[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2573 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2573

          To make spending reductions to save taxpayers money.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

              October 7 (legislative day, October 2), 1998

Mr. Lautenberg introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
          To make spending reductions to save taxpayers money.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Saving Taxpayers 
from Obsolete Programs and Spending Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
             TITLE I--AGRICULTURE, NUTRITION, AND FORESTRY

  Subtitle A--Elimination of Permanent Agricultural Price Support and 
                    Production Adjustment Authority

Sec. 101. Prohibition on agricultural price support and production 
                            adjustment.
Sec. 102. Agricultural Market Transition Act.
Sec. 103. Agricultural Adjustment Act of 1938.
Sec. 104. Commodity Credit Corporation Charter Act.
Sec. 105. Agricultural Act of 1949.
Sec. 106. Agricultural Adjustment Act.
Sec. 107. General commodity provisions.
Sec. 108. Specific commodity provisions.
Sec. 109. Liability.
Sec. 110. Application.
                 Subtitle B--Phaseout of Peanut Program

                Chapter 1--Marketing Quotas for Peanuts

Sec. 121. Marketing quotas for 1999 through 2001 crops of peanuts.
Sec. 122. Termination of marketing quotas for 2002 and subsequent crops 
                            of peanuts.
           Chapter 2--Market Transition Programs for Peanuts

Sec. 125. Market transition program for 1999 through 2001 crops of 
                            quota and additional peanuts.
Sec. 126. Nonrecourse loans for 2002 and subsequent crops of peanuts.
                       Chapter 3--Implementation

Sec. 128. Regulations.
Sec. 129. Application.
               Subtitle C--Other Agricultural Commodities

Sec. 131. Extension of tobacco deficit reduction assessment.
Sec. 132. Recourse loans for processors of sugarcane and sugar beets 
                            and reduction in loan rates.
                          Subtitle D--Forestry

Sec. 141. Elimination of National Forest Salvage Fund.
Sec. 142. Elimination of below-cost sales of timber from National 
                            Forest System lands.
Sec. 143. Elimination of purchaser road credits as financing method for 
                            national forest road construction and 
                            recovery of Federal costs of forest road 
                            construction.
                Subtitle E--Other Agricultural Programs

Sec. 151. Elimination of interest rate subsidy for insured electric 
                            loans.
Sec. 152. Elimination of market access program.
Sec. 153. Elimination of Wildlife Services program.
                 TITLE II--ENERGY AND NATURAL RESOURCES

                  Subtitle A--Hardrock Mining Royalty

Sec. 201. Definitions.
Sec. 202. Royalty.
Sec. 203. Abandoned Minerals Mine Reclamation Fund.
Sec. 204. Limitation on patent issuance.
Sec. 205. Mining claim maintenance requirements.
        Subtitle B--Other Energy and Natural Resources Programs

Sec. 211. Federal irrigation subsidies.
Sec. 212. Annual domestic livestock grazing fee.
Sec. 213. Sale of federally-owned facilities under Federal Power 
                            Marketing Administrations and termination 
                            of Administrations.
Sec. 214. Plutonium pyroprocessing program.
Sec. 215. Petroleum research and development.
                           TITLE III--DEFENSE

Sec. 301. Tactical aircraft.
Sec. 302. Uniformed Services University of the Health Sciences.
Sec. 303. Return of funds made excess to requirements by improved 
                            economic conditions.
Sec. 304. Theater missile defense.
Sec. 305. Carrier crew deployment.
Sec. 306. Strategic forces.
Sec. 307. D5 (Trident II) missile program.
Sec. 308. Drawdown of defense stocks of equipment and supplies.
Sec. 309. Tactical aircraft pilot training.
            TITLE IV--COMMERCE, SCIENCE, AND TRANSPORTATION

Sec. 401. Termination of United States participation in the 
                            international space station program.

             TITLE I--AGRICULTURE, NUTRITION, AND FORESTRY

  Subtitle A--Elimination of Permanent Agricultural Price Support and 
                    Production Adjustment Authority

SEC. 101. PROHIBITION ON AGRICULTURAL PRICE SUPPORT AND PRODUCTION 
              ADJUSTMENT.

    Notwithstanding any other provision of law, effective beginning 
October 1, 2003, the Secretary of Agriculture and the Commodity Credit 
Corporation may not provide loans, purchases, payments, or other 
operations or take any other action to support the price, or adjust or 
control the production, of an agricultural commodity by using the funds 
of the Commodity Credit Corporation or under the authority of any law.

