting owners and operators in
protecting grazing uses and related conservation values by restoring and
conserving eligible land through rental contracts, easements, and
restoration agreements.
``(b) Enrollment of Acreage.--
``(1) Acreage enrolled.--The Secretary shall enroll an
additional 1,220,000 acres of eligible land in the program
during fiscal years 2009 through 2012.
``(2) Methods of enrollment.--The Secretary shall enroll
eligible land in the program through the use of;
``(A) a 10-year, 15-year, or 20-year rental
contract;
``(B) a permanent easement; or

[[Page 1780]]
122 STAT. 1780

``(C) in a State that imposes a maximum duration for
easements, an easement for the maximum duration allowed
under the law of that State.
``(3) Limitation.--Of the total amount of funds expended
under the program to acquire rental contracts and easements
described in paragraph (2), the Secretary shall use, to the
extent practicable--
``(A) 40 percent for rental contacts; and
``(B) 60 percent for easements.
``(4) Enrollment of conservation reserve land.--
``(A) Priority.--Upon expiration of a contract under
subchapter B of chapter 1 of this subtitle, the
Secretary shall give priority for enrollment in the
program to land previously enrolled in the conservation
reserve program if--
``(i) the land is eligible land, as defined in
subsection (c); and
``(ii) the Secretary determines that the land
is of high ecological value and under significant
threat of conversion to uses other than grazing.
``(B) Maximum enrollment.--The number of acres of
land enrolled under the priority described in
subparagraph (A) in a calendar year shall not exceed 10
percent of the total number of acres enrolled in the
program in that calendar year.

``(c) Eligible Land Defined.--For purposes of the program, the term
`eligible land' means private or tribal land that--
``(1) is grassland, land that contains forbs, or shrubland
(including improved rangeland and pastureland) for which grazing
is the predominant use;
``(2) is located in an area that has been historically
dominated by grassland, forbs, or shrubland, and the land--
``(A) could provide habitat for animal or plant
populations of significant ecological value if the
land--
``(i) is retained in its current use; or
``(ii) is restored to a natural condition;
``(B) contains historical or archaeological
resources; or
``(C) would address issues raised by State,
regional, and national conservation priorities; or
``(3) is incidental to land described in paragraph (1) or
(2), if the incidental land is determined by the Secretary to be
necessary for the efficient administration of a rental contract
or easement under the program.
``SEC. 1238O. [NOTE: 16 USC 3838o.]  DUTIES OF OWNERS AND
OPERATORS.

``(a) Rental Contracts.--To be eligible to enroll eligible land in
the program under a rental contract, the owner or operator of the land
shall agree--
``(1) to comply with the terms of the contract and, when
applicable, a restoration agreement;
``(2) to suspend any existing cropland base and allotment
history for the land under another program administered by the
Secretary; and
``(3) to implement a grazing management plan, as approved by
the Secretary, which may be modified upon mutual agreement of
the parties.

[[Page 1781]]
122 STAT. 1781

``(b) Easements.--To be eligible to enroll eligible land in the
program through an easement, the owner of the land shall agree--
``(1) to grant an easement to the Secretary or to an
eligible entity described in section 1238Q;
``(2) to create and record an appropriate deed restriction
in accordance with applicable State law to reflect the easement;
``(3) to provide a written statement of consent to the
easement signed by persons holding a security interest or any
vested interest in the land;
``(4) to provide proof of unencumbered title to the
underlying fee interest in the land that is the subject of the
easement;
``(5) to comply with the terms of the easement and, when
applicable, a restoration agreement;
``(6) to implement a grazing management plan, as approved by
the Secretary, which may be modified upon mutual agreement of
the parties; and
``(7) to eliminate any existing cropland base and allotment
history for the land under another program administered by the
Secretary.

``(c) Restoration Agreements.--
``(1) When applicable.--To be eligible for cost-share
assistance to restore eligible land subject to a rental contract
or an easement under the program, the owner or operator of the
land shall agree to comply with the terms of a restoration
agreement.
``(2) Terms and conditions.--The Secretary shall prescribe
the terms and conditions of a restoration agreement by which
eligible land that is subject to a rental contract or easement
under the program shall be restored.
``(3) Duties.--The restoration agreement shall describe the
respective duties of the owner or operator and the Secretary,
including the Federal share of restoration payments and
technical assistance.

``(d) Terms and Conditions Applicable to Rental Contracts and
Easements.--
``(1) Permissible activities.--The terms and conditions of a
rental contract or easement under the program shall 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;
``(C) fire presuppression, rehabilitation, and
construction of fire breaks; and
``(D) grazing related activities, such as fencing
and livestock watering.
``(2) Prohibitions.--The terms and conditions of a rental
contract or easement under the program shall 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

[[Page 1782]]
122 STAT. 1782

``(B) except as permitted under a restoration plan,
the conduct of any other activity that would be
inconsistent with maintaining grazing land enrolled in
the program.
``(3) Additional terms and conditions.--A rental contract or
easement under the program shall include such additional
provisions as the Secretary determines are appropriate to carry
out or facilitate the purposes and administration of the
program.

``(e) Violations.--On a violation of the terms or conditions of a
rental contract, easement, or restoration agreement entered into under
this section--
``(1) the contract or easement shall remain in force; and
``(2) the Secretary may require the owner or operator to
refund all or part of any payments received under the program,
with interest on the payments as determined appropriate by the
Secretary.
``SEC. 1238P. [NOTE: 16 USC 3838p.]  DUTIES OF SECRETARY.

``(a) Evaluation and Ranking of Applications.--
``(1) Criteria.--The Secretary shall establish criteria to
evaluate and rank applications for rental contracts and
easements under the program .
``(2) Considerations.--In establishing the criteria, the
Secretary shall emphasize support for--
``(A) grazing operations;
``(B) plant and animal biodiversity; and
``(C) grassland, land that contains forbs, and
shrubland under the greatest threat of conversion to
uses other than grazing.

``(b) Payments.--
``(1) In general.--In return for the execution of a rental
contract or the granting of an easement by an owner or operator
under the program, the Secretary shall--
``(A) make rental contract or easement payments to
the owner or operator in accordance with paragraphs (2)
and (3); and
``(B) make payments to the owner or operator under a
restoration agreement for the Federal share of the cost
of restoration in accordance with paragraph (4).
``(2) Rental contract payments.--
``(A) Percentage of grazing value of land.--In
return for the execution of a rental contract by an
owner or operator under the program, the Secretary shall
make annual payments during the term of the contract in
an amount, subject to subparagraph (B), that is not more
than 75 percent of the grazing value of the land covered
by the contract.
``(B) Payment limitation.--Payments made under 1 or
more rental contracts to a person or legal entity,
directly or indirectly, may not exceed, in the
aggregate, $50,000 per year.
``(3) Easement payments.--
``(A) In general.--Subject to subparagraph (B), in
return for the granting of an easement by an owner under
the program, the Secretary shall make easement payments
in an amount not to exceed the fair market value of the

[[Page 1783]]
122 STAT. 1783

land less the grazing value of the land encumbered by
the easement.
``(B) Method for determination of compensation.--In
making a determination under subparagraph (A), the
Secretary shall pay as compensation for a easement
acquired under the program the lowest of--
``(i) the fair market value of the land
encumbered by the easement, as determined by the
Secretary, using--
``(I) the Uniform Standards of
Professional Appraisal Practices; or
``(II) an area-wide market analysis
or survey;
``(ii) the amount corresponding to a
geographical cap, as determined by the Secretary
in regulations; or
``(iii) the offer made by the landowner.
``(C) Schedule.--Easement payments may be provided
in up to 10 annual payments of equal or unequal amount,
as agreed to by the Secretary and the owner.
``(4) Restoration agreement payments.--
``(A) Federal share of restoration.--The Secretary
shall make payments to an owner or operator under a
restoration agreement of not more than 50 percent of the
costs of carrying out measures and practices necessary
to restore functions and values of that land.
``(B) Payment limitation.--Payments made under 1 or
more restoration agreements to a person or legal entity,
directly or indirectly, may not exceed, in the
aggregate, $50,000 per year.
``(5) Payments to others.--If an owner or operator who is
entitled to a payment under the program 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 in light of all
the circumstances.
``SEC. 1238Q. [NOTE: 16 USC 3838q.]  DELEGATION OF DUTY.

``(a) Authority to Delegate.--The Secretary may delegate a duty
under the program--
``(1) by transferring title of ownership to an easement to
an eligible entity to hold and enforce; or
``(2) by entering into a cooperative agreement with an
eligible entity for the eligible entity to own, write, and
enforce an easement.

``(b) Eligible Entity Defined.--In this section, the term `eligible
entity' means--
``(1) an agency of State or local government or an Indian
tribe; or
``(2) an organization that--
``(A) is organized for, and at all times since the
formation of the organization has been operated
principally for, one 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;

[[Page 1784]]
122 STAT. 1784

``(B) 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
``(C) is described in--
``(i) paragraph (1) or (2) of section 509(a)
of that Code; or
``(ii) in section 509(a)(3) of that Code, and
is controlled by an organization described in
section 509(a)(2) of that Code.

``(c) Transfer of Title of Ownership.--
``(1) Transfer.--The Secretary may transfer title of
ownership to an easement to an eligible entity to hold and
enforce, in lieu of the Secretary, subject to the right of the
Secretary to conduct periodic inspections and enforce the
easement, if--
``(A) the Secretary determines that the transfer
will promote protection of grassland, land that contains
forbs, or shrubland;
``(B) the owner authorizes the eligible entity to
hold or enforce the easement; and
``(C) the eligible entity agrees to assume the costs
incurred in administering and enforcing the easement,
including the costs of restoration or rehabilitation of
the land as specified by the owner and the eligible
entity.
``(2) Application.--An eligible entity that seeks to hold
and enforce an easement shall apply to the Secretary for
approval.
``(3) Approval by secretary.--The Secretary may approve an
application described in paragraph (2) if the eligible entity--
``(A) has the relevant experience necessary, as
appropriate for the application, to administer an
easement on grassland, land that contains forbs, or
shrubland;
``(B) has a charter that describes a commitment to
conserving ranchland, agricultural land, or grassland
for grazing and conservation purposes; and
``(C) has the resources necessary to effectuate the
purposes of the charter.

``(d) Cooperative Agreements.--
``(1) Authorized; terms and conditions.--The Secretary shall
establish the terms and conditions of a cooperative agreement
under which an eligible entity shall use funds provided by the
Secretary to own, write, and enforce an easement, in lieu of the
Secretary.
``(2) Minimum requirements.--At a minimum, the cooperative
agreement shall--
``(A) specify the qualification of the eligible
entity to carry out the entity's responsibilities under
the program, including acquisition, monitoring,
enforcement, and implementation of management policies
and procedures that ensure the long-term integrity of
the easement protections;
``(B) require the eligible entity to assume the
costs incurred in administering and enforcing the
easement, including the costs of restoration or
rehabilitation of the land as specified by the owner and
the eligible entity;
``(C) specify the right of the Secretary to conduct
periodic inspections to verify the eligible entity's
enforcement of the easement;

[[Page 1785]]
122 STAT. 1785

``(D) subject to subparagraph (E), identify a
specific project or a range of projects to be funded
under the agreement;
``(E) allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified
at the time of substitution;
``(F) specify the manner in which the eligible
entity will evaluate and report the use of funds to the
Secretary;
``(G) allow the eligible entity flexibility to
develop and use terms and conditions for easements, if
the Secretary finds the terms and conditions consistent
with the purposes of the program and adequate to enable
effective enforcement of the easements;
``(H) if applicable, allow an eligible entity to
include a charitable donation or qualified conservation
contribution (as defined by section 170(h) of the
Internal Revenue Code of 1986) from the landowner from
which the easement will be purchased as part of the
entity's share of the cost to purchase an easement; and
``(I) provide for a schedule of payments to an
eligible entity, as agreed to by the Secretary and the
eligible entity.
``(3) Cost sharing.--
``(A) In general.--As part of a cooperative
agreement with an eligible entity under this subsection,
the Secretary may provide a share of the purchase price
of an easement under the program.
``(B) Minimum share by eligible entity.--The
eligible entity shall be required to provide a share of
the purchase price at least equivalent to that provided
by the Secretary.
``(C) Priority.--The Secretary may accord a higher
priority to proposals from eligible entities that
leverage a greater share of the purchase price of the
easement.
``(4) Violation.--If an eligible entity violates the terms
or conditions of a cooperative agreement entered into under this
subsection--
``(A) the cooperative agreement shall remain in
force; and
``(B) the Secretary may require the eligible entity
to refund all or part of any payments received by the
eligible entity under the program, with interest on the
payments as determined appropriate by the Secretary.

``(e) Protection of Federal Investment.--When delegating a duty
under this section, the Secretary shall ensure that the terms of an
easement include a contingent right of enforcement for the
Department.''.

Subtitle F--Environmental Quality Incentives Program

SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

(a) Revised 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''; and

[[Page 1786]]
122 STAT. 1786

(2) by striking paragraphs (3) and (4) and inserting the
following new paragraphs:
``(3) providing flexible assistance to producers to install
and maintain conservation practices that sustain food and fiber
production while--
``(A) enhancing soil, water, and related natural
resources, including grazing land, forestland, wetland,
and wildlife; and
``(B) conserving energy;
``(4) assisting producers to make beneficial, cost effective
changes to production systems (including conservation practices
related to organic production), grazing management, fuels
management, forest management, nutrient management associated
with livestock, pest or irrigation management, or other
practices on agricultural and forested land; and''.

(b) Technical Correction.--The Food Security Act of 1985 is amended
by inserting immediately before section 1240 (16 U.S.C. 3839aa) the
following:

``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM''.

SEC. 2502. DEFINITIONS.

Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1)
is amended to read as follows:
``SEC. 1240A. DEFINITIONS.

``In this chapter:
``(1) Eligible land.--
``(A) In general.--The term `eligible land' means
land on which agricultural commodities, livestock, or
forest-related products are produced.
``(B) Inclusions.--The term `eligible land' includes
the following:
``(i) Cropland.
``(ii) Grassland.
``(iii) Rangeland.
``(iv) Pasture land.
``(v) Nonindustrial private forest land.
``(vi) Other agricultural land (including
cropped woodland, marshes, and agricultural land
used for the production of livestock) on which
resource concerns related to agricultural
production could be addressed through a contract
under the program, as determined by the Secretary.
``(2) 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.).
``(3) Organic system plan.--The term `organic system plan'
means an organic plan approved under the national organic
program.
``(4) Payment.--The term `payment' means financial
assistance provided to a producer for performing practices under
this chapter, including compensation for--

[[Page 1787]]
122 STAT. 1787

``(A) incurred costs associated with planning,
design, materials, equipment, installation, labor,
management, maintenance, or training; and
``(B) income forgone by the producer.
``(5) Practice.--The term `practice' means 1 or more
improvements and conservation activities that are consistent
with the purposes of the program under this chapter, as
determined by the Secretary, including--
``(A) improvements to eligible land of the producer,
including--
``(i) structural practices;
``(ii) land management practices;
``(iii) vegetative practices;
``(iv) forest management; and
``(v) other practices that the Secretary
determines would further the purposes of the
program; and
``(B) conservation activities involving the
development of plans appropriate for the eligible land
of the producer, including--
``(i) comprehensive nutrient management
planning; and
``(ii) other plans that the Secretary
determines would further the purposes of the
program under this chapter.
``(6) Program.--The term `program' means the environmental
quality incentives program established by this chapter.''.
SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL
QUALITY INCENTIVES PROGRAM.

Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2)
is amended to read as follows:
``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.

``(a) Establishment.--During each of the 2002 through 2012 fiscal
years, the Secretary shall provide payments to producers that enter into
contracts with the Secretary under the program.
``(b) Practices and Term.--
``(1) Practices.--A contract under the program may apply to
the performance of one or more practices.
``(2) Term.--A contract under the program shall have a term
that--
``(A) at a minimum, is equal to the period beginning
on the date on which the contract is entered into and
ending on the date that is one year after the date on
which all practices under the contract have been
implemented; but
``(B) not to exceed 10 years.

``(c) Bidding Down.--If the Secretary determines that the
environmental values of two or more applications for payments are
comparable, the Secretary shall not assign a higher priority to the
application only because it would present the least cost to the program.
``(d) Payments.--
``(1) Availability of payments.--Payments are provided to a
producer to implement one or more practices under the program.

[[Page 1788]]
122 STAT. 1788

``(2) Limitation on payment amounts.--A payment to a
producer for performing a practice may not exceed, as determined
by the Secretary--
``(A) 75 percent of the costs associated with
planning, design, materials, equipment, installation,
labor, management, maintenance, or training;
``(B) 100 percent of income foregone by the
producer; or
``(C) in the case of a practice consisting of
elements covered under subparagraphs (A) and (B)--
``(i) 75 percent of the costs incurred for
those elements covered under subparagraph (A); and
``(ii) 100 percent of income foregone for
those elements covered under subparagraph (B).
``(3) Special rule involving payments for foregone income.--
In determining the amount and rate of payments under paragraph
(2)(B), the Secretary may accord great significance to a
practice that, as determined by the Secretary, promotes--
``(A) residue management;
``(B) nutrient management;
``(C) air quality management;
``(D) invasive species management;
``(E) pollinator habitat;
``(F) animal carcass management technology; or
``(G) pest management.
``(4) Increased payments for certain producers.--
``(A) In general.--Notwithstanding paragraph (2), in
the case of a producer that is a limited resource,
socially disadvantaged farmer or rancher or a beginning
farmer or rancher, the Secretary shall increase the
amount that would otherwise be provided to a producer
under this subsection--
``(i) to not more than 90 percent of the costs
associated with planning, design, materials,
equipment, installation, labor, management,
maintenance, or training; and
``(ii) to not less than 25 percent above the
otherwise applicable rate.
``(B) Advance payments.--Not more than 30 percent of
the amount determined under subparagraph (A) may be
provided in advance for the purpose of purchasing
materials or contracting.
``(5) Financial assistance from other sources.--Except as
provided in paragraph (6), any payments received by a producer
from a State or private organization or person for the
implementation of one or more practices on eligible land of the
producer shall be in addition to the payments provided to the
producer under this subsection.
``(6) Other payments.--A producer shall not be eligible for
payments for practices on eligible land under the program if the
producer receives payments or other benefits for the same
practice on the same land under another program under this
subtitle.

``(e) Modification or Termination of Contracts.--

[[Page 1789]]
122 STAT. 1789

``(1) Voluntary modification or termination.--The Secretary
may modify or terminate a contract entered into with a producer
under the program if--
``(A) the producer agrees to the modification or
termination; and
``(B) the Secretary determines that the modification
or termination is in the public interest.
``(2) Involuntary termination.--The Secretary may terminate
a contract under the program if the Secretary determines that
the producer violated the contract.

``(f) Allocation of Funding.--For each of fiscal years 2002 through
2012, 60 percent of the funds made available for payments under the
program shall be targeted at practices relating to livestock production.
``(g) Funding for Federally Recognized Native American Indian Tribes
and Alaska Native Corporations.--The Secretary may enter into
alternative funding arrangements with federally recognized Native
American Indian Tribes and Alaska Native Corporations (including their
affiliated membership organizations) if the Secretary determines that
the goals and objectives of the program will be met by such
arrangements, and that statutory limitations regarding contracts with
individual producers will not be exceeded by any Tribal or Native
Corporation member.
``(h) Water Conservation or Irrigation Efficiency Practice.--
``(1) Availability of payments.--The Secretary may provide
payments under this subsection to a producer for a water
conservation or irrigation practice.
``(2) Priority.--In providing payments to a producer for a
water conservation or irrigation practice, the Secretary shall
give priority to applications in which--
``(A) consistent with the law of the State in which
the eligible land of the producer is located, there is a
reduction in water use in the operation of the producer;
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.

``(i) Payments for Conservation Practices Related to Organic
Production.--
``(1) Payments authorized.--The Secretary shall provide
payments under this subsection for conservation practices, on
some or all of the operations of a producer, related--
``(A) to organic production; and
``(B) to the transition to organic production.
``(2) Eligibility requirements.--As a condition for
receiving payments under this subsection, a producer shall
agree--
``(A) to develop and carry out an organic system
plan; or
``(B) to develop and implement conservation
practices for certified organic production that are
consistent with an organic system plan and the purposes
of this chapter.

[[Page 1790]]
122 STAT. 1790

``(3) Payment limitations.--Payments under this subsection
to a person or legal entity, directly or indirectly, may not
exceed, in the aggregate, $20,000 per year or $80,000 during any
6-year period. In applying these limitations, the Secretary
shall not take into account payments received for technical
assistance.
``(4) Exclusion of certain organic certification costs.--
Payments may not be made under this subsection to cover the
costs associated with organic certification that are eligible
for cost-share payments under section 10606 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 6523).
``(5) Termination of contracts.--The Secretary may cancel or
otherwise nullify a contract to provide payments under this
subsection if the Secretary determines that the producer--
``(A) is not pursuing organic certification; or
``(B) is not in compliance with the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq).''.
SEC. 2504. EVALUATION OF APPLICATIONS.

Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3)
is amended to read as follows:
``SEC. 1240C. EVALUATION OF APPLICATIONS.

``(a) Evaluation Criteria.--The Secretary shall develop criteria for
evaluating applications that will ensure that national, State, and local
conservation priorities are effectively addressed.
``(b) Prioritization of Applications.--In evaluating applications
under this chapter, the Secretary shall prioritize applications--
``(1) based on their overall level of cost-effectiveness to
ensure that the conservation practices and approaches proposed
are the most efficient means of achieving the anticipated
environmental benefits of the project;
``(2) based on how effectively and comprehensively the
project addresses the designated resource concern or resource
concerns;
``(3) that best fulfill the purpose of the environmental
quality incentives program specified in section 1240(1); and
``(4) that improve conservation practices or systems in
place on the operation at the time the contract offer is
accepted or that will complete a conservation system.

``(c) Grouping of Applications.--To the greatest extent practicable,
the Secretary shall group applications of similar crop or livestock
operations for evaluation purposes or otherwise evaluate applications
relative to other applications for similar farming operations.''.
SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.

Section 1240D of the Food Security Act of 1985 (16 U.S.C. 3839aa-4)
is amended--
(1) in the matter preceding paragraph (1), by striking
``technical assistance, cost-share payments, or incentive'';
(2) in paragraph (2), by striking ``farm or ranch'' and
inserting ``farm, ranch, or forest land''; and

[[Page 1791]]
122 STAT. 1791

(3) in paragraph (4), by striking ``cost-share payments and
incentive''.
SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

(a) Plan of Operations.--Section 1240E(a) of the Food Security Act
of 1985 (16 U.S.C. 3839aa-5(a)) is amended--
(1) in the subsection heading, by striking ``In General''
and inserting ``Plan of Operations'';
(2) in matter preceding paragraph (1), by striking ``cost-
share payments or incentive'';
(3) in paragraph (2), by striking ``and'' after the
semicolon at the end;
(4) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(5) by adding at the end the following new paragraph:
``(4) in the case of forest land, is consistent with the
provisions of 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.''.

(b) Avoidance of Duplication.--Subsection (b) of section 1240E of
the Food Security Act of 1985 (16 U.S.C. 3839aa-5) is amended to read as
follows:
``(b) Avoidance of Duplication.--The Secretary shall--
``(1) consider a plan developed in order to acquire a permit
under a water or air quality regulatory program as the
equivalent of a plan of operations under subsection (a), if the
plan contains elements equivalent to those elements required by
a plan of operations; and
``(2) to the maximum extent practicable, eliminate
duplication of planning activities under the program under this
chapter and comparable conservation programs.''.
SEC. 2507. DUTIES OF THE SECRETARY.

Section 1240F(1) of the Food Security Act of 1985 (16 U.S.C. 3839aa-
6(1)) is amended by striking ``cost-share payments or incentive''.
SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY INCENTIVES PROGRAM
PAYMENTS.

Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7)
is amended--
(1) by striking ``An individual or entity'' and inserting
``(a) limitation.--Subject to subsection (b), a person or legal
entity'';
(2) by striking ``$450,000'' and inserting ``$300,000'';
(3) by striking ``the individual'' both places it appears
and inserting ``the person''; and
(4) by adding at the end the following new subsection:

``(b) Waiver Authority.--In the case of contracts under this chapter
for projects of special environmental significance (including projects
involving methane digesters), as determined by the Secretary, the
Secretary may--

[[Page 1792]]
122 STAT. 1792

``(1) waive the limitation otherwise applicable under
subsection (a); and
``(2) raise the limitation to not more than $450,000 during
any six-year period.''.
SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8)
is amended to read as follows:
``SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

``(a) Competitive Grants for Innovative Conservation Approaches.--
``(1) Grants.--Out of the funds made available to carry out
this chapter, the Secretary may pay the cost of competitive
grants that are intended to stimulate innovative approaches to
leveraging the Federal investment in environmental enhancement
and protection, in conjunction with agricultural production or
forest resource management, through the program.
``(2) Use.--The Secretary may provide grants under this
subsection to governmental and non-governmental organizations
and persons, on a competitive basis, to carry out projects
that--
``(A) involve producers who are eligible for
payments or technical assistance under the program;
``(B) leverage Federal funds made available to carry
out the program under this chapter with matching funds
provided by State and local governments and private
organizations to promote environmental enhancement and
protection in conjunction with agricultural production;
``(C) ensure efficient and effective transfer of
innovative technologies and approaches demonstrated
through projects that receive funding under this
section, such as market systems for pollution reduction
and practices for the storage of carbon in soil; and
``(D) provide environmental and resource
conservation benefits through increased participation by
producers of specialty crops.

``(b) Air Quality Concerns From Agricultural Operations.--
``(1) Implementation assistance.--The Secretary shall
provide payments under this subsection to producers to implement
practices to address air quality concerns from agricultural
operations and to meet Federal, State, and local regulatory
requirements. The funds shall be made available on the basis of
air quality concerns in a State and shall be used to provide
payments to producers that are cost effective and reflect
innovative technologies.
``(2) Funding.--Of the funds made available to carry out
this chapter, the Secretary shall carry out this subsection
using $37,500,000 for each of fiscal years 2009 through 2012.''.
SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

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

``(a) Definitions.--In this section:

[[Page 1793]]
122 STAT. 1793

``(1) Agricultural water enhancement activity.--The term
`agricultural water enhancement activity' includes the following
activities carried out with respect to agricultural land:
``(A) Water quality or water conservation plan
development, including resource condition assessment and
modeling.
``(B) Water conservation restoration or enhancement
projects, including conversion to the production of less
water-intensive agricultural commodities or dryland
farming.
``(C) Water quality or quantity restoration or
enhancement projects.
``(D) Irrigation system improvement and irrigation
efficiency enhancement.
``(E) Activities designed to mitigate the effects of
drought.
``(F) Related activities that the Secretary
determines will help achieve water quality or water
conservation benefits on agricultural land.
``(2) Partner.--The term `partner' means an entity that
enters into a partnership agreement with the Secretary to carry
out agricultural water enhancement activities on a regional
basis, including--
``(A) an agricultural or silvicultural producer
association or other group of such producers;
``(B) a State or unit of local government; or
``(C) a federally recognized Indian tribe.
``(3) Partnership agreement.--The term `partnership
agreement' means an agreement between the Secretary and a
partner.
``(4) Program.--The term `program' means the agricultural
water enhancement program established under subsection (b).

``(b) [NOTE: Effective date. Procedures. Contracts.]
Establishment of Program.--Beginning in fiscal year 2009, the Secretary
shall carry out, in accordance with this section and using such
procedures as the Secretary determines to be appropriate, an
agricultural water enhancement program as part of the environmental
quality incentives program to promote ground and surface water
conservation and improve water quality on agricultural lands--
``(1) by entering into contracts with, and making payments
to, producers to carry out agricultural water enhancement
activities; or
``(2) by entering into partnership agreements with partners,
in accordance with subsection (c), on a regional level to
benefit working agricultural land.

``(c) Partnership Agreements.--
``(1) Agreements authorized.--The Secretary may enter into
partnership agreements to meet the objectives of the program
described in subsection (b).
``(2) Applications.--An application to the Secretary to
enter into a partnership agreement under paragraph (1) shall
include the following:
``(A) A description of the geographical area to be
covered by the partnership agreement.
``(B) A description of the agricultural water
quality or water conservation issues to be addressed by
the partnership agreement.

[[Page 1794]]
122 STAT. 1794

``(C) A description of the agricultural water
enhancement objectives to be achieved through the
partnership.
``(D) A description of the partners collaborating to
achieve the project objectives and the roles,
responsibilities, and capabilities of each partner.
``(E) A description of the program resources,
including payments the Secretary is requested to make.
``(F) Such other such elements as the Secretary
considers necessary to adequately evaluate and
competitively select applications for partnership
agreements.
``(3) [NOTE: Reports.]  Duties of partners.--A partner
under a partnership agreement shall--
``(A) identify producers participating in the
project and act on their behalf in applying for the
program;
``(B) leverage funds provided by the Secretary with
additional funds to help achieve project objectives;
``(C) conduct monitoring and evaluation of project
effects; and
``(D) at the conclusion of the project, report to
the Secretary on project results.

``(d) Agricultural Water Enhancement Activities by Producers.--The
Secretary shall select agricultural water enhancement activities
proposed by producers according to applicable requirements under the
environmental quality incentives program.
``(e) Agricultural Water Enhancement Activities by Partners.--
``(1) Competitive process.--The Secretary shall conduct a
competitive process to select partners. [NOTE: Public
information.]  In carrying out the process, the Secretary shall
make public the criteria used in evaluating applications.
``(2) Authority to give priority to certain proposals.--The
Secretary may give a higher priority to proposals from partners
that--
``(A) include high percentages of agricultural land
and producers in a region or other appropriate area;
``(B) result in high levels of applied agricultural
water quality and water conservation activities;
``(C) significantly enhance agricultural activity;
``(D) allow for monitoring and evaluation; and
``(E) assist producers in meeting a regulatory
requirement that reduces the economic scope of the
producer's operation.
``(3) Priority to proposals from states with water quantity
concerns.--The Secretary shall give a higher priority to
proposals from partners that--
``(A) include the conversion of agricultural land
from irrigated farming to dryland farming;
``(B) leverage Federal funds provided under the
program with funds provided by partners; and
``(C) assist producers in States with water quantity
concerns, as determined by the Secretary.
``(4) Administration.--In carrying out this subsection, the
Secretary shall--
``(A) accept qualified applications--
``(i) directly from partners applying on
behalf of producers; or

[[Page 1795]]
122 STAT. 1795

``(ii) from producers applying through a
partner as part of a regional agricultural water
enhancement project; and
``(B) ensure that resources made available for
regional agricultural water enhancement activities are
delivered in accordance with applicable program rules.

``(f) Areas Experiencing Exceptional Drought.--Notwithstanding the
purposes described in section 1240, the Secretary shall consider as an
eligible agricultural water enhancement activity the use of a water
impoundment to capture surface water runoff on agricultural land if the
agricultural water enhancement activity--
``(1) is located in an area that is experiencing or has
experienced exceptional drought conditions during the previous
two calendar years; and
``(2) will capture surface water runoff through the
construction, improvement, or maintenance of irrigation ponds or
small, on-farm reservoirs.

``(g) Waiver Authority.--To assist in the implementation of
agricultural water enhancement activities under the program, the
Secretary shall waive the applicability of the limitation in section
1001D(b)(2)(B) of this Act for participating producers if the Secretary
determines that the waiver is necessary to fulfill the objectives of the
program.
``(h) Payments Under Program.--
``(1) In general.--The Secretary shall provide appropriate
payments to producers participating in agricultural water
enhancement activities in an amount determined by the secretary
to be necessary to achieve the purposes of the program described
in subsection (b).
``(2) Payments to producers in states with water quantity
concerns.--The Secretary shall provide payments for a period of
five years to producers participating in agricultural water
enhancement activities under proposals described in subsection
(e)(3) in an amount sufficient to encourage producers to convert
from irrigated farming to dryland farming.

``(i) Consistency With State Law.--Any agricultural water
enhancement activity conducted under the program shall be conducted in a
manner consistent with State water law.
``(j) Funding.--
``(1) Availability of funds.--In addition to funds made
available to carry out this chapter under section 1241(a), the
Secretary shall carry out the program using, of the funds of the
Commodity Credit Corporation--
``(A) $73,000,000 for each of fiscal years 2009 and
2010;
``(B) $74,000,000 for fiscal year 2011; and
``(C) $60,000,000 for fiscal year 2012 and each
fiscal year thereafter.
``(2) Limitation on administrative expenses.--None of the
funds made available for regional agricultural water
conservation activities under the program may be used to pay for
the administrative expenses of partners.''.

[[Page 1796]]
122 STAT. 1796

Subtitle G--Other Conservation Programs of the Food Security Act of 1985

SEC. 2601. 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. 2602. WILDLIFE HABITAT INCENTIVE PROGRAM.

(a) Eligibility.--Section 1240N of the Food Security Act of 1985 (16
U.S.C. 3839bb-1) is amended--
(1) in subsection (a), by inserting before the period at the
end the following: ``for the development of wildlife habitat on
private agricultural land, nonindustrial private forest land,
and tribal lands''.
(2) in subsection (b)(1), by striking ``landowners'' and
inserting ``owners of lands referred to in subsection (a)''.

(b) Inclusion of Pivot Corners and Irregular Areas.--Section
1240N(b)(1)(E) of the Food Security Act of 1985 (16 U.S.C. 3839bb-
1(b)(1)(E)) is amended by inserting before the period at the end the
following: ``, including habitat developed on pivot corners and
irregular areas''.
(c) Cost Share for Long-Term Agreements.--Section 1240N(b)(2)(B) of
the Food Security Act of 1985 (16 U.S.C. 3839bb-1(b)(2)(B)) is amended
by striking ``15 percent'' and inserting ``25 percent''.
(d) Priority for Certain Conservation Initiatives; Payment
Limitation.--Section 1240N of the Food Security Act of 1985 (16 U.S.C.
3839bb-1) is amended by adding at the end the following new subsections:
``(d) Priority for Certain Conservation Initiatives.--In carrying
out this section, the Secretary may give priority to projects that would
address issues raised by State, regional, and national conservation
initiatives.
``(e) Payment Limitation.--Payments made to a person or legal
entity, directly or indirectly, under the program may not exceed, in the
aggregate, $50,000 per year.''.
SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb-
2(b)) is amended by striking ``$5,000,000 for each of fiscal years 2002
through 2007'' and inserting ``$20,000,000 for each of fiscal years 2008
through 2012''.
SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
CONTROL.

Section 1240P of the Food Security Act of 1985 (16 U.S.C. 3839bb-3)
is amended to read as follows:
``SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND
SEDIMENT CONTROL.

``(a) Program Authorized.--The Secretary may carry out the Great
Lakes basin program for soil erosion and sediment control (referred to
in this section as the `program'), including providing assistance to
implement the recommendations of the Great Lakes Regional Collaboration
Strategy to Restore and Protect the Great Lakes.

[[Page 1797]]
122 STAT. 1797

``(b) Consultation and Cooperation.--The Secretary shall carry out
the program in consultation with the Great Lakes Commission created by
Article IV of the Great Lakes Basin Compact (82 Stat. 415) and in
cooperation with the Administrator of the Environmental Protection
Agency and the Secretary of the Army.
``(c) Assistance.--In carrying out the program, the Secretary may--
``(1) provide project demonstration grants, provide
technical assistance, and carry out information and educational
programs to improve water quality in the Great Lakes basin by
reducing soil erosion and improving sediment control; and
``(2) establish 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 water quality for downstream
watersheds.

``(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out the program $5,000,000 for
each of fiscal years 2008 through 2012.''.
SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM.

Chapter 5 of subtitle D of title XII of the Food Security Act of
1985 is amended by inserting after section 1240P (16 U.S.C. 3839bb-3)
the following new section:
``SEC. 1240Q. [NOTE: 16 USC 3839bb-4.]  CHESAPEAKE BAY
WATERSHED.

``(a) Chesapeake Bay Watershed Defined.--In this section, the term
`Chesapeake Bay watershed' means all tributaries, backwaters, and side
channels, including their watersheds, draining into the Chesapeake Bay.
``(b) Establishment and Purpose.--The Secretary shall assist
producers in implementing conservation activities on agricultural lands
in the Chesapeake Bay watershed for the purposes of--
``(1) improving water quality and quantity in the Chesapeake
Bay watershed; and
``(2) restoring, enhancing, and preserving soil, air, and
related resources in the Chesapeake Bay watershed.

``(c) Conservation Activities.--The Secretary shall deliver the
funds made available to carry out this section through applicable
programs under this subtitle to assist producers in enhancing land and
water resources--
``(1) by controlling erosion and reducing sediment and
nutrient levels in ground and surface water; and
``(2) by planning, designing, implementing, and evaluating
habitat conservation, restoration, and enhancement measures
where there is significant ecological value if the lands are--
``(A) retained in their current use; or
``(B) restored to their natural condition.

``(d) Agreements.--
``(1) In general.--The Secretary shall--
``(A) enter into agreements with producers to carry
out the purposes of this section; and
``(B) use the funds made available to carry out this
section to cover the costs of the program involved with
each agreement.
``(2) Special considerations.--In entering into agreements
under this subsection, the Secretary shall give special

[[Page 1798]]
122 STAT. 1798

consideration to, and begin evaluating, applications with
producers in the following river basins:
``(A) The Susquehanna River.
``(B) The Shenandoah River.
``(C) The Potomac River (including North and South
Potomac).
``(D) The Patuxent River.

``(e) Duties of the Secretary.--In carrying out the purposes in this
section, the Secretary shall--
``(1) where available, use existing plans, models, and
assessments to assist producers in implementing conservation
activities; and
``(2) proceed expeditiously with the implementation of any
agreement with a producer that is consistent with State
strategies for the restoration of the Chesapeake Bay watershed.

``(f) Consultation.--The Secretary, in consultation with appropriate
Federal agencies, shall ensure conservation activities carried out under
this section complement Federal and State programs, including programs
that address water quality, in the Chesapeake Bay watershed.
``(g) Sense of Congress Regarding Chesapeake Bay Executive
Council.--It is the sense of Congress that the Secretary should be a
member of the Chesapeake Bay Executive Council, and is authorized to do
so under section 1(3) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590a(3)).
``(h) Funding.--
``(1) Availability.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use, to the maximum extent
practicable--
``(A) $23,000,000 for fiscal year 2009;
``(B) $43,000,000 for fiscal year 2010;
``(C) $72,000,000 for fiscal year 2011; and
``(D) $50,000,000 for fiscal year 2012.
``(2) Duration of availability.--Funds made available under
paragraph (1) shall remain available until expended.''
SEC. 2606. 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.) is amended by inserting after section
1240Q, as added by section 2605, the following new section:
``SEC. 1240R. [NOTE: 16 USC 3839bb-5.]  VOLUNTARY PUBLIC ACCESS
AND HABITAT INCENTIVE PROGRAM.

``(a) Establishment.--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

[[Page 1799]]
122 STAT. 1799

``(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)(4) 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.--
``(1) No preemption.--Nothing in this section preempts a
State or tribal government law, including any State or tribal
government liability law.
``(2) Effect of inconsistent opening dates for migratory
bird hunting.--The Secretary shall reduce by 25 percent the
amount of a grant otherwise determined for a State under the
program if the opening dates for migratory bird hunting in the
State are not consistent for residents and non-residents.

``(e) Regulations.--The Secretary shall promulgate such regulations
as are necessary to carry out this section.
``(f) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use, to the maximum extent practicable, $50,000,000
for the period of fiscal years 2009 through 2012.''.

Subtitle H--Funding and Administration of Conservation Programs

SEC. 2701. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD SECURITY
ACT OF 1985.

(a) In General.--Section 1241(a) of the Food Security Act of 1985
(16 U.S.C. 3841(a)) is amended in the matter preceding paragraph (1), by
striking ``2007'' and inserting ``2012''.
(b) Conservation Reserve Program.--Paragraph (1) of section 1241(a)
of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by
striking the period at the end and inserting the following: ``,
including to the maximum extent practicable--
``(A) $100,000,000 for the period of fiscal years
2009 through 2012 to provide cost share payments under
paragraph (3) of section 1234(b) in connection with
thinning activities conducted on land described in
subparagraph (A)(iii) of such paragraph; and
``(B) $25,000,000 for the period of fiscal years
2009 through 2012 to carry out section 1235(f) to
facilitate the transfer of land subject to contracts
from retired or retiring

[[Page 1800]]
122 STAT. 1800

owners and operators to beginning farmers or ranchers
and socially disadvantaged farmers or ranchers.''.

(c) Conservation Security and Conservation Stewardship Programs.--
Paragraph (3) of section 1241(a) of the Food Security Act of 1985 (16
U.S.C. 3841(a)) is amended to read as follows:
``(3)(A) Conservation security program.--The conservation
security program under subchapter A of chapter 2, using such
sums as are necessary to administer contracts entered into
before September 30, 2008.
``(B) Conservation stewardship program.--The conservation
stewardship program under subchapter B of chapter 2.''.

(d) Farmland Protection Program.--Paragraph (4) of section 1241(a)
of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read
as follows:
``(4) The farmland protection program under subchapter C of
chapter 2, using, to the maximum extent practicable--
``(A) $97,000,000 in fiscal year 2008;
``(B) $121,000,000 in fiscal year 2009;
``(C) $150,000,000 in fiscal year 2010;
``(D) $175,000,000 in fiscal year 2011; and
``(E) $200,000,000 in fiscal year 2012.''.

(e) Grassland Reserve Program.--Paragraph (5) of section 1241(a) of
the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read as
follows:
``(5) The grassland reserve program under subchapter D of
chapter 2.''.

(f) Environmental Quality Incentives Program.--Paragraph (6) of
section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
amended to read as follows:
``(6) The environmental quality incentives program under
chapter 4, using, to the maximum extent practicable--
``(A) $1,200,000,000 in fiscal year 2008;
``(B) $1,337,000,000 in fiscal year 2009;
``(C) $1,450,000,000 in fiscal year 2010;
``(D) $1,588,000,000 in fiscal year 2011; and
``(E) $1,750,000,000 in fiscal year 2012.''.

(g) Wildlife Habitat Incentives Program.--Paragraph (7)(D) of
section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 2702. AUTHORITY TO ACCEPT CONTRIBUTIONS TO SUPPORT
CONSERVATION PROGRAMS.

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
amended by adding at the end the following new subsection:
``(e) Acceptance and Use of Contributions.--
``(1) Authority to establish contribution accounts.--Subject
to paragraph (2), the Secretary may establish a sub-account for
each conservation program administered by the Secretary under
subtitle D to accept contributions of non-Federal funds to
support the purposes of the program.
``(2) Deposit and use of contributions.--Contributions of
non-Federal funds received for a conservation program
administered by the Secretary under subtitle D shall be
deposited into the sub-account established under this subsection
for the program and shall be available to the Secretary, without
further appropriation and until expended, to carry out the
program.''.

[[Page 1801]]
122 STAT. 1801

SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY.

(a) Regional Equity and Flexibility.--Section 1241(d) of the Food
Security Act of 1985 (16 U.S.C. 3841(d)) is amended--
(1) by striking ``Before April 1'' and inserting the
following:
``(1) Priority funding to promote equity.--Before April 1'';
(2) by striking ``$12,000,000'' and inserting
``$15,000,000''; and
(3) by adding at the end the following new paragraph:
``(2) Specific funding allocations.--In determining the
specific funding allocations for States under paragraph (1), the
Secretary shall consider the respective demand in each State for
each program covered by such paragraph.''.

(b) Allocations Review and Update.--Section 1241 of the Food
Security Act of 1985 (16 U.S.C. 3841) is amended by inserting after
subsection (e), as added by section 2702, the following new subsection:
``(f) Allocations Review and Update.--
``(1) [NOTE: Deadline.]  Review.--Not later than January
1, 2012, the Secretary shall conduct a review of conservation
programs and authorities under this title that utilize
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. 2704. ASSISTANCE TO CERTAIN FARMERS AND RANCHERS TO IMPROVE
THEIR ACCESS TO CONSERVATION PROGRAMS.

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
amended by inserting after subsection (f), as added by section 2703(b),
the following new subsection:
``(g) Assistance to Certain Farmers or Ranchers for Conservation
Access.--
``(1) Assistance.--Of the funds made available for each of
fiscal years 2009 through 2012 to carry out the environmental
quality incentives program and the acres made available for each
of such fiscal years to carry out the conservation stewardship
program, the Secretary shall use, to the maximum extent
practicable--
``(A) 5 percent to assist beginning farmers or
ranchers; and
``(B) 5 percent to assist socially disadvantaged
farmers or ranchers.
``(2) Repooling of funds.--In any fiscal year, amounts not
obligated under paragraph (1) 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 environmental quality
incentives program.
``(3) Repooling of acres.--In any fiscal year, acres not
obligated under paragraph (1) by a date determined by the
Secretary shall be available for use in that fiscal year under
the conservation stewardship program.''.

[[Page 1802]]
122 STAT. 1802

SEC. 2705. REPORT REGARDING ENROLLMENTS AND ASSISTANCE UNDER
CONSERVATION PROGRAMS.

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
amended by inserting after subsection (g), as added by section 2704, the
following new subsection:
``(h) Report on Program Enrollments and Assistance.--Beginning in
calendar year 2009, and each year 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
semiannual report containing statistics by State related to enrollments
in conservation programs under this subtitle, as follows:
``(1) Payments made under the wetlands reserve program for
easements valued at $250,000 or greater.
``(2) Payments made under the farmland protection program
for easements in which the Federal share is $250,000 or greater.
``(3) Payments made under the grassland reserve program
valued at $250,000 or greater.
``(4) Payments made under the environmental quality
incentives program for land determined to have special
environmental significance pursuant to section 1240G(b).
``(5) Payments made under the agricultural water enhancement
program subject to the waiver of adjusted gross income
limitations pursuant to section 1240I(g).
``(6) Waivers granted by the Secretary under section
1001D(b)(2) of this Act in order to protect environmentally
sensitive land of special significance.''.
SEC. 2706. DELIVERY OF CONSERVATION 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 a producer, landowner, or entity that is
participating in, or seeking to participate in, programs for which the
producer, landowner, or entity is otherwise eligible to participate in
under this title or the agricultural management assistance program under
section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524).
``(b) Purpose of Technical Assistance.--The purpose of technical
assistance authorized by this section 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 an 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) Non-Federal Assistance.--The Secretary may request the
services of, and enter into cooperative agreements or contracts

[[Page 1803]]
122 STAT. 1803

with, other agencies within the Department or non-Federal entities to
assist the Secretary in providing technical assistance necessary to
assist in implementing conservation programs under this title.
``(e) Certification of Third-Party Providers.--
``(1) Purpose.--The purpose of the third-party provider
program is to increase the availability and range of technical
expertise available to eligible participants to plan and
implement conservation measures.
``(2) [NOTE: Deadline.]  Regulations.--Not later than 180
days after the date of the enactment of the Food, Conservation,
and Energy Act of 2008, the Secretary shall promulgate such
regulations as are necessary to carry out this section.
``(3) Expertise.--In promulgating such regulations, the
Secretary, to the maximum extent practicable, 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;
``(B) [NOTE: Criteria.]  provide national criteria
for the certification of third party providers; and
``(C) approve any unique certification standards
established at the State level.

``(f) Administration.--
``(1) [NOTE: Effective date.]  Funding.--Effective for
fiscal year 2008 and each subsequent fiscal year, funds of the
Commodity Credit Corporation made available to carry out
technical assistance for each of the programs specified in
section 1241 shall be available for the provision of technical
assistance from third-party providers under this section.
``(2) Term of agreement.--An agreement with a third-party
provider under this section shall have a term that--
``(A) at a minimum, is equal to the period beginning
on the date on which the agreement is entered into and
ending on the date that is 1 year after the date on
which all activities performed pursuant to the agreement
have been completed;
``(B) does not exceed 3 years; and
``(C) can be renewed, as determined by the
Secretary.
``(3) [NOTE: Deadline.]  Review of certification
requirements.--Not later than 1 year after the date of enactment
of the Food, Conservation, and Energy Act of 2008, the Secretary
shall--
``(A) review certification requirements for third-
party providers; and
``(B) make any adjustments considered necessary by
the Secretary to improve participation.
``(4) Eligible activities.--
``(A) Inclusion of activities.--The Secretary may
include as activities eligible for payments to a third
party provider--
``(i) technical services provided directly to
eligible participants, such as conservation
planning, education and outreach, and assistance
with design and implementation of conservation
practices; and
``(ii) related technical assistance services
that accelerate conservation program delivery.

[[Page 1804]]
122 STAT. 1804

``(B) Exclusions.--The Secretary shall not designate
as an activity eligible for payments to a third party
provider any service that is provided by a business, or
equivalent, in connection with conducting business and
that is customarily provided at no cost.
``(5) Payment amounts.--The Secretary shall establish fair
and reasonable amounts of payments for technical services
provided by third-party providers.

``(g) Availability of Technical Services.--
``(1) 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.
``(2) Technical service contracts.--In any case in which
financial assistance is not provided under a program referred to
in paragraph (1), the Secretary may enter into a technical
service contract with the eligible participant for the purposes
of assisting in the planning, design, or installation of an
eligible practice.

``(h) Review of Conservation Practice Standards.--
``(1) Review required.--The Secretary shall--
``(A) review conservation practice standards,
including engineering design specifications, in effect
on the date of the enactment of the Food, Conservation,
and Energy Act of 2008;
``(B) 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
``(C) 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.
``(2) Consultation.--In conducting the review under
paragraph (1), the Secretary shall consult with eligible
participants, crop consultants, cooperative extension and land
grant universities, nongovernmental organizations, and other
qualified entities.
``(3) Expedited revision of standards.--If the Secretary
determines under paragraph (1) that revisions to the
conservation practice standards, including engineering design
specifications, are necessary, the Secretary shall establish an
administrative process for expediting the revisions.

``(i) Addressing Concerns of Speciality Crop, Organic, and Precision
Agriculture Producers.--
``(1) In general.--The Secretary shall--
``(A) to the maximum extent practicable, fully
incorporate specialty crop production, organic crop
production, and precision agriculture into the
conservation practice standards; and
``(B) provide for the appropriate range of
conservation practices and resource mitigation measures
available to producers involved with organic or
specialty crop production or precision agriculture.

[[Page 1805]]
122 STAT. 1805

``(2) Availability of adequate technical assistance.--
``(A) In general.--The Secretary shall ensure that
adequate technical assistance is available for the
implementation of conservation practices by producers
involved with organic, specialty crop production, or
precision agriculture through Federal conservation
programs.
``(B) Requirements.--In carrying out subparagraph
(A), the Secretary shall develop--
``(i) programs that meet specific needs of
producers involved with organic, specialty crop
production or precision agriculture 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. 2707. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

(a) Transfer of Existing Provisions.--Subsections (a), (c), and (d)
of section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) are--
(1) redesignated as subsections (c), (d), and (e),
respectively; and
(2) transferred to appear at the end of section 1244 of such
Act (16 U.S.C. 3844).

(b) Establishment of Partnership Initiative.--Section 1243 of the
Food Security Act of 1985 (16 U.S.C. 3843), as amended by subsection
(a), is amended to read as follows:
``SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

``(a) Establishment of Initiative.--The Secretary shall establish a
cooperative conservation partnership initiative (in this section
referred to as the `Initiative') to work with eligible partners to
provide assistance to producers enrolled in a program described in
subsection (c)(1) that will enhance conservation outcomes on
agricultural and nonindustrial private forest land.
``(b) Purposes.--The purposes of a partnership entered into under
the Initiative shall be--
``(1) to address conservation priorities involving
agriculture and nonindustrial private forest land on a local,
State, multi-State, or regional level;
``(2) to encourage producers to cooperate in meeting
applicable Federal, State, and local regulatory requirements
related to production involving agriculture and nonindustrial
private forest land;
``(3) to encourage producers to cooperate in the
installation and maintenance of conservation practices that
affect multiple agricultural or nonindustrial private forest
operations; or
``(4) to promote the development and demonstration of
innovative conservation practices and delivery methods,
including those for specialty crop and organic production and
precision agriculture producers.

``(c) Initiative Programs.--
``(1) Covered programs.--Except as provided in paragraph
(2), the Initiative applies to all conservation programs under
subtitle D.

[[Page 1806]]
122 STAT. 1806

``(2) Excluded programs.--The Initiative shall not include
the following programs:
``(A) Conservation reserve program.
``(B) Wetlands reserve program.
``(C) Farmland protection program
``(D) Grassland reserve program.

``(d) Eligible Partners.--The Secretary may enter into a partnership
under the Initiative with one or more of the following:
``(1) States and local governments.
``(2) Indian tribes.
``(3) Producer associations.
``(4) Farmer cooperatives.
``(5) Institutions of higher education.
``(6) Nongovernmental organizations with a history of
working cooperatively with producers to effectively address
conservation priorities related to agricultural production and
nonindustrial private forest land.

``(e) Implementation Agreements.--The Secretary shall carry out the
Initiative--
``(1) by selecting, through a competitive process, eligible
partners from among applications submitted under subsection (f);
and
``(2) by entering into multi-year agreements with eligible
partners so selected for a period not to exceed 5 years.

``(f) Applications.--
``(1) Required information.--An application to enter into a
partnership agreement under the Initiative shall include the
following:
``(A) A description of the area covered by the
agreement, conservation priorities in the area,
conservation objectives to be achieved, and the expected
level of participation by agricultural producers and
nonindustrial private forest landowners.
``(B) A description of the partner, or partners,
collaborating to achieve the objectives of the
agreement, and the roles, responsibilities, and
capabilities of the partner.
``(C) A description of the resources that are
requested from the Secretary, and the non-Federal
resources that will be leveraged by the Federal
contribution.
``(D) A description of the plan for monitoring,
evaluating, and reporting on progress made towards
achieving the objectives of the agreement.
``(E) Such other information that may be required by
the Secretary.
``(2) Priorities.--The Secretary shall give priority to
applications for agreements that--
``(A) have a high percentage of producers involved
and working agricultural or nonindustrial private forest
land included in the area covered by the agreement;
``(B) significantly leverage non-Federal financial
and technical resources and coordinate with other local,
State, or Federal efforts;
``(C) deliver high percentages of applied
conservation to address water quality, water
conservation, or State, regional, or national
conservation initiatives;

[[Page 1807]]
122 STAT. 1807

``(D) provide innovation in conservation methods and
delivery, including outcome-based performance measures
and methods; or
``(E) meet other factors, as determined by the
Secretary.

``(g) Relationship to Covered Programs.--
``(1) Compliance with program rules.--Except as provided in
paragraph (2), the Secretary shall ensure that resources made
available under the Initiative are delivered in accordance with
the applicable rules of programs specified in subsection (c)(1)
through normal program mechanisms relating to program functions,
including rules governing appeals, payment limitations, and
conservation compliance.
``(2) Adjustment.--The Secretary may adjust the elements of
any program specified in subsection (c)(1)--
``(A) to better reflect unique local circumstances
and purposes if the Secretary determines such
adjustments are necessary to achieve the purposes of the
Initiative; and
``(B) to provide preferential enrollment to
producers who are eligible for the applicable program
and to participate in the Initiative.

``(h) Technical and Financial Assistance.--The Secretary shall
provide appropriate technical and financial assistance to producers
participating in the Initiative in an amount determined to be necessary
to achieve the purposes of the Initiative.
``(i) Funding.--
``(1) Reservation.--Of the funds and acres made available
for each of fiscal years 2009 through 2012 to implement the
programs described in subsection (c)(1), the Secretary shall
reserve 6 percent of the funds and acres to ensure an adequate
source of funds and acres for the Initiative.
``(2) Allocation requirements.--Of the funds and acres
reserved for the Initiative for a fiscal year, the Secretary
shall allocate--
``(A) 90 percent of the funds and acres to projects
based on the direction of State conservationists, with
the advice of State technical committees; and
``(B) 10 percent of the funds and acres to projects
based on a national competitive process established by
the Secretary.
``(3) Unused funding.--Any funds and acres reserved for a
fiscal year under paragraph (1) that are not obligated by April
1 of that fiscal year may be used to carry out other activities
under the program that is the source of the funds or acres
during the remainder of that fiscal year.
``(4) Administrative costs of partners.--Overhead or
administrative costs of partners may not be covered by funds
provided through the Initiative.''.
SEC. 2708. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844), as
amended by section 2707, is further amended--
(1) by striking subsection (a) and inserting the following
new subsection:

``(a) Incentives for Certain Farmers and Ranchers and Indian
Tribes.--

[[Page 1808]]
122 STAT. 1808

``(1) Incentives authorized.--In carrying out any
conservation program administered by the Secretary, the
Secretary may provide to a person or entity specified in
paragraph (2) incentives to participate in the conservation
program--
``(A) to foster new farming and ranching
opportunities; and
``(B) to enhance long-term environmental goals.
``(2) Covered persons.--Incentives authorized by paragraph
(1) may be provided to the following:
``(A) Beginning farmers or ranchers.
``(B) Socially disadvantaged farmers or ranchers.
``(C) Limited resource farmers or ranchers.
``(D) Indian tribes.''; and
(2) by adding at the end the following new subsections:

``(f) Acreage Limitations.--
``(1) Limitations.--
``(A) Enrollments.--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
chapter 1 of subtitle D.
``(B) Easements.--Not more than 10 percent of the
cropland in a country may be subject to an easement
acquired under subchapter C of chapter 1 of subtitle D.
``(2) Exceptions.--The Secretary may exceed the limitation
in paragraph (1)(A), if the Secretary determines that--
``(A) the action would not adversely affect the
local economy of a county; and
``(B) operators in the county are having
difficulties complying with conservation plans
implemented under section 1212.
``(3) Waiver to exclude certain acreage.--The Secretary may
grant a waiver to exclude acreage enrolled under subsection
(c)(2)(B) or (f)(4) of section 1234 from the limitations in
paragraph (1)(A) with the concurrence of the county government
of the county involved.
``(4) Shelterbelts and windbreaks.--The limitations
established under paragraph (1) shall not apply to cropland that
is subject to an easement under subchapter C of chapter 1 that
is used for the establishment of shelterbelts and windbreaks.

``(g) [NOTE: Procedures.]  Compliance and Performance.--For each
conservation program under subtitle D, the Secretary shall develop
procedures--
``(1) to monitor compliance with program requirements;
``(2) to measure program performance;
``(3) to demonstrate whether the long-term conservation
benefits of the program are being achieved;
``(4) to track participation by crop and livestock types;
and
``(5) 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).

``(h) Encouragement of Pollinator Habitat Development and
Protection.--In carrying out any conservation program administered by
the Secretary, the Secretary may, as appropriate, encourage--
``(1) the development of habitat for native and managed
pollinators; and

[[Page 1809]]
122 STAT. 1809

``(2) the use of conservation practices that benefit native
and managed pollinators.

``(i) 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, Conservation, and
Energy Act of 2008, the Secretary shall submit to Congress a
written notification of completion of the requirements of this
subsection.''.
SEC. 2709. ENVIRONMENTAL SERVICES MARKETS.

Subtitle E of title XII of the Food Security Act of 1985 is amended
by inserting after section 1244 (16 U.S.C. 3844) the following new
section:
``SEC. 1245. [NOTE: 16 USC 3845.]  ENVIRONMENTAL SERVICES
MARKETS.

``(a) Technical Guidelines Required.--The Secretary shall establish
technical guidelines that outline science-based methods to measure the
environmental services benefits from conservation and land management
activities in order to facilitate the participation of farmers,
ranchers, and forest landowners in emerging environmental services
markets. The Secretary shall give priority to the establishment of
guidelines related to farmer, rancher, and forest landowner
participation in carbon markets.
``(b) Establishment.--The Secretary shall establish guidelines under
subsection (a) for use in developing the following:
``(1) A procedure to measure environmental services
benefits.
``(2) A protocol to report environmental services benefits.
``(3) A registry to collect, record and maintain the
benefits measured.

``(c) Verification Requirements.--
``(1) Verification of reports.--The Secretary shall
establish guidelines for a process to verify that a farmer,
rancher, or forest landowner who reports an environmental
services

[[Page 1810]]
122 STAT. 1810

benefit pursuant to the protocol required by paragraph (2) of
subsection (b) for inclusion in the registry required by
paragraph (3) of such subsection has implemented the
conservation or land management activity covered by the report.
``(2) Role of third parties.--In establishing the
verification guidelines required by paragraph (1), the Secretary
shall consider the role of third-parties in conducting
independent verification of benefits produced for environmental
services markets and other functions, as determined by the
Secretary.

``(d) Use of Existing Information.--In carrying out subsection (b),
the Secretary shall build on activities or information in existence on
the date of the enactment of the Food, Conservation, and Energy Act of
2008 regarding environmental services markets.
``(e) Consultation.--In carrying out this section, the Secretary
shall consult with the following:
``(1) Federal and State government agencies.
``(2) Nongovernmental interests including--
``(A) farm, ranch, and forestry producers;
``(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; and
``(E) private sector representatives with relevant
expertise or experience.
``(3) Other interested persons, as determined by the
Secretary.''.
SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

Subtitle F of title XII of the Food Security Act of 1985 is amended
by inserting after section 1251 (16 U.S.C. 2005a) the following new
section:
``SEC. 1252. [NOTE: 16 USC 3851.]  AGRICULTURE CONSERVATION
EXPERIENCED SERVICES PROGRAM.

``(a) Establishment and Purpose.--The Secretary shall establish a
conservation experienced services program (in this section referred to
as the `ACES Program') for the purpose of utilizing the talents of
individuals who are age 55 or older, but who are not employees of the
Department of Agriculture or a State agriculture department, to provide
technical services in support of the conservation-related programs and
authorities carried out by the Secretary. Such technical services may
include conservation planning assistance, technical consultation, and
assistance with design and implementation of conservation practices.
``(b) Program Agreements.--
``(1) Relation to older american community service
employment program.--Notwithstanding any other provision of law
relating to Federal grants, cooperative agreements, or
contracts, to carry out the ACES program during a fiscal year,
the Secretary may enter into agreements with nonprofit private
agencies and organizations eligible to receive grants for that
fiscal year under the Community Service Senior Opportunities Act
(42 U.S.C. 3056 et seq.) to secure participants for the

[[Page 1811]]
122 STAT. 1811

ACES program who will provide technical services under the ACES
program.
``(2) Required determination.--Before entering into an
agreement under paragraph (1), the Secretary shall ensure that
the agreement would not--
``(A) result in the displacement of individuals
employed by the Department, including partial
displacement through reduction of non-overtime hours,
wages, or employment benefits;
``(B) result in the use of an individual under the
ACES program 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
``(C) affect existing contracts for services.

``(c) Funding Source.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary may carry out the ACES program using funds made
available to carry out each program under this title.
``(2) Exclusions.--Funds made available to carry out the
following programs may not be used to carry out the ACES
program:
``(A) The conservation reserve program.
``(B) The wetlands reserve program.
``(C) The grassland reserve program.
``(D) The conservation stewardship program.

``(d) Liability.--An individual providing technical services under
the ACES program is deemed to be an employee of the United States
Government for purposes of chapter 171 of title 28, United States Code,
if the individual--
``(1) is providing technical services pursuant to an
agreement entered into under subsection (b); and
``(2) is acting within the scope of the agreement.''.
SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND THEIR
RESPONSIBILITIES.

Subtitle G of title XII of the Farm Security Act of 1985 (16 U.S.C.
3861, 3862) is amended to read as follows:

``Subtitle G--State Technical Committees

``SEC. 1261. [NOTE: 16 USC 3861.]  ESTABLISHMENT OF STATE
TECHNICAL COMMITTEES.

``(a) Establishment.--The Secretary shall establish a technical
committee in each State to assist the Secretary in the considerations
relating to implementation and technical aspects of the conservation
programs under this title.
``(b) [NOTE: Deadline.]  Standards.--Not later than 180 days after
the date of enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall develop--
``(1) standard operating procedures to standardize the
operations of State technical committees; and
``(2) standards to be used by State technical committees in
the development of technical guidelines under section 1262(b)
for the implementation of the conservation provisions of this
title.

``(c) Composition.--Each State technical committee shall be composed
of agricultural producers and other professionals that

[[Page 1812]]
122 STAT. 1812

represent a variety of disciplines in the soil, water, wetland, and
wildlife sciences. The technical committee for a State shall include
representatives from among the following:
``(1) The Natural Resources Conservation Service.
``(2) The Farm Service Agency.
``(3) The Forest Service.
``(4) The National Institute of Food and Agriculture.
``(5) The State fish and wildlife agency.
``(6) The State forester or equivalent State official.
``(7) The State water resources agency.
``(8) The State department of agriculture.
``(9) The State association of soil and water conservation
districts.
``(10) Agricultural producers representing the variety of
crops and livestock or poultry raised within the State.
``(11) Owners of nonindustrial private forest land.
``(12) Nonprofit organizations within the meaning of section
501(c)(3) of the Internal Revenue Code of 1986 with demonstrable
conservation expertise and experience working with agriculture
producers in the State.
``(13) Agribusiness.
``SEC. 1262. [NOTE: 16 USC 3862.]  RESPONSIBILITIES.

``(a) In General.--Each State technical committee established under
section 1261 shall meet regularly to provide information, analysis, and
recommendations to appropriate officials of the Department of
Agriculture who are charged with implementing the conservation
provisions of this title.
``(b) Public Notice and Attendance.--Each State technical committee
shall provide public notice of, and permit public attendance at,
meetings considering issues of concern related to carrying out this
title.
``(c) Role.--
``(1) In general.--The role of State technical committees is
advisory in nature, and such committees shall have no
implementation or enforcement authority. However, the Secretary
shall give strong consideration to the recommendations of such
committees in administering the programs under this title.
``(2) Advisory role in establishing program priorities and
criteria.--Each State technical committee shall advise the
Secretary in establishing priorities and criteria for the
programs in this title, including the review of whether local
working groups are addressing those priorities.

``(d) FACA Requirements.--
``(1) Exemption.--Each State technical committee shall be
exempt from the Federal Advisory Committee Act (5 U.S.C. App.).
``(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.''.

[[Page 1813]]
122 STAT. 1813

Subtitle I--Conservation Programs Under Other Laws

SEC. 2801. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

(a) Eligible States.--Section 524(b)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(1)) is amended by inserting ``Hawaii,''
after ``Delaware,''.
(b) Funding.--Section 524(b)(4)(B) of the Federal Crop Insurance Act
(7 U.S.C. 1524(b)(4)(B)) is amended--
(1) in clause (i), by striking ``Except as provided in
clauses (ii) and (iii)'' and inserting ``Except as provided in
clause (ii)''; and
(2) by striking clauses (ii) and (iii) and inserting the
following new clause:
``(ii) Exception for fiscal years 2008 through
2012.--For each of fiscal years 2008 through 2012,
the Commodity Credit Corporation shall make
available to carry out this subsection
$15,000,000.''.

(c) Certain Uses.--Section 524(b)(4) of the Federal Crop Insurance
Act (7 U.S.C. 1524(b)(4)) is amended by adding at the end the following
new subparagraph:
``(C) Certain uses.--Of the amounts made available
to carry out this subsection for a fiscal year, the
Commodity Credit Corporation shall use not less than--
``(i) 50 percent to carry out subparagraphs
(A), (B), and (C) of paragraph (2) through the
Natural Resources Conservation Service;
``(ii) 10 percent to provide organic
certification cost share assistance through the
Agricultural Marketing Service; and
``(iii) 40 percent to conduct activities to
carry out subparagraph (F) of paragraph (2)
through the Risk Management Agency.''.
SEC. 2802. TECHNICAL ASSISTANCE UNDER SOIL CONSERVATION AND
DOMESTIC ALLOTMENT ACT.

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

``It''; and
(B) 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,''.
(2) 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''.

(b) Definitions.--Section 10 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590j) is amended to read as follows:

[[Page 1814]]
122 STAT. 1814

``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.''.
SEC. 2803. SMALL WATERSHED REHABILITATION PROGRAM.

(a) Availability of Funds.--Section 14(h)(1) of the Watershed
Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is amended by
adding at the end the following new subparagraph:
``(G) $100,000,000 for fiscal year 2009, to be
available until expended.''.

(b) Authorization of Appropriations.--Section 14(h)(2)(E) of the
Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E))
is amended by striking ``fiscal year 2007'' and inserting ``each of
fiscal years 2008 through 2012''.
SEC. 2804. AMENDMENTS TO SOIL AND WATER RESOURCES CONSERVATION ACT
OF 1977.

(a) Congressional Findings.--Section 2 of the Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended--
(1) in paragraph (2), by striking ``base, of the'' and
inserting ``base of the''; and
(2) 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 approaches
to existing conservation programs are basic to effective soil,
water, and related natural resource conservation.
``(4) Since individual''.

(b) 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--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period at the
end and inserting ``; and''; and

[[Page 1815]]
122 STAT. 1815

(C) by adding at the end the following new
paragraph:
``(7) data on conservation plans, conservation practices
planned or implemented, environmental outcomes, economic costs,
and related matters under conservation programs administered by
the Secretary.'';
(2) by redesignating subsection (d) as subsection (e);
(3) by inserting after subsection (c) the following new
subsection:

``(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
(4) in subsection (e), as redesignated by paragraph (2), by
striking the first sentence and inserting the following: ``The
Secretary shall conduct comprehensive appraisals under this
section, to be completed by December 31, 2010, and December 31,
2015.''.

(c) Soil and Water Conservation Program.--Section 6 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2005) is amended--
(1) by redesignating subsection (b) as subsection (d);
(2) by inserting after subsection (a) the following new
subsections:

``(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
(3) in subsection (d), as redesignated by paragraph (1), by
striking ``December 31, 1979'' and all that follows through
``December 31, 2007'' and inserting ``December 31, 2011, and
December 31, 2016''.

(d) Reports to Congress.--Section 7 of the Soil and Water Resources
Conservation Act of 1977 (16 U.S.C. 2006) is amended to read as follows:
``SEC. 7. [NOTE: President.]  REPORTS TO CONGRESS.

``(a) Appraisal.--Not later than the date on which Congress convenes
in 2011 and 2016, the President shall transmit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate the appraisal
developed under section 5 and completed before the end of the previous
year.
``(b) Program and Statement of Policy.--Not later than the date on
which Congress convenes in 2012 and 2017, the President shall transmit
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate--

[[Page 1816]]
122 STAT. 1816

``(1) the initial program or updated program developed under
section 6 and completed before 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 Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry 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).''.
(e) 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 ``2018''.
SEC. 2805. 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 ``planning process'' and inserting
``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 new
subparagraphs:
``(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 inserting ``(a) In General.--'' before ``In
carrying''; and
(2) by adding at the end the following new subsection:

``(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.

[[Page 1817]]
122 STAT. 1817

``(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. 2806. 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 new paragraph:
``(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)''.

[[Page 1818]]
122 STAT. 1818

(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 new subsection:

``(f) Up-Front Cost Share.--
``(1) [NOTE: Effective date.]  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 up-front 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. 2807. 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) in subsection (a)--
(A) by striking ``(a)'' and all that follows through
``$200,000,000'' and inserting ``(a) Transfer.--Subject
to subsection (b) and paragraph (1) of section 207(a) of
Public Law 108-7 (117 Stat. 146), notwithstanding
paragraph (3) of that section, on the date of enactment
of the Food, Conservation, and Energy Act of 2008, the
Secretary of Agriculture shall transfer $175,000,000'';
and
(B) by striking the quotation marks at the beginning
of paragraphs (1) and (2); and
(2) by striking subsection (b) and inserting the following
new subsection:

``(b) Permitted Uses.--In any case in which there are willing
sellers, the funds described in subsection (a) may be used--
``(1) to lease water; or
``(2) to purchase land, water appurtenant to the land, and
related interests in the Walker River Basin in accordance with
section 208(a)(1)(A) of the Energy and Water Development
Appropriations Act, 2006 (Public Law 109-103; 119 Stat.
2268).''.

Subtitle J--Miscellaneous Conservation Provisions

SEC. 2901. [NOTE: Texas.]  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.

[[Page 1819]]
122 STAT. 1819

SEC. 2902. NAMING OF NATIONAL PLANT MATERIALS CENTER AT
BELTSVILLE, MARYLAND, IN HONOR OF NORMAN
A. BERG.

The National Plant Materials Center at Beltsville, Maryland,
referenced in section 613.5(a) of title 7, Code of Federal Regulations,
shall be known and designated as the ``Norman A. Berg National Plant
Materials Center''. Any reference in a law, map, regulation, document,
paper, or other record of the United States to such National Plant
Materials Center shall be deemed to be a reference to the Norman A. Berg
National Plant Materials Center.
SEC. 2903. TRANSITION.

(a) [NOTE: 16 USC 3801 note.]  Continuation of Programs in Fiscal
Year 2008.--Except as otherwise provided by an amendment made by this
title, the Secretary of Agriculture shall continue to carry out any
program or activity covered by title XII of the Food Security Act (16
U.S.C. 3801 et seq.) until September 30, 2008, using the provisions of
law applicable to the program or activity as they existed on the day
before the date of the enactment of this Act and using funds made
available under such title for fiscal year 2008 for the program or
activity.

(b) [NOTE: Time period. 16 USC 3839aa-9 note.]  Ground and Surface
Water Conservation Program.--During the period beginning on the date of
the enactment of this Act and ending on September 30, 2008, the
Secretary of Agriculture shall continue to carry out the ground and
surface water conservation program under section 1240I of the Food
Security Act of 1985 (16 U.S.C. 3839aa-9), as in effect before the
amendment made by section 2510, using the terms, conditions, and funds
available to the Secretary to carry out such program on the day before
the date of the enactment of this Act.
SEC. 2904. [NOTE: 16 USC 3801 note. Deadline.]  REGULATIONS.

(a) Issuance.--Except as otherwise provided in this title or an
amendment made by this title, not later than 90 days after the date of
enactment of this Act, the Secretary of Agriculture, in consultation
with the Commodity Credit Corporation, shall promulgate such regulations
as are necessary to implement this title.
(b) Applicable Authority.--The promulgation of regulations under
subsection (a) and administration of this title--
(1) shall be carried out without regard to--
(A) chapter 35 of title 44, United States Code
(commonly known as the Paperwork Reduction Act); and
(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
(2) may--
(A) be promulgated with an opportunity for notice
and comment; or
(B) if determined to be appropriate by the Secretary
of Agriculture or the Commodity Credit Corporation, as
an interim rule effective on publication with an
opportunity for notice and comment.

(c) Congressional Review of Agency Rulemaking.--In carrying out this
section, the Secretary shall use the authority provided under section
808(2) of title 5, United States Code.

[[Page 1820]]
122 STAT. 1820

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) [NOTE: 22 USC 2431e.]  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) [NOTE: 7 USC 1446c-1.]  The Agriculture and
Food Act of 1981 (Public Law 97-98; 95 Stat. 1213).
(B) [NOTE: 7 USC 1431.]  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) [NOTE: 7 USC 1691 note, 5201.]  The
Agricultural Competitiveness and Trade Act of 1988 (7
U.S.C. 5201 et seq.).
(K) [NOTE: 7 USC 5676, 5693, 5713.]  The
Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.).
(L) [NOTE: 12 USC 635i-6.]  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).
(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).

[[Page 1821]]
122 STAT. 1821

(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) [NOTE: 22 USC 5413, 5423, 5425.]  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) [NOTE: 22 USC 6041, 6062.]  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) [NOTE: 46 USC 55314, 55316.]  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) [NOTE: 7 USC 1765d-1.]  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) [NOTE: 7 USC 1691 note.]  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 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 needs shall not be subject to limitation,
including in-kind commodities, provision of funds for
agricultural commodity procurement, and monetization of

[[Page 1822]]
122 STAT. 1822

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) by striking paragraph (1);
(3) 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.'';
(4) in paragraph (3), by striking ``agricultural business
development and agricultural trade expansion'' and inserting
``development of agricultural businesses and agricultural trade
capacity'';
(5) in paragraph (4), by striking ``, or otherwise'' and all
that follows through ``United States'';
(6) in paragraph (5), by inserting ``to promote agricultural
products produced in appropriate developing countries'' after
``trade fairs''; and
(7) by redesignating paragraphs (2) through (9) as
paragraphs (1) through (8), respectively.

[[Page 1823]]
122 STAT. 1823

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 food crises, and respond to
emergency food needs, arising from man-made and natural
disasters;'';
(2) in paragraph (5)--
(A) by inserting ``food security and support'' after
``promote''; and
(B) by striking ``; and'' and inserting a semicolon;
(3) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(7) promote economic and nutritional security by
increasing 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), by
striking ``not less than 5 percent nor more than 10
percent'' and inserting ``not less than 7.5 percent nor
more than 13 percent'';
(B) in subparagraph (A), by striking ``; and'' and
inserting a semicolon;
(C) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(C) improving and implementing methodologies for
food aid programs, including needs assessments (upon the
request of the Administrator), 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 2009 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 (including
the potential introduction of new fortificants and
products) as necessary to cost-effectively meet nutrient
needs of target populations; and
``(C) to test prototypes.
``(2) Administration.--The Administrator--
``(A) shall carry out this subsection in
consultation with and through independent entities with
proven expertise in food aid commodity quality
enhancements;
``(B) may enter into contracts to obtain the
services of such entities; and

[[Page 1824]]
122 STAT. 1824

``(C) shall consult with the Food Aid Consultative
Group on how to carry out this subsection.
``(3) Funding limitation.--Of the funds made available under
section 207(f), for fiscal years 2009 through 2011, not more
than $4,500,000 may be used to carry out this subsection.''.
SEC. 3009. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY
ORGANIZATIONS AND COOPERATIVES.

Section 203(b) of the Food for Peace Act (7 U.S.C. 1723(b)) is
amended by striking ``1 or more recipient countries'' and inserting ``in
1 or more recipient countries''.
SEC. 3010. LEVELS OF ASSISTANCE.

Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is
amended--
(1) in paragraph (1), by striking ``2002 through 2007'' and
inserting ``2008 through 2012''; and
(2) in paragraph (2), by striking ``2002 through 2007'' and
inserting ``2008 through 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.''; and
(2) 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 ``and the conditions
that must be met for the approval of such proposal'';
(2) in subsection (c), by striking paragraph (3);
(3) by striking subsection (d) and inserting the following:

``(d) [NOTE: Procedures.]  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.''; and
(4) by adding at the end the following:

``(f) Program Oversight, Monitoring, and Evaluation.--
``(1) Duties of administrator.--The Administrator, in
consultation with the Secretary, shall establish systems and
carry out activities--
``(A) to determine the need for assistance provided
under this title; and
``(B) to improve, monitor, and evaluate the
effectiveness and efficiency of the assistance provided
under this title to maximize the impact of the
assistance.
``(2) Requirements of systems and activities.--The systems
and activities described in paragraph (1) shall include--

[[Page 1825]]
122 STAT. 1825

``(A) program monitors in countries that receive
assistance under this title;
``(B) country and regional food aid impact
evaluations;
``(C) the identification and implementation of best
practices for food aid programs;
``(D) the evaluation of monetization programs;
``(E) early warning assessments and systems to help
prevent famines; and
``(F) upgraded information technology systems.
``(3) Implementation report.--Not later than 180 days after
the date of enactment of the Food, Conservation, and Energy Act
of 2008, the Administrator shall submit to the appropriate
committees of Congress a report on efforts undertaken by the
Administrator to conduct oversight of nonemergency programs
under this title.
``(4) Government accountability office report.--Not later
than 270 days after the date of submission of the report under
paragraph (3), the Comptroller General of the United States
shall submit to the appropriate committees of Congress a report
that contains--
``(A) a review of, and comments addressing, the
report described in paragraph (3); and
``(B) recommendations relating to any additional
actions that the Comptroller General of the United
States determines to be necessary to improve the
monitoring and evaluation of assistance provided under
this title.
``(5) Contract authority.--
``(A) In general.--Subject to subparagraphs (B) and
(C), in carrying out administrative and management
activities relating to each activity carried out by the
Administrator under paragraph (1), the Administrator may
enter into contracts with 1 or more individuals for
personal service to be performed in recipient countries
or neighboring countries.
``(B) Prohibition.--An individual who enters into a
contract with the Administrator under subparagraph (A)
shall not be considered to be an employee of the Federal
Government for the purpose of any law (including
regulations) administered by the Office of Personnel
Management.
``(C) Personal service.--Subparagraph (A) does not
limit the ability of the Administrator to enter into a
contract with any individual for personal service under
section 202(a).
``(6) Funding.--
``(A) In general.--Subject to section 202(h)(3), in
addition to other funds made available to the
Administrator to carry out the monitoring of emergency
food assistance, the Administrator may implement this
subsection using up to $22,000,000 of the funds made
available under this title for each of fiscal years 2009
through 2012, except for paragraph (2)(F), for which
only $2,500,000 shall be made available during fiscal
year 2009.
``(B) Limitations.--
``(i) In general.--Subject to clause (ii), of
the funds made available under subparagraph (A),
for each of fiscal years 2009 through 2012, not
more than

[[Page 1826]]
122 STAT. 1826

$8,000,000 may be used by the Administrator to
carry out paragraph (2)(E).
``(ii) Condition.--No funds shall be made
available under subparagraph (A), in accordance
with clause (i), unless not less than $8,000,000
is made available under chapter 1 of part I of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.) for such purposes for such fiscal year.

``(g) 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. 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) by 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. 3015. DEFINITIONS.

Section 402 of the Food for Peace Act (7 U.S.C. 1732) is amended--
(1) by redesignating paragraphs (3) through (8) as
paragraphs (4) through (9), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Appropriate committee of congress.--The term
`appropriate committee of Congress' means--
``(A) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
``(B) the Committee on Agriculture of the House of
Representatives; and
``(C) the Committee on Foreign Affairs of the House
of Representatives.''.

[[Page 1827]]
122 STAT. 1827

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(c) of the Food for Peace Act (7 U.S.C. 1736a(c)) is
amended--
(1) in paragraph (4)--
(A) by striking ``Funds made'' and inserting the
following:
``(A) In general.--Funds made'';
(B) in subparagraph (A) (as so designated)--
(i) by striking ``2007'' and inserting
``2012''; and
(ii) by striking ``$2,000,000'' and inserting
``$10,000,000''; and
(C) by adding at the end the following:
``(B) Additional prepositioning sites.--
``(i) Feasibility assessments.--The
Administrator may carry out assessments for the
establishment of not less than 2 sites to
determine the feasibility of, and costs associated
with, using the sites to store and handle
agricultural commodities for prepositioning in
foreign countries.
``(ii) Establishment of sites.--Based on the
results of each assessment carried out under
clause (i), the Administrator may establish
additional sites for prepositioning in foreign
countries.''; and
(2) by adding at the end the following:
``(5) Nonemergency or multiyear agreements.--Annual resource
requests for ongoing nonemergency or ongoing 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.''.
SEC. 3018. CONSOLIDATION AND MODIFICATION OF ANNUAL REPORTS
REGARDING AGRICULTURAL TRADE ISSUES.

(a) Annual Reports.--Section 407 of the Food for Peace Act (7 U.S.C.
1736a) is amended by striking subsection (f) and inserting the
following:
``(f) Annual Reports.--
``(1) Annual report regarding agricultural trade programs
and activities.--
``(A) Annual report.--Not later than April 1 of each
fiscal year, the Administrator and the Secretary shall
jointly prepare and submit to the appropriate committees
of Congress a report regarding each program and activity
carried out under this Act during the prior fiscal year.
``(B) Contents.--An annual report described in
subparagraph (A) shall include, with respect to the
prior fiscal year--
``(i) a list that contains a description of
each country and organization that receives food
and other assistance under this Act (including the
quantity of food and assistance provided to each
country and organization);

[[Page 1828]]
122 STAT. 1828

``(ii) a general description of each project
and activity implemented under this Act (including
each activity funded through the use of local
currencies);
``(iii) a statement describing the quantity of
agricultural commodities made available to each
country pursuant to--
``(I) section 416(b) of the
Agricultural Act of 1949 (7 U.S.C.
1431(b)); and
``(II) the Food for Progress Act of
1985 (7 U.S.C. 1736o);
``(iv) an assessment of the progress made
through programs under this Act towards reducing
food insecurity in the populations receiving food
assistance from the United States;
``(v) a description of efforts undertaken by
the Food Aid Consultative Group under section 205
to achieve an integrated and effective food
assistance program;
``(vi) an assessment of--
``(I) each program oversight,
monitoring, and evaluation system
implemented under section 207(f); and
``(II) the impact of each program
oversight, monitoring, and evaluation
system on the effectiveness and
efficiency of assistance provided under
this title; and
``(vii) an assessment of the progress made by
the Administrator in addressing issues relating to
quality with respect to the provision of food
assistance.
``(2) Annual report regarding the provision of agricultural
commodities to foreign countries.--
``(A) Annual report.--Not later than February 1 of
each fiscal year, the Administrator shall prepare and
submit to the appropriate committees of Congress a
report regarding the administration of food assistance
programs under title II to benefit foreign countries
during the prior fiscal year.
``(B) Contents.--An annual report described in
subparagraph (A) shall include, with respect to the
prior fiscal year--
``(i) a list that contains a description of
each program, country, and commodity approved for
assistance under section 207; and
``(ii) a statement that contains a description
of the total amount of funds approved for
transportation and administrative costs under
section 207.''.

(b) Conforming Amendment.--Section 207(e) of the Food for Peace Act
(7 U.S.C. 1726a(e)) is amended--
(1) by striking ``Timely Approval.'' and all that follows
through ``The Administrator'' and inserting ``Timely Approval.--
The Administrator''; and
(2) by striking paragraph (2).
SEC. 3019. EXPIRATION OF ASSISTANCE.

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

[[Page 1829]]
122 STAT. 1829

SEC. 3020. AUTHORIZATION OF APPROPRIATIONS.

Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended by
striking subsection (a) and inserting the following:
``(a) Authorization of Appropriations.--There are authorized to be
appropriated--
``(1) for fiscal year 2008 and each fiscal year thereafter,
$2,500,000,000 to carry out the emergency and nonemergency food
assistance programs under title II; and
``(2) such sums as are necessary--
``(A) to carry out the concessional credit sales
program established under title I;
``(B) to carry out the grant program established
under title III; and
``(C) to make payments to the Commodity Credit
Corporation to the extent the Commodity Credit
Corporation is not reimbursed under the programs under
this Act for the actual costs incurred or to be incurred
by the Commodity Credit Corporation in carrying out such
programs.''.
SEC. 3021. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended by
adding at the end the following:
``(e) Minimum Level of Nonemergency Food Assistance.--
``(1) Funds and commodities.--Of the amounts made available
to carry out emergency and nonemergency food assistance programs
under title II, not less than $375,000,000 for fiscal year 2009,
$400,000,000 for fiscal year 2010, $425,000,000 for fiscal year
2011, and $450,000,000 for fiscal year 2012 shall be expended
for nonemergency food assistance programs under title II.
``(2) Exception.--The President may use less than the amount
specified in paragraph (1) in a fiscal year for nonemergency
food assistance programs under title II only if--
``(A) the President has made a determination that
there is an urgent need for additional emergency food
assistance;
``(B) the funds and commodities held in the Bill
Emerson Humanitarian Trust have been exhausted; and
``(C) the President has submitted to Congress a
supplemental appropriations request for a sum equal to
the amount needed to reach the required spending level
for nonemergency food assistance under paragraph (1) and
the amount exhausted under paragraph (2)(B).
``(3) [NOTE: President.]  Notification to congress.--If
the President makes the determination described in paragraph
(2)(A), the President shall submit to Congress written
notification that the determination has been made.''.
SEC. 3022. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is amended--
(1) by striking ``To the maximum'' and inserting the
following:

``(a) In General.--To the maximum''; and
(2) by adding at the end the following:

``(b) Report Regarding Efforts to Improve Procurement Planning.--

[[Page 1830]]
122 STAT. 1830

``(1) Report required.--Not later than 90 days after the
date of enactment of the Food, Conservation, and Energy Act of
2008, the Administrator and the Secretary shall submit to each
appropriate committee of Congress a report that contains a
description of each effort taken by the Administrator and the
Secretary to improve planning for food and transportation
procurement (including efforts to eliminate bunching of food
purchases).
``(2) Contents.--A report required under paragraph (1)
should include a description of each effort taken by the
Administrator and the Secretary--
``(A) to improve the coordination of food purchases
made by--
``(i) the United States Agency for
International Development; and
``(ii) the Department of Agriculture;
``(B) to increase flexibility with respect to
procurement schedules;
``(C) to increase the use of historical analyses and
forecasting; and
``(D) to improve and streamline legal claims
processes for resolving transportation disputes.''.
SEC. 3023. 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 Administrator, in consultation
with the Secretary''; 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, using recommendations included
in the report entitled `Micronutrient Compliance Review
of Fortified Public Law 480 Commodities', published in
October 2001, with implementation by independent
entities with proven 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. 3024. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER
PROGRAM.

(a) Minimum Funding.--Section 501(d) of the Food for Peace Act (7
U.S.C. 1737(d)) is amended in the matter preceding paragraph (1)--
(1) by striking ``not less than'' and inserting ``not less
than the greater of $10,000,000 or''; and

[[Page 1831]]
122 STAT. 1831

(2) by striking ``2002 through 2007'' and inserting ``2008
through 2012''.

(b) Authorization of Appropriations.--Section 501(e) of the Food for
Peace Act (7 U.S.C. 1737(e)) is amended by striking paragraph (1) and
inserting the following:
``(1) In general.--There are authorized to be appropriated
for each of fiscal years 2008 through 2012 to carry out the
programs under this section--
``(A) $10,000,000 for sub-Saharan African and
Caribbean Basin countries; and
``(B) $5,000,000 for other developing or middle-
income countries or emerging markets not described in
subparagraph (A).''.

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

SEC. 3101. 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) by striking ``Guarantees.--'' and all that
follows through ``The Commodity'' in paragraph (1) and
inserting ``Guarantees.--The Commodity''; and
(B) by striking paragraphs (2) and (3);
(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, to the maximum
extent practicable, that risk-based fees associated with
the guarantees cover, but do not exceed, the operating
costs and losses over the long term.''.

(b) Funding Levels.--Section 211 of the Agricultural Trade Act of
1978 (7 U.S.C. 5641) is amended by striking subsection (b) and inserting
the following:

[[Page 1832]]
122 STAT. 1832

``(b) Export Credit Guarantee Programs.--The Commodity Credit
Corporation shall make available for each of fiscal years 1996 through
2012 credit guarantees under section 202(a) in an amount equal to but
not more than the lesser of--
``(1) $5,500,000,000 in credit guarantees; or
``(2) the sum of--
``(A) the amount of credit guarantees that the
Commodity Credit Corporation can make available using
budget authority of $40,000,000 for each fiscal year for
the costs of the credit guarantees; and
``(B) the amount of credit guarantees that the
Commodity Credit Corporation can make available using
unobligated budget authority for prior fiscal years.''.