SEC. 102. AGRICULTURAL MARKET TRANSITION ACT.

    (a) In General.--The Agricultural Market Transition Act (7 U.S.C. 
7201 et seq.) is repealed.
    (b) Conforming Amendments.--
            (1) Crop insurance.--Section 508(b)(7)(A) of the Federal 
        Crop Insurance Act (7 U.S.C. 1508(b)(7)(A)) is amended by 
        striking ``Agricultural Market'' and all that follows through 
        ``, or for'' and inserting ``conservation reserve program or 
        for''.
            (2) Flood risk reduction.--Section 385 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7334) 
        is repealed.
            (3) Conservation farm option.--Section 1240M of the Food 
        Security Act of 1985 (16 U.S.C. 3839bb) is repealed.

SEC. 103. AGRICULTURAL ADJUSTMENT ACT OF 1938.

    (a) In General.--The Agricultural Adjustment Act of 1938 (7 U.S.C. 
1281 et seq.) is repealed.
    (b) Conforming Amendments.--
            (1) References to parity prices.--Section 302 of the 
        Agricultural Act of 1948 (7 U.S.C. 1301a) is amended by 
        striking subsection (f).
            (2) Transfer of acreage allotments.--Section 706 of the 
        Food and Agriculture Act of 1965 (7 U.S.C. 1305) is repealed.
            (3) Projected yields.--Section 708 of the Food and 
        Agriculture Act of 1965 (7 U.S.C. 1306) is repealed.
            (4) Tobacco definition.--Section 4 of Public Law 89-12 (7 
        U.S.C. 1314c note) is repealed.
            (5) Burley tobacco acreage allotments.--The Act of July 12, 
        1952 (66 Stat. 597, chapter 709; 7 U.S.C. 1315), is repealed.
            (6) Transfer of allotments subsequent to 1965.--Section 703 
        of Public Law 89-321 (7 U.S.C. 1316) is repealed.
            (7) Wheat diversion programs.--Section 327 of the Food and 
        Agriculture Act of 1962 (7 U.S.C. 1339b) is repealed.
            (8) Farm marketing quotas.--The Joint Resolution entitled 
        ``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), is repealed.
            (9) Preliminary allotments.--Section 505 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1342 
        note; Public Law 101-624) is repealed.
            (10) Cotton acreage allotments.--The Act of March 29, 1949 
        (63 Stat. 17, chapter 38; 7 U.S.C. 1344a), is repealed.
            (11) Reconcentration of cotton.--The Act of June 16, 1938 
        (52 Stat. 762, chapter 480; 7 U.S.C. 1383a), is repealed.
            (12) Requirements for corn.--Section 308 of the 
        Agricultural Act of 1956 (7 U.S.C. 1442) is repealed.
            (13) Voluntary relinquishment of allotments.--Section 803 
        of the Agricultural Act of 1970 (16 U.S.C. 590q-2) is repealed.
            (14) Field measurement.--Section 1112 of the Omnibus Budget 
        Reconciliation Act of 1987 (101 Stat. 1330-8) is amended by 
        striking subsection (c).

SEC. 104. COMMODITY CREDIT CORPORATION CHARTER ACT.

    (a) In General.--Section 5 of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714c) is amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) through (g) as 
        subsections (a) through (f), respectively.
    (b) Conforming Amendment.--Section 619 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1738r) is amended by 
striking ``section 5(f) of the Commodity Credit Corporation Charter 
Act'' and inserting ``section 5(e) of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714c(e))''.

SEC. 105. AGRICULTURAL ACT OF 1949.