(c) Conforming Amendments.--Section 202 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (b)(4) (as redesignated by subsection
(a)(3)), by striking ``, consistent with the provisions of
subsection (c)'';
(2) in subsection (d) (as redesignated by subsection
(a)(3))--
(A) by striking ``(1)'' and all that follows through
``The Commodity'' and inserting ``The Commodity''; and
(B) by striking paragraph (2); and
(3) in subsection (g)(2) (as redesignated by subsection
(a)(3)), by striking ``subsections (a) and (b)'' and inserting
``subsection (a)''.
SEC. 3102. 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 ``$200,000,000 for
each of fiscal years 2006 and 2007'' and inserting ``$200,000,000 for
each of fiscal years 2008 through 2012''.
SEC. 3103. 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 sections 302 and 303 (7 U.S.C. 5652 and
5653) as sections 301 and 302, respectively;
(3) in section 302 [NOTE: 7 USC 5653.]  (as redesignated
by paragraph (2)), by striking ``, such as that established
under section 301,'';
(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

[[Page 1833]]
122 STAT. 1833

(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. 3104. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

(a) Report to Congress.--Section 702(c) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5722(c)) is amended by striking ``Committee on
International Relations'' and inserting ``Committee on Foreign
Affairs''.
(b) Funding.--Section 703(a) of the Agricultural Trade Act of 1978
(7 U.S.C. 5723(a)) is amended by striking ``2002 through 2007'' and
inserting ``2008 through 2012''.
SEC. 3105. FOOD FOR PROGRESS ACT OF 1985.

(a) In General.--The Food for Progress Act of 1985 (7 U.S.C. 1736o)
is amended by striking ``2007'' each place it appears and inserting
``2012''.
(b) Designation of Project in Sub-Saharan Africa.--The Food for
Progress Act of 1985 (7 U.S.C. 1736o) is amended in subsection (f) by
adding at the end the following:
``(6) Project in malawi.--
``(A) [NOTE: President.]  In general.--In carrying
out this section during fiscal year 2009, the President
shall approve not less than 1 multiyear project for
Malawi--
``(i) to promote sustainable agriculture; and
``(ii) to increase the number of women in
leadership positions.
``(B) Use of eligible commodities.--Of the eligible
commodities used to carry out this section during the
period in which the project described in subparagraph
(A) is carried out, the President shall carry out the
project using eligible commodities with a total value of
not less than $3,000,000 during the course of the
project.''.
SEC. 3106. 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 subsections (b), (c)(2)(B), (f)(1), (h), (i), and
(l)(1), by striking ``President'' each place it appears and
inserting ``Secretary'';
(2) in subsection (d), by striking ``The President shall
designate 1 or more Federal agencies'' and inserting ``The
Secretary shall'';
(3) in paragraph (f)(2), by striking ``implementing agency''
and inserting ``Secretary''; and
(4) in subsection (l)--
(A) by striking paragraph (1) and inserting the
following:
``(1) Use of commodity credit corporation funds.--Of the
funds of the Commodity Credit Corporation, the Secretary shall
use to carry out this section $84,000,000 for fiscal year 2009,
to remain available until expended.'';
(B) in paragraph (2), by striking ``2004 through
2007'' and inserting ``2008 through 2012''; and
(C) in paragraph (3), by striking ``any Federal
agency implementing or assisting'' and inserting ``the
Department of Agriculture or any other Federal agency
assisting''.

[[Page 1834]]
122 STAT. 1834

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)--
(A) by striking ``establish a trust stock'' and
inserting ``establish and maintain a trust''; and
(B) by striking ``or any combination of the
commodities, totaling not more than 4,000,000 metric
tons'' and inserting ``any combination of the
commodities, or funds'';
(2) in subsection (b)--
(A) in paragraph (1), 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 the market, if the Secretary
determines that such a sale of the commodity on
the market will not unduly disrupt domestic
markets; or
``(iii) to maximize the value of the trust, in
accordance with subsection (d)(3).''; and
(B) in paragraph (2)(B)--
(i) 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;
(ii) in clause (ii), by striking the period at
the end and inserting ``; or''; and
(iii) 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; and
``(bb) for which a
government concerned has not
chosen, or 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--

[[Page 1835]]
122 STAT. 1835

``(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 food,
and cover any associated costs, under title II of
the Food for Peace Act (7 U.S.C. 1721 et seq.)--
``(I) to assist in averting an
emergency, 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.--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.
``(D) Waiver relating to minimum tonnage
requirements.--Nothing in this paragraph requires a
waiver by the Administrator of the Agency for
International Development under section 204(a)(3) of the
Food for Peace Act (7 U.S.C. 1724(a)(3)) as a condition
for a release of funds or commodities under subparagraph
(B).''; 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.--

[[Page 1836]]
122 STAT. 1836

``(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;
and
(ii) in subparagraph (C) (as redesignated by
subparagraph (A)), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(3) Funds.--
``(A) Exchanges.--If any commodity held in the trust
is exchanged for funds under subsection (b)(1)(D)(ii),
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).
``(B) Investment.--The Secretary 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
(5) in subsection (h), in each of paragraphs (1) and (2), by
striking ``2007'' each place it appears and inserting ``2012''.
SEC. 3202. [NOTE: 22 USC 2220a note.]  GLOBAL CROP DIVERSITY
TRUST.

(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 amount of funds contributed to the Trust
from all sources.

[[Page 1837]]
122 STAT. 1837

(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.
SEC. 3203. 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) Annual Report.--Not later than 180 days after the date of
enactment of the Food, Conservation, and Energy Act of 2008 and annually
thereafter, the Secretary shall submit to the appropriate committees of
Congress a report that contains, for the period covered by the report, a
description of each factor that affects the export of specialty crops,
including each factor relating to any--
``(1) significant sanitary or phytosanitary issue; or
``(2) trade barrier.

``(e) Funding.--
``(1) Commodity credit corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this section.
``(2) Funding amounts.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section--
``(A) $4,000,000 for fiscal year 2008;
``(B) $7,000,000 for fiscal year 2009;
``(C) $8,000,000 for fiscal year 2010;
``(D) $9,000,000 for fiscal year 2011; and
``(E) $9,000,000 for fiscal year 2012.''.
SEC. 3204. 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

[[Page 1838]]
122 STAT. 1838

``(B) 20 years.''; and
(3) in subsection (d)(1)(A)(i) by striking ``2007'' and
inserting ``2012''.
SEC. 3205. [NOTE: 22 USC 7112 note.]  CONSULTATIVE GROUP TO
ELIMINATE THE USE OF CHILD LABOR AND
FORCED LABOR IN IMPORTED AGRICULTURAL
PRODUCTS.

(a) Definitions.--In this section:
(1) 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.
(2) Consultative group.--The term ``Consultative Group''
means the Consultative Group to Eliminate the Use of Child Labor
and Forced Labor in Imported Agricultural Products established
under subsection (b).
(3) Forced labor.--The term ``forced labor'' means all work
or service--
(A) that is exacted from any individual under menace
of any penalty for nonperformance of the work or
service, and for which--
(i) the work or service is not offered
voluntarily; or
(ii) the work or service is performed as a
result of coercion, debt bondage, or involuntary
servitude (as those terms are defined in section
103 of the Trafficking Victims Protection Act of
2000 (22 U.S.C. 7102)); and
(B) by 1 or more individuals who, at the time of
performing the work or service, were being subjected to
a severe form of trafficking in persons (as that term is
defined in that section).

(b) Establishment.--There is established a group to be known as the
``Consultative Group to Eliminate the Use of Child Labor and Forced
Labor in Imported Agricultural Products'' to develop recommendations
relating to guidelines to reduce the likelihood that agricultural
products or commodities imported into the United States are produced
with the use of forced labor and child labor.
(c) [NOTE: Deadlines.]  Duties.--
(1) [NOTE: Recommenda- tions.]  In general.--Not later
than 2 years after the date of enactment of this Act and in
accordance with section 105(d) of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7103(d)), as applicable to the
importation of agricultural products made with the use of child
labor or forced labor, the Consultative Group shall develop, and
submit to the Secretary, recommendations relating to a standard
set of practices for independent, third-party monitoring and
verification for the production, processing, and distribution of
agricultural products or commodities to reduce the likelihood
that agricultural products or commodities imported into the
United States are produced with the use of forced labor or child
labor.
(2) Guidelines.--
(A) In general.--Not later than 1 year after the
date on which the Secretary receives recommendations
under paragraph (1), the Secretary shall release
guidelines for a voluntary initiative to enable entities
to address issues

[[Page 1839]]
122 STAT. 1839

raised by the Trafficking Victims Protection Act of 2000
(22 U.S.C. 7101 et seq.).
(B) Requirements.--Guidelines released under
subparagraph (A) shall be published in the Federal
Register and made available for public comment for a
period of 90 days.

(d) Membership.--The Consultative Group shall be composed of not
more than 13 individuals, of whom--
(1) 2 members shall represent the Department of Agriculture,
as determined by the Secretary;
(2) 1 member shall be the Deputy Under Secretary for
International Affairs of the Department of Labor;
(3) 1 member shall represent the Department of State, as
determined by the Secretary of State;
(4) 3 members shall represent private agriculture-related
enterprises, which may include retailers, food processors,
importers, and producers, of whom at least 1 member shall be an
importer, food processor, or retailer who utilizes independent,
third-party supply chain monitoring for forced labor or child
labor;
(5) 2 members shall represent institutions of higher
education and research institutions, as determined appropriate
by the Bureau of International Labor Affairs of the Department
of Labor;
(6) 1 member shall represent an organization that provides
independent, third-party certification services for labor
standards for producers or importers of agricultural commodities
or products; and
(7) 3 members shall represent organizations described in
section 501(c)(3) of the Internal Revenue Code of 1986 that have
expertise on the issues of international child labor and do not
possess a conflict of interest associated with establishment of
the guidelines issued under subsection (c)(2), as determined by
the Bureau of International Labor Affairs of the Department of
Labor, including representatives from consumer organizations and
trade unions, if appropriate.

(e) Chairperson.--A representative of the Department of Agriculture
appointed under subsection (d)(1), as determined by the Secretary, shall
serve as the chairperson of the Consultative Group.
(f) Requirements.--Not less than 4 times per year, the Consultative
Group shall meet at the call of the Chairperson, after reasonable notice
to all members, to develop recommendations described in subsection
(c)(1).
(g) Nonapplicability of FACA.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the Consultative Group.
(h) Annual Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter through December 31,
2012, the Secretary 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 describing
the activities and recommendations of the Consultative Group.
(i) Termination of Authority.--The Consultative Group shall
terminate on December 31, 2012.

[[Page 1840]]
122 STAT. 1840

SEC. 3206. [NOTE: 7 USC 1726c.]  LOCAL AND REGIONAL FOOD AID
PROCUREMENT PROJECTS.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Agency for International Development.
(2) Appropriate committee of congress.--The term
``appropriate committee of Congress'' means--
(A) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
(B) the Committee on Agriculture of the House of
Representatives; and
(C) the Committee on Foreign Affairs of the House of
Representatives.
(3) Eligible commodity.--The term ``eligible commodity''
means an agricultural commodity (or the product of an
agricultural commodity) that--
(A) is produced in, and procured from, a developing
country; and
(B) at a minimum, meets each nutritional, quality,
and labeling standard of the country that receives the
agricultural commodity, as determined by the Secretary.
(4) Eligible organization.--The term ``eligible
organization'' means an organization that is--
(A) described in section 202(d) of the Food for
Peace Act (7 U.S.C. 1722(d)); and
(B) with respect to nongovernmental organizations,
subject to regulations promulgated or guidelines issued
to carry out this section, including United States audit
requirements that are applicable to nongovernmental
organizations.

(b) Study; Field-Based Projects.--
(1) Study.--
(A) [NOTE: Deadline.]  In general.--Not later than
30 days after the date of enactment of this Act, the
Secretary shall initiate a study of prior local and
regional procurements for food aid programs conducted
by--
(i) other donor countries;
(ii) private voluntary organizations; and
(iii) the World Food Program of the United
Nations.
(B) Report.--Not later than 180 days after the date
of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report
containing the results of the study conducted under
subparagraph (A).
(2) Field-based projects.--
(A) In general.--In accordance with subparagraph
(B), the Secretary shall provide grants to, or enter
into cooperative agreements with, eligible organizations
to carry out field-based projects that consist of local
or regional procurements of eligible commodities to
respond to food crises and disasters in accordance with
this section.
(B) Consultation with administrator.--In carrying
out the development and implementation of field-based
projects under subparagraph (A), the Secretary shall
consult with the Administrator.

(c) Procurement.--

[[Page 1841]]
122 STAT. 1841

(1) In general.--Any eligible commodity that is procured for
a field-based project carried out under subsection (b)(2) shall
be procured through any approach or methodology that the
Secretary considers to be an effective approach or methodology
to provide adequate information regarding the manner by which to
expedite, to the maximum extent practicable, the provision of
food aid to affected populations without significantly
increasing commodity costs for low-income consumers who procure
commodities sourced from the same markets at which the eligible
commodity is procured.
(2) Requirements.--
(A) Impact on local farmers and countries.--The
Secretary shall ensure that the local or regional
procurement of any eligible commodity under this section
will not have a disruptive impact on farmers located in,
or the economy of--
(i) the recipient country of the eligible
commodity; or
(ii) any country in the region in which the
eligible commodity may be procured.
(B) Transshipment.--The Secretary shall, in
accordance with such terms and conditions as the
Secretary considers to be appropriate, require from each
eligible organization commitments designed to prevent or
restrict--
(i) the resale or transshipment of any
eligible commodity procured under this section to
any country other than the recipient country; and
(ii) the use of the eligible commodity for any
purpose other than food aid.
(C) World prices.--
(i) In general.--In carrying out this section,
the Secretary shall take any precaution that the
Secretary considers to be reasonable to ensure
that the procurement of eligible commodities will
not unduly disrupt--
(I) world prices for agricultural
commodities; or
(II) normal patterns of commercial
trade with foreign countries.
(ii) Procurement price.--The procurement of
any eligible commodity shall be made at a
reasonable market price with respect to the
economy of the country in which the eligible
commodity is procured, as determined by the
Secretary.

(d) Regulations; Guidelines.--
(1) [NOTE: Deadline.]  In general.--In accordance with
paragraph (2), not later than 180 days after the date of
completion of the study under subsection (b)(1), the Secretary
shall promulgate regulations or issue guidelines to carry out
field-based projects under this section.
(2) Requirements.--
(A) Use of study.--In promulgating regulations or
issuing guidelines under paragraph (1), the Secretary
shall take into consideration the results of the study
described in subsection (b)(1).
(B) Public review and comment.--In promulgating
regulations or issuing guidelines under paragraph (1),
the

[[Page 1842]]
122 STAT. 1842

Secretary shall provide an opportunity for public review
and comment.
(3) Availability.--The Secretary shall not approve the
procurement of any eligible commodity under this section until
the date on which the Secretary promulgates regulations or
issues guidelines under paragraph (1).

(e) Field-Based Project Grants or Cooperative Agreements.--
(1) In general.--The Secretary shall award grants to, or
enter into cooperative agreements with, eligible organizations
to carry out field-based projects.
(2) Requirements of eligible organizations.--
(A) Application.--
(i) In general.--To be eligible to receive a
grant from, or enter into a cooperative agreement
with, the Secretary under this subsection, an
eligible organization shall submit to the
Secretary an application by such date, in such
manner, and containing such information as the
Secretary may require.
(ii) Other applicable requirements.--Any other
applicable requirement relating to the submission
of proposals for consideration shall apply to the
submission of an application required under clause
(i), as determined by the Secretary.
(B) Completion requirement.--To be eligible to
receive a grant from, or enter into a cooperative
agreement with, the Secretary under this subsection, an
eligible organization shall agree--
(i) to collect by September 30, 2011, data
containing the information required under
subsection (f)(1)(B) relating to the field-based
project funded through the grant; and
(ii) to provide to the Secretary the data
collected under clause (i).
(3) Requirements of secretary.--
(A) Project diversity.--
(i) In general.--Subject to clause (ii) and
subparagraph (B), in selecting proposals for
field-based projects to fund under this section,
the Secretary shall select a diversity of
projects, including projects located in--
(I) food surplus regions;
(II) food deficit regions (that are
carried out using regional procurement
methods); and
(III) multiple geographical regions.
(ii) Priority.--In selecting proposals for
field-based projects under clause (i), the
Secretary shall ensure that the majority of
selected proposals are for field-based projects
that--
(I) are located in Africa; and
(II) procure eligible commodities
that are produced in Africa.
(B) Development assistance.--A portion of the funds
provided under this subsection shall be made available
for field-based projects that provide development
assistance for a period of not less than 1 year.
(4) Availability.--The Secretary shall not award a grant to
any eligible organization under paragraph (1) until the date

[[Page 1843]]
122 STAT. 1843

on which the Secretary promulgates regulations or issues
guidelines under subsection (d)(1).

(f) Independent Evaluations; Report.--
(1) Independent evaluations.--
(A) [NOTE: Deadline.]  In general.--Not later than
November 1, 2011, the Secretary shall ensure that an
independent third party conducts an independent
evaluation of all field-based projects that--
(i) addresses each factor described in
subparagraph (B); and
(ii) is conducted in accordance with this
section.
(B) Required factors.--The Secretary shall require
the independent third party to develop--
(i) with respect to each relevant market in
which an eligible commodity was procured under
this section, a description of--
(I) the prevailing and historic
supply, demand, and price movements of
the market (including the extent of
competition for procurement bids);
(II) the impact of the procurement
of the eligible commodity on producer
and consumer prices in the market;
(III) each government market
interference or other activity of the
donor country that might have
significantly affected the supply or
demand of the eligible commodity in the
area at which the local or regional
procurement occurred;
(IV) the quantities and types of
eligible commodities procured in the
market;
(V) the time frame for procurement
of each eligible commodity; and
(VI) the total cost of the
procurement of each eligible commodity
(including storage, handling,
transportation, and administrative
costs);
(ii) an assessment regarding--
(I) whether the requirements of this
section have been met;
(II) the impact of different
methodologies and approaches on--
(aa) local and regional
agricultural producers
(including large and small
agricultural producers);
(bb) markets;
(cc) low-income consumers;
and
(dd) program recipients; and
(III) the length of the period
beginning on the date on which the
Secretary initiated the procurement
process and ending on the date of
delivery of eligible commodities;
(iii) a comparison of different methodologies
used to carry out this section, with respect to--
(I) the benefits to local
agriculture;
(II) the impact on markets and
consumers;
(III) the period of time required
for procurement and delivery;
(IV) quality and safety assurances;
and
(V) implementation costs; and

[[Page 1844]]
122 STAT. 1844

(iv) to the extent adequate information is
available (including the results of the report
required under subsection (b)(1)(B)), a comparison
of the different methodologies used by other donor
countries to make local and regional procurements.
(C) Independent third party access to records and
reports.--The Secretary shall provide to the independent
third party access to each record and report that the
independent third party determines to be necessary to
complete the independent evaluation.
(D) [NOTE: Deadline.]  Public access to records
and reports.--Not later than 180 days after the date
described in paragraph (2), the Secretary shall provide
public access to each record and report described in
subparagraph (C).
(2) Report.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall submit to the
appropriate committees of Congress a report that contains the
analysis and findings of the independent evaluation conducted
under paragraph (1)(A).

(g) Funding.--
(1) Commodity credit corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this section.
(2) Funding amounts.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section--
(A) $5,000,000 for fiscal year 2009;
(B) $25,000,000 for fiscal year 2010;
(C) $25,000,000 for fiscal year 2011; and
(D) $5,000,000 for fiscal year 2012.

Subtitle D--Softwood Lumber

SEC. 3301. SOFTWOOD LUMBER.

(a) In General.--The Tariff Act of 1930 (19 U.S.C. 1202 et seq.) is
amended by adding at the end the following new title:

``TITLE VIII--SOFTWOOD [NOTE: Softwood Lumber Act of 2008.]  LUMBER
``SEC. 801. SHORT TITLE; TABLE OF CONTENTS.

``(a) [NOTE: 19 USC 1654 note.]  Short Title.--This title may be
cited as the `Softwood Lumber Act of 2008'.

``(b) Table of Contents.--The table of contents for this title is as
follows:

``TITLE VIII--SOFTWOOD LUMBER

``Sec. 801. Short title; table of contents.
``Sec. 802. Definitions.
``Sec. 803. Establishment of softwood lumber importer declaration
program.
``Sec. 804. Scope of softwood lumber importer declaration program.
``Sec. 805. Export charge determination and publication.
``Sec. 806. Reconciliation.
``Sec. 807. Verification.
``Sec. 808. Penalties.
``Sec. 809. Reports.

``SEC. 802. [NOTE: 19 USC 1683.]  DEFINITIONS.

``In this title:

[[Page 1845]]
122 STAT. 1845

``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means the Committee on
Finance of the Senate and the Committee on Ways and Means of the
House of Representatives.
``(2) Country of export.--The term `country of export' means
the country (including any political subdivision of the country)
from which softwood lumber or a softwood lumber product is
exported before entering the United States.
``(3) Customs laws of the united states.--The term `customs
laws of the United States' means any law or regulation enforced
or administered by U.S. Customs and Border Protection.
``(4) Export charges.--The term `export charges' means any
tax, charge, or other fee collected by the country from which
softwood lumber or a softwood lumber product, described in
section 804(a), is exported pursuant to an international
agreement entered into by that country and the United States.
``(5) Export price.--
``(A) In general.--The term `export price' means one
of the following:
``(i) In the case of softwood lumber or a
softwood lumber product that has undergone only
primary processing, the value that would be
determined F.O.B. at the facility where the
product underwent the last primary processing
before export.
``(ii)(I) In the case of softwood lumber or a
softwood lumber product described in subclause
(II), the value that would be determined F.O.B. at
the facility where the lumber or product underwent
the last primary processing.
``(II) Softwood lumber or a softwood lumber
product described in this subclause is lumber or a
product that underwent the last remanufacturing
before export by a manufacturer who--
``(aa) does not hold tenure rights
provided by the country of export;
``(bb) did not acquire standing
timber directly from the country of
export; and
``(cc) is not related to the person
who holds tenure rights or acquired
standing timber directly from the
country of export.
``(iii)(I) In the case of softwood lumber or a
softwood lumber product described in subclause
(II), the value that would be determined F.O.B. at
the facility where the product underwent the last
processing before export.
``(II) Softwood lumber or a softwood lumber
product described in this subclause is lumber or a
product that undergoes the last remanufacturing
before export by a manufacturer who--
``(aa) holds tenure rights provided
by the country of export;
``(bb) acquired standing timber
directly from the country of export; or
``(cc) is related to a person who
holds tenure rights or acquired standing
timber directly from the country of
export.

[[Page 1846]]
122 STAT. 1846

``(B) Related persons.--For purposes of this
paragraph, a person is related to another person if--
``(i) the person bears a relationship to such
other person described in section 152(a) of the
Internal Revenue Code of 1986;
``(ii) the person bears a relationship to such
other person described in section 267(b) of such
Code, except that `5 percent' shall be substituted
for `50 percent' each place it appears;
``(iii) the person and such other person are
part of a controlled group of corporations, as
that term is defined in section 1563(a) of such
Code, except that `5 percent' shall be substituted
for `80 percent' each place it appears;
``(iv) the person is an officer or director of
such other person; or
``(v) the person is the employer of such other
person.
``(C) Tenure rights.--For purposes of this
paragraph, the term `tenure rights' means rights to
harvest timber from public land granted by the country
of export.
``(D) Export price where f.o.b. value cannot be
determined.--
``(i) In general.--In the case of softwood
lumber or a softwood lumber product described in
clause (i), (ii), or (iii) of subparagraph (A) for
which an F.O.B. value cannot be determined, the
export price shall be the market price for the
identical lumber or product sold in an arm's-
length transaction in the country of export at
approximately the same time as the exported lumber
or product. The market price shall be determined
in the following order of preference:
``(I) The market price for the
lumber or a product sold at
substantially the same level of trade as
the exported lumber or product but in
different quantities.
``(II) The market price for the
lumber or a product sold at a different
level of trade than the exported lumber
or product but in similar quantities.
``(III) The market price for the
lumber or a product sold at a different
level of trade than the exported lumber
or product and in different quantities.
``(ii) Level of trade.--For purposes of clause
(i), `level of trade' shall be determined in the
same manner as provided under section 351.412(c)
of title 19, Code of Federal Regulations (as in
effect on January 1, 2008).
``(6) F.O.B.--The term `F.O.B.' means a value consisting of
all charges payable by a purchaser, including those charges
incurred in the placement of merchandise on board of a
conveyance for shipment, but does not include the actual
shipping charges or any applicable export charges.
``(7) HTS.--The term `HTS' means the Harmonized Tariff
Schedule of the United States (19 U.S.C. 1202) (as in effect on
January 1, 2008).

[[Page 1847]]
122 STAT. 1847

``(8) Person.--The term `person' includes any individual,
partnership, corporation, association, organization, business
trust, government entity, or other entity subject to the
jurisdiction of the United States.
``(9) United states.--The term `United States' means the
customs territory of the United States, as defined in General
Note 2 of the HTS.
``SEC. 803. [NOTE: President. 19 USC 1683a.]  ESTABLISHMENT OF
SOFTWOOD LUMBER IMPORTER DECLARATION
PROGRAM.

``(a) Establishment of Program.--
``(1) In general.--The President shall establish and
maintain an importer declaration program with respect to the
importation of softwood lumber and softwood lumber products
described in section 804(a). The importer declaration program
shall require importers of softwood lumber and softwood lumber
products described in section 804(a) to provide the information
required under subsection (b) and declare the information
required by subsection (c), and require that such information
accompany the entry summary documentation.
``(2) Electronic record.--The President shall establish an
electronic record that includes the importer information
required under subsection (b) and the declarations required
under subsection (c).

``(b) Required Information.--The President shall require the
following information to be submitted by any person seeking to import
softwood lumber or softwood lumber products described in section 804(a):
``(1) The export price for each shipment of softwood lumber
or softwood lumber products.
``(2) The estimated export charge, if any, applicable to
each shipment of softwood lumber or softwood lumber products as
calculated by applying the percentage determined and published
by the Under Secretary for International Trade of the Department
of Commerce pursuant to section 805 to the export price provided
in subsection (b)(1).

``(c) [NOTE: Procedures.]  Importer Declarations.--Pursuant to
procedures prescribed by the President, any person seeking to import
softwood lumber or softwood lumber products described in section 804(a)
shall declare that--
``(1) the person has made appropriate inquiry, including
seeking appropriate documentation from the exporter and
consulting the determinations published by the Under Secretary
for International Trade of the Department of Commerce pursuant
to section 805(b); and
``(2) to the best of the person's knowledge and belief--
``(A) the export price provided pursuant to
subsection (b)(1) is determined in accordance with the
definition provided in section 802(5);
``(B) the export price provided pursuant to
subsection (b)(1) is consistent with the export price
provided on the export permit, if any, granted by the
country of export; and
``(C) the exporter has paid, or committed to pay,
all export charges due--
``(i) in accordance with the volume, export
price, and export charge rate or rates, if any, as
calculated

[[Page 1848]]
122 STAT. 1848

under an international agreement entered into by
the country of export and the United States; and
``(ii) consistent with the export charge
determinations published by the Under Secretary
for International Trade pursuant to section
805(b).
``SEC. 804. [NOTE: 19 USC 1683b.]  SCOPE OF SOFTWOOD LUMBER
IMPORTER DECLARATION PROGRAM.

``(a) Products Included in Program.--The following products shall be
subject to the importer declaration program established under section
803:
``(1) In general.--All softwood lumber and softwood lumber
products classified under subheading 4407.10.00, 4409.10.10,
4409.10.20, or 4409.10.90 of the HTS, including the following
softwood lumber, flooring, and siding:
``(A) Coniferous wood, sawn or chipped lengthwise,
sliced or peeled, whether or not planed, sanded, or
finger-jointed, of a thickness exceeding 6 millimeters.
``(B) Coniferous wood siding (including strips and
friezes for parquet flooring, not assembled)
continuously shaped (tongued, grooved, rabbeted,
chamfered, v-jointed, beaded, molded, rounded, or the
like) along any of its edges or faces, whether or not
planed, sanded, or finger-jointed.
``(C) Other coniferous wood (including strips and
friezes for parquet flooring, not assembled)
continuously shaped (tongued, grooved, rabbeted,
chamfered, v-jointed, beaded, molded, rounded, or the
like) along any of its edges or faces (other than wood
moldings and wood dowel rods) whether or not planed,
sanded, or finger-jointed.
``(D) Coniferous wood flooring (including strips and
friezes for parquet flooring, not assembled)
continuously shaped (tongued, grooved, rabbeted,
chamfered, v-jointed, beaded, molded, rounded, or the
like) along any of its edges or faces, whether or not
planed, sanded, or finger-jointed.
``(E) Coniferous drilled and notched lumber and
angle cut lumber.
``(2) Products continually shaped.--Any product classified
under subheading 4409.10.05 of the HTS that is continually
shaped along its end or side edges.
``(3) Other lumber products.--Except as otherwise provided
in subsection (b) or (c), softwood lumber products that are
stringers, radius-cut box-spring frame components, fence
pickets, truss components, pallet components, and door and
window frame parts classified under subheading 4418.90.46.95,
4421.90.70.40, or 4421.90.97.40 of the HTS.

``(b) Products Excluded From Program.--The following products shall
be excluded from the importer declaration program established under
section 803:
``(1) Trusses and truss kits, properly classified under
subheading 4418.90 of the HTS.
``(2) I-joist beams.
``(3) Assembled box-spring frames.
``(4) Pallets and pallet kits, properly classified under
subheading 4415.20 of HTS.
``(5) Garage doors.

[[Page 1849]]
122 STAT. 1849

``(6) Edge-glued wood, properly classified under subheading
4421.90.97.40 of the HTS.
``(7) Complete door frames.
``(8) Complete window frames.
``(9) Furniture.
``(10) Articles brought into the United States temporarily
and for which an exemption from duty is claimed under subchapter
XIII of chapter 98 of the HTS.
``(11) Household and personal effects.

``(c) Exceptions for Certain Products.--The following softwood
lumber products shall not be subject to the importer declaration program
established under section 803:
``(1) Stringers.--Stringers (pallet components used for
runners), if the stringers--
``(A) have at least 2 notches on the side,
positioned at equal distance from the center, to
properly accommodate forklift blades; and
``(B) are properly classified under subheading
4421.90.97.40 of the HTS.
``(2) Box-spring frame kits.--
``(A) In general.--Box-spring frame kits, if--
``(i) the kits contain--
``(I) 2 wooden side rails;
``(II) 2 wooden end (or top) rails;
and
``(III) varying numbers of wooden
slats; and
``(ii) the side rails and the end rails are
radius-cut at both ends.
``(B) Packaging.--Any kit described in subparagraph
(A) shall be individually packaged, and contain the
exact number of wooden components needed to make the
box-spring frame described on the entry documents, with
no further processing required. None of the components
contained in the package may exceed 1 inch in actual
thickness or 83 inches in length.
``(3) Radius-cut box-spring frame components.--Radius-cut
box-spring frame components, not exceeding 1 inch in actual
thickness or 83 inches in length, ready for assembly without
further processing, if radius cuts are present on both ends of
the boards and are substantial cuts so as to completely round 1
corner.
``(4) Fence pickets.--Fence pickets requiring no further
processing and properly classified under subheading 4421.90.70
of the HTS, 1 inch or less in actual thickness, up to 8 inches
wide, and 6 feet or less in length, and having finials or
decorative cuttings that clearly identify them as fence pickets.
In the case of dog-eared fence pickets, the corners of the
boards shall be cut off so as to remove pieces of wood in the
shape of isosceles right angle triangles with sides measuring
\3/4\ of an inch or more.
``(5) United states-origin lumber.--Lumber originating in
the United States that is exported to another country for minor
processing and imported into the United States if--
``(A) the processing occurring in another country is
limited to kiln drying, planing to create smooth-to-size
board, and sanding; and

[[Page 1850]]
122 STAT. 1850

``(B) the importer establishes to the satisfaction
of U.S. Customs and Border Protection upon entry that
the lumber originated in the United States.
``(6) Softwood lumber.--Any softwood lumber or softwood
lumber product that originated in the United States, if the
importer, exporter, foreign processor, or original United States
producer establishes to the satisfaction of U.S. Customs and
Border Protection upon entry that the softwood lumber entered
and documented as originating in the United States was first
produced in the United States.
``(7) Home packages or kits.--
``(A) In general.--Softwood lumber or softwood
lumber products contained in a single family home
package or kit, regardless of the classification under
the HTS, if the importer declares that the following
requirements have been met:
``(i) The package or kit constitutes a full
package of the number of wooden pieces specified
in the plan, design, or blueprint necessary to
produce a home of at least 700 square feet
produced to a specified plan, design, or
blueprint.
``(ii) The package or kit contains--
``(I) all necessary internal and
external doors and windows, nails,
screws, glue, subfloor, sheathing,
beams, posts, and connectors; and
``(II) if included in the purchase
contract, the decking, trim, drywall,
and roof shingles specified in the plan,
design, or blueprint.
``(iii) Prior to importation, the package or
kit is sold to a United States retailer that sells
complete home packages or kits pursuant to a valid
purchase contract referencing the particular home
design, plan, or blueprint, and the contract is
signed by a customer not affiliated with the
importer.
``(iv) Softwood lumber products entered as
part of the package or kit, whether in a single
entry or multiple entries on multiple days, are to
be used solely for the construction of the single
family home specified by the home design, plan, or
blueprint matching the U.S. Customs and Border
Protection import entry.
``(B) Additional documentation required for home
packages and kits.--In the case of each entry of
products described in clauses (i) through (iv) of
subparagraph (A) the following documentation shall be
retained by the importer and made available to U.S.
Customs and Border Protection upon request:
``(i) A copy of the appropriate home design,
plan, or blueprint matching the customs entry in
the United States.
``(ii) A purchase contract from a retailer of
home kits or packages signed by a customer not
affiliated with the importer.
``(iii) A listing of all parts in the package
or kit being entered into the United States that
conforms to the home design, plan, or blueprint
for which such parts are being imported.

[[Page 1851]]
122 STAT. 1851

``(iv) If a single contract involves multiple
entries, an identification of all the items
required to be listed under clause (iii) that are
included in each individual shipment.

``(d) Products Covered.--For purposes of determining if a product is
covered by the importer declaration program, the President shall be
guided by the article descriptions provided in this section.
``SEC. 805. [NOTE: 19 USC 1683c.]  EXPORT CHARGE DETERMINATION
AND PUBLICATION.

``(a) Determination.--The Under Secretary for International Trade of
the Department of Commerce shall determine, on a monthly basis, any
export charges (expressed as a percentage of export price) to be
collected by a country of export from exporters of softwood lumber or
softwood lumber products described in section 804(a) in order to ensure
compliance with any international agreement entered into by that country
and the United States.
``(b) [NOTE: Web site.]  Publication.--The Under Secretary for
International Trade shall immediately publish any determination made
under subsection (a) on the website of the International Trade
Administration of the Department of Commerce, and in any other manner
the Under Secretary considers appropriate.
``SEC. 806. [NOTE: 19 USC 1683d.]  RECONCILIATION.

``The Secretary of the Treasury shall conduct reconciliations to
ensure the proper implementation and operation of international
agreements entered into between a country of export of softwood lumber
or softwood lumber products described in section 804(a) and the United
States. The Secretary of Treasury shall reconcile the following:
``(1) The export price declared by a United States importer
pursuant to section 803(b)(1) with the export price reported to
the United States by the country of export, if any.
``(2) The export price declared by a United States importer
pursuant to section 803(b)(1) with the revised export price
reported to the United States by the country of export, if any.
``SEC. 807. [NOTE: 19 USC 1683e.]  VERIFICATION.

``(a) In General.--The Secretary of Treasury shall periodically
verify the declarations made by a United States importer pursuant to
section 803(c), including by determining whether--
``(1) the export price declared by a United States importer
pursuant to section 803(b)(1) is the same as the export price
provided on the export permit, if any, issued by the country of
export; and
``(2) the estimated export charge declared by a United
States importer pursuant to section 803(b)(2) is consistent with
the determination published by the Under Secretary for
International Trade pursuant to section 805(b).

``(b) Examination of Books and Records.--
``(1) In general.--Any record relating to the importer
declaration program required under section 803 shall be treated
as a record required to be maintained and produced under title V
of this Act.
``(2) Examination of records.--The Secretary of the Treasury
is authorized to take such action, and examine such

[[Page 1852]]
122 STAT. 1852

records, under section 509 of this Act, as the Secretary
determines necessary to verify the declarations made pursuant to
section 803(c) are true and accurate.
``SEC. 808. [NOTE: 19 USC 1683f.]  PENALTIES.

``(a) In General.--It shall be unlawful for any person to import
into the United States softwood lumber or softwood lumber products in
knowing violation of this title.
``(b) Civil Penalties.--Any person who commits an unlawful act as
set forth in subsection (a) shall be liable for a civil penalty not to
exceed $10,000 for each knowing violation.
``(c) Other Penalties.--In addition to the penalties provided for in
subsection (b), any violation of this title that violates any other
customs law of the United States shall be subject to any applicable
civil and criminal penalty, including seizure and forfeiture, that may
be imposed under such custom law or title 18, United States Code, with
respect to the importation of softwood lumber and softwood lumber
products described in section 804(a).
``(d) Factors To Consider in Assessing Penalties.--In determining
the amount of civil penalties to be assessed under this section,
consideration shall be given to any history of prior violations of this
title by the person, the ability of the person to pay the penalty, the
seriousness of the violation, and such other matters as fairness may
require.
``(e) Notice.--No penalty may be assessed under this section against
a person for violating a provision of this title unless the person is
given notice and opportunity to make statements, both oral and written,
with respect to such violation.
``(f) Exception.--Notwithstanding any other provision of this title,
and without limitation, an importer shall not be found to have violated
subsection 803(c) if--
``(1) the importer made an appropriate inquiry in accordance
with section 803(c)(1) with respect to the declaration;
``(2) the importer produces records maintained pursuant to
section 807(b) that substantiate the declaration; and
``(3) there is not substantial evidence indicating that the
importer knew that the fact to which the importer made the
declaration was false.
``SEC. 809. [NOTE: 19 USC 1683g.]  REPORTS.

``(a) [NOTE: President.]  Semiannual Reports.--Not later than 180
days after the effective date of this title, and every 180 days
thereafter, the President shall submit to the appropriate congressional
committees a report--
``(1) describing the reconciliations conducted under section
806, and the verifications conducted under section 807;
``(2) identifying the manner in which the United States
importers subject to reconciliations conducted under section 806
and verifications conducted under section 807 were chosen;
``(3) identifying any penalties imposed under section 808;
``(4) identifying any patterns of noncompliance with this
title; and
``(5) identifying any problems or obstacles encountered in
the implementation and enforcement of this title.

``(b) Subsidies Reports.--Not later than 180 days after the date of
the enactment of this title, and every 180 days thereafter, the
Secretary of Commerce shall provide to the appropriate congressional
committees a report on any subsidies on softwood lumber

[[Page 1853]]
122 STAT. 1853

or softwood lumber products, including stumpage subsidies, provided by
countries of export.
``(c) GAO Reports.--The Comptroller General of the United States
shall submit the following reports to the appropriate congressional
committees:
``(1) Not later than 18 months after the date of the
enactment of this title, a report on the effectiveness of the
reconciliations conducted under section 806, and verifications
conducted under section 807.
``(2) Not later than 12 months after the date of the
enactment of this title, a report on whether countries that
export softwood lumber or softwood lumber products to the United
States are complying with any international agreements entered
into by those countries and the United States.''.

(b) [NOTE: 19 USC 1683 note.]  Effective Date.--The amendments
made by this section shall take effect on the date that is 60 days after
the date of the enactment of this Act.

TITLE IV--NUTRITION

Subtitle A--Food Stamp Program

PART I--RENAMING OF FOOD STAMP ACT AND PROGRAM

SEC. 4001. RENAMING OF FOOD STAMP ACT AND 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 2008''.
(b) Program.--The Food and Nutrition Act of 2008 (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 ``supplemental nutrition
assistance program''.
SEC. 4002. CONFORMING AMENDMENTS.

(a) In General.--
(1) Section 4 of the Food and Nutrition Act of 2008 (7
U.S.C. 2013) is amended in the section heading by striking
``food stamp program'' and inserting ``supplemental nutrition
assistance program''.
(2) Section 5(h)(2)(A) of the Food and Nutrition Act of 2008
(7 U.S.C. 2014(h)(2)(A)) is amended by striking ``Food Stamp
Disaster Task Force'' and inserting ``Disaster Task Force''.
(3) Section 6 of the Food and Nutrition Act of 2008 (7
U.S.C. 2015) is amended--
(A) in subsection (d)(3), by striking ``for food
stamps'';
(B) in subsection (j), in the subsection heading, by
striking ``Food Stamp''; and
(C) in subsection (o)--
(i) in paragraph (2), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition
assistance program benefits''; and
(ii) in paragraph (6)--
(I) in subparagraph (A)--

[[Page 1854]]
122 STAT. 1854

(aa) in clause (i), by
striking ``food stamps'' and
inserting ``supplemental
nutrition assistance program
benefits''; 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 supplemental
nutrition assistance program
benefits''; and
(BB) by striking ``food
stamp benefits'' each place
it appears and inserting
``supplemental nutrition
assistance program
benefits''; and
(II) in subparagraphs (D) and (E),
by striking ``food stamp recipients''
each place it appears and inserting
``members of households that receive
supplemental nutrition assistance
program benefits''.
(4) Section 7 of the Food and Nutrition Act of 2008 (7
U.S.C. 2016) is amended--
(A) in subsection (i)--
(i) in paragraph (3)(B)(ii), by striking
``food stamp households'' and inserting
``households receiving supplemental nutrition
assistance program benefits''; and
(ii) in paragraph (7), by striking ``food
stamp issuance'' and inserting ``supplemental
nutrition assistance issuance''; and
(B) in subsection (k)--
(i) in paragraph (2), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition
assistance program benefits''; and
(ii) in paragraph (3), by striking ``food
stamp retail'' and inserting ``retail''.
(5) Section 9(b)(1) of that Food and Nutrition Act of 2008
(7 U.S.C. 2018(b)(1)) is amended by striking ``food stamp
households'' and inserting ``households that receive
supplemental nutrition assistance program benefits''.
(6) Section 11 of the Food and Nutrition Act of 2008 (7
U.S.C. 2020) is amended--
(A) in subsection (e)--
(i) by striking ``food stamps'' each place it
appears and inserting ``supplemental nutrition
assistance program benefits'';
(ii) by striking ``food stamp offices'' each
place it appears and inserting ``supplemental
nutrition assistance program offices'';
(iii) by striking ``food stamp office'' each
place it appears and inserting ``supplemental
nutrition assistance program office''; and
(iv) in paragraph (25)--
(I) in the matter preceding
subparagraph (A), by striking
``Simplified Food Stamp Program'' and
inserting ``Simplified Supplemental
Nutrition Assistance Program''; and

[[Page 1855]]
122 STAT. 1855

(II) in subparagraph (A), by
striking ``food stamp benefits'' and
inserting ``supplemental nutrition
assistance program benefits'';
(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,
supplemental nutrition assistance program benefits'';
(C) in subsection (l), by striking ``food stamp
participation'' and inserting ``supplemental nutrition
assistance program participation'';
(D) in subsections (q) and (r), in the subsection
headings, by striking ``Food Stamps'' each place it
appears and inserting ``Benefits'';
(E) in subsection (s), by striking ``food stamp
benefits'' each place it appears and inserting
``supplemental nutrition assistance program benefits'';
and
(F) in subsection (t)(1)--
(i) in subparagraph (A), by striking ``food
stamp application'' and inserting ``supplemental
nutrition assistance program application''; and
(ii) in subparagraph (B), by striking ``food
stamp benefits'' and inserting ``supplemental
nutrition assistance program benefits''.
(7) Section 14(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2023(b)) is amended by striking ``food stamp''.
(8) Section 16 of the Food and Nutrition Act of 2008 (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 supplemental nutrition
assistance program'';
(B) in subsection (c)(9)(C), by striking ``food
stamp caseload'' and inserting ``the caseload under the
supplemental nutrition assistance program''; and
(C) in subsection (h)(1)(E)(i), by striking ``food
stamp recipients'' and inserting ``members of households
receiving supplemental nutrition assistance program
benefits''.
(9) Section 17 of the Food and Nutrition Act of 2008 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``food stamp
benefits'' each place it appears and inserting
``supplemental nutrition assistance program benefits'';
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A), by striking
``food stamp benefits'' and inserting
``supplemental nutrition assistance
program benefits''; and
(II) in subparagraph (B)--
(aa) in clause (ii)(II), by
striking ``food stamp
recipients'' and inserting
``supplemental nutrition
assistance program recipients'';
(bb) in clause (iii)(I), by
striking ``the State's food
stamp households'' and inserting
``the number of households in
the State receiving supplemental
nutrition assistance program
benefits''; and

[[Page 1856]]
122 STAT. 1856

(cc) in clause (iv)(IV)(bb),
by striking ``food stamp
deductions'' and inserting
``supplemental nutrition
assistance program deductions'';
(ii) in paragraph (2), by striking ``food
stamp benefits'' and inserting ``supplemental
nutrition assistance program benefits''; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by striking
``food stamp employment'' and inserting
``supplemental nutrition assistance
program employment'';
(II) in subparagraph (B), by
striking ``food stamp recipients'' and
inserting ``supplemental nutrition
assistance program recipients'';
(III) in subparagraph (C), by
striking ``food stamps'' and inserting
``supplemental nutrition assistance
program benefits''; and
(IV) in subparagraph (D), by
striking ``food stamp benefits'' and
inserting ``supplemental nutrition
assistance program benefits'';
(C) in subsection (c), by striking ``food stamps''
and inserting ``supplemental nutrition assistance'';
(D) in subsection (d)--
(i) in paragraph (1)(B), by striking ``food
stamp benefits'' and inserting ``supplemental
nutrition assistance program benefits'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by striking
``food stamp allotments'' each place it
appears and inserting ``allotments'';
and
(II) in subparagraph (C)(ii), by
striking ``food stamp benefit'' and
inserting ``supplemental nutrition
assistance program benefits''; and
(iii) in paragraph (3)(E), by striking ``food
stamp benefits'' and inserting ``supplemental
nutrition assistance program benefits'';
(E) in subsections (e) and (f), by striking ``food
stamp benefits'' each place it appears and inserting
``supplemental nutrition assistance program benefits'';
(F) in subsection (g), in the first sentence, by
striking ``receipt of food stamp'' and inserting
``receipt of supplemental nutrition assistance
program''; and
(G) in subsection (j), by striking ``food stamp
agencies'' and inserting ``supplemental nutrition
assistance program agencies''.
(10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking
``food stamps'' and inserting ``supplemental nutrition
assistance program benefits''.
(11) Section 22 of the Food and Nutrition Act of 2008 (7
U.S.C. 2031) is amended--
(A) in the section heading, by striking ``food stamp
portion of minnesota family investment plan'' and
inserting ``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

[[Page 1857]]
122 STAT. 1857

(C) in subsection (g)(1), by striking ``the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.)'' and
inserting ``this Act''.
(12) Section 26 of the Food and Nutrition Act of 2008 (7
U.S.C. 2035) is amended--
(A) in the section heading, by striking ``simplified
food stamp program'' and inserting ``simplified
supplemental nutrition assistance program''; and
(B) in subsection (b), by striking ``simplified food
stamp program'' and inserting ``simplified supplemental
nutrition assistance 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 ``supplemental nutrition
assistance program'';
(B) by striking ``Food Stamp Act of 1977'' each
place it appears and inserting ``Food and Nutrition Act
of 2008'';
(C) by striking ``Food Stamp Act'' each place it
appears and inserting ``Food and Nutrition Act of
2008'';
(D) by striking ``food stamp'' each place it appears
and inserting ``supplemental nutrition assistance
program benefits'';
(E) by striking ``food stamps'' each place it
appears and inserting ``supplemental nutrition
assistance program benefits'';
(F) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``food
stamp act'' each place it appears and inserting ``food
and nutrition act of 2008'';
(G) in each applicable subsection and appropriations
heading, by striking ``Food Stamp Act'' each place it
appears and inserting ``Food and Nutrition Act of
2008'';
(H) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``food stamp act''
each place it appears and inserting ``food and nutrition
act of 2008'';
(I) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``food
stamp program'' each place it appears and inserting
``supplemental nutrition assistance program'';
(J) [NOTE: 7 USC 1421 note; 42 USC 1786.]  in each
applicable subsection and appropriations heading, by
striking ``Food Stamp Program'' each place it appears
and inserting ``Supplemental Nutrition Assistance
Program'';
(K) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``food stamp
program'' each place it appears and inserting
``supplemental nutrition assistance program'';
(L) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``food
stamps'' each place it appears and inserting
``supplemental nutrition assistance program benefits'';

[[Page 1858]]
122 STAT. 1858

(M) in each applicable subsection and appropriations
heading, by striking ``Food Stamps'' each place it
appears and inserting ``Supplemental Nutrition
Assistance Program Benefits''; and
(N) [NOTE: 42 USC 1758, 8011.]  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 ``supplemental nutrition
assistance program benefits''.
(2) Provisions of law.--The provisions of law referred to in
paragraph (1) are the following:
(A) [NOTE: 7 USC 2012 note.]  The Hunger
Prevention Act of 1988 (Public Law 100-435; 102 Stat.
1645).
(B) [NOTE: 7 USC 2012 note.]  The Food Stamp
Program Improvements Act of 1994 (Public Law 103-225;
108 Stat. 106).
(C) [NOTE: 7 USC 2016 et seq.]  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) [NOTE: 7 USC 2016 note.]  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) [NOTE: 7 USC 3315.]  The National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3101 et seq.).
(I) [NOTE: 7 USC 7509.]  The Emergency Food
Assistance Act of 1983 (7 U.S.C. 7501 et seq.).
(J) [NOTE: 8 USC 1255a.]  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) [NOTE: 15 USC 5901, 5904.]  The Armored Car
Industry Reciprocity Act of 1993 (15 U.S.C. 5901 et
seq.).
(M) [NOTE: 18 USC 506, 1956. 20 USC 1087ss.]
Title 18, United States Code.
(N) The Higher Education Act of 1965 (20 U.S.C. 1001
et seq.).
(O) [NOTE: 26 USC 32 et seq.]  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) [NOTE: 29 USC 49b.]  The Wagner-Peysner Act
(29 U.S.C. 49 et seq.).
(R) [NOTE: 29 USC 2971 et seq.]  The Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.).
(S) [NOTE: 31 USC 3803.]  Title 31, United States
Code.
(T) [NOTE: 37 USC 402a.]  Title 37, United States
Code.
(U) [NOTE: 42 USC 290cc-22.]  The Public Health
Service Act (42 U.S.C. 201 et seq.).
(V) [NOTE: 42 USC 405 et seq.]  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).

[[Page 1859]]
122 STAT. 1859

(X) Section 232 of the Social Security Act
Amendments of 1994 (42 U.S.C. 1314a).
(Y) [NOTE: 42 USC 1437f.]  The United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.).
(Z) [NOTE: 42 USC 1758, 1766.]  The Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et
seq.).
(AA) [NOTE: 42 USC 1786.]  The Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.).
(BB) [NOTE: 42 USC 3012 et seq.]  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) [NOTE: 42 USC 5179.]  The Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.).
(EE) [NOTE: 42 USC 8622, 8624.]  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) [NOTE: 43 USC 1626.]  The Alaska Native
Claims Settlement Act (43 U.S.C. 1601 et seq.).
(HH) [NOTE: 48 USC 1841.]  Public Law 95-348 (92
Stat. 487).
(II) [NOTE: 7 USC 2270, 4004a.]  The Agriculture
and Food Act of 1981 (Public Law 97-98; 95 Stat. 1213).
(JJ) [NOTE: 7 USC 2014 note, 2017 note.]  The
Disaster Assistance Act of 1988 (Public Law 100-387; 102
Stat. 924).
(KK) [NOTE: 7 USC 2011 note.]  The Food,
Agriculture, Conservation, and Trade Act of 1990 (Public
Law 101-624; 104 Stat. 3359).
(LL) [NOTE: 42 USC 8011.]  The Cranston-Gonzalez
National Affordable Housing Act (Public Law 101-625; 104
Stat. 4079).
(MM) [NOTE: 7 USC 1421 note.]  Section 388 of the
Persian Gulf Conflict Supplemental Authorization and
Personnel Benefits Act of 1991 (Public Law 102-25; 105
Stat. 98).
(NN) [NOTE: 7 USC 1421 note, 2026 note.]  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) [NOTE: 7 USC 2011 note, 2020 note.]  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) [NOTE: 7 USC 2012 note.]  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
2008 (7 U.S.C. 2011 et seq.) shall be considered to be a reference to
the ``supplemental nutrition assistance program'' established under that
Act.

PART II--BENEFIT IMPROVEMENTS

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

Section 5(d) of the Food and Nutrition Act of 2008 (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'';

[[Page 1860]]
122 STAT. 1860

(3) by indenting each of paragraphs (2) through (18) so as
to align with the margin of paragraph (1) (as amended by
paragraph (2));
(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 2008 (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 2009, $144,
$246, $203, and $127, respectively; and
``(II) for fiscal year 2010 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 2009, $289;
and
``(II) for fiscal year 2010 and each
fiscal year thereafter, an amount that
is equal to the amount from the previous
fiscal year adjusted to the

[[Page 1861]]
122 STAT. 1861

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 2008 (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. ASSET INDEXATION, EDUCATION, AND RETIREMENT ACCOUNTS.

(a) Adjusting Countable Resources for Inflation.--Section (5)(g) of
the Food and Nutrition Act of 2008 (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 so designated by paragraph
(1))--
(A) by inserting ``(as adjusted in accordance with
subparagraph (B))'' after ``$2,000''; and
(B) by inserting ``(as adjusted in accordance with
subparagraph (B))'' after ``$3,000''; and
(3) by adding at the end the following:
``(B) Adjustment for inflation.--
``(i) [NOTE: Effective date.]  In general.--
Beginning on October 1, 2008, and each October 1
thereafter, the amounts specified in subparagraph
(A) shall be adjusted and rounded down to the
nearest $250 increment 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 2008 (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 2008 (7 U.S.C. 2014(g)) is amended
by adding at the end the following:

[[Page 1862]]
122 STAT. 1862

``(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 2008 (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).''.
SEC. 4105. FACILITATING SIMPLIFIED REPORTING.

Section 6(c)(1)(A) of the Food and Nutrition Act of 2008 (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. TRANSITIONAL BENEFITS OPTION.

Section 11(s)(1) of the Food and Nutrition Act of 2008 (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:

[[Page 1863]]
122 STAT. 1863

``(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. 4107. INCREASING THE MINIMUM BENEFIT.

Section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
2017(a)) is amended by striking ``$10 per month'' and inserting ``8
percent of the cost of the thrifty food plan for a household containing
1 member, as determined by the Secretary under section 3, rounded to the
nearest whole dollar increment''.
SEC. 4108. EMPLOYMENT, TRAINING, AND JOB RETENTION.

Section 6(d)(4) of the Food and Nutrition Act of 2008 (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).''.

PART III--PROGRAM OPERATIONS

SEC. 4111. NUTRITION EDUCATION.

(a) Authority to Provide Nutrition Education.--Section 4(a) of the
Food and Nutrition Act of 2008 (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
2008 (7 U.S.C. 2020) 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 National Institute of Food and
Agriculture, including through the expanded food and nutrition
education program 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.

[[Page 1864]]
122 STAT. 1864

``(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.''.
SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

Section 6(k) of the Food and Nutrition Act of 2008 (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--
``(A) define the terms `fleeing' and `actively
seeking' for purposes of this subsection; and
``(B) ensure that State agencies use consistent
procedures established by the Secretary that disqualify
individuals whom law enforcement authorities are
actively seeking for the purpose of holding criminal
proceedings against the individual.''.
SEC. 4113. CLARIFICATION OF SPLIT ISSUANCE.

Section 7(h) of the Food and Nutrition Act of 2008 (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
during a month only when a benefit correction is
necessary.''.
SEC. 4114. ACCRUAL OF BENEFITS.

Section 7(i) of the Food and Nutrition Act of 2008 (7 U.S.C.
2016(i)) is amended by adding at the end the following:
``(12) Recovering electronic benefits.--
``(A) [NOTE: Procedures.]  In general.--A State
agency shall establish a procedure for recovering
electronic benefits from the account of a household due
to inactivity.
``(B) [NOTE: Deadline.]  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.

[[Page 1865]]
122 STAT. 1865

``(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. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS.

(a) In General.--Section 7 of the Food and Nutrition Act of 2008 (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 ``including any losses'' and all
that follows through ``section 11(e)(20),''; 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
supplemental nutrition assistance program, the Secretary shall
require a State agency to issue or deliver benefits using
alternative methods.

[[Page 1866]]
122 STAT. 1866

``(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
supplemental nutrition assistance program.
``(3) [NOTE: Effective dates.]  Devaluation and
termination of issuance of paper coupons.--
``(A) Coupon issuance.--Effective on the date of
enactment of the Food, Conservation, and Energy Act of
2008, no State shall issue any coupon, stamp,
certificate, or authorization card to a household that
receives supplemental nutrition assistance under this
Act.
``(B) Ebt cards.--Effective beginning on the date
that is 1 year after the date of enactment of the Food,
Conservation, and Energy Act of 2008, 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, Conservation, and Energy Act
of 2008 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 (i), by adding at the end the following:
``(12) Interchange fees.--No interchange fees shall apply to
electronic benefit transfer transactions under this
subsection.'';
(10) 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'';
(11) 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
(12) 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 2008 (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 supplemental
nutrition assistance provided to a household by means of--
``(1) an electronic benefit transfer under section 7(i); or

[[Page 1867]]
122 STAT. 1867

``(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)--
(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))'';
(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 the subsections
so as to appear in alphabetical order.
(2) Section 4(a) of the Food and Nutrition Act of 2008 (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 2008 (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,''.

[[Page 1868]]
122 STAT. 1868

(4) Section 6 of the Food and Nutrition Act of 2008 (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 8 of the Food and Nutrition Act of 2008 (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)''.
(6) Section 9 of the Food and Nutrition Act of 2008 (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 supplemental nutrition
assistance program.''; and
(C) in subsection (g), by striking ``section
3(g)(9)'' and inserting ``section 3(k)(9)''.
(7) Section 10 of the Food and Nutrition Act of 2008 (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''.
(8) Section 11 of the Food and Nutrition Act of 2008 (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);

[[Page 1869]]
122 STAT. 1869

(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''; and
(F) in subsection (q), by striking ``section
11(e)(20)(B)'' and inserting ``subsection (e)(18)(B)''.
(9) Section 13 of the Food and Nutrition Act of 2008 (7
U.S.C. 2022) is amended by striking ``coupons'' each place it
appears and inserting ``benefits''.
(10) Section 15 of the Food and Nutrition Act of 2008 (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''.
(11) Section 16(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(a)) is amended by striking ``coupons'' each place it
appears and inserting ``benefits''.
(12) Section 17 of the Food and Nutrition Act of 2008 (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)--

[[Page 1870]]
122 STAT. 1870

(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''.
(13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking
``section 3(o)(4)'' and inserting ``section 3(u)(4)''.
(14) Section 21 of the Food and Nutrition Act of 2008 (7
U.S.C. 2030) is repealed.
(15) Section 22 of the Food and Nutrition Act of 2008 (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''.
(16) Section 26(f)(3) of the Food and Nutrition Act of 2008
(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) [NOTE: 7 USC 2012 note; 18 USC 1956; 42
USC 411, 503, 8011. 42 USC 1382e note, 5179.]  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) [NOTE: 42 USC 5179.]  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) [NOTE: 42 USC 1382e note.]  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) [NOTE: 42 USC 411, 503.]  Titles II
through XIX of the Social Security Act (42 U.S.C.
401 et seq.).

[[Page 1871]]
122 STAT. 1871

(iv) Section 401(b)(3) of the Social Security
Amendments of 1972 (42 U.S.C. 1382e note; Public
Law 92-603).
(v) [NOTE: 42 USC 5179.]  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 ``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) [NOTE: 7 USC 2012 note.]  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 2008 (7 U.S.C. 2011 et seq.) shall
be considered to be a reference to a ``benefit'' provided under that
Act.
SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is
amended by striking the section enumerator and heading and subsection
(a) and inserting the following:

[[Page 1872]]
122 STAT. 1872

``SEC. 11. ADMINISTRATION.

``(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. 4117. CIVIL RIGHTS COMPLIANCE.

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is
amended by striking subsection (c) and inserting the following:
``(c) Civil Rights Compliance.--

[[Page 1873]]
122 STAT. 1873

``(1) In general.--In the certification of applicant
households for the supplemental nutrition assistance 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. 4118. CODIFICATION OF ACCESS RULES.

Section 11(e)(1) of the Food and Nutrition Act of 2008 (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. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE.

Section 11(e)(2)(C) of the Food and Nutrition Act of 2008 (7 U.S.C.
2020(e)(2)(C)) is amended--
(1) by striking ``(C) 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
supplemental nutrition assistance
program, with the date on which the
household

[[Page 1874]]
122 STAT. 1874

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. 4120. PRIVACY PROTECTIONS.

Section 11(e)(8) of the Food and Nutrition Act of 2008 (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. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

Section 16 of the Food and Nutrition Act of 2008 (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 supplemental nutrition
assistance 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--

[[Page 1875]]
122 STAT. 1875

``(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 supplemental nutrition assistance program.''.
SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (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 15
months''.

PART IV--PROGRAM INTEGRITY

SEC. 4131. [NOTE: Regulations.]  ELIGIBILITY DISQUALIFICATION.

Section 6 of the Food and Nutrition Act of 2008 (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.--Subject to any requirements established by the
Secretary, any person who has been found by a State or Federal court or
administrative agency in a hearing under subsection (b) to have
intentionally obtained cash by purchasing products with supplemental
nutrition assistance program 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 Supplemental
Nutrition Assistance Program Benefits.--Subject to any requirements
established by the Secretary, any person who has been found by a State
or Federal court or administrative agency in a hearing under subsection
(b) to have intentionally sold any food that was purchased using
supplemental nutrition assistance program benefits shall be ineligible
for benefits under this Act for such period of time as the Secretary
shall prescribe by regulation.''.
SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.

Section 12 of the Food and Nutrition Act of 2008 (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--

[[Page 1876]]
122 STAT. 1876

``(A) disqualified for a specified period of time
from further participation in the supplemental nutrition
assistance program;
``(B) assessed a civil penalty of up to $100,000 for
each violation; or
``(C) both.
``(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

[[Page 1877]]
122 STAT. 1877

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) [NOTE: Procedures.]  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 section 15(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. 4133. MAJOR SYSTEMS FAILURES.

Section 13(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
2022(b)) is amended by adding at the end the following:
``(5) Overissuances caused by systemic state errors.--
``(A) In general.--If the Secretary determines that
a State agency overissued benefits to a substantial
number of households in a fiscal year as a result of a
major systemic error by the State agency, as defined by
the Secretary, the Secretary may prohibit the State
agency from collecting these overissuances 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

[[Page 1878]]
122 STAT. 1878

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
overissued 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
overissuance 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 overissued 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
overissuance caused by the systemic error.
``(iv) [NOTE: Applicability.]
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 (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
made in 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.''.

[[Page 1879]]
122 STAT. 1879

PART V--MISCELLANEOUS

SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION
PROMOTION IN THE SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM.

Section 17 of the Food and Nutrition Act of 2008 (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 Supplemental Nutrition Assistance 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 supplemental nutrition assistance
program to improve the dietary and health status of
households eligible for or participating in the
supplemental nutrition assistance program; and
``(B) to reduce overweight, obesity (including
childhood obesity), and associated co-morbidities in the
United States.
``(2) Grants.--
``(A) In general.--In carrying out this subsection,
the Secretary may enter into competitively awarded
contracts or cooperative agreements with, or provide
grants to, public or private organizations or agencies
(as defined by the Secretary), for use in accordance
with projects that meet the strategy goals of this
subsection.
``(B) Application.--To be eligible to receive a
contract, cooperative agreement, or grant under this
paragraph, an organization shall submit to the Secretary
an application at such time, in such manner, and
containing such information as the Secretary may
require.
``(C) Selection criteria.--Pilot projects shall be
evaluated against publicly disseminated criteria that
may include--
``(i) identification of a low-income target
audience that corresponds to individuals living in
households with incomes at or below 185 percent of
the poverty level;
``(ii) incorporation of a scientifically based
strategy that is designed to improve diet quality
through more healthful food purchases,
preparation, or consumption;
``(iii) a commitment to a pilot project that
allows for a rigorous outcome evaluation,
including data collection;
``(iv) strategies to improve the nutritional
value of food served during school hours and
during after-school hours;
``(v) innovative ways to provide significant
improvement to the health and wellness of
children;
``(vi) other criteria, as determined by the
Secretary.
``(D) Use of funds.--Funds provided under this
paragraph shall not be used for any project that limits
the use of benefits under this Act.
``(3) Projects.--Pilot projects carried out under paragraph
(1) may include projects to determine whether healthier food

[[Page 1880]]
122 STAT. 1880

purchases by and healthier diets among households participating
in the supplemental nutrition assistance program result from
projects that--
``(A) increase the supplemental nutrition assistance
purchasing power of the participating households by
providing increased supplemental nutrition assistance
program benefit allotments to the participating
households;
``(B) increase access to farmers markets by
participating households through the electronic
redemption of supplemental nutrition assistance program
benefits at farmers' markets;
``(C) provide incentives to authorized supplemental
nutrition assistance program retailers to increase the
availability of healthy foods to participating
households;
``(D) subject authorized supplemental nutrition
assistance program retailers to stricter retailer
requirements with respect to carrying and stocking
healthful foods;
``(E) provide incentives at the point of purchase to
encourage households participating in the supplemental
nutrition assistance program to purchase fruits,
vegetables, or other healthful 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).
``(4) Evaluation and reporting.--
``(A) Evaluation.--
``(i) Independent evaluation.--
``(I) In general.--The Secretary
shall provide for an independent
evaluation of projects selected 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) Reporting.--Not later than 90 days after the
last day of fiscal year 2009 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--

[[Page 1881]]
122 STAT. 1881

``(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.
``(C) Public dissemination.--In addition to the
reporting requirements under subparagraph (B),
evaluation results shall be shared broadly to inform
policy makers, service providers, other partners, and
the public in order to promote wide use of successful
strategies.
``(5) Funding.--
``(A) 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.
``(B) Mandatory funding.--Out of any funds made
available under section 18, on October 1, 2008, the
Secretary shall make available $20,000,000 to carry out
a project described in paragraph (3)(E), to remain
available until expended.''.
SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL 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 2008 (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 supplemental nutrition
assistance program, including compliance with appropriate
program rules under the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.), such as--
(A) benefit levels under section 3(u) of that Act (7
U.S.C. 2012(u));
(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); and
(4) such other matters as the Secretary considers to be
appropriate.

(c) Report.--Not later than 2 years 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

[[Page 1882]]
122 STAT. 1882

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 [NOTE: Transfer date.]  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.

Subtitle B--Food Distribution Programs

PART I--EMERGENCY FOOD ASSISTANCE PROGRAM

SEC. 4201. EMERGENCY FOOD ASSISTANCE.

(a) Purchase of Commodities.--Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by -
(1) by striking ``(a) Purchase of Commodities'' and all that
follows through ``$140,000,000 of'' and inserting the following:

``(a) Purchase of Commodities.--
``(1) In general.--From amounts made available to carry out
this Act, for each of the fiscal years 2008 through 2012, the
Secretary shall purchase a dollar amount described in paragraph
(2) of''; and
(2) by adding at the end the following:
``(2) Amounts.--The Secretary shall use to carry out
paragraph (1)--
``(A) for fiscal year 2008, $190,000,000;
``(B) for fiscal year 2009, $250,000,000; and
``(C) for each of fiscal years 2010 through 2012,
the dollar amount of commodities specified in
subparagraph (B) adjusted by the percentage by which the
thrifty food plan has been adjusted under section
3(u)(4) between June 30, 2008, and June 30 of the
immediately preceding fiscal year.''.

(b) State Plans.--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.--
``(1) In general.--To receive commodities under this Act, a
State shall submit to the Secretary an operation and
administration plan for the provision of benefits under this
Act.
``(2) Updates.--A State shall submit to the Secretary for
approval any amendment to a plan submitted under paragraph (1)
in any case in which the State proposes to make a change to the
operation or administration of a program described in the
plan.''.

(c) Authorization and Appropriations.--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--
(1) by striking ``$60,000,000'' and inserting
``$100,000,000''; and

[[Page 1883]]
122 STAT. 1883

(2) by inserting ``and donated wild game'' before the period
at the end.
SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

The Emergency Food Assistance Act of 1983 is amended by inserting
after section 208 (7 U.S.C. 7511) the following:
``SEC. 209. [NOTE: 7 USC 7511a.]  EMERGENCY FOOD PROGRAM
INFRASTRUCTURE GRANTS.

``(a) Definition of Eligible Entity.--In this section, the term
`eligible entity' means an emergency feeding organization.
``(b) Program Authorized.--
``(1) In general.--The Secretary shall use funds made
available under subsection (d) to make grants to eligible
entities to pay the costs of an activity described in subsection
(c).
``(2) Rural preference.--The Secretary shall use not less
than 50 percent of the funds described in paragraph (1) for a
fiscal year to make grants to eligible entities that serve
predominantly rural communities for the purposes of--
``(A) expanding the capacity and infrastructure of
food banks, State-wide food bank associations, and food
bank collaboratives that operate in rural areas; and
``(B) improving the capacity of the food banks to
procure, receive, store, distribute, track, and deliver
time-sensitive or perishable food products.

``(c) Use of Funds.--An eligible entity shall use a grant received
under this section for any fiscal year to carry out activities of the
eligible entity, including--
``(1) the development and maintenance of a computerized
system for the tracking of time-sensitive food products;
``(2) capital, infrastructure, and operating costs
associated with the collection, storage, distribution, and
transportation of time-sensitive and perishable food products;
``(3) improving the security and diversity of the emergency
food distribution and recovery systems of the United States
through the support of small or mid-size farms and ranches,
fisheries, and aquaculture, and donations from local food
producers and manufacturers to persons in need;
``(4) providing recovered foods to food banks and similar
nonprofit emergency food providers to reduce hunger in the
United States;
``(5) improving the identification of--
``(A) potential providers of donated foods;
``(B) potential nonprofit emergency food providers;
and
``(C) persons in need of emergency food assistance
in rural areas; and
``(6) constructing, expanding, or repairing a facility or
equipment to support hunger relief agencies in the community.

``(d) 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.''.

[[Page 1884]]
122 STAT. 1884

PART II--FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS

SEC. 4211. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD
PACKAGE.

(a) In General.--Section 4 of the Food and Nutrition Act of 2008 (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 supplemental nutrition assistance 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 supplemental nutrition
assistance program and the program established under
this subsection.
``(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 supplemental nutrition assistance program
under this Act for a period of time to be determined by the
Secretary.
``(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.
``(5) Bison meat.--Subject to the availability of
appropriations to carry out this paragraph, 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 and locally-grown food fund.--
``(A) In general.--Subject to the availability of
appropriations, the Secretary shall establish a fund for
use in purchasing traditional and locally-grown foods
for recipients of food distributed under this
subsection.
``(B) Native american producers.--Where practicable,
of the food provided under subparagraph (A), at

[[Page 1885]]
122 STAT. 1885

least 50 percent shall be produced by Native American
farmers, ranchers, and producers.
``(C) Definition of traditional and locally grown.--
The Secretary shall determine the definition of the term
`traditional and locally-grown' with respect to food
distributed under this paragraph.
``(D) 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.
``(E) Report.--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 describing the activities carried out
under this paragraph during the preceding calendar year.
``(F) 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 [NOTE: Deadline. Reports.]  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 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 2008 (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
Native Americans compared to the supplemental nutrition
assistance 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
in infrastructure; and
(3)(A) 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; or
(B) if the Secretary does not plan changes to the food
package, the rationale of the Secretary for retaining the food
package.

[[Page 1886]]
122 STAT. 1886

PART III--COMMODITY SUPPLEMENTAL FOOD PROGRAM

SEC. 4221. 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.''.

PART IV--SENIOR FARMERS' MARKET NUTRITION PROGRAM

SEC. 4231. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

Section 4402 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 3007) is amended--
(1) in subsection (b)(1), by inserting ``honey,'' after
``vegetables,'';
(2) by striking subsection (c) and inserting the following:

``(c) Exclusion of Benefits in Determining Eligibility for Other
Programs.--The value of any benefit provided to any eligible seniors
farmers' market nutrition program recipient under this section shall not
be considered to be income or resources for any purposes under any
Federal, State, or local law.''; and
(3) by adding at the end the following:

``(d) Prohibition on Collection of Sales Tax.--Each State shall
ensure that no State or local tax is collected within the State on a
purchase of food with a benefit distributed under the seniors farmers'
market nutrition program.
``(e) Regulations.--The Secretary may promulgate such regulations as
the Secretary considers to be necessary to carry out the seniors
farmers' market nutrition program.''.

Subtitle C--Child Nutrition and Related Programs

SEC. 4301. [NOTE: 42 USC 1758a.]  STATE PERFORMANCE ON ENROLLING
CHILDREN RECEIVING PROGRAM BENEFITS FOR
FREE SCHOOL MEALS.

(a) In General.--Not [NOTE: Deadline. Reports.]  later than
December 31, 2008 and June 30 of each year thereafter, the Secretary
shall submit to the Committees on Agriculture and Education and Labor 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 2008 (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--

[[Page 1887]]
122 STAT. 1887

(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(a)(1)) 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.
SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS.

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 Produced Foods.--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 unprocessed agricultural products, both locally grown
and locally raised, to the maximum extent practicable and
appropriate;
``(2) [NOTE: Web site.]  advise institutions participating
in a program described in paragraph (1) of the policy described
in that paragraph and paragraph (3) 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 Fresh Fruit and Vegetable
Program, to use a geographic preference for the procurement of
unprocessed agricultural products, both locally grown and
locally raised.''.
SEC. 4303. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.

Section 18(h) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1769(h)) 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 (4); and
(3) by inserting after paragraph (1) the following:
``(2) Administration.--In providing grants under paragraph
(1), the Secretary shall give priority to projects that can be
replicated in schools.
``(3) Pilot program for high-poverty schools.--
``(A) Definitions.--In this paragraph:

[[Page 1888]]
122 STAT. 1888

``(i) Eligible program.--The term `eligible
program' means--
``(I) a school-based program with
hands-on vegetable gardening and
nutrition education that is incorporated
into the curriculum for 1 or more grades
at 2 or more eligible schools; or
``(II) a community-based summer
program with hands-on vegetable
gardening and nutrition education that
is part of, or coordinated with, a
summer enrichment program at 2 or more
eligible schools.
``(ii) Eligible school.--The term `eligible
school' means a public school, at least 50 percent
of the students of which are eligible for free or
reduced price meals under this Act.
``(B) Establishment.--The Secretary shall carry out
a pilot program under which the Secretary shall provide
to nonprofit organizations or public entities in not
more than 5 States grants to develop and run, through
eligible programs, community gardens at eligible schools
in the States that would--
``(i) be planted, cared for, and harvested by
students at the eligible schools; and
``(ii) teach the students participating in the
community gardens about agriculture production
practices and diet.
``(C) Priority states.--Of the States in which
grantees under this paragraph are located--
``(i) at least 1 State shall be among the 15
largest States, as determined by the Secretary;
``(ii) at least 1 State shall be among the
16th to 30th largest States, as determined by the
Secretary; and
``(iii) at least 1 State shall be a State that
is not described in clause (i) or (ii).
``(D) Use of produce.--Produce from a community
garden provided a grant under this paragraph may be--
``(i) used to supplement food provided at the
eligible school;
``(ii) distributed to students to bring home
to the families of the students; or
``(iii) donated to a local food bank or senior
center nutrition program.
``(E) No cost-sharing requirement.--A nonprofit
organization or public entity that receives a grant
under this paragraph shall not be required to share the
cost of carrying out the activities assisted under this
paragraph.
``(F) Evaluation.--A nonprofit organization or
public entity that receives a grant under this paragraph
shall be required to cooperate in an evaluation in
accordance with paragraph (1)(H).''.
SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM.

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

[[Page 1889]]
122 STAT. 1889

``SEC. 19. [NOTE: 42 USC 1769a.]  FRESH FRUIT AND VEGETABLE
PROGRAM.

``(a) In General.--For [NOTE: Grants.]  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.--Except as provided in subsection
(i)(2), 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 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.--Except as provided in paragraph (2) of
this subsection and section 4304(a)(2) of the Food,
Conservation, and Energy Act of 2008, each year, 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) 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 (D);
``(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) ensure that each school selected is an
elementary school (as defined in section 9101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801));
``(D) 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);
``(iii) a plan for implementation of the
program, including 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

[[Page 1890]]
122 STAT. 1890

``(iv) such other information as may be
requested by the Secretary; and
``(E) encourage applicants to submit a plan for
implementation of the program that includes a
partnership with 1 or more entities that will provide
non-Federal resources (including entities representing
the fruit and vegetable industry).
``(2) Exception.--Clause (i) of paragraph (1)(A) shall not
apply to a State if all schools that meet the requirements of
that clause have been selected and the State does not have a
sufficient number of additional schools that meet the
requirement of that clause.
``(3) Outreach to low-income schools.--
``(A) In general.--Prior to making decisions
regarding school participation in the program, a State
agency shall inform the schools within the State with
the highest proportion of free and reduced price meal
eligibility, including Native American schools, of the
eligibility of the schools for the program with respect
to priority granted to schools with the highest
proportion of free and reduced price eligibility under
paragraph (1)(B).
``(B) Requirement.--In providing information to
schools in accordance with subparagraph (A), a State
agency shall inform the schools that would likely be
chosen to participate in the program under paragraph
(1)(B).

``(e) Notice of Availability.--If selected 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.

``(g) Limitation.--To the maximum extent practicable, each State
agency shall ensure that in making the fruits and vegetables provided
under this section available to students, schools 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) 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).

``(i) Funding.--
``(1) In general.--Out of the funds made available under
subsection (b)(2)(A) of section 14222 of the Food, Conservation,

[[Page 1891]]
122 STAT. 1891

and Energy Act of 2008, the Secretary shall use the following
amounts to carry out this section:
``(A) On October 1, 2008, $40,000,000.
``(B) On July 1, 2009, $65,000,000.
``(C) On July 1, 2010, $101,000,000.
``(D) On July 1, 2011, $150,000,000.
``(E) On July 1, 2012, and each July 1 thereafter,
the amount made available for the preceding fiscal year,
as adjusted to reflect changes for the 12-month period
ending the preceding April 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) Maintenance of existing funding.--In allocating
funding made available under paragraph (1) among the States in
accordance with subsection (c), the Secretary shall ensure that
each State that received funding under section 18(f) on the day
before the date of enactment of the Food, Conservation, and
Energy Act of 2008 shall continue to receive sufficient funding
under this section to maintain the caseload level of the State
under that section as in effect on that date.
``(3) [NOTE: Effective date.]  Evaluation funding.--On
October 1, 2008, out of any funds made available under
subsection (b)(2)(A) of section 14222 of the Food, Conservation,
and Energy Act of 2008, the Secretary shall use to carry out the
evaluation required under subsection (h), $3,000,000, to remain
available for obligation until September 30, 2010.
``(4) 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.
``(5) 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.
``(6) Administrative costs.--
``(A) In general.--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.
``(B) Reservation of funds.--The Secretary shall
allow each State to reserve such funding as the
Secretary determines to be necessary to administer the
program in the State (with adjustments for the size of
the State and the grant amount), but not to exceed the
amount required to pay the costs of 1 full-time
coordinator for the program in the State.
``(7) 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.''.
(2) [NOTE: 42 USC 1769a note.]  Transition of existing
schools.--

[[Page 1892]]
122 STAT. 1892

(A) [NOTE: Waiver authority.]  Existing secondary
schools.--Section 19(d)(1)(C) of the Richard B. Russell
National School Lunch Act (as amended by paragraph (1))
may be waived by a State until July 1, 2010, for each
secondary school in the State that has been awarded
funding under section 18(f) of that Act (42 U.S.C.
1769(f)) for the school year beginning July 1, 2008.
(B) School year beginning july 1, 2008.--To
facilitate transition from the program authorized under
section 18(f) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769(f)) (as in effect on the day
before the date of enactment of this Act) to the program
established under section 19 of that Act (as amended by
paragraph (1))--
(i) for the school year beginning July 1,
2008, the Secretary may permit any school selected
for participation under section 18(f) of that Act
(42 U.S.C. 1769(f)) for that school year to
continue to participate under section 19 of that
Act until the end of that school year; and
(ii) funds made available under that Act for
fiscal year 2009 may be used to support the
participation of any schools selected to
participate in the program authorized under
section 18(f) of that Act (42 U.S.C. 1769(f)) (as
in effect on the day before the date of enactment
of this Act).

(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 subsections (g) through (j) as
subsections (f) through (i), respectively.
SEC. 4305. [NOTE: 42 USC 1755a.]  WHOLE GRAIN PRODUCTS.

(a) Purpose.--The purpose of this section is to encourage greater
awareness and interest in the number and variety of whole grain products
available to schoolchildren, as recommended by the 2005 Dietary
Guidelines for Americans.
(b) Definition of Eligible Whole Grains and Whole Grain Products.--
In this section, the terms ``whole grains'' and ``whole grain products''
have the meaning given the terms by the Food and Nutrition Service in
the HealthierUS School Challenge.
(c) Purchase of Whole Grains and Whole Grain Products.--In addition
to the commodities delivered under section 6 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1755), the Secretary shall purchase
whole grains and whole grain products for use in--
(1) the school lunch program established under the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.);
and
(2) the school breakfast program established by section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773).

(d) [NOTE: Deadline.]  Evaluation.--Not later than September 30,
2011, the Secretary shall conduct an evaluation of the activities
conducted under subsection (c) that includes--
(1) an evaluation of whether children participating in the
school lunch and breakfast programs increased their consumption
of whole grains;

[[Page 1893]]
122 STAT. 1893

(2) an evaluation of which whole grains and whole grain
products are most acceptable for use in the school lunch and
breakfast programs;
(3) any recommendations of the Secretary regarding the
integration of whole grain products in the school lunch and
breakfast programs; and
(4) an evaluation of any other outcomes determined to be
appropriate by the Secretary.

(e) Report.--As soon as practicable after the completion of the
evaluation under subsection (d), the Secretary shall submit to the
Committee on Agriculture, Nutrition, and Forestry of the Senate and the
Committee on Education and Labor of the House of Representative a report
describing the results of the evaluation.
SEC. 4306. [NOTE: 7 USC 2208 note.]  BUY AMERICAN REQUIREMENTS.

(a) Findings.--The Congress finds the following:
(1) Federal law requires that commodities and products
purchased with Federal funds be, to the extent practicable, of
domestic origin.
(2) Federal Buy American statutory requirements seek to
ensure that purchases made with Federal funds benefit domestic
producers.
(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 program, including food products
purchased with local funds.

(b) Buy American Statutory Requirements.--The Department of
Agriculture should undertake training, guidance, and enforcement of the
various current Buy American statutory requirements and regulations,
including those of the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.).
SEC. 4307. SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORITIES.

(a) In General.--For fiscal year 2009, the Secretary shall carry out
a nationally representative survey of the foods purchased during the
most recent school year for which data is available by school
authorities participating in the school lunch program established under
the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.).
(b) Report.--
(1) In general.--On completion of the survey, the Secretary
shall submit to the Committees on Agriculture and 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 survey.
(2) Interim requirement.--If the initial report required
under paragraph (1) is not submitted to the Committees referred
to in that paragraph by June 30, 2009, the Secretary shall
submit to the Committees an interim report that describes the
relevant survey data, or a sample of such data, available to the
Secretary as of that date.

(c) Funding.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section not more than $3,000,000.

[[Page 1894]]
122 STAT. 1894

Subtitle D--Miscellaneous

SEC. 4401. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND
INTERNATIONAL HUNGER FELLOWS.

Section 4404 of the Farm Security and Rural Investment Act of 2002
(2 U.S.C. 1161) is amended to read as follows:
``SEC. 4404. [NOTE: Bill Emerson National Hunger Fellows and
Mickey Leland International Hunger
Fellows Program Act of 2008.]  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 2008'.
``(b) 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 (c)(1).

``(c) 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;
``(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) [NOTE: Grants.]  In general.--Subject to
subparagraph (B), the Secretary shall offer to provide a
grant to the Congressional Hunger Center to administer
the Fellowship Programs.

[[Page 1895]]
122 STAT. 1895

``(B) Terms of grant.--The terms of the grant
provided under subparagraph (A), including the length of
the grant and provisions for the alteration or
termination of the grant, shall be determined by the
Secretary in accordance with this section.

``(d) 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 (c)(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

[[Page 1896]]
122 STAT. 1896

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 (c)(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.

``(e) 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.

``(f) 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
(g); and
``(2) includes the results of evaluations and audits
required by subsection (d).

``(g) 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.''.
SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is
amended--
(1) by striking subsection (a) and inserting the following:

``(a) Definitions.--In this section:
``(1) Community food project.--In this section, the term
`community food project' means a community-based project that--
``(A) requires a 1-time contribution of Federal
assistance to become self-sustaining; and

[[Page 1897]]
122 STAT. 1897

``(B) is designed--
``(i)(I) to meet the food needs of low-income
individuals;
``(II) to increase the self-reliance of
communities in providing for the food needs of the
communities; and
``(III) to promote comprehensive responses to
local food, farm, and nutrition issues; or
``(ii) to meet specific State, local, or
neighborhood food and agricultural needs,
including needs relating to--
``(I) infrastructure improvement and
development;
``(II) planning for long-term
solutions; or
``(III) the creation of innovative
marketing activities that mutually
benefit agricultural producers and low-
income consumers.
``(2) Center.--The term `Center' means the healthy urban
food enterprise development center established under subsection
(h).
``(3) Underserved community.--The term `underserved
community' means a community (including an urban or rural
community or an Indian tribe) 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.'';
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following:

``(h) Healthy Urban Food Enterprise Development Center.--
``(1) Definition of eligible entity.--In this subsection,
the term `eligible entity' means--
``(A) a nonprofit organization;
``(B) a cooperative;
``(C) a commercial entity;
``(D) an agricultural producer;
``(E) an academic institution;
``(F) an individual; and
``(G) such other entities as the Secretary may
designate.
``(2) Establishment.--The Secretary shall offer to provide a
grant to a nonprofit organization to establish and support a
healthy urban food enterprise development center to carry out
the purpose described in paragraph (3).
``(3) Purpose.--The purpose of the Center is to increase
access to healthy affordable foods, including locally produced
agricultural products, to underserved communities.
``(4) Activities.--
``(A) Technical assistance and information.--The
Center shall collect, develop, and provide technical
assistance and information to small and medium-sized
agricultural producers, food wholesalers and retailers,
schools, and other individuals and entities regarding
best practices and the availability of assistance for
aggregating, storing,

[[Page 1898]]
122 STAT. 1898

processing, and marketing locally produced agricultural
products and increasing the availability of such
products in underserved communities.
``(B) Authority to subgrant.--The Center may provide
subgrants to eligible entities--
``(i) to carry out feasibility studies to
establish businesses for the purpose described in
paragraph (3); and
``(ii) to establish and otherwise assist
enterprises that process, distribute, aggregate,
store, and market healthy affordable foods.
``(5) Priority.--In providing technical assistance and
grants under paragraph (4), the Center shall give priority to
applications that include projects--
``(A) to benefit underserved communities; and
``(B) to develop market opportunities for small and
mid-sized farm and ranch operations.
``(6) Report.--For each fiscal year for which the nonprofit
organization described in paragraph (2) receives funds, the
organization shall submit to the Secretary a report describing
the activities carried out in the preceding fiscal year,
including--
``(A) a description of technical assistance provided
by the Center;
``(B) the total number and a description of the
subgrants provided under paragraph (4)(B);
``(C) 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
``(D) a determination of whether the activities
identified in subparagraph (C) are sustained during the
years following the initial provision of technical
assistance and subgrants under this section.
``(7) Competitive award process.--The Secretary shall use a
competitive process to award funds to establish the Center.
``(8) Limitation on administrative expenses.--Not more than
10 percent of the total amount allocated for this subsection in
a given fiscal year may be used for administrative expenses.
``(9) Funding.--
``(A) 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 subsection $1,000,000 for each of fiscal years 2009
through 2011.
``(B) Additional funding.--There is authorized to be
appropriated $2,000,000 to carry out this subsection for
fiscal year 2012.''.
SEC. 4403. [NOTE: 7 USC 5311a.]  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--

[[Page 1899]]
122 STAT. 1899

(1) to collect continuous dietary, health, physical
activity, and diet and health knowledge data on a nationally
representative sample;
(2) to periodically collect data 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
fashion;
(4) to analyze new data that becomes available;
(5) to continuously update food composition tables; and
(6) to research and develop data collection methods and
standards.
SEC. 4404. [NOTE: 7 USC 612c-5.]  SECTION 32 FUNDS FOR PURCHASE
OF FRUITS, VEGETABLES, AND NUTS TO
SUPPORT DOMESTIC NUTRITION ASSISTANCE
PROGRAMS.

(a) Funding for Additional Purchases of Fruits, Vegetables, and
Nuts.--In addition to 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 of Agriculture 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) $190,000,000 for fiscal year 2008.
(2) $193,000,000 for fiscal year 2009.
(3) $199,000,000 for fiscal year 2010.
(4) $203,000,000 for fiscal year 2011.
(5) $206,000,000 for fiscal year 2012 and each fiscal year
thereafter.

(b) Form of Purchases.--Fruits, vegetables, and nuts may be
purchased under this section in the form of frozen, canned, dried, or
fresh fruits, vegetables, and nuts.
(c) Purchase of Fresh Fruits and Vegetables for Distribution to
Schools and Service Institutions.--Section 10603 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 612c-4) is amended by
striking subsection (b) and inserting the following:
``(b) [NOTE: 7 USC 612c-4.]  Purchase of Fresh Fruits and
Vegetables for Distribution to Schools and Service Institutions.--The
Secretary of Agriculture shall purchase fresh fruits and vegetables for
distribution to schools and service institutions in accordance with
section 6(a) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1755(a)) using, of the amount specified in subsection (a), not
less than $50,000,000 for each of fiscal years 2008 through 2012.''.
SEC. 4405. [NOTE: 7 USC 7517.]  HUNGER-FREE COMMUNITIES.