    (a) In General.--The Agricultural Act of 1949 (7 U.S.C. 1421 et 
seq.) (other than the first section and section 416) is repealed.
    (b) Conforming Amendments.--
            (1) Amount of assessments.--Section 4609 of the Omnibus 
        Trade and Competitiveness Act of 1988 (7 U.S.C. 624 note; 
        Public Law 100-418) is repealed.
            (2) American agriculture protection program.--Section 1002 
        of the Food and Agriculture Act of 1977 (7 U.S.C. 1310) is 
        repealed.
            (3) Advance recourse loans.--Section 13 of the Food 
        Security Improvements Act of 1986 (7 U.S.C. 1433c-1) is 
        repealed.
            (4) Conversion into fuels.--Section 2001 of the Food and 
        Agriculture Act of 1977 (7 U.S.C. 1435) is amended--
                    (A) by striking subsection (a); and
                    (B) in subsection (b)--
                            (i) by striking the subsection designation;
                            (ii) by redesignating paragraphs (1) 
                        through (4) as subsections (a) through (d), 
                        respectively;
                            (iii) in subsection (a) (as so 
                        redesignated), by striking ``During'' and all 
                        that follows through ``1949, the'' and 
                        inserting ``The''; and
                            (iv) by striking ``subsection'' each place 
                        it appears and inserting ``section''.
            (5) Reimbursement of ccc.--Section 412 of the Agricultural 
        Trade Development and Assistance Act of 1954 (7 U.S.C. 1736f) 
        is amended by striking subsection (d).
            (6) Honey assessments.--
                    (A) Section 9 of the Honey Research, Promotion, and 
                Consumer Information Act (7 U.S.C. 4608) is amended--
                            (i) by striking subsection (d);
                            (ii) by redesignating subsections (e) 
                        through (i) as subsections (d) through (h), 
                        respectively;
                            (iii) in subsection (a), by striking ``(d), 
                        (e), and (i)'' and inserting ``(d) and (h)'';
                            (iv) in subsection (f) (as so 
                        redesignated), by striking ``(f)'' and 
                        inserting ``(e)''; and
                            (v) in subsection (g)(1) (as so 
                        redesignated)--
                                    (I) in subparagraph (A), by 
                                striking ``(A)''; and
                                    (II) by striking subparagraph (B).
                    (B) Section 13(b)(2) of the Honey Research, 
                Promotion, and Consumer Information Act (7 U.S.C. 
                4612(b)(2)) is amended--
                            (i) in subparagraph (A)(ii), by striking 
                        ``4608(h)(1)'' and inserting ``4608(g)(1)''; 
                        and
                            (ii) in subparagraph (B)(ii), by striking 
                        ``4608(h)(1)'' and inserting ``4608(g)(1)''.
            (7) Agricultural embargo protection.--Section 411 of the 
        Agricultural Trade Act of 1978 (7 U.S.C. 5671) is repealed.
            (8) Integrated farm management program.--Section 1451 of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
        U.S.C. 5822) is amended by striking subsection (h).
            (9) Essential agricultural use.--Section 273 of the Biomass 
        Energy and Alcohol Fuels Act of 1980 (15 U.S.C. 3391a) is 
        amended--
                    (A) by adding ``and'' at the end of paragraph (1);
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2).
            (10) Conservation reserve.--
                    (A) Harvesting or grazing.--Section 1232(a)(7) of 
                the Food Security Act of 1985 (16 U.S.C. 3832(a)(7)) is 
                amended by striking ``and occurs'' and all that follows 
                through ``incidental grazing''.
                    (B) Rental payments.--Section 1234(f)(3) of the 
                Food Security Act of 1985 (16 U.S.C. 3834(f)(3)) is 
                amended--
                            (i) by striking ``this Act,'' and inserting 
                        ``this Act or''; and
                            (ii) by striking ``, or the Agricultural 
                        Act of 1949 (7 U.S.C. 1421 et seq.)''.
                    (C) Wetlands reserve payments.--Section 1237D(c)(3) 
                of the Food Security Act of 1985 (16 U.S.C. 
                3837d(c)(3)) is amended--
                            (i) by striking ``this Act,'' and inserting 
                        ``this Act or''; and
                            (ii) by striking ``, or the Agricultural 
                        Act of 1949 (7 U.S.C. 1421 et seq.)''.
                    (D) Environmental easement payments.--Section 
                1239C(f)(3) of the Food Security Act of 1985 (16 U.S.C. 
                3839c(f)(3)) is amended--
                            (i) by striking ``this Act,'' and inserting 
                        ``this Act or''; and
                            (ii) by striking ``, or the Agricultural 
                        Act of 1949 (7 U.S.C. 1421 et seq.)''.
            (11) Taxable year for disaster payments.--The second 
        sentence of section 451(d) of the Internal Revenue Code of 1986 
        is amended by striking ``the Agricultural Act of 1949, as 
        amended, or''.
            (12) Interest penalties.--Section 3902(h) of title 31, 
        United States Code, is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively.
            (13) Colorado river storage project.--Section 4 of the Act 
        of April 11, 1956 (70 Stat. 107, chapter 203; 43 U.S.C. 620c), 
        is amended by striking ``, as defined in the Agricultural Act 
        of 1949, or any amendment thereof,''.
            (14) Surplus crops.--Section 212 of the Reclamation 
        Projects Authorization and Adjustment Act of 1992 (Public Law 
        102-575; 106 Stat. 4625) is repealed.