(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means a
public food program service provider or nonprofit organization,
including an emergency feeding organization, that has
collaborated, or will collaborate, with 1 or more local partner
organizations to achieve at least 1 hunger-free communities
goal.
(2) Emergency feeding organization.--The term ``emergency
feeding organization'' has the meaning given the term

[[Page 1900]]
122 STAT. 1900

in section 201A of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7501).
(3) 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-Free Communities Collaborative Grants.--
(1) Program.--
(A) In general.--The Secretary shall use not more
than 50 percent of any funds made available under
subsection (e) to make grants to eligible entities to
pay the Federal share of the costs of an activity
described in paragraph (2).
(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 fairly evaluated in-kind
contributions, 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.
(2) Use of funds.--An eligible entity in a community shall
use a grant received under this subsection for any fiscal year
for hunger relief activities, including--
(A) meeting the immediate needs of people who
experience hunger in the community served by the
eligible entity by--
(i) distributing food;
(ii) providing community outreach to assist in
participation in federally assisted nutrition
programs, including--
(I) the school breakfast program
established by section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773);
(II) the school lunch program
established under the Richard B. Russell
National School Lunch Act (42 U.S.C.
1751 et seq.);
(III) the summer food service
program for children established under
section 13 of that Act; and
(IV) other Federal programs that
provide food for children in child care
facilities and homeless and older
individuals; or
(iii) improving access to food as part of a
comprehensive service; and
(B) developing new resources and strategies to help
reduce hunger in the community and prevent hunger in the
future by--
(i) developing creative food resources, such
as community gardens, buying clubs, food
cooperatives, community-owned and operated grocery
stores, and farmers' markets;
(ii) coordinating food services with park and
recreation programs and other community-based
outlets to reduce barriers to access; or

[[Page 1901]]
122 STAT. 1901

(iii) creating nutrition education programs
for at-risk populations to enhance food-purchasing
and food-preparation skills and to heighten
awareness of the connection between diet and
health.

(c) Hunger-Free Communities Infrastructure Grants.--
(1) Program authorized.--
(A) In general.--The Secretary shall use not more
than 50 percent of any funds made available for a fiscal
year under subsection (e) to make grants to eligible
entities to pay the Federal share of the costs of an
activity described in paragraph (2).
(B) Federal share.--The Federal share of the cost of
carrying out an activity under this subsection shall not
exceed 80 percent.
(2) Application.--
(A) In general.--To receive a grant under this
subsection, an eligible entity shall submit an
application at such time, in such form, and containing
such information as the Secretary may prescribe.
(B) Contents.--Each application submitted under
subparagraph (A) shall--
(i) identify any activity described in
paragraph (3) 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 that 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 successfully 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.
(3) Use of funds.--An eligible entity shall use a grant
received under this subsection to construct, expand, or repair a
facility or equipment to support hunger relief efforts in the
community.

(d) Report.--If funds are made available under subsection (e) to
carry out this section, not later than September 30, 2012, the Secretary
shall submit to Congress a report that describes--
(1) each grant made under this section, including--
(A) a description of any activity funded; and
(B) the degree of success of each activity funded in
achieving hunger free-communities goals; and
(2) the degree of success of all activities funded under
this section in achieving domestic hunger goals.

(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.

[[Page 1902]]
122 STAT. 1902

SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PROGRAMS.

(a) Supplemental Nutrition Assistance Program.--
(1) Authorization of appropriations.--Section 18(a)(1) of
the Food and Nutrition Act of 2008 (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 each of
fiscal years 2008 through 2012''.
(2) Grants for simple application and eligibility
determination systems and improved access to benefits.--Section
11(t)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2020(t)(1)) is amended by striking ``For each of fiscal years
2003 through 2007'' and inserting ``Subject to the availability
of appropriations under section 18(a), for each fiscal year''.
(3) Funding of employment and training programs.--Section
16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(h)(1)) is amended--
(A) in subparagraph (A), by striking ``the amount
of--'' and all that follows through the end of the
subparagraph and inserting ``, $90,000,000 for each
fiscal year.''; and
(B) in subparagraph (E)(i), by striking ``for each
of fiscal years 2002 through 2007'' and inserting ``for
each fiscal year''.
(4) Reductions in payments for administrative costs.--
Section 16(k)(3) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(k)(3)) is amended--
(A) in the first sentence of subparagraph (A), by
striking ``effective for each of fiscal years 1999
through 2007,''; and
(B) in subparagraph (B)(ii), by striking ``through
fiscal year 2007''.
(5) Cash payment pilot projects.--Section 17(b)(1)(B)(vi) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(vi))
is amended--
(A) by striking ``Any pilot'' and inserting
``Subject to the availability of appropriations under
section 18(a), any pilot''; and
(B) by striking ``through October 1, 2007,''.
(6) Consolidated block grants for puerto rico and american
samoa.--Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of
2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ``for
each of fiscal years 2004 through 2007'' and inserting ``subject
to the availability of appropriations under section 18(a), for
each fiscal year thereafter''.
(7) Assistance for community food projects.--Section 25 of
the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended--
(A) in subsection (b)(2)(B), by striking ``for each
of fiscal years 1997 through 2007'' and inserting ``for
fiscal year 2008 and each fiscal year thereafter''; and
(B) in subsection (i)(4) (as redesignated by section
4402), by striking ``of fiscal years 2003 through 2007''
and inserting ``fiscal year thereafter''.

(b) Commodity Distribution.--
(1) 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 ``for each of the

[[Page 1903]]
122 STAT. 1903

fiscal years 2003 through 2007'' and inserting ``for fiscal year
2008 and each fiscal year thereafter''.
(2) 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 ``years 2008
through 2012''.
(3) 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--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``each of
fiscal years 2003 through 2007'' and inserting
``each of fiscal years 2008 through 2012''; and
(ii) in paragraph (2)(B), by striking the
subparagraph designation and heading and all that
follows through ``2007'' and inserting the
following:
``(B) Subsequent fiscal years.--For each of fiscal
years 2004 through 2012''; and
(B) in subsection (d)(2), by striking ``each of the
fiscal years 1991 through 2007'' and inserting ``each of
fiscal years 2008 through 2012''.
(4) 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 the first sentence
by striking ``Effective through September 30, 2007'' and
inserting ``For each of fiscal years 2008 through 2012''.

(c) Farm Security and Rural Investment.--
(1) Seniors farmers' market nutrition program.--Section 4402
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
3007) is amended by striking by striking subsection (a) and
inserting the following:

``(a) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary of Agriculture shall use to carry out and expand the
seniors farmers' market nutrition program $20,600,000 for each of fiscal
years 2008 through 2012.''.
(2) 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''.
SEC. 4407. [NOTE: 2 USC 1161 note.]  EFFECTIVE AND
IMPLEMENTATION DATES.

Except as otherwise provided in this title, this title and the
amendments made by this title take effect on October 1, 2008.

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:

[[Page 1904]]
122 STAT. 1904

``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. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

Section 304 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1924) is amended to read as follows:
``SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

``(a) In General.--The Secretary may make or guarantee qualified
conservation loans to eligible borrowers under this section.
``(b) Definitions.--In this section:
``(1) Qualified conservation loan.--The term `qualified
conservation loan' means a loan, the proceeds of which are used
to cover the costs to the borrower of carrying out a qualified
conservation project.
``(2) Qualified conservation project.--The term `qualified
conservation project' means conservation measures that address
provisions of a conservation plan of the eligible borrower.
``(3) Conservation plan.--The term `conservation plan' means
a plan, approved by the Secretary, that, for a farming or
ranching operation, identifies the conservation activities that
will be addressed with loan funds provided under this section,
including--
``(A) the installation of conservation structures to
address soil, water, and related resources;
``(B) the establishment of forest cover for
sustained yield timber management, erosion control, or
shelter belt purposes;
``(C) the installation of water conservation
measures;
``(D) the installation of waste management systems;
``(E) the establishment or improvement of permanent
pasture;
``(F) compliance with section 1212 of the Food
Security Act of 1985; and
``(G) other purposes consistent with the plan,
including the adoption of any other emerging or existing
conservation practices, techniques, or technologies
approved by the Secretary.

``(c) Eligibility.--
``(1) In general.--The Secretary may make or guarantee loans
to farmers or ranchers in the United States, farm cooperatives,
private domestic corporations, partnerships, joint operations,
trusts, or limited liability companies that are controlled by
farmers or ranchers and engaged primarily and directly in
agricultural production in the United States.
``(2) Requirements.--To be eligible for a loan under this
section, applicants shall meet the requirements in paragraphs
(1) and (2) of section 302(a).

``(d) 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;

[[Page 1905]]
122 STAT. 1905

``(2) owners or tenants who use the loans to convert to
sustainable or organic agricultural production systems; and
``(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.

``(e) Limitations Applicable to Loan Guarantees.--The portion of a
loan that the Secretary may guarantee under this section shall be 75
percent of the principal amount of the loan.
``(f) Administrative Provisions.--The Secretary shall ensure, to the
maximum extent practicable, that loans made or guaranteed under this
section are distributed across diverse geographic regions.
``(g) Credit Eligibility.--The provisions of paragraphs (1) and (3)
of section 333 shall not apply to loans made or guaranteed under this
section.
``(h) Authorization of Appropriations.--For each of fiscal years
2008 through 2012, there are authorized to be appropriated to the
Secretary such funds as are necessary to carry out this section.''.
SEC. 5003. 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. 5004. 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 striking ``and ranchers'' and
inserting ``or ranchers and socially disadvantaged farmers or
ranchers'';
(2) in subsection (b)--
(A) by striking paragraph (1) and inserting the
following;
``(1) Principal.--Each loan made under this section shall be
in an amount that does not exceed 45 percent of the least of--
``(A) the purchase price of the farm or ranch to be
acquired;
``(B) the appraised value of the farm or ranch to be
acquired; or
``(C) $500,000.
``(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 4
percent from the interest rate for farm ownership loans
under this subtitle; or
``(B) 1.5 percent.''; and
(B) in paragraph (3), by striking ``15'' and
inserting ``20'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``10'' and
inserting ``5'';
(B) by striking paragraph (2) and redesignating
paragraph (3) as paragraph (2); and
(C) in paragraph (2)(B) (as so redesignated), by
striking ``15-year'' and inserting ``20-year'';
(4) in subsection (d)--

[[Page 1906]]
122 STAT. 1906

(A) in paragraph (3)--
(i) by inserting ``and socially disadvantaged
farmers or ranchers'' after ``ranchers''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (4), by striking ``and ranchers.''
and inserting `` or ranchers or socially disadvantaged
farmers or ranchers; 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
arrangements 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.''; and
(5) by adding at the end the following:

``(e) Socially Disadvantaged Farmer or Rancher Defined.--In this
section, the term `socially disadvantaged farmer or rancher' has the
meaning given that term in section 355(e)(2).''.
SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED
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 AND SOCIALLY
DISADVANTAGED FARMER OR RANCHER CONTRACT
LAND SALES PROGRAM.

``(a) In General.--The Secretary shall, in accordance with this
section, guarantee a loan made by a private seller of a farm or ranch to
a qualified beginning farmer or rancher or socially disadvantaged farmer
or rancher (as defined in section 355(e)(2)) on a contract land sales
basis.
``(b) Eligibility.--In order to be eligible for a loan guarantee
under subsection (a)--
``(1) the qualified beginning farmer or rancher or socially
disadvantaged farmer or rancher shall--
``(A) on the date the contract land sale that is
subject of the loan is complete, own and operate the
farm or ranch that is the subject of the contract land
sale;
``(B) 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
``(C) demonstrate to the Secretary that the farmer
or rancher, as the case may be, is unable to obtain
sufficient credit without a guarantee to finance any
actual need of the farmer or rancher, as the case may
be, at a reasonable rate or term; and
``(2) the loan shall meet applicable underwriting criteria,
as determined by the Secretary.

``(c) Limitations.--
``(1) Down payment.--The Secretary shall not provide a loan
guarantee under subsection (a) if the contribution of the
qualified beginning farmer or rancher or socially disadvantaged
farmer or rancher to the down payment for the farm or ranch that
is the subject of the contract land sale would be less than 5
percent of the purchase price of the farm or ranch.

[[Page 1907]]
122 STAT. 1907

``(2) Maximum purchase price.--The Secretary shall not
provide a loan guarantee under subsection (a) if the purchase
price or the appraisal value of the farm or ranch that is the
subject of the contract land sale is greater than $500,000.

``(d) Period of Guarantee.--The period during which a loan guarantee
under this section is in effect shall be the 10-year period beginning
with the date the guarantee is provided.
``(e) Guarantee Plan.--
``(1) Selection of plan.--A private seller of a farm or
ranch who makes a loan that is guaranteed by the Secretary under
subsection (a) may select--
``(A) a prompt payment guarantee plan, which shall
cover--
``(i) 3 amortized annual installments; or
``(ii) 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); or
``(B) a standard guarantee plan, which shall cover
an amount equal to 90 percent of the outstanding
principal of the loan.
``(2) Eligiblity for standard guarantee plan.--In order for
a private seller to be eligible for a standard guarantee plan
referred to in paragraph (1)(B), the private seller shall--
``(A) secure a commercial lending institution or
similar entity, as determined by the Secretary, to serve
as an escrow agent; or
``(B) in cooperation with the farmer or rancher, use
an appropriate alternate arrangement, as determined by
the Secretary.

``(f) Transition From Pilot Program.--
``(1) In general.--The Secretary may phase-in the
implementation of the changes to the Beginning Farmer and
Rancher and Socially Disadvantaged Farmer or Rancher Contract
Land Sales Program provided for in this section.
``(2) Limitation.--All changes to the Beginning Farmer and
Rancher and Socially Disadvantaged Farmer or Rancher Contract
Land Sales Program must be implemented for the 2011 Fiscal
Year.''.

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''.

[[Page 1908]]
122 STAT. 1908

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. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS
ARE ELIGIBLE FOR GUARANTEED ASSISTANCE.

Section 5102 of the Farm Security And Rural Investment Act of 2002
(7 U.S.C. 1949 note; Public Law 107-171) is amended by striking
``September 30, 2007'' and inserting ``December 31, 2010''.

Subtitle C--Emergency Loans

SEC. 5201. 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)''.

Subtitle D--Administrative Provisions

SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT
ACCOUNTS PILOT PROGRAM.

Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981-2008r) is amended by inserting after section 333A the
following:
``SEC. 333B. [NOTE: 7 USC 1983b.]  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
State in which the farmer or rancher resides; or
``(ii) 200 percent of the most recent annual
Federal Poverty Income Guidelines published by the
Department of Health and Human Services for the
State.
``(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--

[[Page 1909]]
122 STAT. 1909

``(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 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.--A qualified entity carrying out a
demonstration program under this section shall establish
a reserve fund consisting of a non-Federal match of 50
percent of the total amount of the grant awarded to the
demonstration program under this section.
``(B) Federal funds.--After the qualified entity has
deposited the non-Federal matching funds described in
subparagraph (A) in the reserve fund, the Secretary
shall provide the total amount of the grant awarded
under this section to the demonstration program for
deposit in the reserve fund.
``(C) Use of funds.--Of the funds deposited under
subparagraph (B) in the reserve fund established for a
demonstration program, the qualified entity carrying out
the demonstration program--
``(i) may use up to 10 percent for
administrative expenses; and
``(ii) shall use the remainder in making
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 by the qualified entity as additional matching
funds for, or to administer, the demonstration program.
``(E) Guidance.--The Secretary shall issue guidance
regarding the investment requirements of reserve funds
established under this paragraph.
``(F) Reversion.--On the date on which all funds
remaining in any individual development account
established by a qualified entity have reverted under
paragraph (5)(B)(ii) to the reserve fund established by
the qualified entity, there shall revert to the Treasury
of the United States a percentage of the amount (if any)
in the reserve fund equal to--

[[Page 1910]]
122 STAT. 1910

``(i) the amount of Federal funds deposited in
the reserve fund under subparagraph (B) that were
not used for administrative expenses; divided by
``(ii) the total amount of funds deposited in
the reserve fund.
``(4) Individual development accounts.--
``(A) In general.--A qualified entity receiving a
grant under this section shall establish and administer
individual development accounts for eligible
participants.
``(B) Contract requirements.--To be eligible to
receive funds under this section from a qualified
entity, an eligible participant shall enter into a
contract with only 1 qualified entity under which--
``(i) the eligible participant agrees--
``(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;
``(II) to use the funds described in
subclause (I) only for 1 or more
eligible expenditures described in
paragraph (5)(A); and
``(III) to complete financial
training; and
``(ii) the qualified entity agrees--
``(I) to deposit, not later than 1
month after an amount is deposited
pursuant to clause (i)(I), at least a
100-percent, and up to a 200-percent,
match of that amount into the individual
development account established for the
eligible participant; and
``(II) with uses of funds proposed
by the eligible participant.
``(C) Limitation.--
``(i) In general.--A qualified entity
administering a demonstration program under this
section may provide not more than $6,000 for each
fiscal year in matching funds to the individual
development account established by the qualified
entity for an 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.
``(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 on farmland
purchased pursuant to clause (i), for up to 180
days after the date of the purchase;
``(iii) to purchase breeding stock, fruit or
nut trees, or trees to harvest for timber; and
``(iv) for other similar expenditures, as
determined by the Secretary.
``(B) Timing.--
``(i) In general.--An eligible participant may
make an eligible expenditure at any time during
the

[[Page 1911]]
122 STAT. 1911

2-year period beginning on the date on which the
last matching funds are provided under paragraph
(4)(B)(ii)(I) to the individual development
account established for the eligible participant.
``(ii) Unexpended funds.--At the end of the
period described in clause (i), any funds
remaining in an individual development account
established for an eligible participant shall
revert to the reserve fund of the demonstration
program under which the account was established.

``(c) Applications.--
``(1) In general.--A qualified entity that seeks to carry
out a demonstration program under this section may submit to the
Secretary an application at such time, in such form, and
containing such information as the Secretary may prescribe.
``(2) Criteria.--In considering whether to approve an
application to carry out a demonstration program under this
section, 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 demonstration
program;
``(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 of the qualified
entity to provide information relevant to an evaluation
of the demonstration program; and
``(F) such other factors as the Secretary considers
to be appropriate.
``(3) Preferences.--In considering an application to conduct
a demonstration program under this section, 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 or ranchers (as defined in section
355(e)(2)); and
``(B) expertise in dealing with financial management
aspects of farming.
``(4) [NOTE: Deadline.]  Approval.--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.
``(5) Term of authority.--If the Secretary approves an
application to carry out a demonstration program, the Secretary
shall authorize the applicant to carry out the project for a
period of 5 years, plus an additional 2 years to make eligible
expenditures in accordance with subsection (b)(5)(B).

``(d) Grant Authority.--

[[Page 1912]]
122 STAT. 1912

``(1) In general.--The Secretary shall make a grant to a
qualified entity authorized to carry out a demonstration program
under this section.
``(2) Maximum amount of grants.--The aggregate amount of
grant funds provided to a demonstration program carried out
under this section shall not exceed $250,000.
``(3) Timing of grant payments.--The Secretary shall pay the
amounts awarded under a grant made under this section--
``(A) on the awarding of the grant; or
``(B) pursuant to such payment plan as the qualified
entity may specify.

``(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 under this section, 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, including the eligible participants and
the individual development accounts that have been
established; and
``(iii) 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) Annual Review.--The Secretary may conduct an annual review of
the financial records of a qualified entity--
``(1) to assess the financial soundness of the qualified
entity; and
``(2) to determine the use of grant funds made available to
the qualified entity under this section.

``(g) 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;
``(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.

``(h) 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.''.

[[Page 1913]]
122 STAT. 1913

SEC. 5302. 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 striking ``and
ranchers'' and inserting ``or ranchers and
socially disadvantaged farmers or 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 striking ``and
ranchers'' and inserting ``or ranchers and
socially disadvantaged farmers or 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 such 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'';

[[Page 1914]]
122 STAT. 1914

(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. 5303. 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. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF
CREDIT.

Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981-2008r) is amended by inserting after section 344 the
following:
``SEC. 345. [NOTE: 7 USC 1993.]  TRANSITION TO PRIVATE
COMMERCIAL OR OTHER SOURCES OF CREDIT.

``(a) In General.--In [NOTE: Plan. Regulations. Criteria.]  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 period of
time practicable.

``(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.''.

[[Page 1915]]
122 STAT. 1915

SEC. 5305. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO REACQUIRE
HOMESTEAD PROPERTY TO IMMEDIATE FAMILY
MEMBERS OF BORROWER-OWNER.

Section 352(c)(4)(B) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2000(c)(4)(B)) is amended--
(1) in the 1st sentence, by striking ``, the borrower-
owner'' inserting ``of a borrower-owner who is a socially
disadvantaged farmer or rancher (as defined in section
355(e)(2)), the borrower-owner or a member of the immediate
family of the borrower-owner''; and
(2) in the 2nd sentence, by inserting ``or immediate family
member, as the case may be,'' before ``from''.
SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981-2008r) is amended by inserting after section 364 the
following:
``SEC. 365. [NOTE: 7 USC 2008.]  RURAL DEVELOPMENT 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 or farm loan programs.''.

Subtitle E--Farm Credit

SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION.

(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 such Act (12 U.S.C.
2277a-7(10)) is amended by inserting ``and section 1.12(b)'' after
``part''.
SEC. 5402. 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. 5403. BANK FOR COOPERATIVES VOTING STOCK.

(a) In General.--Section 3.3(c) of the Farm Credit Act of 1971 (12
U.S.C. 2124(c)) is amended by striking ``and (ii)'' and inserting ``(ii)
other categories of persons and entities described in sections 3.7 and
3.8 eligible to borrow from the bank, as determined by the bank's board
of directors; and (iii)''.

[[Page 1916]]
122 STAT. 1916

(b) Conforming Amendments.--Section 4.3A(c)(1)(D) of such Act (12
U.S.C. 2154a(c)(1)(D)) is amended by redesignating clauses (ii) and
(iii) as clauses (iii) and (iv), respectively, and inserting after
clause (i) the following:
``(ii) persons and entities eligible to borrow
from the banks for cooperatives, as described in
section 3.3(c)(ii);''.
SEC. 5404. 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
``(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

[[Page 1917]]
122 STAT. 1917

``(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 so redesignated by paragraph (3) of
this subsection), by striking ``annual''; and
(6) in paragraph (4) (as so redesignated by paragraph (3) of
this subsection)--
(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 investment, that is
guaranteed--''.

(b) Amount in Fund Exceeding Secure Base Amount.--Section 5.55(b) of
such Act (12 U.S.C. 2277a-4(b)) is amended by striking ``annual''.
(c) Secure Base Amount.--Section 5.55(c) of such Act (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 such Act (12 U.S.C. 2277a-4(d)) is amended--
(1) in the subsection 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--'';

[[Page 1918]]
122 STAT. 1918

(3) in each of paragraphs (1), (2), and (3), by inserting
``all loans or investments made'' before ``by'' the first place
it appears; and
(4) in each of 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 such Act (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:

[[Page 1919]]
122 STAT. 1919

``(ii) Termination of account.--On
disbursement of an 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.''; and
(C) by striking subparagraph (F).
SEC. 5405. 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 such Act (12 U.S.C. 2277a-5)
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 [NOTE: Deadline.]  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 such Act (12
U.S.C. 2277a-5) is amended--

[[Page 1920]]
122 STAT. 1920

(1) by striking subsection (d); and
(2) by redesignating subsection (e) as subsection (d).
SEC. 5406. 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 the Rural Electrification Act
of 1936 (7 U.S.C. 901 et seq.).''.

(b) Guarantee of Qualified Loans.--Section 8.6(a)(1) of such Act (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 such Act (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 such Act (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

[[Page 1921]]
122 STAT. 1921

and telephone facility loans (as applicable), as
determined by the Director.''.
SEC. 5407. 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. [NOTE: 12 USC 2279c.]  EQUALIZATION OF LOAN-MAKING
POWERS OF CERTAIN DISTRICT ASSOCIATIONS.

``(a) Equalization of Loan-Making Powers.--
``(1) In general.--
``(A) Federal land bank associations.--Subject to
paragraph (2), any association that owns a Federal land
bank association authorized as of January 1, 2007, to
make long-term loans under title I in its chartered
territory within 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 within that same chartered
territory.
``(B) Production credit associations.--Subject to
paragraph (2), any association that under its charter
has title I lending authority and that owns 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, directly or
through a subsidiary association, as a Federal land bank
association or Federal land credit association under
title I in the geographic area.
``(C) Farm credit bank.--Notwithstanding section
5.17(a), the Farm Credit Bank with which any association
had a written financing agreement as of January 1, 2007,
may make loans and extend other comparable financial
assistance with respect to, and may purchase, any loans
made under the new authority provided under subparagraph
(A) or (B) by an association exercising such authority.
``(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 in accordance
with the process described in section 7.11.

``(b) Applicability.--This section applies only to associations the
chartered territory of which was within the geographic area served by
the Federal intermediate credit bank immediately prior to its merger
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

[[Page 1922]]
122 STAT. 1922

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, subject to
any conditions of approval imposed, by not later than 30 days
after 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 of the 1987 act.--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 ``(except section
7.7 of that Act)'' after ``(12 U.S.C. 2001 et seq.)''.
(3) Section 401 of the 1992 act.--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 ``(except 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) [NOTE: 12 USC 2252 note.]  Effective Date.--The amendments
made by this section take effect on January 1, 2010.

Subtitle F--Miscellaneous

SEC. 5501. 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).''.

[[Page 1923]]
122 STAT. 1923

TITLE VI--RURAL DEVELOPMENT

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
``2002 through 2007'' and inserting ``2008 through 2012''.
SEC. 6002. SEARCH GRANTS.

(a) In General.--Section 306(a)(2) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(2)) is amended by adding at the
end the following:
``(C) Special evaluation assistance for rural
communities and households program.--
``(i) In general.--The Secretary may establish
the Special Evaluation Assistance for Rural
Communities and Households (SEARCH) program, to
make predevelopment planning grants for
feasibility studies, design assistance, and
technical assistance, to financially distressed
communities in rural areas with populations of
2,500 or fewer inhabitants for water and waste
disposal projects described in paragraph (1), this
paragraph, and paragraph (24).
``(ii) Terms.--
``(I) Documentation.--With respect
to grants made under this subparagraph,
the Secretary shall require the lowest
amount of documentation practicable.
``(II) Matching.--Notwithstanding
any other provisions in this subsection,
the Secretary may fund up to 100 percent
of the eligible costs of grants provided
under this subparagraph, as determined
by the Secretary.
``(iii) Funding.--The Secretary may use not
more than 4 percent of the total amount of funds
made available for a fiscal year for water, waste
disposal, and essential community facility
activities under this title to carry out this
subparagraph.
``(iv) Relationship to other authority.--The
funds and authorities provided under this
subparagraph are in addition to any other funds or
authorities the Secretary may have to carry out
activities described in clause (i).''.

(b) Conforming Amendment.--Subtitle [NOTE: 7 USC 2009ee-- 2009ee-
3.]  D of title VI of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 2009ee et seq.) is repealed.
SEC. 6003. 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 ``1996 through
2007'' and inserting ``2008 through 2012''.

[[Page 1924]]
122 STAT. 1924

SEC. 6004. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN
GUARANTEES.

Section 306(a)(19)(C)(ii) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) is amended by striking
``April'' and inserting ``June''.
SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE BROADBAND.

Section 306(a)(20)(E) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(20)(E)) is amended--
(1) by striking ``state'' and inserting ``State''; and
(2) by striking ``dial-up Internet access or''.
SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

Section 306(a)(22)(C) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(22)(C)) is amended by striking ``$15,000,000 for
fiscal year 2003'' and inserting ``$25,000,000 for fiscal year 2008''.
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 (A)--
(A) by striking ``tribal colleges and universities''
and inserting ``an entity that is a Tribal College or
University''; and
(B) by striking ``tribal college or university'' and
inserting ``Tribal College or University'';
(2) by striking subparagraph (B) and inserting the
following:
``(B) Federal share.--The Secretary shall establish
the maximum percentage of the cost of the facility that
may be covered by a grant under this paragraph, except
that the Secretary may not require non-Federal financial
support in an amount that is greater than 5 percent of
the total cost of the facility.''; and
(3) in subparagraph (C), by striking ``2003 through 2007''
and inserting ``2008 through 2012''.
SEC. 6008. 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 ``2003 through 2007''
and inserting ``2008 through 2012''.
SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

(a) In General.--Section 306D(d)(1) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking
``2001 through 2007'' and inserting ``2008 through 2012''.
(b) Rural Communities Assistance.--Section 4009 of the Solid Waste
Disposal Act (42 U.S.C. 6949) is amended by adding at the end the
following:
``(e) Additional Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section for the Denali Commission to provide

[[Page 1925]]
122 STAT. 1925

assistance to municipalities in the State of Alaska $1,500,000
for each of fiscal years 2008 through 2012.
``(2) Administration.--For the purpose of carrying out this
subsection, the Denali Commission shall--
``(A) be considered a State; and
``(B) comply with all other requirements and
limitations of this section.''.
SEC. 6010. 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 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926e) is amended--
(1) in subsection (b)(2)(C), by striking ``$8,000'' and
inserting ``$11,000''; and
(2) in subsection (d), by striking ``2003 through 2007'' and
inserting ``2008 through 2012''.
SEC. 6011. 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.--
``(i) In general.--Except as provided in
clause (ii) and notwithstanding subparagraph (A),
in the case of a direct loan for a water or waste
disposal facility--
``(I) in the case of a loan that
would be subject to the 5 percent
interest rate limitation under
subparagraph (A), the Secretary shall
establish the interest rate at a rate
that is equal to 60 percent of the
current market yield for outstanding
municipal obligations with remaining
periods to maturity comparable to the
average maturity of the loan, adjusted
to the nearest \1/8\ of 1 percent; and
``(II) in the case of a loan that
would be subject to the 7 percent
limitation under subparagraph (A), the
Secretary shall establish the interest
rate at a rate that is equal to 80
percent of the current market yield for
outstanding municipal obligations with
remaining periods to maturity comparable
to the average maturity of the loan,
adjusted to the nearest \1/8\ of 1
percent.
``(ii) Exception.--Clause (i) does not apply
to a loan for a specific project that is the
subject of a loan that has been approved, but not
closed, as of the date of enactment of this
subparagraph.''.
SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE.

(a) In General.--Section 310B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932) is amended--
(1) by striking ``sec. 310B. (a)'' and inserting the
following:

[[Page 1926]]
122 STAT. 1926

``SEC. 310B. ASSISTANCE FOR RURAL ENTITIES.

``(a) Loans to Private Business Enterprises.--
``(1) Definitions.--In this subsection:'';
(2) in subsection (a)--
(A) by moving the second and fourth sentences so as
to appear as the second and first sentences,
respectively;
(B) in the sentence beginning ``As used in this
subsection, the'' (as moved by subparagraph (A)), by
striking ``As used in this subsection, the'' and
inserting the following:
``(A) Aquaculture.--The'';
(C) in the sentence beginning ``For the purposes of
this subsection, the'', by striking ``For the purposes
of this subsection, the'' and inserting the following:
``(B) Solar energy.--The'';
(D) in the sentence beginning ``The Secretary may
also''--
(i) by striking ``The Secretary may also'' and
inserting the following:
``(2) Loan purposes.--The Secretary may'';
(ii) by inserting ``and private investment
funds that invest primarily in cooperative
organizations'' after ``or nonprofit'';
(iii) by striking ``of (1) improving'' and
inserting ``of--
``(A) improving'';
(iv) by striking ``control, (2) the'' and
inserting ``control;
``(B) the'';
(v) by striking ``areas, (3) reducing'' and
inserting ``areas;
``(C) reducing'';
(vi) by striking ``areas, and (4) to'' and
inserting ``areas; and
``(D) to'';
(E) in the sentence beginning ``Such loans,'', by
striking ``Such loans,'' and inserting the following:
``(3) Loan guarantees.--Loans described in paragraph (2),'';
and
(F) in the last sentence, by striking ``No loan''
and inserting the following:
``(4) Maximum amount of principal.--No loan''; and
(3) 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

[[Page 1927]]
122 STAT. 1927

eligible for assistance for the purposes described
in 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
for the purposes described in subsection
(a)(1), as determined by the
Secretary.''.

(b) Conforming Amendments.--
(1) Section 307(a)(6)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by striking
clause (ii) and inserting the following:
``(ii) section 310B(a)(2)(A); and''.
(2) Section 310B(g) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(g)) is amended by striking
``subsection (a)(1)'' each place it appears in paragraphs (1),
(6)(A)(iii), and (8)(C) and inserting ``subsection (a)(2)(A)''.
(3) Section 333A(g)(1)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended by striking
``section 310B(a)(1)'' and inserting ``section 310B(a)(2)(A)''.
(4) Section 381E(d)(3)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended by striking
``section 310B(a)(1)'' and inserting ``section 310B(a)(2)(A)''.
SEC. 6013. 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 ``administering a
nationally coordinated, regionally or State-wide operated
project'' and inserting ``carrying out 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 economic
development and cooperative needs of rural areas;
and''; and

[[Page 1928]]
122 STAT. 1928

(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 parameters described in paragraph
(5), 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) by 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) [NOTE: Contracts.]  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 effects of all types of
cooperatives on the national economy.''.

(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 group.--
In this paragraph, the term `socially disadvantaged
group' 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--
``(I) that serve socially
disadvantaged groups; and
``(II) a majority of the boards of
directors or governing boards of which
are comprised of individuals who are
members of socially disadvantaged
groups.
``(ii) Insufficient applications.--To the
extent there are insufficient applications to
carry out clause

[[Page 1929]]
122 STAT. 1929

(i), 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
``1996 through 2007'' and inserting ``2008 through 2012''.
SEC. 6014. 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 ``2002 through 2007''
and inserting ``2008 through 2012''.
SEC. 6015. LOCALLY OR REGIONALLY 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 or regionally produced agricultural food
products.--
``(A) Definitions.--In this paragraph:
``(i) Locally or regionally produced
agricultural food product.--The term `locally or
regionally produced agricultural food product'
means any agricultural food product that is
raised, produced, and distributed in--
``(I) the locality or region in
which the final product is marketed, so
that the total distance that the product
is transported is less than 400 miles
from the origin of the product; or
``(II) the State in which the
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;
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 shall make or
guarantee loans to individuals, cooperatives,
cooperative organizations, businesses, and other
entities to establish and facilitate enterprises
that process, distribute, aggregate, store, and
market locally or regionally produced agricultural
food products to support community development and
farm and ranch income.
``(ii) Requirement.--The recipient of a loan
or loan guarantee under clause (i) shall include
in an appropriate agreement with retail and
institutional facilities to which the recipient
sells locally or regionally produced agricultural
food products a requirement to inform consumers of
the retail or institutional facilities that the
consumers are purchasing or consuming

[[Page 1930]]
122 STAT. 1930

locally or regionally produced agricultural food
products.
``(iii) Priority.--In making or guaranteeing a
loan under clause (i), the Secretary shall give
priority to projects that have components
benefitting underserved communities.
``(iv) Reports.--Not later than 2 years 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; and
``(II) resulting benefits.
``(v) 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. 6016. 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 agriculture technical assistance programs;
``(D) expands markets for the agricultural
commodities produced by producers through the use of
practices that enhance the environment, natural resource
base, and quality of life; and
``(E) improves the economic viability of
agricultural operations.
``(2) Establishment.--The Secretary shall establish a
national appropriate technology transfer for rural areas program
to assist agricultural producers that are seeking information
to--
``(A) reduce input costs;
``(B) conserve energy resources;
``(C) diversify operations through new energy crops
and energy generation facilities; and

[[Page 1931]]
122 STAT. 1931

``(D) expand markets for agricultural commodities
produced by the producers by using practices that
enhance the environment, natural resource base, and
quality of life.
``(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 institution.
``(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. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

Section 310B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) (as amended by section 6016) is amended by adding at the
end the following:
``(j) [NOTE: Effective date. Termination date.]  Rural Economic
Area Partnership Zones.--Effective beginning on the date of enactment of
this subsection through September 30, 2012, the Secretary shall carry
out those rural economic area partnership zones administratively in
effect on the date of enactment of this subsection 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. 6018. 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)
through (G), 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; and
``(ii) any urbanized area contiguous and
adjacent to a city or town described in clause
(i).
``(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 a city, town, or
unincorporated area that has a population of no more
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 a city, town, or
unincorporated area that has a population of greater
than 20,000 inhabitants.
``(D) Areas rural in character.--
``(i) Application.--This subparagraph applies
to--

[[Page 1932]]
122 STAT. 1932

``(I) an urbanized area described in
subparagraphs (A)(ii) and (F) that--
``(aa) has 2 points on its
boundary that are at least 40
miles apart; and
``(bb) is not contiguous or
adjacent to a city or town that
has a population of greater than
150,000 inhabitants or an
urbanized area of such city or
town; and
``(II) an area within an urbanized
area described in subparagraphs (A)(ii)
and (F) that is within \1/4\-mile of a
rural area described in subparagraph
(A).
``(ii) Determination.--Notwithstanding any
other provision of this paragraph, on the petition
of a unit of local government in an area described
in clause (i) or on the initiative of the Under
Secretary for Rural Development, the Under
Secretary may determine that a part of an area
described in clause (i) is a rural area for the
purposes of this paragraph, if the Under Secretary
finds that the part is rural in character, as
determined by the Under Secretary.
``(iii) Administration.--In carrying out this
subparagraph, the Under Secretary for Rural
Development shall--
``(I) not delegate the authority to
carry out this subparagraph;
``(II) consult with the applicable
rural development State or regional
director of the Department of
Agriculture and the governor of the
respective State;
``(III) provide to the petitioner an
opportunity to appeal to the Under
Secretary a determination made under
this subparagraph;
``(IV) [NOTE: Public
information. Notice. Deadline.]
release to the public notice of a
petition filed or initiative of the
Under Secretary under this subparagraph
not later than 30 days after receipt of
the petition or the commencement of the
initiative, as appropriate;
``(V) [NOTE: Time period.]  make a
determination under this subparagraph
not less than 15 days, and not more than
60 days, after the release of the notice
under subclause (IV);
``(VI) [NOTE: Reports.]  submit to
the Committee on Agriculture of the
House of Representatives and the
Committee on Agriculture, Nutrition, and
Forestry of the Senate an annual report
on actions taken to carry out this
subparagraph; and
``(VII) [NOTE: Termination date.]
terminate a determination under this
subparagraph that part of an area is a
rural area on the date that data is
available for the next decennial census
conducted under section 141(a) of title
13, United States Code.
``(E) Exclusions.--Notwithstanding any other
provision of this paragraph, in determining which census
blocks in an urbanized area are not in a rural area (as
defined in this paragraph), the Secretary shall exclude
any cluster of census blocks that would otherwise be
considered not

[[Page 1933]]
122 STAT. 1933

in a rural area only because the cluster is adjacent to
not more than 2 census blocks that are otherwise
considered not in a rural area under this paragraph.
``(F) Urban area growth.--
``(i) Application.--This subparagraph applies
to--
``(I) any area that--
``(aa) is a collection of
census blocks that are
contiguous to each other;
``(bb) has a housing density
that the Secretary estimates is
greater than 200 housing units
per square mile; and
``(cc) is contiguous or
adjacent to an existing boundary
of a rural area; and
``(II) any urbanized area contiguous
and adjacent to a city or town described
in subparagraph (A)(i).
``(ii) Adjustments.--The Secretary may, by
regulation only, consider--
``(I) an area described in clause
(i)(I) not to be a rural area for
purposes of subparagraphs (A) and (C);
and
``(II) an area described in clause
(i)(II) not to be a rural area for
purposes of subparagraph (C).
``(iii) Appeals.--A program applicant may
appeal an estimate made under clause (i)(I) based
on appropriate data for an area, as determined by
the Secretary.
``(G) Hawaii and puerto rico.--Notwithstanding any
other provision of this paragraph, within the areas of
the County of Honolulu, Hawaii, and the Commonwealth of
Puerto Rico, the Secretary may designate any part of the
areas as a rural area if the Secretary determines that
the part is not urban in character, other than any area
included in the Honolulu Census Designated Place or the
San Juan Census Designated Place.''.

(b) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall prepare and 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) assesses the various definitions of the term ``rural''
and ``rural area'' that are used with respect to programs
administered by the Secretary;
(2) describes the effects that the variations in those
definitions have on those programs;
(3) make recommendations for ways to better target funds
provided through rural development programs; and
(4) determines the effect of the amendment made by
subsection (a) on the level of rural development funding and
participation in those programs in each State.
SEC. 6019. 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 ``2003 through 2007''
and inserting ``2008 through 2012''; and

[[Page 1934]]
122 STAT. 1934

(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. 6020. HISTORIC BARN PRESERVATION.

(a) Grant Priority.--Section 379A(c) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008o(c)) is amended--
(1) in paragraph (2)--
(A) in subparagraphs (A) and (B), by striking ``a
historic barn'' each place it appears and inserting
``historic barns''; and
(B) in subparagraph (C), by striking ``on a historic
barn'' and inserting ``on historic barns (including
surveys)'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
``(3) Priority.--In making grants under this subsection, the
Secretary shall give the highest priority to funding projects
described in paragraph (2)(C).''.

(b) Authorization of Appropriations.--Section 379A(c)(5) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2008o(c)(5)) (as
redesignated by subsection (a)(2)) is amended by striking ``2002 through
2007'' and inserting ``2008 through 2012''.
SEC. 6021. 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 ``2002 through 2007'' and
inserting ``2008 through 2012''.
SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

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. [NOTE: 7 USC 2008s.]  RURAL MICROENTREPRENEUR
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) Microentrepreneur.--The term `microentrepreneur' means
an owner and operator, or prospective owner and operator, of a
rural microenterprise who is unable to obtain sufficient
training, technical assistance, or credit other than under this
section, as determined by the Secretary.
``(3) 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--
``(I) no microenterprise development
organization serves the Indian tribe;
and
``(II) no rural microentrepreneur
assistance program exists under the
jurisdiction of the Indian tribe; or
``(iii) a public institution of higher
education;

[[Page 1935]]
122 STAT. 1935

``(B) provides training and technical assistance to
rural microentrepreneurs;
``(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 rural microentrepreneurs, or an effective
plan to develop a program to deliver services to rural
microentrepreneurs, as determined by the Secretary.
``(4) Microloan.--The term `microloan' means a business loan
of not more than $50,000 that is provided to a rural
microenterprise.
``(5) Program.--The term `program' means the rural
microentrepreneur assistance program established under
subsection (b).
``(6) Rural microenterprise.--The term `rural
microenterprise' means--
``(A) a sole proprietorship located in a rural area;
or
``(B) a business entity with not more than 10 full-
time-equivalent employees located in a rural area.

``(b) Rural Microentrepreneur Assistance Program.--
``(1) Establishment.--The Secretary shall establish a rural
microentrepreneur assistance program to provide loans and grants
to support microentrepreneurs in the development and ongoing
success of rural microenterprises.
``(2) Purpose.--The purpose of the program is to provide
microentrepreneurs with--
``(A) the skills necessary to establish new rural
microenterprises; and
``(B) continuing technical and financial assistance
related to the successful operation of rural
microenterprises.
``(3) Loans.--
``(A) In general.--The Secretary shall make loans to
microenterprise development organizations for the
purpose of providing fixed interest rate microloans to
microentrepreneurs for startup and growing rural
microenterprises.
``(B) Loan terms.--A loan made by the Secretary to a
microenterprise development organization under this
paragraph shall--
``(i) be for a term not to exceed 20 years;
and
``(ii) bear an annual interest rate of at
least 1 percent.
``(C) Loan loss reserve fund.--The Secretary shall
require each microenterprise development organization
that receives a 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 microenterprise
development organization, until all obligations
owed to the Secretary under this paragraph are
repaid.
``(D) Deferral of interest and principal.--The
Secretary may permit the deferral of payments on
principal and interest due on a loan to a
microenterprise development organization made under this
paragraph for a 2-year period beginning on the date the
loan is made.
``(4) Grants.--

[[Page 1936]]
122 STAT. 1936

``(A) Grants to support rural microenterprise
development.--
``(i) In general.--The Secretary shall make
grants to microenterprise development
organizations to--
``(I) provide training, operational
support, business planning, and market
development assistance, and other
related services to rural
microentrepreneurs; and
``(II) carry out such other projects
and activities as the Secretary
determines appropriate to further the
purposes of the program.
``(ii) Selection.--In making grants under
clause (i), the Secretary shall--
``(I) place an emphasis on
microenterprise development
organizations that serve
microentrepreneurs that are located in
rural areas that have suffered
significant outward migration, as
determined by the Secretary; and
``(II) ensure, to the maximum extent
practicable, that grant recipients
include microenterprise development
organizations--
``(aa) of varying sizes; and
``(bb) that serve racially
and ethnically diverse
populations.
``(B) Grants to assist microentrepreneurs.--
``(i) In general.--The Secretary shall make
grants to microenterprise development
organizations to provide marketing, management,
and other technical assistance to
microentrepreneurs that--
``(I) received a loan from the
microenterprise development organization
under paragraph (3); or
``(II) are seeking a loan from the
microenterprise development organization
under paragraph (3).
``(ii) Maximum amount of grant.--A
microenterprise development organization shall be
eligible to receive an annual grant under this
subparagraph in an amount equal to not more than
25 percent of the total outstanding balance of
microloans made by the microenterprise development
organization under paragraph (3), as of the date
the grant is awarded.
``(C) Administrative expenses.--Not more than 10
percent of a grant received by a microenterprise
development organization for a fiscal year under this
paragraph may be used to pay administrative expenses.

``(c) Administration.--
``(1) Cost share.--
``(A) Federal share.--Subject to subparagraph (B),
the Federal share of the cost of a project funded under
this section shall not exceed 75 percent.
``(B) Matching requirement.--As a condition of any
grant made under this subparagraph, the Secretary shall
require the microenterprise development organization to
match not less than 15 percent of the total amount of
the grant in the form of matching funds, indirect costs,
or in-kind goods or services.

[[Page 1937]]
122 STAT. 1937

``(C) Form of non-federal share.--The non-Federal
share of the cost of a project funded under this section
may be provided--
``(i) in cash (including through fees, grants
(including community development block grants),
and gifts); or
``(ii) in the form of in-kind contributions.
``(2) [NOTE: Deadline.]  Oversight.--At a minimum, not
later than December 1 of each fiscal year, a microenterprise
development organization that receives a loan or grant under
this section shall provide to the Secretary such information as
the Secretary may require to ensure that assistance provided
under this section is used for the purposes for which the loan
or grant was made.

``(d) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section, to remain available until expended--
``(A) $4,000,000 for each of fiscal years 2009
through 2011; and
``(B) $3,000,000 for fiscal year 2012.
``(2) Discretionary funding.--In addition to amounts made
available under paragraph (1), there are authorized to be
appropriated to carry out this section $40,000,000 for each of
fiscal years 2009 through 2012.''.
SEC. 6023. 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.) (as amended by section 6022) is amended by adding
at the end the following:
``SEC. 379F. [NOTE: 7 USC 2000t.]  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;

[[Page 1938]]
122 STAT. 1938

``(3) expertise in removing barriers to employment for
individuals with disabilities, including access to
transportation, assistive technology, and other accommodations;
and
``(4) existing relationships with national organizations
focused primarily on the needs of rural areas.

``(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. 6024. HEALTH CARE SERVICES.

Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) (as amended by section 6023) is amended by adding
at the end the following:
``SEC. 379G. [NOTE: 7 USC 2008u.]  HEALTH CARE SERVICES.

``(a) Purpose.--The purpose of this section is to address the
continued unmet health needs in the Delta region through cooperation
among health care professionals, institutions of higher education,
research institutions, and other individuals and entities in the region.
``(b) Definition of Eligible Entity.--In this section, the term
`eligible entity' means a consortium of regional institutions of higher
education, academic health and research institutes, and economic
development entities located in the Delta region that have experience in
addressing the health care issues in the region.
``(c) Grants.--To carry out the purpose described in subsection (a),
the Secretary may award a grant to an eligible entity for -
``(1) the development of -
``(A) health care services;
``(B) health education programs; and
``(C) health care job training programs; and
``(2) the development and expansion of public health-related
facilities in the Delta region to address longstanding and unmet
health needs of the region.

``(d) Use.--As a condition of the receipt of the grant, the eligible
entity shall use the grant to fund projects and activities described in
subsection (c), based on input solicited from local governments, public
health care providers, and other entities in the Delta region.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section, $3,000,000 for
each of fiscal years 2008 through 2012.''.
SEC. 6025. DELTA REGIONAL AUTHORITY.

(a) 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 ``2001 through 2007'' and inserting ``2008 through
2012''.

[[Page 1939]]
122 STAT. 1939

(b) 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''.
(c) Expansion.--Section 4(2) of the Delta Development Act (42 U.S.C.
3121 note; Public Law 100-460) is amended--
(1) in subparagraph (D), by inserting ``Beauregard,
Bienville, Cameron, Claiborne, DeSoto, Jefferson Davis, Red
River, St. Mary, Vermillion, Webster,'' after ``St. James,'';
and
(2) in subparagraph (E)--
(A) by inserting ``Jasper,'' after ``Copiah,''; and
(B) by inserting ``Smith,'' after ``Simpson,''.
SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

(a) Definition of Region.--Section 383A(4) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009bb(4)) is amended by inserting
``Missouri (other than counties included in the Delta Regional
Authority),'' after ``Minnesota,''.
(b) 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) [NOTE: Deadline.]  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.--In the case of the Indian
Chairperson, if no Indian Chairperson is confirmed by
the Senate, the regional authority shall consult and
coordinate with the leaders of Indian tribes in the
region concerning the activities of the Authority, as
appropriate.'';
(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;'';
(D) by striking paragraph (6) and inserting the
following:
``(6) enhance the capacity of, and provide support for,
multistate development and research organizations, local

[[Page 1940]]
122 STAT. 1940

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.''.

(c) 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. [NOTE: 7 USC 2009bb-1a.]  INTERSTATE COOPERATION
FOR ECONOMIC OPPORTUNITY AND EFFICIENCY.

``(a) In General.--The [NOTE: Plans.]  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 address regional transportation concerns, 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 [NOTE: 7 USC 2009bb-2.]  amended by
striking ``383I'' and inserting ``383J''.
(C) Section 383E of the Consolidated Farm and Rural
Development Act (as so redesignated) [NOTE: 7 USC
2009bb-3.]  is amended--
(i) in subsection (b)(1), by striking
``383F(b)'' and inserting ``383G(b)''; and

[[Page 1941]]
122 STAT. 1941

(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) [NOTE: 7 USC
2009bb-5.]  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) [NOTE: 7 USC
2009bb-8.]  is amended by striking ``383H'' and
inserting ``383I''.

(d) Economic and Community Development Grants.--Section 383D of the
Consolidated Farm and Rural Development Act (as redesignated by
subsection (c)(1)(A)) [NOTE: 7 USC 2009bb-2.]  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''.

(e) Supplements to Federal Grant Programs.--Section 383E(a) of the
Consolidated Farm and Rural Development Act (as redesignated by
subsection (c)(1)(A)) [NOTE: 7 USC 2009bb-3.]  is amended by striking
``, including local development districts,''.

(f) 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
(c)(1)(A)) [NOTE: 7 USC 2009bb-4.]  is amended--
(1) by striking the section heading and inserting
``multistate and local development districts and organizations
and northern great plains inc.''; and
(2) by striking subsections (a) through (c) 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

[[Page 1942]]
122 STAT. 1942

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 Authority (in
consultation with the Federal cochairperson or Secretary, as
appropriate)--
``(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 multistate, local,
or regional 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 multistate,
local, or regional development district or organization for
administrative expenses may be in cash or in kind, fairly
evaluated, including space, equipment, and services.

``(c) Duties.--
``(1) In general.--Except as provided in paragraph (2), a
local development district shall operate as a lead organization
serving multicounty areas in the region at the local level.
``(2) Designation.--The Federal cochairperson may designate
an Indian tribe or multijurisdictional organization to serve as
a lead organization in such cases as the Federal cochairperson
or Secretary, as appropriate, determines appropriate.''.

(g) Distressed Counties and Areas and Nondistressed Counties.--
Section 383G of the Consolidated Farm and Rural

[[Page 1943]]
122 STAT. 1943

Development Act (as redesignated by subsection (c)(1)(A)) [NOTE: 7 USC
2009bb-5.]  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,''.

(h) Development Planning Process.--Section 383H of the Consolidated
Farm and Rural Development Act (as redesignated by subsection
(c)(1)(A)) [NOTE: 7 USC 2009bb-6.]  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''.

(i) Program Development Criteria.--Section 383I(a)(1) of the
Consolidated Farm and Rural Development Act (as redesignated by
subsection (c)(1)(A)) [NOTE: 7 USC 2009bb-7.]  is amended by inserting
``multistate or'' before ``regional''.

(j) Authorization of Appropriations.--Section 383N(a) of the
Consolidated Farm and Rural Development Act (as redesignated by
subsection (c)(1)(A)) [NOTE: 7 USC 2009bb-12.]  is amended by striking
``2002 through 2007'' and inserting ``2008 through 2012''.

(k) Termination of Authority.--Section 383O of the Consolidated Farm
and Rural Development Act (as redesignated by subsection
(c)(1)(A)) [NOTE: 7 USC 2009bb-13.]  is amended by striking ``2007''
and inserting ``2012''.
SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM.

(a) Issuance and Guarantee of Trust Certificates.--Section
384F(b)(3)(A) of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009cc-5(b)(3)(A)) is amended by striking ``In the event'' and
inserting the following:
``(i) Authority to prepay.--A debenture may be
prepaid at any time without penalty.
``(ii) Reduction of guarantee.--Subject to
clause (i), if''.

(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:

[[Page 1944]]
122 STAT. 1944

``(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--
(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; and
(2) in subsection (c), by striking ``15'' and inserting
``25''.

(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. [NOTE: 7 USC 2009cc-18.]  AUTHORIZATION OF
APPROPRIATIONS.

``There is authorized to be appropriated to carry out this subtitle
$50,000,000 for the period of fiscal years 2008 through 2012.''.
SEC. 6028. 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. [NOTE: 7 USC 2009dd-1.]  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

[[Page 1945]]
122 STAT. 1945

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, in order 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.
``(8) Rural heritage.--
``(A) In general.--The term `rural heritage' means
historic sites, structures, and districts.
``(B) Inclusions.--The term `rural heritage'
includes historic rural downtown areas and main streets,
neighborhoods, farmsteads, scenic and historic trails,
heritage areas, and historic landscapes.
``SEC. 385C. [NOTE: 7 USC 2009dd-2.]  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) [NOTE: Establishment.]  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

[[Page 1946]]
122 STAT. 1946

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 that shall--
``(A) create a framework to encourage and support a
more collaborative and targeted rural investment
portfolio in the United States;
``(B) establish a 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) [NOTE: Certification.]  certify the eligibility of
Regional Boards to receive regional investment strategy grants
and regional innovation grants;
``(5) [NOTE: Grants.]  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) [NOTE: Reports.]  a review and 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) [NOTE: Establishment.]  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--

[[Page 1947]]
122 STAT. 1947

``(1) [NOTE: Deadline. Regulations.]  not later than 180
days after the date of establishment of the National Board,
develop rules relating to the operation of the National Board;
and
``(2) provide advice to--
``(A) the Secretary and subsequently review the
design, development, and execution of the National Rural
Investment Plan;
``(B) Regional Boards on issues, best practices, and
emerging trends relating to rural development; and
``(C) the Secretary and the National Institute on
the development and execution of the program under this
subtitle.

``(e) Membership.--
``(1) [NOTE: Deadline.]  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,
Conservation, and Energy Act of 2008.
``(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;
``(B) regional strategy and development
organizations;
``(C) community-based organizations;
``(D) elected members of local governments;
``(E) 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, nonvoting members of the National Board.
``(5) Term of office.--

[[Page 1948]]
122 STAT. 1948

``(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 [NOTE: Deadline.]  later
than 1 year after the date of enactment of the Food,
Conservation, and Energy Act of 2008, 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, may provide such
administrative support to the National Board as the Secretary determines
is necessary.
``SEC. 385D. [NOTE: 7 USC 2009dd-3.]  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) [NOTE: Certification.]  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, multijurisdictional, or State
government, including not more than 1 representative
from each State in the region;
``(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)));

[[Page 1949]]
122 STAT. 1949

``(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 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 will--
``(A) create a collaborative 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

[[Page 1950]]
122 STAT. 1950

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 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) [NOTE: Reports.]  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) an 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;

[[Page 1951]]
122 STAT. 1951

``(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
``(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
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. [NOTE: 7 USC 2009dd-5.]  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.

[[Page 1952]]
122 STAT. 1952

``(2) Timing.--After October 1, 2008, the Secretary shall
provide awards under this section on a quarterly funding cycle.

``(b) Eligibility.--To be eligible to receive a regional innovation
grant, a Regional Board shall demonstrate to the Secretary 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.

``(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
interim financing or seed capital for program
implementation;

[[Page 1953]]
122 STAT. 1953

``(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, natural resource, and public
infrastructure assets, with substantial emphasis placed
on the existence of real financial commitments to
leverage 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;
``(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;
``(L) help to meet the other regional
competitiveness needs identified by a Regional Board; or
``(M) protect and promote rural heritage.

``(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;

[[Page 1954]]
122 STAT. 1954

``(F) to provide support for business and
entrepreneurial investment, strategy, expansion, and
development, including feasibility strategies, technical
assistance, peer networks, business development funds,
and other activities to strengthen the economic
competitiveness of the region;
``(G) 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;
and
``(H) to preserve and promote rural heritage.
``(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
``(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.

[[Page 1955]]
122 STAT. 1955

``SEC. 385G. [NOTE: 7 USC 2009dd-6.]  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 in a manner that is 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. [NOTE: 7 USC 2009dd-7.]  AUTHORIZATION OF
APPROPRIATIONS.

``There are authorized to be appropriated to carry out this subtitle
$135,000,000 for the period of fiscal years 2009 through 2012.''.
SEC. 6029. 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.

[[Page 1956]]
122 STAT. 1956

(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.

(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 $120,000,000, 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. REINSTATEMENT OF RURAL UTILITY SERVICES DIRECT LENDING.

(a) In General.--Section 4 of the Rural Electrification Act of 1936
(7 U.S.C. 904) is amended--
(1) by designating the first, second, and third sentences as
subsections (a), (b), and (d), respectively; and
(2) by inserting after subsection (b) (as so designated) the
following:

``(c) Direct Loans.--
``(1) Direct hardship loans.--Direct hardship loans under
this section shall be for the same purposes and on the same
terms and conditions as hardship loans made under section
305(c)(1).
``(2) Other direct loans.--All other direct loans under this
section shall bear interest at a rate equal to the then current
cost of money to the Government of the United States for loans
of similar maturity, plus \1/8\ of 1 percent.''.

(b) Elimination of Federal Financing Bank Guaranteed Loans.--Section
306 of the Rural Electrification Act of 1936 (7 U.S.C. 936) is amended--
(1) in the third sentence, by striking ``guarantee,
accommodation, or subordination'' and inserting ``accommodation
or subordination''; and
(2) by striking the fourth sentence.
SEC. 6103. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED
ENERGY EFFICIENCY AND DEMAND REDUCTION
AND FOR ENERGY EFFICIENCY AND USE
AUDITS.

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 on Loans.--
``(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--
``(A) to conduct energy efficiency and use audits;
and

[[Page 1957]]
122 STAT. 1957

``(B) 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. 6104. 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.--Except as provided otherwise in this Act,
the term `rural area' means the farm and nonfarm population of--
``(A) any area described in section 343(a)(13)(C) of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)(13)(C)); and
``(B) 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.
``(4) Territory.--The term `territory' includes any insular
possession of the United States.
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.''.
SEC. 6105. [NOTE: 7 USC 936f.]  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) Eligible program.--The term `eligible program' means a
program administered by the Rural Utilities Service and
authorized in--
``(A) this Act; or
``(B) paragraph (1), (2), (14), (22), or (24) of
section 306(a) or section 306A, 306C, 306D, or 306E of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a), 1926a, 1926c, 1926d, 1926e).
``(2) 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) with respect to which the Secretary determines has
a high need for the benefits of an eligible program.

``(b) Initiative.--The Secretary, in consultation with local
governments and Federal agencies, may implement an initiative to
identify and improve the availability of eligible programs in
communities in substantially underserved trust areas.

[[Page 1958]]
122 STAT. 1958

``(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 with extended repayment terms;
``(2) [NOTE: Waiver authority.]  may waive nonduplication
restrictions, matching fund requirements, or credit support
requirements from any loan or grant program administered by the
Rural Utilities Service to facilitate the construction,
acquisition, or improvement of infrastructure;
``(3) may give the highest funding priority to designated
projects in substantially underserved trust areas; and
``(4) shall only make loans or loan guarantees that are
found to be financially feasible and that provide eligible
program benefits to 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) [NOTE: Recommenda- tions.]  recommendations for any
regulatory or legislative changes that would be appropriate to
improve services to substantially underserved trust areas.''.
SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR
ELECTRIFICATION OR TELEPHONE PURPOSES.

(a) In General.--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

[[Page 1959]]
122 STAT. 1959

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''.

(b) [NOTE: 7 USC 940c-1 note.]  Administration.--The Secretary
shall continue to carry out section 313A of the Rural Electrification
Act of 1936 (7 U.S.C. 940c-1) in the same manner as on the day before
the date of enactment of this Act, except without regard to the
limitations prescribed in subsection (b)(1) of that section, until such
time as any regulations necessary to carry out the amendments made by
this section are fully implemented.
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 subsection (c) and 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, 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 in rural areas--
``(1) 911 access;
``(2) integrated interoperable emergency communications,
including multiuse networks that provide commercial 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) Emergency Communications Equipment Providers.--The Secretary
may make a loan under this section to an emergency communication
equipment provider to expand or improve 911 access or other
communications or technologies described in subsection (a) if the local
government that has jurisdiction over the project is not allowed to
acquire the debt resulting from the loan.
``(d) Authorization of Appropriations.--The Secretary shall use to
make loans under this section any funds otherwise made available for
telephone loans for each of fiscal years 2008 through 2012.''.
SEC. 6108. ELECTRIC LOANS FOR RENEWABLE ENERGY.

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. [NOTE: 7 USC 940g.]  ELECTRIC LOANS FOR RENEWABLE
ENERGY.

``(a) Definition of Renewable Energy Source.--In this section, the
term `renewable energy source' means an energy conversion system fueled
from a solar, wind, hydropower, biomass, or geothermal source of energy.
``(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 electric generation from renewable energy
resources for resale to rural and nonrural residents.

[[Page 1960]]
122 STAT. 1960

``(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. BONDING REQUIREMENTS.

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. [NOTE: 7 USC 940h.]  BONDING REQUIREMENTS.

``The [NOTE: Review.]  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.''.
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. [NOTE: Loans.]  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) Definitions.--In this section:
``(1) Broadband service.--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) Incumbent service provider.--The term `incumbent
service provider', with respect to an application submitted
under this section, means an entity that, as of the date of
submission of the application, is providing broadband service to
not less than 5 percent of the households in the service
territory proposed in the application.
``(3) Rural area.--
``(A) In general.--The term `rural area' means any
area other than--
``(i) an area described in clause (i) or (ii)
of section 343(a)(13)(A) of the Consolidated Farm
and Rural Development Act (7 U.S.C.
1991(a)(13)(A)); and
``(ii) a city, town, or incorporated area that
has a population of greater than 20,000
inhabitants.
``(B) Urban area growth.--The Secretary may, by
regulation only, consider an area described in section
343(a)(13)(F)(i)(I) of that Act to not be a rural area
for purposes of this section.

``(c) Loans and Loan Guarantees.--
``(1) In general.--The Secretary shall make or guarantee
loans to eligible entities described in subsection (d) to
provide

[[Page 1961]]
122 STAT. 1961

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 broadband service, had no incumbent service provider.

``(d) Eligibility.--
``(1) Eligible entities.--
``(A) In general.--To be eligible to obtain a loan
or loan guarantee under this section, an entity shall--
``(i) demonstrate the ability to furnish,
improve, or extend a broadband service to a rural
area;
``(ii) submit to the Secretary a loan
application at such time, in such manner, and
containing such information as the Secretary may
require; and
``(iii) [NOTE: Deadline.]  agree to complete
buildout of the broadband service described in the
loan application by not later than 3 years after
the initial date on which proceeds from the loan
made or guaranteed under this section are made
available.
``(B) Limitation.--An eligible entity that provides
telecommunications or broadband service to at least 20
percent of the households in the United States may not
receive an amount of funds under this section for a
fiscal year in excess of 15 percent of the funds
authorized and appropriated under subsection (k) for the
fiscal year.
``(2) Eligible projects.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), the proceeds of a loan made
or guaranteed under this section may be used to carry
out a project in a proposed service territory only if,
as of the date on which the application for the loan or
loan guarantee is submitted--
``(i) not less than 25 percent of the
households in the proposed service territory is
offered broadband service by not more than 1
incumbent service provider; and
``(ii) broadband service is not provided in
any part of the proposed service territory by 3 or
more incumbent service providers.
``(B) Exception to 25 percent requirement.--
Subparagraph (A)(i) shall not apply to the proposed
service territory of a project if a loan or loan
guarantee has been made under this section to the
applicant to provide broadband service in the proposed
service territory.
``(C) Exception to 3 or more incumbent service
provider requirement.--
``(i) In general.--Except as provided in
clause (ii), subparagraph (A)(ii) shall not apply
to an incumbent service provider that is upgrading
broadband service to the existing territory of the
incumbent service provider.
``(ii) Exception.--Clause (i) shall not apply
if the applicant is eligible for funding under
another title of this Act.

[[Page 1962]]
122 STAT. 1962

``(3) Equity and market survey requirements.--
``(A) 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,
unless the Secretary determines that a higher percentage
is required for financial feasibility.
``(B) 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 rural area to
submit to the Secretary a market survey.
``(4) 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.
``(5) Notice requirement.--The [NOTE: Publication.]
Secretary shall publish a notice of each application for a loan
or loan guarantee under this section describing the application,
including--
``(A) the identity of the applicant;
``(B) each area proposed to be served by the
applicant; and
``(C) the estimated number of households without
terrestrial-based broadband service in those areas.
``(6) Paperwork reduction.--The Secretary shall take steps
to reduce, to the maximum extent practicable, the cost and
paperwork associated with applying for a loan or loan guarantee
under this section by first-time applicants (particularly first-
time applicants who are small and start-up broadband service
providers), including by providing for a new application that
maintains the ability of the Secretary to make an analysis of
the risk associated with the loan involved.
``(7) Preapplication process.--The Secretary shall establish
a process under which a prospective applicant may seek a
determination of area eligibility prior to preparing a loan
application under this section.

``(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)(1).
``(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.

``(f) Technological Neutrality.--For purposes of determining whether
to make a loan or loan guarantee for a project under

[[Page 1963]]
122 STAT. 1963

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 this section shall--
``(A) bear interest at an annual rate of, as
determined by the Secretary--
``(i) in the case of a direct loan, a rate
equivalent to--
``(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) have a term of such length, not exceeding 35
years, as the borrower may request, if the Secretary
determines that the loan is adequately secured.
``(2) Term.--In determining the term of a loan or loan
guarantee, the Secretary shall consider whether the recipient is
or would be serving an area that is not receiving broadband
services.
``(3) Recurring revenue.--The Secretary shall consider the
existing recurring revenues of the entity at the time of
application in determining an adequate level of credit support.

``(h) Adequacy of Security.--
``(1) In general.--The Secretary shall ensure that the type
and amount of, and method of security used to secure, any loan
or loan guarantee under this section is commensurate to the risk
involved with the loan or loan guarantee, particularly in any
case in which the loan or loan guarantee is issued to a
financially strong and stable entity, as determined by the
Secretary.
``(2) Determination of amount and method of security.--In
determining the amount of, and method of security used to
secure, a loan or loan guarantee under this section, the
Secretary shall consider reducing the security in a rural area
that does not have broadband service.

``(i) 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
loan made under this Act if the use of the proceeds for that purpose
will support the construction, improvement, or acquisition of facilities
and equipment for the provision of broadband service in rural areas.
``(j) Reports.--Not later than 1 year after the date of enactment of
the Food, Conservation, and Energy Act of 2008, and annually thereafter,
the Administrator shall submit to Congress a report that describes the
extent of participation in the loan and loan guarantee program under
this section for the preceding fiscal year, including a description of
--
``(1) the number of loans applied for and provided under
this section;

[[Page 1964]]
122 STAT. 1964

``(2)(A) the communities proposed to be served in each loan
application submitted for the fiscal year; and
``(B) the communities served by projects funded by loans and
loan guarantees provided under this section;
``(3) the period of time required to approve each loan
application under this section;
``(4) any outreach activities carried out by the Secretary
to encourage entities in rural areas without broadband service
to submit applications under this section;
``(5) the method by which the Secretary determines that a
service enables a subscriber to originate and receive high-
quality voice, data, graphics, and video for purposes of
subsection (b)(1); and
``(6) each broadband service, including the type and speed
of broadband service, for which assistance was sought, and each
broadband service for which assistance was provided, under this
section.

``(k) 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, to
remain available until expended.
``(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.--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.

``(l) Termination of Authority.--No loan or loan guarantee may be
made under this section after September 30, 2012.''.
(b) Regulations.--The [NOTE: 7 USC 950bb note.]  Secretary may
implement the amendment made by subsection (a) through the promulgation
of an interim regulation.

(c) Application.--The [NOTE: 7 USC 950bb note.]  amendment made by
subsection (a) shall not apply to--
(1) an application submitted under section 601 of the Rural
Electrification Act of 1936 (7 U.S.C. 950bb) (as it existed
before the amendment made by subsection (a)) that--
(A) was pending on the date that is 45 days prior to
the date of enactment of this Act; and

[[Page 1965]]
122 STAT. 1965

(B) is pending on the date of enactment of this Act;
or
(2) a petition for reconsideration of a decision on an
application described in paragraph (1).
SEC. 6111. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS
ASSESSMENT.

Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb et
seq.) is amended by adding at the end the following:
``SEC. 602. [NOTE: 7 USC 950bb-1.]  NATIONAL CENTER FOR RURAL
TELECOMMUNICATIONS ASSESSMENT.

``(a) Designation of Center.--The Secretary shall designate an
entity to serve as the National Center for Rural Telecommunications
Assessment (referred to in this section as the `Center').
``(b) Criteria.--In designating the Center under subsection (a), the
Secretary shall take into consideration the following criteria:
``(1) The Center shall be an entity that demonstrates to the
Secretary--
``(A) a focus on rural policy research; and
``(B) a minimum of 5 years of experience relating to
rural telecommunications research and assessment.
``(2) The Center shall be capable of assessing broadband
services in rural areas.
``(3) The Center shall have significant experience involving
other rural economic development centers and organizations with
respect to the assessment of rural policies and the formulation
of policy solutions at the Federal, State, and local levels.

``(c) Board of Directors.--The Center shall be managed by a board of
directors, which shall be responsible for the duties of the Center
described in subsection (d).
``(d) Duties.--The Center shall--
``(1) assess the effectiveness of programs carried out under
this title in increasing broadband penetration and purchase in
rural areas, especially in rural communities identified by the
Secretary as having no broadband service before the provision of
a loan or loan guarantee under this title;
``(2) work with existing rural development centers selected
by the Center to identify policies and initiatives at the
Federal, State, and local levels that have increased broadband
penetration and purchase in rural areas and provide
recommendations to Federal, State, and local policymakers on
effective strategies to bring affordable broadband services to
residents of rural areas, particularly residents located outside
of the municipal boundaries of a rural city or town; and
``(3) [NOTE: Publication. Reports.]  develop and publish
reports describing the activities carried out by the Center
under this section.

``(e) Reporting Requirements.--Not later than December 1 of each
applicable fiscal year, the board of directors of the Center shall
submit to Congress and the Secretary a report describing the activities
carried out by the Center during the preceding fiscal year and the
results of any research conducted by the Center during that fiscal year,
including--
``(1) an assessment of each program carried out under this
title; and
``(2) an assessment of the effects of the policy initiatives
identified under subsection (d)(2).

[[Page 1966]]
122 STAT. 1966

``(f) 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.''.
SEC. 6112. COMPREHENSIVE RURAL BROADBAND STRATEGY.

(a) In General.--Not [NOTE: Deadline. Reports.]  later than 1 year
after the date of enactment of this Act, the Chairman of the Federal
Communications Commission, in coordination with the Secretary, shall
submit to Congress a report describing a comprehensive rural broadband
strategy that includes--
(1) recommendations--
(A) to promote interagency coordination of Federal
agencies in regards to policies, procedures, and
targeted resources, and to streamline or otherwise
improve and streamline the policies, programs, and
services;
(B) to coordinate existing Federal rural broadband
or rural initiatives;
(C) to address both short- and long-term needs
assessments and solutions for a rapid build-out of rural
broadband solutions and application of the
recommendations for Federal, State, regional, and local
government policymakers; and
(D) to identify how specific Federal agency programs
and resources can best respond to rural broadband
requirements and overcome obstacles that currently
impede rural broadband deployment; and
(2) a description of goals and timeframes to achieve the
purposes of the report.

(b) Updates.--The [NOTE: Deadline.]  Chairman of the Federal
Communications Commission, in coordination with the Secretary, shall
update and evaluate the report described in subsection (a) during the
third year after the date of enactment of this Act.
SEC. 6113. STUDY ON RURAL ELECTRIC POWER GENERATION.

(a) In General.--The Secretary shall conduct a study on the electric
power generation needs in rural areas of the United States.
(b) Components.--The study shall include an examination of--
(1) generation in various areas in rural areas of the United
States, particularly by rural electric cooperatives;;
(2) financing available for capacity, including financing
available through programs authorized under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.);
(3) the impact of electricity costs on consumers and local
economic development;
(4) the ability of fuel feedstock technology to meet
regulatory requirements, such as carbon capture and
sequestration; and
(5) any other factors that the Secretary considers
appropriate.

(c) Report.--Not later than 60 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 the findings
of the study under this section.

[[Page 1967]]
122 STAT. 1967

Subtitle C--Miscellaneous

SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.

(a) In General.--Section 2333(c)(1) of the Food, Agriculture,
Conservation and Trade Act of 1990 (7 U.S.C. Sec. 950aaa-2(a)(1)) is
amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(C) libraries.''.

(b) 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''.
(c) 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''.
SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM
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) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning given the term in section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)).
``(2) Family farm.--The term `family farm' has the meaning
given the term in section 761.2 of title 7, Code of Federal
Regulations (as in effect on December 30, 2007).
``(3) Mid-tier value chain.--The term `mid-tier value chain'
means local and regional supply networks that link independent
producers with businesses and cooperatives that market value-
added agricultural products in a manner that--
``(A) targets and strengthens the profitability and
competitiveness of small and medium-sized farms and
ranches that are structured as a family farm; and
``(B) obtains agreement from an eligible
agricultural producer group, farmer or rancher
cooperative, or majority-controlled producer-based
business venture that is engaged in the value chain on a
marketing strategy.
``(4) 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)).
``(5) Value-added agricultural product.--The term `value-
added agricultural product' means any agricultural commodity or
product that--
``(A)(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;

[[Page 1968]]
122 STAT. 1968

``(iii) is physically segregated in a manner that
results in the enhancement of the value of the
agricultural commodity or product;
``(iv) is a source of farm- or ranch-based renewable
energy, including E-85 fuel; or
``(v) is aggregated and marketed as a locally-
produced agricultural food product; and
``(B) 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 is 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) 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 (1), by striking ``paragraph (4)'' and
inserting ``paragraph (7)''; and
(2) by striking paragraph (4) and inserting the following:
``(4) Term.--A grant under this subsection 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.--In awarding grants under this subsection,
the Secretary shall give priority to projects that contribute to
increasing opportunities for--
``(A) beginning farmers or ranchers;
``(B) socially disadvantaged farmers or ranchers;
and
``(C) operators of small- and medium-sized farms and
ranches that are structured as a family farm.
``(7) Funding.--
``(A) Mandatory funding.--On October 1, 2008, of the
funds of the Commodity Credit Corporation, the Secretary
shall make available to carry out this subsection
$15,000,000, to remain available until expended.
``(B) Discretionary funding.--There is authorized to
be appropriated to carry out this subsection $40,000,000
for each of fiscal years 2008 through 2012.
``(C) Reservation of funds for projects to benefit
beginning farmers or ranchers, socially disadvantaged
farmers or ranchers, and mid-tier value chains.--
``(i) In general.--The Secretary shall reserve
10 percent of the amounts made available for each
fiscal year under this paragraph to fund projects
that benefit beginning farmers or ranchers or
socially disadvantaged farmers or ranchers.
``(ii) Mid-tier value chains.--The Secretary
shall reserve 10 percent of the amounts made
available for each fiscal year under this
paragraph to fund applications of eligible
entities described in paragraph (1) that propose
to develop mid-tier value chains.

[[Page 1969]]
122 STAT. 1969

``(iii) Unobligated amounts.--Any amounts in
the reserves for a fiscal year established under
clauses (i) and (ii) that are not obligated by
June 30 of the fiscal year shall be available to
the Secretary to make grants under this subsection
to eligible entities in any State, as determined
by the Secretary.''.
SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

Section 6402 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 1621 note; Public Law 107-171) is amended by striking
subsection (i) and inserting the following:
``(i) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $6,000,000 for
each of fiscal years 2008 through 2012.''.
SEC. 6204. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE
ASSISTANCE PROGRAM.

Section 6405 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 2655) is amended to read as follows:
``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE
ASSISTANCE PROGRAM.

``(a) Definition of Emergency Medical Services.--In this section:
``(1) In general.--The term `emergency medical services'
means resources used by a public or nonprofit entity to deliver
medical care outside of a medical facility under emergency
conditions that occur as a result of--
``(A) the condition of a patient; or
``(B) a natural disaster or related condition.
``(2) Inclusion.--The term `emergency medical services'
includes services (whether compensated or volunteer) delivered
by an emergency medical services provider or other provider
recognized by the State involved that is licensed or certified
by the State as--
``(A) an emergency medical technician or the
equivalent (as determined by the State);
``(B) a registered nurse;
``(C) a physician assistant; or
``(D) a physician that provides services similar to
services provided by such an emergency medical services
provider.

``(b) Grants.--The Secretary shall award grants to eligible
entities--
``(1) to enable the entities to provide for improved
emergency medical services in rural areas; and
``(2) to pay the cost of training firefighters and emergency
medical personnel in firefighting, emergency medical practices,
and responding to hazardous materials and bioagents in rural
areas.

``(c) Eligibility.--To be eligible to receive a grant under this
section, an entity shall--
``(1) be--
``(A) a State emergency medical services office;
``(B) a State emergency medical services
association;
``(C) a State office of rural health or an
equivalent agency;

[[Page 1970]]
122 STAT. 1970

``(D) a local government entity;
``(E) an Indian tribe (as defined in section 4 of
the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b));
``(F) a State or local ambulance provider; or
``(G) any other public or nonprofit entity
determined appropriate by the Secretary; and
``(2) prepare and submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require, that includes--
``(A) a description of the activities to be carried
out under the grant; and
``(B) an assurance that the applicant will comply
with the matching requirement of subsection (f).

``(d) Use of Funds.--An entity shall use amounts received under a
grant made under subsection (b) only in a rural area--
``(1) to hire or recruit emergency medical service
personnel;
``(2) to recruit or retain volunteer emergency medical
service personnel;
``(3) to train emergency medical service personnel in
emergency response, injury prevention, safety awareness, or
other topics relevant to the delivery of emergency medical
services;
``(4) to fund training to meet State or Federal
certification requirements;
``(5) to provide training for firefighters or emergency
medical personnel for improvements to the training facility,
equipment, curricula, or personnel;
``(6) to develop new ways to educate emergency health care
providers through the use of technology-enhanced educational
methods (such as distance learning);
``(7) to acquire emergency medical services vehicles,
including ambulances;
``(8) to acquire emergency medical services equipment,
including cardiac defibrillators;
``(9) to acquire personal protective equipment for emergency
medical services personnel as required by the Occupational
Safety and Health Administration; or
``(10) to educate the public concerning cardiopulmonary
resuscitation (CPR), first aid, injury prevention, safety
awareness, illness prevention, or other related emergency
preparedness topics.

``(e) Preference.--In awarding grants under this section, the
Secretary shall give preference to--
``(1) applications that reflect a collaborative effort by 2
or more of the entities described in subparagraphs (A) through
(G) of subsection (c)(1); and
``(2) applications submitted by entities that intend to use
amounts provided under the grant to fund activities described in
any of paragraphs (1) through (5) of subsection (d).

``(f) Matching Requirement.--The Secretary may not make a grant
under this section to an entity unless the entity makes available
(directly or through contributions from other public or private
entities) non-Federal contributions toward the activities to be carried
out under the grant in an amount equal to at least 5 percent of the
amount received under the grant.
``(g) Authorization of Appropriations.--

[[Page 1971]]
122 STAT. 1971

``(1) In general.--There is authorized to be appropriated to
the Secretary to carry out this section not more than
$30,000,000 for each of fiscal years 2008 through 2012.
``(2) Administrative costs.--Not more than 5 percent of the
amount appropriated under paragraph (1) for a fiscal year may be
used for administrative expenses incurred in carrying out this
section.''.
SEC. 6205. 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''.
SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES.

(a) In General.--The Secretary of Agriculture and the Secretary of
Transportation shall jointly conduct a study of transportation issues
regarding the movement of agricultural products, domestically produced
renewable fuels, and domestically produced resources for the production
of electricity for rural areas of the United States, and economic
development in those areas.
(b) Inclusions.--The study shall include an examination of--
(1) the importance of freight transportation, including
rail, truck, and barge, to--
(A) the delivery of equipment, seed, fertilizer, and
other such products important to the development of
agricultural commodities and products;
(B) the movement of agricultural commodities and
products to market;
(C) the delivery of ethanol and other renewable
fuels;
(D) the delivery of domestically produced resources
for use in the generation of electricity for rural
areas;
(E) the location of grain elevators, ethanol plants,
and other facilities;
(F) the development of manufacturing facilities in
rural areas; and
(G) the vitality and economic development of rural
communities;
(2) the sufficiency in rural areas of transportation
capacity, the sufficiency of competition in the transportation
system, the reliability of transportation services, and the
reasonableness of transportation rates;
(3) the sufficiency of facility investment in rural areas
necessary for efficient and cost-effective transportation; and
(4) the accessibility to shippers in rural areas of Federal
processes for the resolution of grievances arising within
various transportation modes.

(c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary and the Secretary of Transportation
shall submit to Congress a report that contains the results of the study
required by subsection (a).

[[Page 1972]]
122 STAT. 1972

Subtitle D--Housing [NOTE: Housing Assistance Council Authorization Act
of 2008. 42 USC 1490e note.]  Assistance Council
SEC. 6301. SHORT TITLE.

This subtitle may be cited as the ``Housing Assistance Council
Authorization Act of 2008''.
SEC. 6302. [NOTE: 42 USC 1490e note.]  ASSISTANCE TO HOUSING
ASSISTANCE COUNCIL.

(a) Use.--The Secretary of Housing and Urban Development may provide
financial assistance to the Housing Assistance Council for use by the
Council to develop the ability and capacity of community-based housing
development organizations to undertake community development and
affordable housing projects and programs in rural areas. Assistance
provided by the Secretary under this section may be used by the Housing
Assistance Council for--
(1) technical assistance, training, support, research, and
advice to develop the business and administrative capabilities
of rural community-based housing development organizations;
(2) loans, grants, or other financial assistance to rural
community-based housing development organizations to carry out
community development and affordable housing activities for low-
and moderate-income families; and
(3) such other activities as may be determined by the
Secretary of Housing and Urban Development and the Housing
Assistance Council.

(b) Authorization of Appropriations.--There is authorized to be
appropriated for financial assistance under this section for the Housing
Assistance Council $10,000,000 for each of fiscal years 2009 through
2011.
SEC. 6303. [NOTE: 42 USC 1490e note.]  AUDITS AND REPORTS.

(a) Audit.--
(1) In general.--The financial transactions and activities
of the Housing Assistance Council shall be audited annually by
an independent certified public accountant or an independent
licensed public accountant certified or licensed by a regulatory
authority of a State or other political subdivision of the
United States.
(2) Requirements of audits.--The Comptroller General of the
United States may rely on any audit completed under paragraph
(1), if the audit complies with--
(A) the annual programmatic and financial
examination requirements established in OMB Circular A-
133; and
(B) generally accepted government auditing
standards.
(3) Report to congress.--The Comptroller General shall
submit to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the
House of Representative a report detailing each audit completed
under paragraph (1).

(b) GAO Report.--The Comptroller General of the United States shall
conduct a study and submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representative on the use of any funds
appropriated to the Housing Assistance Council over the past 7 years.

[[Page 1973]]
122 STAT. 1973

SEC. 6304. [NOTE: 42 USC 1490e note.]  PERSONS NOT LAWFULLY
PRESENT IN THE UNITED STATES.

Aliens who are not lawfully present in the United States shall be
ineligible for financial assistance under this subtitle, as provided and
defined by section 214 of the Housing and Community Development Act of
1980 (42 U.S.C. 1436a). Nothing in this subtitle shall be construed to
alter the restrictions or definitions in such section 214.
SEC. 6305. [NOTE: 42 USC 1490e note.]  LIMITATION ON USE OF
AUTHORIZED AMOUNTS.

None of the amounts authorized by this subtitle may be used to lobby
or retain a lobbyist for the purpose of influencing a Federal, State, or
local governmental entity or officer.

TITLE VII--RESEARCH AND RELATED MATTERS

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

SEC. 7101. DEFINITIONS.

(a) In General.--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 (5) through (8), (9) through
(11), (12) through (14), (15), (16), (17), and (18) as
paragraphs (6) through (9), (11) through (13), (15) through
(17), (20), (5), (18), and (19), respectively, and moving the
paragraphs so as to appear in alphabetical and numerical order;
(3) in paragraph (9) (as redesignated by paragraph (2))--
(A) by striking ``renewable natural resources'' and
inserting ``renewable energy and natural resources'';
and
(B) by striking subparagraph (F) and inserting the
following:
``(F) Soil, water, and related resource conservation
and improvement.'';
(4) by inserting after paragraph (9) (as so redesignated)
the following:
``(10) Hispanic-serving agricultural colleges and
universities.--
``(A) In general.--The term `Hispanic-serving
agricultural colleges and universities' means colleges
or universities that--

[[Page 1974]]
122 STAT. 1974

``(i) qualify as Hispanic-serving
institutions; and
``(ii) offer associate, bachelors, or other
accredited degree programs in agriculture-related
fields.
``(B) Exception.--The term `Hispanic-serving
agricultural colleges and universities' does not include
1862 institutions (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7601)).'';
(5) 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 of the Higher Education Act of 1965 (20 U.S.C. 1101a).'';
and
(6) by inserting after paragraph (13) (as so redesignated)
the following:
``(14) NLGCA institution; non-land-grant college of
agriculture.--
``(A) In general.--The terms `NLGCA Institution' and
`non-land-grant college of agriculture' mean a public
college or university offering a baccalaureate or higher
degree in the study of agriculture or forestry.
``(B) Exclusions.--The terms `NLGCA Institution' and
`non-land-grant college of agriculture' do not include--
``(i) Hispanic-serving agricultural colleges
and universities; or
``(ii) any institution designated under--
``(I) the Act of July 2, 1862
(commonly known as the `First Morrill
Act'; 7 U.S.C. 301 et seq.);
``(II) the Act of August 30, 1890
(commonly known as the `Second Morrill
Act') (7 U.S.C. 321 et seq.);
``(III) the Equity in Educational
Land-Grant Status Act of 1994 (Public
Law 103-382; 7 U.S.C. 301 note); or
``(IV) Public Law 87-788 (commonly
known as the `McIntire-Stennis
Cooperative Forestry Act') (16 U.S.C.
582a et seq.).''.

(b) Conforming Amendments.--
(1) Section 2(3) of the Research Facilities Act (7 U.S.C.
390(3)) is amended by striking ``section 1404(8) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103(8))'' and inserting ``section 1404 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)''.
(2) Section 2(k) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(k)) is amended in the second
sentence by striking ``section 1404(17) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103(17))'' and inserting ``section 1404 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)''.
(3) Section 18(a)(3)(B) of the Food and Nutrition Act of
2008 (7 U.S.C. 2027(a)(3)(B)) is amended by striking ``section
1404(5) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(5)))'' and inserting

[[Page 1975]]
122 STAT. 1975

``section 1404 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3103))''.
(4) Section 1473 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is
amended in the first sentence by striking ``section 1404(16) of
this title'' and inserting ``section 1404(18)''.
(5) Section 1619(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
(A) in paragraph (1), by striking ``section 1404(17)
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(17))'' and
inserting ``section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)'';
(B) in paragraph (5), by striking ``section 1404(7)
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(7))'' and
inserting ``section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)''; and
(C) in paragraph (8), by striking ``section 1404(13)
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103(13))'' and
inserting ``section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)''.
(6) Section 125(c)(1)(C) of Public Law 100-238 (5 U.S.C.
8432 note) is amended by striking ``section 1404(5) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103(5))'' and inserting ``section 1404 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)''.
SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION,
AND ECONOMICS ADVISORY BOARD.

(a) In General.--Section 1408 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``31'' and
inserting ``25''; and
(B) 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, recommended by a coalition of
national livestock organizations.
``(D) 1 member actively engaged in the production of
a plant commodity, recommended by a coalition of
national crop organizations.
``(E) 1 member actively engaged in aquaculture,
recommended by a coalition of national aquacultural
organizations.

[[Page 1976]]
122 STAT. 1976

``(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 (7 U.S.C. 301 note; Public
Law 103-382)).
``(N) 1 member representing NLGCA Institutions.
``(O) 1 member representing Hispanic-serving
institutions.
``(P) 1 member representing the American Colleges of
Veterinary Medicine.
``(Q) 1 member engaged in the transportation of food
and agricultural products to domestic and foreign
markets.
``(R) 1 member representing food retailing and
marketing interests.
``(S) 1 member representing food and fiber
processors.
``(T) 1 member actively engaged in rural economic
development.
``(U) 1 member representing a national consumer
interest group.
``(V) 1 member representing a national forestry
group.
``(W) 1 member representing a national conservation
or natural resource group.
``(X) 1 member representing private sector
organizations involved in international development.
``(Y) 1 member representing a national social
science association.'';
(2) in subsection (g)(1), by striking ``$350,000'' and
inserting ``$500,000''; and
(3) in subsection (h), by striking ``2007'' and inserting
``2012''.

(b) [NOTE: 7 USC 3123 note.]  No Effect on Terms.--Nothing in this
section or any amendment made by this section affects the term of any
member of the National Agricultural Research, Extension, Education, and
Economics Advisory Board serving as of the date of enactment of this
Act.
SEC. 7103. SPECIALTY CROP COMMITTEE REPORT.

Section 1408A(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended by adding
at the end the following:

[[Page 1977]]
122 STAT. 1977

``(4) Analyses of changes in macroeconomic conditions,
technologies, and policies on specialty crop production and
consumption, with particular focus on the effect of those
changes on the financial stability of producers.
``(5) Development of data that provide applied information
useful to specialty crop growers, their associations, and other
interested beneficiaries in evaluating that industry from a
regional and national perspective.''.
SEC. 7104. RENEWABLE ENERGY COMMITTEE.

The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 is amended by inserting after section 1408A (7 U.S.C. 3123a)
the following:
``SEC. 1408B. [NOTE: 7 USC 3123b.]  RENEWABLE ENERGY COMMITTEE.

``(a) Initial Members.--Not [NOTE: Deadline. Establishment.]
later than 90 days after the date of enactment of this section, the
executive committee of the Advisory Board shall establish and appoint
the initial members of a permanent renewable energy committee.

``(b) Duties.--The permanent renewable energy committee shall study
the scope and effectiveness of research, extension, and economics
programs affecting the renewable energy industry.
``(c) Nonadvisory Board Members.--
``(1) In general.--An individual who is not a member of the
Advisory Board may be appointed as a member of the renewable
energy committee.
``(2) Service.--A member of the renewable energy committee
shall serve at the discretion of the executive committee.