SEC. 106. AGRICULTURAL ADJUSTMENT ACT.

    (a) In General.--The Agricultural Adjustment Act (7 U.S.C. 602 and 
608 through 608e-1), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, is repealed.
    (b) Conforming Amendments.--
            (1) Marketwide service payments.--Section 9 of the Food 
        Security Improvements Act of 1986 (7 U.S.C. 608c note; Public 
        Law 99-260) is repealed.
            (2) Arbitration of disputes concerning milk.--Section 3 of 
        the Act of June 3, 1937 (50 Stat. 248, chapter 296; 7 U.S.C. 
        671), is repealed.
            (3) Assessments.--Section 1999J(b) of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        6409(b)) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.

SEC. 107. GENERAL COMMODITY PROVISIONS.

    (a) Tobacco Pesticide Residues.--Section 213(e) of the Tobacco 
Adjustment Act of 1983 (7 U.S.C. 511r(e)) is amended by striking 
paragraph (5).
    (b) Section 32 Activities.--Section 32 of the Act of August 24, 
1935 (7 U.S.C. 612c), is amended in the second sentence of the first 
paragraph--
            (1) in paragraph (1), by inserting ``and'' after the 
        semicolon at the end; and
            (2) by striking ``; and (3)'' and all that follows through 
        ``consumption''.
    (c) Emergency Food Assistance.--Section 202(a) of the Emergency 
Food Assistance Act of 1983 (7 U.S.C. 612c note; Public Law 98-8) is 
amended--
            (1) in paragraph (2), by adding ``and'' at the end;
            (2) in paragraph (3), by striking ``, and'' at the end and 
        inserting a period; and
            (3) by striking paragraph (4).
    (d) Payment Limitations.--Sections 1001 through 1001E of the Food 
Security Act of 1985 (7 U.S.C. 1308 through 1308-5) are repealed.
    (e) Cost Reduction Options.--Section 1009 of the Food Security Act 
of 1985 (7 U.S.C. 1308a) is repealed.
    (f) Normally Planted Acreage.--Section 1001 of the Food and 
Agriculture Act of 1977 (7 U.S.C. 1309) is repealed.
    (g) Normal Supply.--Section 1019 of the Food Security Act of 1985 
(7 U.S.C. 1310a) is repealed.
    (h) Good Faith Reliance.--Section 326 of the Food and Agriculture 
Act of 1962 (7 U.S.C. 1339a) is repealed.
    (i) Determinations of the Secretary.--Section 1017 of the Food 
Security Act of 1985 (7 U.S.C. 1385 note; Public Law 99-198) is 
repealed.
    (j) Financial Impact Study.--Section 1147 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 1421a) is repealed.
    (k) Planting on Set-Aside Acreage.--Section 814 of the Agricultural 
Act of 1970 (7 U.S.C. 1434) is repealed.
    (l) Cost of Production Study.--Section 808 of the Agricultural Act 
of 1970 (7 U.S.C. 1441a) is repealed.
    (m) Storage Payments.--Section 1124 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 1445e note; Public Law 
101-624) is repealed.
    (n) Food Security Commodity Reserve.--Section 302 of the Food 
Security Commodity Reserve Act of 1996 (7 U.S.C. 1736f-1) is repealed.
    (o) Computation of Carryover.--Section 105 of the Agricultural Act 
of 1954 (7 U.S.C. 1745) is repealed.
    (p) Outreach and Assistance for Socially Disadvantaged Farmers and 
Ranchers.--Section 2501(e)(3) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279) is amended--
            (1) by striking subparagraphs (A) and (C); and
            (2) by redesignating subparagraphs (B), (D), (E), (F), and 
        (G) as subparagraphs (A), (B), (C), (D), and (E), respectively.
    (q) National Agricultural Cost of Production Standards Review 
Board.--Subtitle B of title X of the Agriculture and Food Act of 1981 
(7 U.S.C. 4101 et seq.) is repealed.
    (r) Adjustment of Loans.--Section 2(b) of the Act of December 20, 
1944 (58 Stat. 836, chapter 623; 12 U.S.C. 1150a(b)), is amended--
            (1) by striking ``Agricultural Adjustment Act (of 1933);''; 
        and
            (2) by striking ``sections 303'' and all that follows 
        through ``adjustment payments;''.
    (s) Highly Erodible Land Conservation.--Section 1211(1) of the Food 
Security Act of 1985 (16 U.S.C. 3811(1)) is amended--
            (1) by striking subparagraph (A); and
            (2) by redesignating subparagraphs (B) through (D) as 
        subparagraphs (A) through (C), respectively.
    (t) Wetland Conservation.--Section 1221(b) of the Food Security Act 
of 1985 (16 U.S.C. 3821(b)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.
    (u) Controlled Substances.--Section 519(b)(1) of the Controlled 
Substances Act (21 U.S.C. 889(b)(1)) is amended--
            (1) by striking subparagraphs (A) and (D); and
            (2) by redesignating subparagraphs (B), (C), and (E) as 
        subparagraphs (A), (B), and (C), respectively.
    (v) Targeted Option Payments.--Section 121 of the Food, 
Agriculture, Conservation, and Trade Act Amendments of 1991 (105 Stat. 
1843) is repealed.