``(d) Report by Renewable Energy Committee.--Not later than 180 days
after the date of establishment of the renewable energy committee, and
annually thereafter, the renewable energy committee shall submit to the
Advisory Board a report that contains the findings and any
recommendations of the renewable energy committee with respect to the
study conducted under subsection (b).
``(e) Consultation.--In carrying out the duties described in
subsection (b), the renewable energy committee shall consult with the
Biomass Research and Development Technical Advisory Committee
established under section 9008(d) of the Biomass Research and
Development Act of 2000 (7 U.S.C. 8605).
``(f) Matters To Be Considered in Budget Recommendation.--In
preparing the annual budget recommendations for the Department, the
Secretary shall take into consideration those findings and
recommendations contained in the most recent report of the renewable
energy committee under subsection (d) that are developed by the Advisory
Committee.
``(g) Report by the Secretary.--In the budget material submitted to
Congress by the Secretary in connection with the budget submitted
pursuant to section 1105 of title 31, United States Code, for a fiscal
year, the Secretary shall include a report that describes the ways in
which the Secretary addressed each recommendation of the renewable
energy committee described in subsection (f).''.
SEC. 7105. VETERINARY MEDICINE LOAN REPAYMENT.

(a) In General.--Section 1415A of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3151a) is
amended--
(1) by striking subsection (b) and inserting the following:

[[Page 1978]]
122 STAT. 1978

``(b) Determination of Veterinarian Shortage Situations.--In
determining `veterinarian shortage situations', the Secretary may
consider--
``(1) geographical areas that the Secretary determines have
a shortage of veterinarians; and
``(2) areas of veterinary practice that the Secretary
determines have a shortage of veterinarians, such as food animal
medicine, public health, epidemiology, and food safety.'';
(2) in subsection (c), by adding at the end the following:
``(8) Priority.--In administering the program, the Secretary
shall give priority to agreements with veterinarians for the
practice of food animal medicine in veterinarian shortage
situations.'';
(3) by redesignating subsection (d) as subsection (f); and
(4) by inserting after subsection (c) the following:

``(d) Use of Funds.--None of the funds appropriated to the Secretary
under subsection (f) may be used to carry out section 5379 of title 5,
United States Code.
``(e) Regulations.--Notwithstanding [NOTE: Deadline.]  subchapter
II of chapter 5 of title 5, United States Code, not later than 270 days
after the date of enactment of this subsection, the Secretary shall
promulgate regulations to carry out this section.''.

(b) Disapproval of Transfer of Funds.--Congress disapproves the
transfer of funds from the Cooperative State Research, Education, and
Extension Service to the Food Safety and Inspection Service described in
the notice of use of funds for implementation of the veterinary medicine
loan repayment program authorized by the National Veterinary Medical
Service Act (72 Fed. Reg. 48609 (August 24, 2007)), and such funds shall
be rescinded on the date of enactment of this Act and made available to
the Secretary, without further appropriation or fiscal year limitation,
for use only in accordance with section 1415A of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3151a) (as amended by subsection (a)).
SEC. 7106. 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. 7107. GRANTS TO 1890 SCHOOLS 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. 7108. 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--

[[Page 1979]]
122 STAT. 1979

(1) in the subsection heading, by striking ``Teaching
Awards'' and inserting ``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. 7109. 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 ``Secondary
Education and 2-Year Postsecondary Education Teaching Programs''
and inserting ``Secondary Education, 2-Year Postsecondary
Education, and Agriculture in the K-12 Classroom''; and
(2) in paragraph (3)--
(A) by striking ``secondary schools, and
institutions of higher education that award an
associate's degree'' and inserting ``secondary schools,
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) 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 to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a biennial report
detailing the distribution of funds used to implement the teaching
programs under subsection (j).''.
(c) Authorization of Appropriations.--Section 1417(m) of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (as redesignated by subsection (b)(1)) is amended by striking
``2007'' and inserting ``2012''.
(d) [NOTE: 7 USC 3152 note.]  Effective Date.--The amendments made
by subsection (a) take effect on October 1, 2008.

[[Page 1980]]
122 STAT. 1980

SEC. 7110. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF
ALCOHOLS AND INDUSTRIAL HYDROCARBONS
FROM AGRICULTURAL COMMODITIES AND FOREST
PRODUCTS.

(a) In General.--Section 1419 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is repealed.
(b) Conforming Amendment.--Section 1463(a) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3311(a)) is amended by striking ``1419,''.
SEC. 7111. 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 (a)(1), by inserting ``(including
commodities, livestock, dairy, and specialty crops)'' after
``agricultural sectors'';
(2) 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
National Drought Mitigation Center)'' after ``research
institutions and organizations''; and
(3) in subsection (d), by striking ``2007'' and inserting
``2012''.
SEC. 7112. 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)--
(1) is amended--
(A) in subsection (a)(3), by striking ``2006'' and
inserting ``2012''; and
(B) in subsection (b)--
(i) 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
(ii) in paragraph (3), by striking ``2006''
and inserting ``2012'';
(2) is redesignated as section 1419B of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977; and
(3) [NOTE: 7 USC 3156.]  is moved so as to appear after
section 1419A of that Act (7 U.S.C. 3155).
SEC. 7113. EMPHASIS OF HUMAN NUTRITION INITIATIVE.

Section 1424(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3174(b)) is amended--
(1) in paragraph (1), by striking ``and,'';
(2) in paragraph (2), by striking the comma at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) proposals that examine the efficacy of current
agriculture policies in promoting the health and welfare of
economically disadvantaged populations;''.

[[Page 1981]]
122 STAT. 1981

SEC. 7114. 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. 7115. 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. 7116. NUTRITION EDUCATION PROGRAM.

(a) In General.--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 designation and
inserting the following:
``SEC. 1425. NUTRITION EDUCATION PROGRAM.

``(a) Definition of 1862 Institution and 1890 Institution.--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 ``(b) The Secretary'' and inserting the following:

``(b) Establishment.--The Secretary'';
(4) in subsection (c) (as so redesignated), by striking
``(c) In order to enable'' and inserting the following:

``(c) Employment and Training.--To enable'';
(5) in subsection (d) (as redesignated by paragraph (1))--
(A) by striking ``(d) Beginning'' and inserting the
following:

``(d) Allocation of Funding.--Beginning'';
(B) in paragraph (2), by striking subparagraph (B)
and inserting the following:
``(B) Notwithstanding section 3(d) of the Act of May
8, 1914 (7 U.S.C. 343(d)), the remainder shall be
allocated among the States as follows:
``(i) $100,000 shall be distributed to each
1862 Institution and 1890 Institution.
``(ii) Subject to clause (iii), the remainder
shall be allocated to each State in an amount that
bears the same ratio to the total amount to be
allocated under this clause as--
``(I) 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; bears to
``(II) the total population living
at or below 125 percent of those income
poverty guidelines in all States;

[[Page 1982]]
122 STAT. 1982

as determined by the most recent decennial census
at the time at which each such additional amount
is first appropriated.
``(iii)(I) Before any allocation of funds
under clause (ii), for any fiscal year for which
the amount of funds appropriated for the conduct
of the expanded food and nutrition education
program exceeds the amount of funds appropriated
for the program for fiscal year 2007, the
following percentage of such excess funds for the
fiscal year shall be allocated to the 1890
Institutions in accordance with subclause (II):
``(aa) 10 percent for fiscal year
2009.
``(bb) 11 percent for fiscal year
2010.
``(cc) 12 percent for fiscal year
2011.
``(dd) 13 percent for fiscal year
2012.
``(ee) 14 percent for fiscal year
2013.
``(ff) 15 percent for fiscal year
2014 and for each fiscal year
thereafter.
``(II) Funds made available under subclause
(I) shall 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 those income
poverty guidelines in all States in
which 1890 Institutions are located;
as determined by the most recent decennial census
at the time at which each such additional amount
is first appropriated.
``(iv) Nothing in this subparagraph precludes
the Secretary from developing educational
materials and programs for persons in income
ranges above the level designated in this
subparagraph.''; and
(C) by striking paragraph (3); and
(6) by adding at the end the following:

``(e) Complementary Administration.--The Secretary shall ensure the
complementary administration of the expanded food and nutrition
education program by 1862 Institutions and 1890 Institutions in a State.
``(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the expanded food and nutrition education
program established under section 3(d) of the Act of May 8, 1914 (7
U.S.C. 343(d)), and this section $90,000,000 for each of fiscal years
2009 through 2012.''.
(b) 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)''.
(c) [NOTE: 7 USC 3175 note.]  Effective Date.--The amendments made
by this section take effect on October 1, 2008.

[[Page 1983]]
122 STAT. 1983

SEC. 7117. 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. 7118. COOPERATION AMONG ELIGIBLE INSTITUTIONS.

Section 1433 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by adding at the
end the following:
``(g) Cooperation Among Eligible Institutions.--The Secretary, to
the maximum extent practicable, shall encourage eligible institutions to
cooperate in setting research priorities under this section through the
conduct of regular regional and national meetings.''.
SEC. 7119. 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. 7120. 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. 7121. 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. 7122. 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. 7123. 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. 7124. [NOTE: 7 USC 3222b-1.]  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:

[[Page 1984]]
122 STAT. 1984

``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. 7125. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AND EQUIPMENT AT INSULAR AREA
LAND-GRANT INSTITUTIONS.

The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3101 et seq.) is amended by inserting after
section 1447A (as added by section 7124) the following:
``SEC. 1447B. [NOTE: 7 USC 3222b-2.]  GRANTS TO UPGRADE
AGRICULTURE AND FOOD SCIENCES
FACILITIES AND EQUIPMENT AT INSULAR
AREA LAND-GRANT INSTITUTIONS.

``(a) Purpose.--It is the intent of Congress to assist the land-
grant institutions in the insular areas in efforts to acquire, alter, or
repair facilities or relevant equipment necessary for conducting
agricultural research.
``(b) Method of Awarding Grants.--Grants awarded pursuant to this
section shall be made in such amounts and under such terms and
conditions as the Secretary determines necessary to carry out the
purposes of this section.
``(c) Regulations.--The Secretary may promulgate such rules and
regulations as the Secretary considers to be necessary to carry out this
section.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $8,000,000 for each of fiscal
years 2008 through 2012.''.
SEC. 7126. 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. 7127. 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--
(1) in the first sentence--
(A) by striking ``for each of fiscal years 2003
through 2007,''; and
(B) by inserting ``equal'' before ``matching''; and
(2) by striking the second sentence and all that follows
through paragraph (5).

[[Page 1985]]
122 STAT. 1985

SEC. 7128. 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)(1), by striking ``of consortia''; 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. 7129. 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. [NOTE: 7 USC 3243.]  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.

[[Page 1986]]
122 STAT. 1986

``(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 paragraph (1); 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 [NOTE: Applicability.]  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

[[Page 1987]]
122 STAT. 1987

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.''.

(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 for
payments to Hispanic-serving agricultural 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)) such sums as are necessary
to carry out this paragraph for fiscal year 2008 and
each fiscal year thereafter, to remain available until
expended.
``(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, Guam, or the United States
Virgin Islands.
``(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;
``(ii) 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
``(iii) administered by State institutions
through cooperative agreements with the Hispanic-
serving agricultural colleges and universities 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

[[Page 1988]]
122 STAT. 1988

(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)''.

(c) Conforming Amendments.--
(1) Section 2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601) is amended--
(A) by redesignating paragraph (6) as paragraph (7);
and
(B) by inserting after paragraph (5) the following:
``(6) Hispanic-serving agricultural colleges and
universities.--The term `Hispanic-serving agricultural 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).''.
(2) Section 102(c) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7612(c)) is amended--
(A) in the subsection heading, by inserting ``and
Hispanic-Serving Agricultural Colleges and
Universities'' after ``Institutions''; and
(B) in paragraph (1), by striking `` and 1994
Institution'' and inserting ``1994 Institution, and
Hispanic-serving agricultural college and university''.
(3) Section 103(e) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613(e)) is amended
by adding at the end the following:
``(3) Hispanic-serving agricultural colleges and
universities.--To be eligible to obtain agricultural extension
funds from the Secretary for an activity, each Hispanic-serving
agricultural college and university shall--
``(A) establish a process for merit review of the
activity; and
``(B) review the activity in accordance with such
process.''.
(4) Section 406(b) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended
by striking ``and 1994 Institutions'' and inserting ``, 1994
Institutions, and Hispanic-serving agricultural colleges and
universities''.
SEC. 7130. 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) by striking paragraph (3) and inserting the following:

[[Page 1989]]
122 STAT. 1989

``(3) enter into agreements with land-grant colleges and
universities, Hispanic-serving agricultural colleges and
universities, the Agency for International Development, and
international organizations (such as the United Nations, the
World Bank, regional development banks, international
agricultural research centers), or other organizations,
institutions, or individuals with comparable goals, to promote
and support--
``(A) the development of a viable and sustainable
global agricultural system;
``(B) antihunger and improved international
nutrition efforts; and
``(C) increased quantity, quality, and availability
of food;'';
(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. 7131. 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. 7132. ADMINISTRATION.

(a) Limitation on Indirect Costs for Agricultural Research,
Education, and Extension Programs.--Section 1462(a) of the National
Agriculture Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3310(a)) is amended--
(1) by striking ``a competitive'' and inserting ``any''; and
(2) by striking ``19 percent'' and inserting ``22 percent''.

(b) Auditing, Reporting, Bookkeeping, and Administrative
Requirements.--Section 1469(a)(3) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3315(a)(3)) is
amended by striking ``appropriated'' and inserting ``made available''.
SEC. 7133. 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. 7134. UNIVERSITY RESEARCH.

Section 1463 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by

[[Page 1990]]
122 STAT. 1990

striking ``2007'' each place it appears in subsections (a) and (b) and
inserting ``2012''.
SEC. 7135. 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. 7136. 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. 7137. 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.) is amended by adding
at the end the following:
``SEC. 1473E. [NOTE: 7 USC 3319e.]  NEW ERA RURAL TECHNOLOGY
PROGRAM.

``(a) Definition of Community College.--In this section, the term
`community college' means an institution of higher education (as defined
in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001))--
``(1) that 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;
``(2) that does not provide an educational program for which
the institution awards a bachelor's degree or an equivalent
degree; and
``(3) that--
``(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, 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.

``(b) Functions.--
``(1) Establishment.--
``(A) [NOTE: Grants.]  In general.--The Secretary
shall establish a program to be known as the `New Era
Rural Technology Program', to make grants available for
technology development, applied research, and training
to aid in the development of an agriculture-based
renewable energy workforce.
``(B) Support.--The initiative under this section
shall support the fields of--
``(i) bioenergy;
``(ii) pulp and paper manufacturing; and
``(iii) agriculture-based renewable energy
resources.
``(2) Requirements for funding.--To receive funding under
this section, an entity shall--
``(A) be a community college or advanced
technological center, located in a rural area and in
existence on the

[[Page 1991]]
122 STAT. 1991

date of the enactment of this section, that participates
in agricultural or bioenergy research and applied
research;
``(B) have a proven record of development and
implementation of programs to meet the needs of
students, educators, and 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
``(C) have the ability to leverage existing
partnerships and occupational outreach and training
programs for secondary schools, 4-year institutions, and
relevant nonprofit organizations.

``(c) Grant Priority.--In providing grants under this section, the
Secretary shall give preference to eligible entities working in
partnership--
``(1) to improve information-sharing capacity; and
``(2) to maximize the ability to meet the requirements of
this section.

``(d) 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. 7138. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

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 7137) is amended by adding at the end the following:
``SEC. 1473F. [NOTE: 7 USC 3319c.]  CAPACITY BUILDING GRANTS FOR
NLGCA INSTITUTIONS.

``(a) Grant Program.--
``(1) In general.--The Secretary shall make competitive
grants to NLGCA Institutions to assist the NLGCA Institutions in
maintaining and expanding the capacity of the NLGCA Institutions
to conduct education, research, and outreach activities relating
to--
``(A) agriculture;
``(B) renewable resources; and
``(C) other similar disciplines.
``(2) Use of funds.--An NLGCA Institution that receives a
grant under paragraph (1) may use the funds made available
through the grant to maintain and expand the capacity of the
NLGCA Institution--
``(A) to successfully compete for funds from Federal
grants and other sources to carry out educational,
research, and outreach activities that address priority
concerns of national, regional, State, and local
interest;
``(B) to disseminate information relating to
priority concerns to--
``(i) interested members of the agriculture,
renewable resources, and other relevant
communities;
``(ii) the public; and
``(iii) any other interested entity;
``(C) to encourage members of the agriculture,
renewable resources, and other relevant communities to
participate in priority education, research, and
outreach activities by providing matching funding to
leverage grant funds; and
``(D) through--

[[Page 1992]]
122 STAT. 1992

``(i) the purchase or other acquisition of
equipment and other infrastructure (not including
alteration, repair, renovation, or construction of
buildings);
``(ii) the professional growth and development
of the faculty of the NLGCA Institution; and
``(iii) the development of graduate
assistantships.

``(b) 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. 7139. 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 7138) is amended by adding at the end the following:
``SEC. 1473G. [NOTE: 7 USC 3319j.]  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 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

[[Page 1993]]
122 STAT. 1993

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 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 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.''.
SEC. 7140. AQUACULTURE ASSISTANCE PROGRAMS.

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. 7141. RANGELAND RESEARCH GRANTS.

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. 7142. 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''.

[[Page 1994]]
122 STAT. 1994

SEC. 7143. 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''.

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

SEC. 7201. NATIONAL GENETICS RESOURCES PROGRAM.

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. 7202. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

Section 1641(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1991 through
1997'' and inserting ``2008 through 2012''.
SEC. 7203. PARTNERSHIPS.

Section 1672(d) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5925(d)) is amended by striking ``may'' and
inserting ``shall''.
SEC. 7204. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.

(a) In General.--Section 1672 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended--
(1) in subsection (e)--
(A) in paragraph (3), by striking ``and controlling
aflatoxin in the food and feed chains.'' and inserting
``, improving, and eventually commercializing, alfatoxin
controls in corn and other affected agricultural
products and crops.'';
(B) by striking paragraphs (1), (4), (7), (8), (15),
(17), (21), (23), (26), (27), (32), (34), (41), (42),
(43), and (45);
(C) by redesignating paragraphs (2), (3), (5), (6),
(9) through (14), (16), (18) through (20), (22), (24),
(25), (28) through (31), (33), (35) through (40), and
(44) as paragraphs (1) through (29), respectively; and
(D) by adding at the end the following:
``(30) Air emissions from livestock operations.--Research
and extension grants may be made under this section for the
purpose of conducting field verification tests and developing
mitigation options for air emissions from animal feeding
operations.

[[Page 1995]]
122 STAT. 1995

``(31) Swine genome project.--Research grants may be made
under this section to conduct swine genome research, including
the mapping of the swine genome.
``(32) Cattle fever tick program.--Research and extension
grants may be made under this section to study cattle fever
ticks to facilitate understanding of the role of wildlife in the
persistence and spread of cattle fever ticks, to develop
advanced methods for eradication of cattle fever ticks, and to
improve management of diseases relating to cattle fever ticks
that are associated with wildlife, livestock, and human health.
``(33) Synthetic gypsum.--Research and extension grants may
be made under this section to study the uses of synthetic gypsum
from electric power plants to remediate soil and nutrient
losses.
``(34) Cranberry research program.--Research and extension
grants may be made under this section to study new technologies
to assist cranberry growers in complying with Federal and State
environmental regulations, increase production, develop new
growing techniques, establish more efficient growing
methodologies, and educate cranberry producers about sustainable
growth practices.
``(35) Sorghum research initiative.--Research and extension
grants may be made under this section to study the use of
sorghum as a bioenergy feedstock, promote diversification in,
and the environmental benefits of sorghum production, and
promote water conservation through the use of sorghum.
``(36) Marine shrimp farming program.--Research and
extension grants may be made under this section to establish a
research program to advance and maintain a domestic shrimp
farming industry in the United States.
``(37) Turfgrass research initiative.--Research and
extension grants may be made under this section 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.
``(38) Agricultural worker safety research initiative.--
Research and extension grants may be made under this section--
``(A) to study and demonstrate methods to minimize
exposure of farm and ranch owners and operators,
pesticide handlers, and agricultural workers to
pesticides, including research addressing the unique
concerns of farm workers resulting from long-term
exposure to pesticides; and
``(B) to develop rapid tests for on-farm use to
better inform and educate farmers, ranchers, and farm
and ranch workers regarding safe field re-entry
intervals.
``(39) High plains aquifer region.--Research and extension
grants may be made under this section to carry out
interdisciplinary research relating to diminishing water levels
and increased demand for water in the High Plains aquifer
region.
``(40) Deer initiative.--Research and extension grants may
be made under this section 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.

[[Page 1996]]
122 STAT. 1996

``(41) Pasture-based beef systems research initiative.--
Research and extension grants may be made under this section to
study the development of forage sequences and combinations for
cow-calf, heifer development, stocker, and finishing systems, to
deliver optimal nutritive value for efficient production of
cattle for pasture finishing, to optimize forage systems to
improve marketability of pasture-finished beef, and to assess
the effect of forage quality on reproductive fitness.
``(42) Agricultural practices relating to climate change.--
Research and extension grants may be made under this section for
field and laboratory studies that examine the ecosystem from
gross to minute scales and for projects that explore the
relationship of agricultural practices to climate change.
``(43) Brucellosis control and eradication.--Research and
extension grants may be made under this section to conduct
research relating to the development of vaccines and vaccine
delivery systems to effectively control and eliminate
brucellosis in wildlife, and to assist with the controlling of
the spread of brucellosis from wildlife to domestic animals.
``(44) Bighorn and domestic sheep disease mechanisms.--
Research and extension grants may be made under this section to
conduct research relating to the health status of (including the
presence of infectious diseases in) bighorn and domestic sheep
under range conditions.
``(45) Agricultural development in the american-pacific
region.--Research and extension grants may be made under this
section to support food and agricultural science at a consortium
of land-grant institutions in the American-Pacific region.
``(46) Tropical and subtropical agricultural research.--
Research grants may be made under this section, in equal dollar
amounts to the Caribbean and Pacific Basins, to support tropical
and subtropical agricultural research, including pest and
disease research, at the land-grant institutions in the
Caribbean and Pacific regions.
``(47) Viral hemorrhagic septicemia.--Research and extension
grants may be made under this section to study--
``(A) the effects of viral hemorrhagic septicemia
(referred to in this paragraph as `VHS') on freshwater
fish throughout the natural and expanding range of VHS;
and
``(B) methods for transmission and human-mediated
transport of VHS among waterbodies.
``(48) Farm and ranch safety.--Research and extension grants
may be made under this section to carry out projects to decrease
the incidence of injury and death on farms and ranches,
including--
``(A) 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; and
``(C) agricultural safety education and training.
``(49) Women and minorities in stem fields.--Research and
extension grants may be made under this section to

[[Page 1997]]
122 STAT. 1997

increase participation by women and underrepresented minorities
from rural areas in the fields of science, technology,
engineering, and mathematics, with priority given to eligible
institutions that carry out continuing programs funded by the
Secretary.
``(50) Alfalfa and forage research program.--Research and
extension grants may be made under this section for the purpose
of studying improvements in alfalfa and forage yields, biomass
and persistence, pest pressures, the bioenergy potential of
alfalfa and other forages, and systems to reduce losses during
harvest and storage.
``(51) Food systems veterinary medicine.--Research grants
may be made under this section to address health issues that
affect food-producing animals, food safety, and the environment,
and to improve information resources, curriculum, and clinical
education of students with respect to food animal veterinary
medicine and food safety.
``(52) Biochar research.--Grants may be made under this
section for research, extension, and integrated activities
relating to the study of biochar production and use, including
considerations of agronomic and economic impacts, synergies of
coproduction with bioenergy, and the value of soil enhancements
and soil carbon sequestration.'';
(2) by redesignating subsection (h) as subsection (j);
(3) by inserting after subsection (g) the following:

``(h) Pollinator Protection.--
``(1) Research and extension.--
``(A) Grants.--Research and extension grants may be
made under this section--
``(i) to survey and collect data on bee colony
production and health;
``(ii) to investigate pollinator biology,
immunology, ecology, genomics, and bioinformatics;
``(iii) to 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;
``(iv) to develop mitigative and preventative
measures to improve native and managed pollinator
health; and
``(v) to promote the health of honey bees and
native pollinators through habitat conservation
and best management practices.
``(B) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $10,000,000 for each of fiscal years 2008
through 2012.
``(2) Department of agriculture capacity and
infrastructure.--
``(A) In general.--The Secretary shall, to the
maximum extent practicable, increase the capacity and
infrastructure of the Department--

[[Page 1998]]
122 STAT. 1998

``(i) to address colony collapse disorder and
other long-term threats to pollinator health,
including the hiring of additional personnel; and
``(ii) to conduct research on colony collapse
disorder and other pollinator issues at the
facilities of the Department.
``(B) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $7,250,000 for each of fiscal years 2008
through 2012.
``(3) [NOTE: Appropriation authorization.]  Honey bee pest
and pathogen surveillance.--There is authorized to be
appropriated to conduct a nationwide honey bee pest and pathogen
surveillance program $2,750,000 for each of fiscal years 2008
through 2012.
``(4) Annual report on response to honey bee colony collapse
disorder.--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 annual
report describing the progress made by the Department of
Agriculture in--
``(A) investigating the cause or causes of honey bee
colony collapse; and
``(B) finding appropriate strategies to reduce
colony loss.

``(i) Regional Centers of Excellence.--
``(1) Establishment.--The Secretary shall prioritize
regional centers of excellence established for specific
agricultural commodities for the receipt of funding under this
section.
``(2) Composition.--A regional center of excellence shall be
composed of 1 or more colleges and universities (including land-
grant institutions, schools of forestry, schools of veterinary
medicine, or NLGCA Institutions (as defined in section 1404 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103))) that provide financial
support to the regional center of excellence.
``(3) Criteria for regional centers of excellence.--The
criteria for consideration to be a regional center of excellence
shall include efforts--
``(A) to ensure coordination and cost-effectiveness
by reducing unnecessarily duplicative efforts regarding
research, teaching, and extension;
``(B) to leverage available resources by using
public/private partnerships among agricultural industry
groups, institutions of higher education, and the
Federal Government;
``(C) to implement teaching initiatives to increase
awareness and effectively disseminate solutions to
target audiences through extension activities;
``(D) to increase the economic returns to rural
communities by identifying, attracting, and directing
funds to high-priority agricultural issues; and
``(E) to improve teaching capacity and
infrastructure at colleges and universities (including
land-grant institutions, schools of forestry, and
schools of veterinary medicine).''; and
(4) in subsection (j) (as redesignated by paragraph (2)), by
striking ``2007'' and inserting ``2012''.

[[Page 1999]]
122 STAT. 1999

(b) Conforming Amendments.--Section 1672 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended--
(1) in the first sentence of subsection (a), by striking
``(e), (f), and (g)'' and inserting ``(e) through (i)''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``paragraphs (1),
(6), (7), and (11)'' and inserting ``paragraphs (4),
(7), (8), and (11)(B)''; and
(B) in paragraph (2), by striking ``subsection (e)''
and inserting ``subsections (e) through (i)''.
SEC. 7205. 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) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) [NOTE: Applicability.]  In general.--Paragraphs (4),
(7), (8), and (11)(B) of subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C. 450i) shall
apply with respect to the making of grants under this
section.'';
(2) by striking subsection (d) and inserting the following:

``(d) Priority.--Following the completion of a peer review process
for grant proposals received under this section, the Secretary shall
give priority to those grant proposals that involve--
``(1) the cooperation of multiple entities; and
``(2) States or regions with a high concentration of
livestock, dairy, or poultry operations.'';
(3) in subsection (e)--
(A) in paragraph (1)(B), by inserting ``and dairy
and beef cattle waste'' after ``swine waste''; and
(B) by striking paragraph (5) and inserting the
following:
``(5) Alternative uses and renewable energy.--Research and
extension grants may be made under this section for the purpose
of finding innovative methods and technologies to allow
agricultural operators to make use of animal waste, such as use
as fertilizer, methane digestion, composting, and other useful
byproducts.'';
(4) by redesignating subsection (g) as subsection (f); and
(5) in subsection (f) (as so redesignated), by striking
``2007'' and inserting ``2012''.
SEC. 7206. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

(a) In General.--Section 1672B of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) (commonly known as
the ``Organic Agriculture Research and Extension Initiative'') is
amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) in paragraph (6), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:

[[Page 2000]]
122 STAT. 2000

``(7) examining optimal conservation and environmental
outcomes relating to organically produced agricultural products;
and
``(8) developing new and improved seed varieties that are
particularly suited for organic agriculture.''; and
(2) by adding at the end the following:

``(f) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section--
``(A) $18,000,000 for fiscal year 2009; and
``(B) $20,000,000 for each of fiscal years 2010
through 2012.
``(2) Additional funding.--In addition to amounts made
available under paragraph (1), there is authorized to be
appropriated to carry out this section $25,000,000 for each of
fiscal years 2009 through 2012.''.

(b) [NOTE: 7 USC 5925b note.]  Coordination.--In carrying out the
amendment made by this section, the Secretary shall ensure that the
Division Chief of the applicable Research, Education, and Extension
Office established under section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971) coordinates projects and
activities under this section to ensure, to the maximum extent
practicable, that unnecessary duplication of effort is eliminated or
minimized.
SEC. 7207. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY EFFICIENCY
RESEARCH AND EXTENSION INITIATIVE.

Title XVI of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5801 et seq.) is amended by inserting after section 1672B
(7 U.S.C. 5925b) the following:
``SEC. 1672C. [NOTE: 7 USC 5925e.]  AGRICULTURAL BIOENERGY
FEEDSTOCK AND ENERGY EFFICIENCY
RESEARCH AND EXTENSION INITIATIVE.

``(a) Establishment and Purpose.--There is established within the
Department of Agriculture an agricultural bioenergy feedstock and energy
efficiency research and extension initiative (referred to in this
section as the `Initiative') for the purpose of enhancing the production
of biomass energy crops and the energy efficiency of agricultural
operations.
``(b) Competitive Research and Extension Grants Authorized.--In
carrying out this section, the Secretary shall make competitive grants
to support research and extension activities specified in subsections
(c) and (d).
``(c) Agricultural Bioenergy Feedstock Research and Extension
Areas.--
``(1) In general.--Agricultural bioenergy feedstock research
and extension activities funded under the Initiative shall focus
on improving agricultural biomass production, biomass conversion
in biorefineries, and biomass use by--
``(A) supporting on-farm research on crop species,
nutrient requirements, management practices,
environmental impacts, and economics;
``(B) supporting the development and operation of
on-farm, integrated biomass feedstock production
systems;
``(C) leveraging the broad scientific capabilities
of the Department of Agriculture and other entities in--
``(i) plant genetics and breeding;

[[Page 2001]]
122 STAT. 2001

``(ii) crop production;
``(iii) soil and water science;
``(iv) use of agricultural waste; and
``(v) carbohydrate, lipid, protein, and lignin
chemistry, enzyme development, and biochemistry;
and
``(D) supporting the dissemination of any of the
research conducted under this subsection that will
assist in achieving the goals of this section.
``(2) Selection criteria.--In selecting grant recipients for
projects under paragraph (1), the Secretary shall consider--
``(A) the capabilities and experiences of the
applicant, including--
``(i) research in actual field conditions; and
``(ii) engineering and research knowledge
relating to biofuels or the production of inputs
for biofuel production;
``(B) the range of species types and cropping
practices proposed for study (including species types
and practices studied using side-by-side comparisons of
those types and practices);
``(C) the need for regional diversity among
feedstocks;
``(D) the importance of developing multiyear data
relevant to the production of biomass feedstock crops;
``(E) the extent to which the project involves
direct participation of agricultural producers;
``(F) the extent to which the project proposal
includes a plan or commitment to use the biomass
produced as part of the project in commercial channels;
and
``(G) such other factors as the Secretary may
determine.

``(d) Energy-Efficiency Research and Extension Areas.--On-farm
energy-efficiency research and extension activities funded under the
Initiative shall focus on developing and demonstrating technologies and
production practices relating to--
``(1) improving on-farm renewable energy production;
``(2) encouraging efficient on-farm energy use;
``(3) promoting on-farm energy conservation;
``(4) making a farm or ranch energy-neutral; and
``(5) enhancing on-farm usage of advanced technologies to
promote energy efficiency.

``(e) [NOTE: Public information.]  Best Practices Database.--The
Secretary shall develop a best-practices database that includes
information, to be available to the public, on--
``(1) the production potential of a variety of biomass
crops; and
``(2) best practices for production, collection, harvesting,
storage, and transportation of biomass crops to be used as a
source of bioenergy.

``(f) Administration.--
``(1) [NOTE: Applicability.]  In general.--Paragraphs (4),
(7), (8), and (11)(B) of subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b))
shall apply with respect to making grants under this section.
``(2) Consultation and coordination.--The Secretary shall--
``(A) [NOTE: Grants.]  make the grants in
consultation with the National Agricultural Research,
Extension, Education, and Economics Advisory Board; and

[[Page 2002]]
122 STAT. 2002

``(B) coordinate projects and activities carried out
under the Initiative with projects and activities under
section 9008 of the Farm Security and Rural Investment
Act of 2002 to ensure, to the maximum extent
practicable, that--
``(i) unnecessary duplication of effort is
eliminated or minimized; and
``(ii) the respective strengths of the
Department of Agriculture and the Department of
Energy are appropriately used.
``(3) Grant priority.--The Secretary shall give priority to
grant applications that integrate research and extension
activities established under subsections (c) and (d),
respectively.
``(4) Matching funds required.--As a condition of receiving
a grant under this section, the Secretary shall require the
recipient of the grant to provide funds or in-kind support from
non-Federal sources in an amount that is at least equal to the
amount provided by the Federal Government.
``(5) Partnerships encouraged.--Following the completion of
a peer review process for grant proposals received under this
section, the Secretary may provide a priority to those grant
proposals found as a result of the peer review process--
``(A) to be scientifically meritorious; and
``(B) that involve cooperation--
``(i) among multiple entities; and
``(ii) with agricultural producers.

``(g) 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. 7208. FARM BUSINESS MANAGEMENT AND BENCHMARKING.

The Food, Agriculture, Conservation and Trade Act of 1990 is amended
by inserting after section 1672C (as added by section 7207) the
following:
``SEC. 1672D. [NOTE: 7 USC 5925f.]  FARM BUSINESS MANAGEMENT.

``(a) In General.--The Secretary may make competitive research and
extension grants for the purpose of--
``(1) improving the farm management knowledge and skills of
agricultural producers; and
``(2) establishing and maintaining a national, publicly
available farm financial management database to support improved
farm management.

``(b) Selection Criteria.--In allocating funds made available to
carry out this section, the Secretary may give priority to grants that--
``(1) demonstrate an ability to work directly with
agricultural producers;
``(2) collaborate with farm management and producer
associations;
``(3) address the farm management needs of a variety of
crops and regions of the United States; and
``(4) use and support the national farm financial management
database.

``(c) [NOTE: Applicability.]  Administration.--Paragraphs (4),
(7), (8), and (11)(B) of subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b)) shall apply with
respect to the making of grants under this section.

[[Page 2003]]
122 STAT. 2003

``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
SEC. 7209. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

Section 1673 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5926) is repealed.
SEC. 7210. 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. 7211. RESEARCH ON HONEY BEE DISEASES.

Section 1681 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5934) is repealed.
SEC. 7212. 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. 7301. PEER AND MERIT REVIEW.

Section 103(a) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended by adding at
the end the following:
``(3) Consideration.--Peer and merit review procedures
established under paragraphs (1) and (2) shall not take the
offer or availability of matching funds into consideration.''.
SEC. 7302. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT
QUALITY RESEARCH.

Section 402 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7622) is repealed.
SEC. 7303. PRECISION AGRICULTURE.

Section 403 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7623) is repealed.
SEC. 7304. 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. 7305. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

Section 405 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7625) is repealed.

[[Page 2004]]
122 STAT. 2004

SEC. 7306. 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. 7307. FUSARIUM GRAMINEARUM GRANTS.

Section 408 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7628) is amended--
(1) in subsection (a), in the subsection heading, by
striking ``Grant'' and inserting ``Grants''; and
(2) in subsection (e), by striking ``2007'' and inserting
``2012''.
SEC. 7308. 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. 7309. GRANTS FOR YOUTH ORGANIZATIONS.

Section 410 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7630) is amended by striking subsections
(b) and (c) and inserting the following:
``(b) Flexibility.--The Secretary shall provide maximum flexibility
in content delivery to each organization receiving funds under this
section so as to ensure that the unique goals of each organization, as
well as the local community needs, are fully met.
``(c) Redistribution of Funding Within Organizations Authorized.--
Recipients of funds under this section may redistribute all or part of
the funds received to individual councils or local chapters within the
councils without further need of approval from the Secretary.
``(d) 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. 7310. 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. 7311. SPECIALTY CROP RESEARCH INITIATIVE.

(a) In General.--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. [NOTE: 7 USC 7632.]  SPECIALTY CROP RESEARCH
INITIATIVE.

``(a) Definitions.--In this section:
``(1) Initiative.--The term `Initiative' means the specialty
crop research and extension initiative established by subsection
(b).
``(2) Specialty crop.--The term `specialty crop' has the
meaning given that 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 and extension initiative to address

[[Page 2005]]
122 STAT. 2005

the critical needs of the specialty crop industry by developing and
disseminating science-based tools to address needs of specific crops and
their regions, including--
``(1) research in plant breeding, genetics, and genomics to
improve crop characteristics, such as--
``(A) product, taste, quality, and appearance;
``(B) environmental responses and tolerances;
``(C) nutrient management, including plant nutrient
uptake efficiency;
``(D) pest and disease management, including
resistance to pests and diseases resulting in reduced
application management strategies; and
``(E) enhanced phytonutrient content;
``(2) efforts to identify and address threats from pests and
diseases, including threats to specialty crop pollinators;
``(3) efforts to improve production efficiency,
productivity, and profitability over the long term (including
specialty crop policy and marketing);
``(4) new innovations and technology, including improved
mechanization and technologies that delay or inhibit ripening;
and
``(5) methods to prevent, detect, monitor, control, and
respond to potential food safety hazards in the production and
processing of specialty crops, including fresh produce.

``(c) Eligible Entities.--The Secretary may carry out the Initiative
through--
``(1) Federal agencies;
``(2) national laboratories;
``(3) colleges and universities;
``(4) research institutions and organizations;
``(5) private organizations or corporations;
``(6) State agricultural experiment stations;
``(7) individuals; or
``(8) groups consisting of 2 or more entities described in
paragraphs (1) through (7).

``(d) [NOTE: Grants.]  Research Projects.--In carrying out this
section, the Secretary shall award grants on a competitive basis.

``(e) Administration.--
``(1) In general.--With respect to grants awarded under
subsection (d), the Secretary shall--
``(A) seek and accept proposals for grants;
``(B) determine the relevance and merit of proposals
through a system of peer and merit review in accordance
with section 103; and
``(C) [NOTE: Grants.]  award grants on the basis
of merit, quality, and relevance.
``(2) Term.--The term of a grant under this section may not
exceed 10 years.
``(3) Matching funds required.--The Secretary shall require
the recipient of a grant under this section to provide funds or
in-kind support from non-Federal sources in an amount that is at
least equal to the amount provided by the Federal Government.
``(4) Other conditions.--The Secretary may set such other
conditions on the award of a grant under this section as the
Secretary determines to be appropriate.

[[Page 2006]]
122 STAT. 2006

``(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 results to
producers and the public.

``(g) Buildings and Facilities.--Funds made available under this
section shall not be used for the construction of a new building or
facility or the acquisition, expansion, remodeling, or alteration of an
existing building or facility (including site grading and improvement,
and architect fees).
``(h) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section $30,000,000 for fiscal year 2008 and $50,000,000
for each of fiscal years 2009 through 2012, from which
activities under each of paragraphs (1) through (5) of
subsection (b) shall be allocated not less than 10 percent.
``(2) Authorization of appropriations.--In addition to funds
made available under paragraph (1), there is authorized to be
appropriated to carry out this section $100,000,000 for each of
fiscal years 2008 through 2012.
``(3) Transfer.--Of the funds made available to the
Secretary under paragraph (1) for fiscal year 2008 and
authorized for use for payment of administrative expenses under
section 1469(a)(3) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3315(a)(3)), the Secretary shall transfer, upon the date of
enactment of this section, $200,000 to the Office of Prevention,
Pesticides, and Toxic Substances of the Environmental Protection
Agency for use in conducting a meta-analysis relating to methyl
bromide.
``(4) Availability.--Funds made available pursuant to this
subsection for a fiscal year shall remain available until
expended to pay for obligations incurred in that fiscal year.''.

(b) [NOTE: 7 USC 7632 note.]  Coordination.--In carrying out the
amendment made by this section, the Secretary shall ensure that the
Division Chief of the applicable Research, Education, and Extension
Office established under section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971) coordinates projects and
activities under this section to ensure, to the maximum extent
practicable, that unnecessary duplication of effort is eliminated or
minimized.
SEC. 7312. 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.--In addition to any other
funds available to carry out subsection (c), there is authorized to be
appropriated to carry out this section $2,500,000 for each of fiscal
years 2008 through 2012.''.
SEC. 7313. OFFICE OF PEST MANAGEMENT POLICY.

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 2007]]
122 STAT. 2007

Subtitle D--Other Laws

SEC. 7401. 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. 7402. 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 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103-382) is amended--
(1) in subsection (a)(3), in the matter preceding
subparagraph (A), by inserting ``this section and'' before
``sections 534,''; and
(2) in the first sentence of subsection (b), by striking
``2007'' and inserting ``2012''.

(c) Redistribution.--Section 534(a)(3) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is
amended--
(1) by striking ``The amounts'' and inserting the following:
``(A) In general.--Except as provided in
subparagraph (B), the amounts''; and
(2) by adding at the end the following:
``(B) Redistribution.--Funds that would be paid to a
1994 Institution under paragraph (2) shall be withheld
from that 1994 Institution and redistributed among the
other 1994 Institutions if that 1994 Institution--
``(i) declines to accept funds under paragraph
(2); or
``(ii) fails to meet the accreditation
requirements under section 533(a)(3).''.

(d) 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''.
(e) 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''.
(f) [NOTE: 7 USC 1301 note.]  Effective Date.--The amendment made
by subsection (a) takes effect on October 1, 2008.
SEC. 7403. SMITH-LEVER ACT.

(a) Program.--Section 3(d) of the Smith-Lever Act (7 U.S.C. 343(d))
is amended in the second sentence by striking ``apply for and receive''
and all that follows through paragraph (2) and inserting ``compete for
and receive funds directly from the Secretary of Agriculture.''.
(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.

[[Page 2008]]
122 STAT. 2008

(c) Conforming Amendment.--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 ``after September 30, 1995,
under section 3(d) of that Act (7 U.S.C. 343(d))'' and all that follows
through the end of the sentence and inserting ``under section 3(d) of
that Act (7 U.S.C. 343(d)).''.
SEC. 7404. 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. 7405. AGRICULTURAL EXPERIMENT STATION 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''.

[[Page 2009]]
122 STAT. 2009

SEC. 7406. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

(a) In General.--Subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended to read as
follows:
``(b) Agriculture and Food Research Initiative.--
``(1) Establishment.--There is established in the Department
of Agriculture an Agriculture and Food Research Initiative under
which the Secretary of Agriculture (referred to in this
subsection as `the Secretary') may make competitive grants for
fundamental and applied research, extension, and education to
address food and agricultural sciences (as defined under section
1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)).
``(2) Priority areas.--The competitive grants program
established under this subsection shall address the following
areas:
``(A) Plant health and production and plant
products.--Plant systems, including--
``(i) plant genome structure and function;
``(ii) molecular and cellular genetics and
plant biotechnology;
``(iii) conventional breeding, including
cultivar and breed development, selection theory,
applied quantitative genetics, breeding for
improved food quality, breeding for improved local
adaptation to biotic stress and abiotic stress,
and participatory breeding;
``(iv) plant-pest interactions and biocontrol
systems;
``(v) crop plant response to environmental
stresses;
``(vi) unproved nutrient qualities of plant
products; and
``(vii) new food and industrial uses of plant
products.
``(B) Animal health and production and animal
products.--Animal systems, including--
``(i) aquaculture;
``(ii) cellular and molecular basis of animal
reproduction, growth, disease, and health;
``(iii) animal biotechnology;
``(iv) conventional breeding, including breed
development, selection theory, applied
quantitative genetics, breeding for improved food
quality, breeding for improved local adaptation to
biotic stress and abiotic stress, and
participatory breeding;
``(v) identification of genes responsible for
improved production traits and resistance to
disease;
``(vi) improved nutritional performance of
animals;
``(vii) improved nutrient qualities of animal
products and uses; and
``(viii) the development of new and improved
animal husbandry and production systems that take
into account production efficiency, animal well-
being, and animal systems applicable to
aquaculture.
``(C) Food safety, nutrition, and health.--
Nutrition, food safety and quality, and health,
including--
``(i) microbial contaminants and pesticides
residue relating to human health;

[[Page 2010]]
122 STAT. 2010

``(ii) links between diet and health;
``(iii) bioavailability of nutrients;
``(iv) postharvest physiology and practices;
and
``(v) improved processing technologies.
``(D) Renewable energy, natural resources, and
environment.--Natural resources and the environment,
including--
``(i) fundamental structures and functions of
ecosystems;
``(ii) biological and physical bases of
sustainable production systems;
``(iii) minimizing soil and water losses and
sustaining surface water and ground water quality;
``(iv) global climate effects on agriculture;
``(v) forestry; and
``(vi) biological diversity.
``(E) Agriculture systems and technology.--
Engineering, products, and processes, including--
``(i) new uses and new products from
traditional and nontraditional crops, animals,
byproducts, and natural resources;
``(ii) robotics, energy efficiency, computing,
and expert systems;
``(iii) new hazard and risk assessment and
mitigation measures; and
``(iv) water quality and management.
``(F) Agriculture economics and rural communities.--
Markets, trade, and policy, including--
``(i) strategies for entering into and being
competitive in domestic and overseas markets;
``(ii) farm efficiency and profitability,
including the viability and competitiveness of
small and medium-sized dairy, livestock, crop and
other commodity operations;
``(iii) new decision tools for farm and market
systems;
``(iv) choices and applications of technology;
``(v) technology assessment; and
``(vi) new approaches to rural development,
including rural entrepreneurship.
``(3) Term.--The term of a competitive grant made under this
subsection may not exceed 10 years.
``(4) [NOTE: Grants.]  General administration.--In making
grants under this subsection, the Secretary shall--
``(A) seek and accept proposals for grants;
``(B) determine the relevance and merit of proposals
through a system of peer and merit review in accordance
with section 103 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7613);
``(C) award grants on the basis of merit, quality,
and relevance;
``(D) solicit and consider input from persons who
conduct or use agricultural research, extension, or
education in accordance with section 102(b) of the
Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7612(b)); and

[[Page 2011]]
122 STAT. 2011

``(E) in seeking proposals for grants under this
subsection and in performing peer review evaluations of
such proposals, seek the widest participation of
qualified individuals in the Federal Government,
colleges and universities, State agricultural experiment
stations, and the private sector.
``(5) Allocation of funds.--In making grants under this
subsection, the Secretary shall allocate funds to the
Agriculture and Food Research Initiative to ensure that, of
funds allocated for research activities--
``(A) not less than 60 percent is made available to
make grants for fundamental research (as defined in
subsection (f)(1) of section 251 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971)),
of which--
``(i) not less than 30 percent is made
available to make grants for research to be
conducted by multidisciplinary teams; and
``(ii) not more than 2 percent is used for
equipment grants under paragraph (6)(A); and
``(B) not less than 40 percent is made available to
make grants for applied research (as defined in
subsection (f)(1) of section 251 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971)).
``(6) Special considerations.--In making grants under this
subsection, the Secretary may assist in the development of
capabilities in the agricultural, food, and environmental
sciences by providing grants--
``(A) to an institution to allow for the improvement
of the research, development, technology transfer, and
education capacity of the institution through the
acquisition of special research equipment and the
improvement of agricultural education and teaching,
except that the Secretary shall use not less than 25
percent of the funds made available for grants under
this subparagraph to provide fellowships to outstanding
pre- and post-doctoral students for research in the
agricultural sciences;
``(B) to a single investigator or coinvestigators
who are beginning research careers and do not have an
extensive research publication record, except that, to
be eligible for a grant under this subparagraph, an
individual shall be within 5 years of the beginning of
the initial career track position of the individual;
``(C) to ensure that the faculty of small, mid-
sized, and minority-serving institutions who have not
previously been successful in obtaining competitive
grants under this subsection receive a portion of the
grants; and
``(D) to improve research, extension, and education
capabilities in States (as defined in section 1404 of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)) in which
institutions have been less successful in receiving
funding under this subsection, based on a 3-year rolling
average of funding levels.
``(7) Eligible entities.--The Secretary may make grants to
carry out research, extension, and education under this
subsection to--
``(A) State agricultural experiment stations;

[[Page 2012]]
122 STAT. 2012

``(B) colleges and universities;
``(C) university research foundations;
``(D) other research institutions and organizations;
``(E) Federal agencies;
``(F) national laboratories;
``(G) private organizations or corporations;
``(H) individuals; or
``(I) any group consisting of 2 or more of the
entities described in subparagraphs (A) through (H).
``(8) Construction prohibited.--Funds made available for
grants under this subsection shall not be used for the
construction of a new building or facility or the acquisition,
expansion, remodeling, or alteration of an existing building or
facility (including site grading and improvement, and architect
fees).
``(9) Matching funds.--
``(A) Equipment grants.--
``(i) In general.--Except as provided in
clause (ii), in the case of a grant made under
paragraph (6)(A), the amount provided under this
subsection may not exceed 50 percent of the cost
of the special research equipment or other
equipment acquired using funds from the grant.
``(ii) Waiver.--The Secretary may waive all or
part of the matching requirement under clause (i)
in the case of a college, university, or research
foundation maintained by a college or university
that ranks in the lowest \1/3\ of such colleges,
universities, and research foundations on the
basis of Federal research funds received, if the
equipment to be acquired using funds from the
grant costs not more than $25,000 and has multiple
uses within a single research project or is usable
in more than 1 research project.
``(B) Applied research.--As a condition of making a
grant under paragraph (5)(B), the Secretary shall
require the funding of the grant to be matched with
equal matching funds from a non-Federal source if the
grant is for applied research that is--
``(i) commodity-specific; and
``(ii) not of national scope.
``(10) Program administration.--To the maximum extent
practicable, the Director of the National Institute of Food and
Agriculture, in coordination with the Under Secretary for
Research, Education, and Economics, shall allocate grants under
this subsection to high-priority research, taking into
consideration, when available, the determinations made by the
National Agricultural Research, Extension, Education, and
Economics Advisory Board (as established under section 1408 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3123)).
``(11) Authorization of appropriations.--
``(A) In general.--There is authorized to be
appropriated to carry out this subsection $700,000,000
for each of fiscal years 2008 through 2012, of which--
``(i) not less than 30 percent shall be made
available for integrated research pursuant to
section 406 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7
U.S.C. 7626); and

[[Page 2013]]
122 STAT. 2013

``(ii) not more than 4 percent may be retained
by the Secretary to pay administrative costs
incurred by the Secretary in carrying out this
subsection.
``(B) Availability.--Funds made available under this
paragraph shall--
``(i) be available for obligation for a 2-year
period beginning on October 1 of the fiscal year
for which the funds are first made available; and
``(ii) remain available until expended to pay
for obligations incurred during that 2-year
period.''.

(b) Repeals.--
(1) Section 401 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621) is repealed.
(2) Subsection (d) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(d)) is repealed.

(c) [NOTE: 7 USC 450i note.]  Effect on Current Solicitations.--
The amendments made by this section shall not apply to any solicitation
for grant applications issued by the Cooperative State Research,
Education, and Extension Service before the date of enactment of this
Act.

(d) Conforming Amendments.--
(1) Section 1473 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is
amended in the first sentence by striking ``and subsection
(d)''.
(2) Section 1671(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5924(d) is amended by striking
``Paragraphs (1), (6), (7), and (11)'' and inserting
``Paragraphs (4), (7), (8), and (11)(B)''.
(3) Section 1672B(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925b(b)) is amended by striking
``Paragraphs (1), (6), (7), and (11)'' and inserting
``Paragraphs (4), (7), (8), and (11)(B)''.
SEC. 7407. AGRICULTURAL RISK PROTECTION ACT OF 2000.

Section 221 of the Agricultural Risk Protection Act of 2000 (7
U.S.C. 6711(g)) is amended by striking subsection (g) and inserting the
following:
``(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $15,000,000 for each of fiscal
years 2007 through 2012.''.
SEC. 7408. EXCHANGE OR SALE AUTHORITY.

Title III of the Department of Agriculture Reorganization Act of
1994 (Public Law 103-354; 108 Stat. 3238) is amended by adding at the
end the following:
``SEC. 307. [NOTE: 7 USC 2241a.]  EXCHANGE OR SALE AUTHORITY.

``(a) Definition of Qualified Item of Personal Property.--In this
section, the term `qualified item of personal property' means--
``(1) an animal;
``(2) an animal product;
``(3) a plant; or
``(4) a plant product.

``(b) General Authority.--Except as provided in subsection (c),
notwithstanding chapter 5 of subtitle I of title 40, United States Code,
the Secretary, acting through the Under Secretary for Research,
Education, and Economics, in managing personal

[[Page 2014]]
122 STAT. 2014

property for the purpose of carrying out the research functions of the
Department, may exchange, sell, or otherwise dispose of any qualified
item of personal property, including by way of public auction, and may
retain and apply the sale or other proceeds, without further
appropriation and without fiscal year limitation, in whole or in partial
payment--
``(1) to acquire any qualified item of personal property; or
``(2) to offset costs related to the maintenance, care, or
feeding of any qualified item of personal property.

``(c) Exception.--Subsection (b) does not apply to the free
dissemination of new varieties of seeds and germplasm in accordance with
section 520 of the Revised Statutes (commonly known as the `Department
of Agriculture Organic Act') (7 U.S.C. 2201).''.
SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

Title III of the Department of Agriculture Reorganization Act of
1994 (Public Law 103-354; 108 Stat. 3238) (as amended by section 7408)
is amended by adding at the end the following:
``SEC. 308. [NOTE: 7 USC 3125a note.]  ENHANCED USE LEASE
AUTHORITY PILOT PROGRAM.

``(a) Establishment.--To enhance the use of real property
administered by agencies of the Department, the Secretary may establish
a pilot program, in accordance with this section, at the Beltsville
Agricultural Research Center of the Agricultural Research Service and
the National Agricultural Library to lease nonexcess property of the
Center or the Library to any individual or entity, including agencies or
instrumentalities of State or local governments.
``(b) Requirements.--
``(1) In general.--Notwithstanding chapter 5 of subtitle I
of title 40, United States Code, the Secretary may lease real
property at the Beltsville Agricultural Research Center or the
National Agricultural Library in accordance with such terms and
conditions as the Secretary may prescribe, if the Secretary
determines that the lease--
``(A) is consistent with, and will not adversely
affect, the mission of the Department agency
administering the property;
``(B) will enhance the use of the property;
``(C) will not permit any portion of Department
agency property or any facility of the Department to be
used for the public retail or wholesale sale of
merchandise or residential development;
``(D) will not permit the construction or
modification of facilities financed by non-Federal
sources to be used by an agency, except for incidental
use; and
``(E) will not include any property or facility
required for any Department agency purpose without prior
consideration of the needs of the agency.
``(2) Term.--The term of a lease under this section shall
not exceed 30 years.
``(3) Consideration.--
``(A) In general.--Consideration provided for a
lease under this section shall be--
``(i) in an amount equal to fair market value,
as determined by the Secretary; and
``(ii) in the form of cash.

[[Page 2015]]
122 STAT. 2015

``(B) Use of funds.--
``(i) In general.--Consideration provided for
a lease under this section shall be--
``(I) deposited in a capital asset
account to be established by the
Secretary; and
``(II) available until expended,
without further appropriation, for
maintenance, capital revitalization, and
improvements of the Department
properties and facilities at the
Beltsville Agricultural Research Center
and National Agricultural Library.
``(ii) Budgetary treatment.--For purposes of
the budget, the amounts described in clause (i)
shall not be treated as a receipt of any
Department agency or any other agency leasing
property under this section.
``(4) Costs.--The lessee shall cover all costs associated
with a lease under this section, including the cost of--
``(A) the project to be carried out on property or
at a facility covered by the lease;
``(B) provision and administration of the lease;
``(C) construction of any needed facilities;
``(D) provision of applicable utilities; and
``(E) any other facility cost normally associated
with the operation of a leased facility.
``(5) Prohibition of use of appropriations.--The Secretary
shall not use any funds made available to the Secretary in an
appropriations Act for the construction or operating costs of
any space covered by a lease under this section.
``(6) Termination of authority.--This section and the
authority provided by this section terminate--
``(A) on the date that is 5 years after the date of
enactment of this section; or
``(B) with respect to any particular leased
property, on the date of termination of the lease.

``(c) Effect of Other Laws.--
``(1) Utilization.--Property that is leased pursuant to this
section shall not be considered to be unutilized or
underutilized for purposes of section 501 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11411).
``(2) [NOTE: Maryland.]  Disposal.--Property at the
Beltsville Agricultural Research Center or the National
Agricultural Library that is leased pursuant to this section
shall not be considered to be disposed of by sale, lease,
rental, excessing, or surplusing for purposes of section 523 of
Public Law 100-202 (101 Stat. 1329-417).

``(d) [NOTE: Deadline. Reports.]  Administration.--
``(1) In general.--Not later than 90 days 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 detailed management objectives and
performance measurements by which the Secretary intends to
evaluate the success of the program under this section.
``(2) Reports.--Not later than 1, 3, and 5 years after the
date of enactment of this section, the Secretary shall submit

[[Page 2016]]
122 STAT. 2016

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 implementation of the program
under this section, including--
``(A) a copy of each lease entered into pursuant to
this section; and
``(B) an assessment by the Secretary of the success
of the program using the management objectives and
performance measurements developed by the Secretary.''.
SEC. 7410. 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) 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 for each year.
``(B) Consecutive grants.--An eligible recipient may
receive consecutive grants under this subsection.'';
(2) by redesignating paragraphs (5) through (7) as
paragraphs (8) through (10), respectively;
(3) 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 geographical diversity.
``(7) Priority.--In making grants under this subsection, the
Secretary shall give priority to partnerships and collaborations
that are led by or include nongovernmental and community-based
organizations with expertise in new agricultural producer
training and outreach.''.

(b) Funding.--Section 7405 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 3319f) is amended by striking subsection (h) and
inserting the following:
``(h) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section--
``(A) $18,000,000 for fiscal year 2009; and

[[Page 2017]]
122 STAT. 2017

``(B) $19,000,000 for each of fiscal years 2010
through 2012.
``(2) Authorization of appropriations.--In addition to funds
provided under paragraph (1), there is authorized to be
appropriated to carry out this section $30,000,000 for each of
fiscal years 2008 through 2012.''.
SEC. 7411. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN
PRODUCING FOOD FOR HUMAN CONSUMPTION.

Section 10802 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 5921a) is repealed.
SEC. 7412. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

(a) In General.--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)''.
(b) [NOTE: 16 USC 502a-1 note.]  Effective Date.--The amendment
made by subsection (a) takes effect on October 1, 2008.
SEC. 7413. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

(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. 7414. 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. 7415. CONSTRUCTION OF CHINESE GARDEN AT THE 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. [NOTE: 20 USC 197.]  CONSTRUCTION OF CHINESE GARDEN AT
THE 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 provided for this purpose.''.
SEC. 7416. 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''.

[[Page 2018]]
122 STAT. 2018

SEC. 7417. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA
FOR CERTAIN LAND-GRANT UNIVERSITY
ASSISTANCE.

(a) In General.--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.''.

(b) Effective Date.--The amendments made by this section take effect
on October 1, 2008.

Subtitle E--Miscellaneous

PART I--GENERAL PROVISIONS

SEC. 7501. [NOTE: 7 USC 7614.]  DEFINITIONS.

Except as otherwise provided in this subtitle, in this subtitle:
(1) Capacity and infrastructure program.--The term
``capacity and infrastructure program'' has the meaning given
the term in subsection (f)(1) of section 251 of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) (as
added by section 7511(a)(4)).
(2) Capacity and infrastructure program critical base
funding.--The term ``capacity and infrastructure program
critical base funding'' means the aggregate amount of Federal
funds made available for capacity and infrastructure programs
for fiscal year 2006, as appropriate.
(3) Competitive program.--The term ``competitive program''
has the meaning given the term in subsection (f)(1) of section
251 of the Department of Agriculture Reorganization Act of 1994
(7 U.S.C. 6971) (as added by section 7511(a)(4)).
(4) Competitive program critical base funding.--The term
``competitive program critical base funding'' means the
aggregate amount of Federal funds made available for competitive
programs for fiscal year 2006, as appropriate.
(5) Hispanic-serving agricultural colleges and
universities.--The term ``Hispanic-serving agricultural 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).
(6) NLGCA institution.--The term ``NLGCA Institution'' 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).
(7) 1862 institution; 1890 institution; 1994 institution.--
The terms ``1862 Institution'', ``1890 Institution'', and ``1994
Institution'' have the meanings given the terms in section 2 of
the Agricultural Research, Extension, and Education Reform Act
of 1998 (7 U.S.C. 7601).

[[Page 2019]]
122 STAT. 2019

SEC. 7502. [NOTE: Oklahoma.]  GRAZINGLANDS RESEARCH LABORATORY.

Except as otherwise specifically authorized by law and
notwithstanding any other provision of law, the Federal land and
facilities at El Reno, Oklahoma, administered by the Secretary (as of
the date of enactment of this Act) as the Grazinglands Research
Laboratory, shall not at any time, in whole or in part, be declared to
be excess or surplus Federal property under chapter 5 of subtitle I of
title 40, United States Code, or otherwise be conveyed or transferred in
whole or in part, for the 5-year period beginning on the date of
enactment of this Act.
SEC. 7503. [NOTE: Oklahoma.]  FORT RENO SCIENCE PARK RESEARCH
FACILITY.

The Secretary may lease land to the University of Oklahoma at the
Grazinglands Research Laboratory at El Reno, Oklahoma, on such terms and
conditions as the University and the Secretary may agree in furtherance
of cooperative research and existing easement arrangements.
SEC. 7504. [NOTE: 7 USC 7614a.]  ROADMAP.

(a) [NOTE: Deadline.]  In General.--Not later than 90 days after
the date of enactment of this Act, the Secretary, acting through the
Under Secretary of Research, Education, and Economics (referred to in
this section as the ``Under Secretary''), shall commence preparation of
a roadmap for agricultural research, education, and extension that--
(1) identifies current trends and constraints;
(2) identifies major opportunities and gaps that no single
entity within the Department of Agriculture would be able to
address individually;
(3) involves--
(A) interested parties from the Federal Government
and nongovernmental entities; and
(B) 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);
(4) incorporates roadmaps for agricultural research,
education, and extension made publicly available by other
Federal entities, agencies, or offices; and
(5) describes recommended funding levels for areas of
agricultural research, education, and extension, including--
(A) competitive programs;
(B) capacity and infrastructure programs, with
attention to the future growth needs of--
(i) small 1862 Institutions, 1890
Institutions, and 1994 Institutions;
(ii) Hispanic-serving agricultural colleges
and universities;
(iii) NLGCA Institutions; and
(iv) colleges of veterinary medicine; and
(C) intramural programs at agencies within the
research, education, and economics mission area; and
(6) describes how organizational changes enacted by this Act
have impacted agricultural research, extension, and education
across the Department of Agriculture, including minimization of
unnecessary programmatic and administrative duplication.

[[Page 2020]]
122 STAT. 2020

(b) Reviewability.--The roadmap described in this section shall not
be subject to review by any officer or employee of the Federal
Government other than the Secretary (or a designee of the Secretary).
(c) Roadmap Implementation and Report.--Not later than 1 year after
the date on which the Secretary commences preparation of the roadmap
under this section, the Secretary shall--
(1) implement and use the roadmap to set the research,
education, and extension agenda of the Department of
Agriculture; and
(2) make the roadmap available to the public.
SEC. 7505. [NOTE: 7 USC 7614b.]  REVIEW OF PLAN OF WORK
REQUIREMENTS.

(a) Review.--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 those 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) and 3222(c), respectively);
(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) Consultation.--In carrying out the review and formulating and
compiling the recommendations, the Secretary shall consult with the
land-grant institutions.
SEC. 7506. [NOTE: 7 USC 7614c.]  BUDGET SUBMISSION AND FUNDING.

(a) Definition of Competitive Programs.--In this section, the term
``competitive programs'' includes only competitive programs for which
annual appropriations are requested in the annual budget submission of
the President.
(b) Budget Request.--The President shall submit to Congress,
together with the annual budget submission of the President, a single
budget line item reflecting the total amount requested by the President
for funding for research, education, and extension activities of the
Research, Education, and Economics mission area of the Department for
that fiscal year and for the preceding 5 fiscal years.
(c) Capacity and Infrastructure Program Request.--Of the funds
requested for capacity and infrastructure programs in excess of the
capacity and infrastructure program critical base funding level,
budgetary emphasis should be placed on enhancing funding for--
(1) 1890 Institutions;
(2) 1994 Institutions;
(3) NLGCA Institutions;
(4) Hispanic-serving agricultural colleges and universities;
and
(5) small 1862 Institutions.

(d) Competitive Program Request.--Of the funds requested for
competitive programs in excess of the competitive program critical base
funding level, budgetary emphasis should be placed on--
(1) enhancing funding for emerging problems; and
(2) finding solutions for those problems.

[[Page 2021]]
122 STAT. 2021

PART II--RESEARCH, EDUCATION, AND ECONOMICS

SEC. 7511. RESEARCH, EDUCATION, AND ECONOMICS.

(a) In General.--Section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971) is amended--
(1) in subsection (a), by inserting ``(referred to in this
section as the `Under Secretary')'' before the period at the
end;
(2) by striking subsections (b) through (d);
(3) [NOTE: 5 USC 5314.]  by redesignating subsection (e)
as subsection (g); and
(4) by inserting after subsection (a) the following:

``(b) [NOTE: President. Congress.]  Confirmation Required.--The
Under Secretary shall be appointed by the President, by and with the
advice and consent of the Senate, from among distinguished scientists
with specialized training or significant experience in agricultural
research, education, and economics.

``(c) Chief Scientist.--The Under Secretary shall--
``(1) hold the title of Chief Scientist of the Department;
and
``(2) be responsible for the coordination of the research,
education, and extension activities of the Department.

``(d) Functions of Under Secretary.--
``(1) Principal function.--The Secretary shall delegate to
the Under Secretary those functions and duties under the
jurisdiction of the Department that relate to research,
education, and economics.
``(2) Specific functions and duties.--The Under Secretary
shall--
``(A) identify, address, and prioritize current and
emerging agricultural research, education, and extension
needs (including funding);
``(B) ensure that agricultural research, education,
and extension programs are effectively coordinated and
integrated--
``(i) across disciplines, agencies, and
institutions; and
``(ii) among applicable participants,
grantees, and beneficiaries;
``(C) promote the collaborative use of all
agricultural research, education, and extension
resources from the local, State, tribal, regional,
national, and international levels to address priority
needs; and
``(D) foster communication among agricultural
research, education, and extension beneficiaries,
including the public, to ensure the delivery of
agricultural research, education, and extension
knowledge.
``(3) Additional functions.--The Under Secretary shall
perform such other functions and duties as may be required by
law or prescribed by the Secretary.

``(e) Research, Education, and Extension Office.--
``(1) Establishment.--The Under Secretary shall organize
within the office of the Under Secretary 6 Divisions, to be
known collectively as the `Research, Education, and Extension
Office', which shall coordinate the research programs and
activities of the Department.

[[Page 2022]]
122 STAT. 2022

``(2) Division designations.--The Divisions within the
Research, Education, and Extension Office shall be as follows:
``(A) Renewable energy, natural resources, and
environment.
``(B) Food safety, nutrition, and health.
``(C) Plant health and production and plant
products.
``(D) Animal health and production and animal
products.
``(E) Agricultural systems and technology.
``(F) Agricultural economics and rural communities.
``(3) Division chiefs.--
``(A) Selection.--The Under Secretary shall select a
Division Chief for each Division using available
personnel authority under title 5, United States Code,
including--
``(i) by term, temporary, or other
appointment, without regard to--
``(I) the provisions of title 5,
United States Code, governing
appointments in the competitive service;
``(II) the provisions of subchapter
I of chapter 35 of title 5, United
States Code, relating to retention
preference; and
``(III) the provisions of chapter 51
and subchapter III of chapter 53 of
title 5, United States Code, relating to
classification and General Schedule pay
rates;
``(ii) by detail, notwithstanding any Act
making appropriations for the Department of
Agriculture, whether enacted before, on, or after
the date of enactment of this paragraph, requiring
reimbursement for those details unless the
appropriation Act specifically refers to this
subsection and specifically includes these
details;
``(iii) by reassignment or transfer from any
other civil service position; and
``(iv) by an assignment under subchapter VI of
chapter 33 of title 5, United States Code.
``(B) Selection guidelines.--To the maximum extent
practicable, the Under Secretary shall select Division
Chiefs under subparagraph (A) in a manner that--
``(i) promotes leadership and professional
development;
``(ii) enables personnel to interact with
other agencies of the Department; and
``(iii) maximizes the ability of the Under
Secretary to allow for rotations of Department
personnel into the position of Division Chief.
``(C) Term of service.--Notwithstanding title 5,
United States Code, the maximum length of service for an
individual selected as a Division Chief under
subparagraph (A) shall not exceed 4 years.
``(D) Qualifications.--To be eligible for selection
as a Division Chief, an individual shall have--
``(i) conducted exemplary research, education,
or extension in the field of agriculture or
forestry; and

[[Page 2023]]
122 STAT. 2023

``(ii) earned an advanced degree at an
institution of higher education (as defined in
section 101 of the Higher Education Act of 1965
(20 U.S.C. 1001)).
``(E) Duties of division chiefs.--Except as
otherwise provided in this Act, each Division Chief
shall--
``(i) assist the Under Secretary in
identifying and addressing emerging agricultural
research, education, and extension needs;
``(ii) assist the Under Secretary in
identifying and prioritizing Department-wide
agricultural research, education, and extension
needs, including funding;
``(iii) assess the strategic workforce needs
of the research, education, and extension
functions of the Department, and develop strategic
workforce plans to ensure that existing and future
workforce needs are met;
``(iv) communicate with research, education,
and extension beneficiaries, including the public,
and representatives of the research, education,
and extension system, including the National
Agricultural Research, Extension, Education, and
Economics Advisory Board, to promote the benefits
of agricultural research, education, and
extension;
``(v) assist the Under Secretary in preparing
and implementing the roadmap for agricultural
research, education, and extension, as described
in section 7504 of the Food, Conservation, and
Energy Act of 2008; and
``(vi) perform such other duties as the Under
Secretary may determine.
``(4) General administration.--
``(A) Funding.--Notwithstanding any Act making
appropriations for the Department of Agriculture,
whether enacted before, on, or after the date of
enactment of this paragraph unless the appropriation Act
specifically refers to this subsection and specifically
includes the administration of funds under this section,
the Secretary may transfer funds made available to an
agency in the research, education, and economics mission
area to fund the costs of Division personnel.
``(B) Limitation.--To the maximum extent
practicable--
``(i) the Under Secretary shall minimize the
number of full-time equivalent positions in the
Divisions; and
``(ii) at no time shall the aggregate number
of staff for all Divisions exceed 30 full-time
equivalent positions.
``(C) Rotation of personnel.--To the maximum extent
practicable, and using the authority described in
paragraph (3)(A), the Under Secretary shall rotate
personnel among the Divisions, and between the Divisions
and agencies of the Department, in a manner that--
``(i) promotes leadership and professional
development; and
``(ii) enables personnel to interact with
other agencies of the Department.

[[Page 2024]]
122 STAT. 2024

``(5) Organization.--The Under Secretary shall integrate
leadership functions of the national program staff of the
research agencies into the Research, Education and Extension
Office in such form as is required to ensure that administrative
duplication does not occur.

``(f) National Institute of Food and Agriculture.--
``(1) Definitions.--In this subsection:
``(A) 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).
``(B) Applied research.--The term `applied research'
means research that includes expansion of the findings
of fundamental research to uncover practical ways in
which new knowledge can be advanced to benefit
individuals and society.
``(C) Capacity and infrastructure program.--The term
`capacity and 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 the Food, Conservation, and
Energy Act of 2008:
``(i) 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).
``(ii) 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.
``(iii) Each program established under
subsections (b) and (c) of section 3 of the Smith-
Lever Act (7 U.S.C. 343).
``(iv) Each program established under the
Hatch Act of 1887 (7 U.S.C. 361a et seq.).
``(v) Each program established under section
1417(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3152(b)).
``(vi) 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.).
``(vii) Each extension program available to
1890 Institutions established under section 1444
of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3221).
``(viii) The program established under section
1445 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3222).
``(ix) 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).

[[Page 2025]]
122 STAT. 2025

``(x) 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).
``(xi) 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).
``(xii) 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.).
``(xiii) Each program established under the
Renewable Resources Extension Act of 1978 (16
U.S.C. 1671 et seq.).
``(xiv) Each program providing funding to
Hispanic-serving agricultural colleges and
universities under section 1456 of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977.
``(xv) The program providing capacity grants
to NLGCA Institutions under section 1473F of the
National Agricultural Research, Extension, and
Teaching Policy Act of 1977.
``(xvi) Other programs that are capacity and
infrastructure programs, as determined by the
Secretary.
``(D) 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
the Food, Conservation, and Energy Act of 2008:
``(i) The Agriculture and Food Research
Initiative established under section 2(b) of the
Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i(b)).
``(ii) 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)).
``(iii) The program providing community food
project competitive grants established under
section 25 of the Food and Nutrition Act of 2008
(7 U.S.C. 2034).
``(iv) The program providing grants for
beginning farmer and rancher development
established under section 7405 of the Farm
Security and Rural Investment Act of 2002 (7
U.S.C. 3319f).
``(v) 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)).
``(vi) 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).
``(vii) The program providing competitive
grants for international agricultural science and
education

[[Page 2026]]
122 STAT. 2026

programs under section 1459A of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3292b).
``(viii) 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).
``(ix) 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).
``(x) The specialty crop research initiative
under section 412 of the Agricultural Research,
Extension, and Education Reform Act of 1998.
``(xi) The administration and management of
the Agricultural Bioenergy Feedstock and Energy
Efficiency Research and Extension Initiative
carried out under section 1672C of the Food,
Agriculture, Conservation, and Trade Act of 1990.
``(xii) The research, extension, and education
programs authorized by section 407 of the
Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7627) relating to the
competitiveness, viability and sustainability of
small- and medium-sized dairy, livestock, and
poultry operations.
``(xiii) Other programs that are competitive
programs, as determined by the Secretary.
``(E) Director.--The term `Director' means the
Director of the Institute.
``(F) Fundamental research.--The term `fundamental
research' means research that--
``(i) increases knowledge or understanding of
the fundamental aspects of phenomena and has the
potential for broad application; and
``(ii) has an effect on agriculture, food,
nutrition, or the environment.
``(G) Institute.--The term `Institute' means the
National Institute of Food and Agriculture established
by paragraph (2)(A).
``(2) Establishment of national institute of food and
agriculture.--
``(A) Establishment.--The Secretary shall establish
within the Department an agency to be known as the
`National Institute of Food and Agriculture'.
``(B) [NOTE: Deadline.]  Transfer of
authorities.--The Secretary shall transfer to the
Institute, effective not later than October 1, 2009, the
authorities (including all budget authorities, available
appropriations, 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--
``(i) the capacity and infrastructure
programs;
``(ii) the competitive programs;
``(iii) the research, education, economic,
cooperative State research programs, cooperative
extension and education programs, international
programs, and other

[[Page 2027]]
122 STAT. 2027

functions and authorities delegated by the Under
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
``(iv) any and all other authorities
administered by the Administrator of the
Cooperative State Research, Education, and
Extension Service.
``(3) Director.--
``(A) In general.--The Institute shall be headed by
a Director, who shall be an individual who is--
``(i) a distinguished scientist; and
``(ii) appointed by the President.
``(B) Supervision.--The Director shall report
directly to the Secretary, or the designee of the
Secretary.
``(C) Functions of the director.--The Director
shall--
``(i) serve for a 6-year term, subject to
reappointment for an additional 6-year term;
``(ii) periodically report to the Secretary,
or the designee of the Secretary, with respect to
activities carried out by the Institute; and
``(iii) consult regularly with the Secretary,
or the designee of 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
supplant, research conducted or funded
by other Federal agencies.
``(D) Compensation.--The Director shall receive
basic pay at a rate not to exceed the maximum amount of
compensation payable to a member of the Senior Executive
Service under subsection (b) of section 5382 of title 5,
United States Code, except that the certification
requirement in that subsection shall not apply to the
compensation of the Director.
``(E) Authority and responsibilities of director.--
Except as otherwise specifically provided in this
subsection, the Director shall--
``(i) exercise all of the authority provided
to the Institute by this subsection;
``(ii) formulate and administer programs in
accordance with policies adopted by the Institute,
in coordination with the Under Secretary;
``(iii) establish offices within the
Institute;
``(iv) [NOTE: Procedures.]  establish
procedures for the provision and administration of
grants by the Institute; and
``(v) consult regularly with the Advisory
Board.
``(4) Regulations.--The Institute shall have such authority
as is necessary to carry out this subsection, including the
authority to promulgate such regulations as the Institute
considers to be necessary for governance of operations,
organization, and personnel.
``(5) Administration.--

[[Page 2028]]
122 STAT. 2028

``(A) In general.--The Director shall organize
offices and functions within the Institute to administer
fundamental and applied research and extension and
education programs.
``(B) Research priorities.--The Director shall
ensure the research priorities established by the Under
Secretary through the Research, Education and Extension
Office are carried out by the offices and functions of
the Institute, where applicable.
``(C) Fundamental and applied research.--The
Director shall--
``(i) determine an appropriate balance between
fundamental and applied research programs and
functions to ensure future research needs are met;
and
``(ii) designate staff, as appropriate, to
assist in carrying out this subparagraph.
``(D) Competitively funded awards.--The Director
shall--
``(i) promote the use and growth of grants
awarded through a competitive process; and
``(ii) designate staff, as appropriate, to
assist in carrying out this subparagraph.
``(E) Coordination.--The Director shall ensure that
the offices and functions established under subparagraph
(A) are effectively coordinated for maximum efficiency.
``(6) Funding.--
``(A) 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 subsection
for each fiscal year.
``(B) Allocation.--Funding made available under
subparagraph (A) shall be allocated according to
recommendations contained in the roadmap described in
section 7504 of the Food, Conservation, and Energy Act
of 2008.''.

(b) Functions.--Section 296(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(6) the authority of the Secretary to establish in the
Department, under section 251--
``(A) the position of Under Secretary of Agriculture
for Research, Education, and Economics;
``(B) the Research, Education, and Extension Office;
and
``(C) the National Institute of Food and
Agriculture.''.

(c) [NOTE: Effective date. 7 USC 1522 note.]  Conforming
Amendments.--The following conforming amendments shall take effect on
October 1, 2009:
(1) 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''.
(2) Section 524(a) of the Federal Crop Insurance Act (7
U.S.C. 1524(a)) is amended in each of paragraphs (1)(B) and

[[Page 2029]]
122 STAT. 2029

(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''.
(3) 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''.
(4) Section 5(b)(2)(E) of the Agricultural Credit
Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102-554)
is amended by striking ``Cooperative Extension Service'' and
inserting ``National Institute of Food and Agriculture''.
(5) Section 11(f)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2020(f)(1)) is amended by striking ``Cooperative
Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(6) Section 502(h) of the Rural Development Act of 1972 (7
U.S.C. 2662(h)) is amended--
(A) in paragraph (1), by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''; and
(B) in paragraph (4), by striking ``Extension
Service staff'' and inserting ``National Institute of
Food and Agriculture staff''.
(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 1408(b)(4) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3123(b)(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''.
(9) Section 2381(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 3125b(a)) is amended by striking
``Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(10) 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''.
(11) Section 1587(a) of the Food Security Act of 1985 (7
U.S.C. 3175d(a)) is amended by striking ``Extension Service''
each place it appears and inserting ``National Institute of Food
and Agriculture''.
(12) Section 1444(b)(2)(A) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.

[[Page 2030]]
122 STAT. 2030

3221(b)(2)(A)) is amended by striking ``Extension Service'' and
inserting ``National Institute of Food and Agriculture''.
(13) Section 1473D(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(d))
is amended by striking ``the Cooperative State Research Service,
the Extension Service'' and inserting ``the National Institute
of Food and Agriculture''.
(14) 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 all that follows
through ``extension services;'' and inserting ``the National
Institute of Food and Agriculture, in conjunction with the
system of State agricultural experiment stations and State and
county cooperative extension services; the Economic Research
Service;''.
(15) 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 in close cooperation
with the Extension Service'' and inserting ``the
National Institute of Food and Agriculture'';
(B) in subsection (b)(1)--
(i) by striking subparagraphs (B) and (C) and
inserting the following:
``(B) the National Institute of Food and
Agriculture;''; and
(ii) by redesignating subparagraphs (D)
through (L) as subparagraphs (C) through (K),
respectively.
(16) Section 1627(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5821(d)) is amended by striking
``Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(17) Section 1629 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5832) is amended--
(A) in subsection (b), in the first sentence, by
striking ``the Extension Service'' and inserting ``the
National Institute of Food and Agriculture''; and
(B) in subsection (h), by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''.
(18) Section 1638(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5852(b)) is amended--
(A) in paragraph (3), by striking ``Cooperative
State Research Service'' and inserting ``National
Institute of Food and Agriculture''; and
(B) in paragraph (5), by striking ``Cooperative
State Research Service'' and inserting ``National
Institute of Food and Agriculture''.
(19) Section 1640(a)(2) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5854(a)(2)) is
amended by striking ``the Administrator of the Extension
Service, the Administrator of the Cooperative State Research
Service'' and inserting ``the Director of the National Institute
of Food and Agriculture''.
(20) Section 1641(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5855(a)) is amended--

[[Page 2031]]
122 STAT. 2031

(A) in paragraph (2), by striking ``Cooperative
State Research Service'' and inserting ``National
Institute of Food and Agriculture''; and
(B) in paragraph (4,) by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''.
(21) 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 inserting ``National Institute of Food and Agriculture''.
(22) 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''.
(23) Section 1677(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5930(a)) is amended by striking
``Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(24) Section 2122(b)(1) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 6521(b)(1)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(25) Section 2371 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6601) is amended--
(A) in subsection (a), by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''; and
(B) in subsection (c)(3), by striking ``Service''
and inserting ``System''.
(26) Section 2377(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6615(a)) is amended by striking
``Extension Service'' and inserting ``National Institute of Food
and Agriculture''.
(27) Section 212(a)(2)(A) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6912(a)(2)(A)) is amended
by striking ``251(d),'' and inserting ``251(f),''.
(28) 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
``cooperative extension''.
(29) Section 101(b)(2) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7611(b)(2)) is amended by striking ``Cooperative State Research,
Education, and Extension Service'' and inserting ``National
Institute of Food and Agriculture''.
(30) 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''.

[[Page 2032]]
122 STAT. 2032

(31) 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''.
(32) 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''.
(33) 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 ``Director of the National
Institute of Food and Agriculture''.
(34) Section 5(a) of the Renewable Resources Extension Act
of 1978 (16 U.S.C. 1674a(a)) is amended by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''.
(35) 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, or cooperative extension officials''.
(36) Section 9(g)(2)(A)(viii) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2105(g)(2)(A)(viii)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(37) Section 19(b)(1)(B)(i) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2113(b)(1)(B)(i)) is amended
by striking ``Extension Service'' and inserting ``National
Institute of Food and Agriculture''.
(38) Section 1261(c)(4) of the Food Security Act of 1985 (16
U.S.C. 3861(c)(4)) is amended by striking ``Extension Service''
and inserting ``National Institute of Food and Agriculture''.
(39) 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''.
(40) 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;''.

[[Page 2033]]
122 STAT. 2033

PART III--NEW GRANT AND RESEARCH PROGRAMS

SEC. 7521. [NOTE: 7 USC 3202.]  RESEARCH AND EDUCATION GRANTS
FOR THE STUDY OF ANTIBIOTIC-RESISTANT
BACTERIA.

(a) In General.--The Secretary shall provide research and education
grants, on a competitive basis--
(1) to study the development of antibiotic-resistant
bacteria, including--
(A) movement of antibiotic-resistant bacteria into
groundwater and surface water; and
(B) the effect on antibiotic resistance from various
drug use regimens; and
(2) to study and ensure the judicious use of antibiotics in
veterinary and human medicine, including--
(A) methods and practices of animal husbandry;
(B) safe and effective alternatives to antibiotics;
(C) the development of better veterinary diagnostics
to improve decisionmaking; and
(D) the identification of conditions or factors that
affect antibiotic use on farms.

(b) [NOTE: Applicability.]  Administration.--Paragraphs (4), (7),
(8), and (11)(B) of subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i) shall apply with respect
to the making of grants under this section.

(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. 7522. [NOTE: 7 USC 5936.]  FARM AND RANCH STRESS ASSISTANCE
NETWORK.

(a) In General.--The Secretary, in coordination with the Secretary
of Health and Human Services, shall make competitive grants to support
cooperative programs between State cooperative extension services and
nonprofit organizations to establish a Farm and Ranch Stress Assistance
Network that provides stress assistance programs to individuals who are
engaged in farming, ranching, and other agriculture-related occupations.
(b) Eligible Programs.--Grants awarded under subsection (a) may be
used to initiate, expand, or sustain programs that provide professional
agricultural behavioral health counseling and referral for other forms
of assistance as necessary through--
(1) farm telephone helplines and websites;
(2) community education;
(3) support groups;
(4) outreach services and activities; and
(5) home delivery of assistance, in a case in which a farm
resident is homebound.

(c) Extension Services.--Grants shall be awarded under this
subsection directly to State cooperative extension services to enable
the State cooperative extension services to enter into contracts, on a
multiyear basis, with nonprofit, community-based, direct-service
organizations to initiate, expand, or sustain cooperative programs
described in subsections (a) and (b).
(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.

[[Page 2034]]
122 STAT. 2034

SEC. 7523. [NOTE: 7 USC 415-1.]  SEED DISTRIBUTION.

(a) In General.--The Secretary shall make competitive grants to
eligible entities to carry out a seed distribution program to administer
and maintain the distribution of vegetable seeds donated by commercial
seed companies.
(b) Purposes.--The purposes of this program include--
(1) the distribution of seeds donated by commercial seed
companies free-of-charge to appropriate--
(A) individuals;
(B) groups;
(C) institutions;
(D) governmental and nongovernmental organizations;
and
(E) such other entities as the Secretary may
designate;
(2) distribution of seeds to 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.

(c) [NOTE: Applicability.]  Administration.--Paragraphs (4), (7),
(8), and (11)(B) of subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i) shall apply with respect
to the making of grants under this section.

(d) Selection.--An eligible entity selected to receive a grant under
subsection (a) shall have--
(1) expertise regarding the distribution of vegetable seeds
donated by commercial seed companies; and
(2) the ability to achieve the purpose of the seed
distribution program.

(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. 7524. [NOTE: 21 USC 113a note. Permits.]  LIVE VIRUS 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 any facility that is a successor to the Plum Island Animal
Disease Center and charged with researching high-consequence biological
threats involving zoonotic and foreign animal diseases (referred to in
this section as the ``successor facility'').
(b) Limitation to Single Facility.--Not more than 1 facility shall
be issued a permit under subsection (a).
(c) Limitation on Validity.--The permit issued under this section
shall be valid unless the Secretary determines that the study of live
foot and mouth disease virus at the successor facility is not being
carried out in accordance with the regulations promulgated by the
Secretary pursuant to the Agricultural Bioterrorism Protection Act of
2002 (7 U.S.C. 8401 et seq.).
(d) 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.

[[Page 2035]]
122 STAT. 2035

SEC. 7525. [NOTE: 7 USC 5937.]  NATURAL PRODUCTS RESEARCH
PROGRAM.

(a) In General.--The Secretary shall establish within the Department
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 products 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; and
(3) other research priorities identified by the Secretary.

(c) Peer and Merit Review.--The Secretary shall--
(1) determine the relevance and merit of research under this
section through a system of peer review established by the
Secretary pursuant to section 103 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7613); and
(2) approve funding for research on the basis of merit,
quality, and relevance to advancing the purposes of this
section.

(d) Buildings and Facilities.--Funds made available under this
section shall not be used for the construction of a new building or
facility or the acquisition, expansion, remodeling, or alteration of an
existing building or facility (including site grading and improvement
and architect fees).
(e) 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. 7526. [NOTE: 7 USC 8114.]  SUN GRANT PROGRAM.

(a) Establishment.--The Secretary shall establish and carry out a
program to provide grants to the sun grant centers and subcenter
specified in subsection (b)--
(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 among--
(A) the Department of Agriculture;
(B) the Department of Energy; and
(C) land-grant colleges and universities.

(b) [NOTE: State listing.]  Grants.--
(1) In general.--The Secretary shall use amounts made
available under subsection (g) to provide grants to each of the
following:
(A) North-central center.--A north-central sun grant
center at South Dakota State University for the

[[Page 2036]]
122 STAT. 2036

region composed of the States of Illinois, Indiana,
Iowa, Minnesota, Montana, Nebraska, North Dakota, South
Dakota, Wisconsin, and Wyoming.
(B) Southeastern center.--A southeastern sun grant
center at the University of Tennessee at Knoxville for
the region composed of--
(i) the States of Alabama, Florida, Georgia,
Kentucky, Mississippi, North Carolina, South
Carolina, Tennessee, and Virginia;
(ii) the Commonwealth of Puerto Rico; and
(iii) the United States Virgin Islands.
(C) 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.
(D) Western center.--A western sun grant center at
Oregon State University for the region composed of--
(i) the States of Alaska, Arizona, California,
Hawaii, Idaho, Nevada, Oregon, Utah, and
Washington; and
(ii) insular areas (as defined in section 1404
of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3103
(other than the insular areas referred to in
clauses (ii) and (iii) of subparagraph (B))).
(E) 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.
(F) Western insular pacific subcenter.--A western
insular Pacific sun grant subcenter at the University of
Hawaii for the region of Alaska, Hawaii, 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.
(2) Manner of distribution.--
(A) Centers.--In providing any funds made available
under subsection (g), the Secretary shall distribute the
grants in equal amounts to the sun grant centers
described in subparagraphs (A) through (E) of paragraph
(1).
(B) Subcenter.--The sun grant center described in
paragraph (1)(D) shall allocate a portion of the funds
received under paragraph (1) to the subcenter described
in paragraph (1)(F) pursuant to guidance issued by the
Secretary.
(3) Failure to comply with requirements.--If the Secretary
finds on the basis of a review of the annual report required
under subsection (f) or on the basis of an audit of a