SEC. 108. SPECIFIC COMMODITY PROVISIONS.

    (a) Milk.--
            (1) In general.--Sections 102 through 106, 115, and 116 of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 104 Stat. 3378) are repealed.
            (2) Administration.--Section 101 of the Agriculture and 
        Food Act of 1981 (7 U.S.C. 608c note; Public Law 97-98) is 
        amended by striking subsection (b).
            (3) Export sales of dairy products.--Section 1163 of the 
        Food Security Act of 1985 (7 U.S.C. 1731 note; Public Law 99-
        198) is repealed.
            (4) Dairy indemnity program.--Section 3 of the Act entitled 
        ``An Act to provide indemnity payments to dairy farmers'', 
        approved August 13, 1968 (7 U.S.C. 450l), is repealed.
            (5) Dairy export incentive program.--Section 153 of the 
        Food Security Act of 1985 (15 U.S.C. 713a-14) is repealed.
    (b) Feed Grains.--
            (1) Recourse loan program for silage.--Section 403 of the 
        Food Security Act of 1985 (7 U.S.C. 1444e-1) is repealed.
            (2) Calculation of refunds.--Section 405 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        1445j note; Public Law 101-624) is repealed.
            (3) Acreage diversion programs.--Section 328 of the Food 
        and Agriculture Act of 1962 (7 U.S.C. 1339c) is repealed.
    (c) Sugar.--Section 902 of the Food Security Act of 1985 (7 U.S.C. 
1446g note; Public Law 99-198) is repealed.

SEC. 109. LIABILITY.

    A provision of this subtitle or an amendment made by this subtitle 
shall not affect the liability of any person under any provision of law 
as in effect before the application of the provision of this subtitle 
or the amendment in accordance with section 110.

SEC. 110. APPLICATION.

    This subtitle and the amendments made by this subtitle take effect 
on October 1, 2003.

                 Subtitle B--Phaseout of Peanut Program

                CHAPTER 1--MARKETING QUOTAS FOR PEANUTS

SEC. 121. MARKETING QUOTAS FOR 1999 THROUGH 2001 CROPS OF PEANUTS.

    Effective beginning with the 1999 crop of peanuts, part VI of 
subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1357 et seq.) is amended to read as follows:

                  ``PART VI--MARKETING QUOTAS--PEANUTS

``SEC. 357. DEFINITIONS.

    ``In this part:
            ``(1) Additional peanuts.--The term `additional peanuts' 
        means, for any marketing year--
                    ``(A) any peanuts--
                            ``(i) that are marketed by a person who 
                        possesses a poundage quota that has been 
                        established; and
                            ``(ii) that are in excess of the marketings 
                        of quota peanuts for the person for the year; 
                        or
                    ``(B) all peanuts marketed for which no poundage 
                quota has been established in accordance with section 
                358(b).
            ``(2) Crushing.--The term `crushing' means the processing 
        of peanuts to extract oil for food uses and meal for feed uses, 
        or the processing of peanuts by crushing or otherwise when 
        authorized by the Secretary.
            ``(3) Domestic edible use.--The term `domestic edible use' 
        means use for milling to produce domestic food peanuts (other 
        than a use described in paragraph (2)) and for seed and use on 
        a farm, except that the Secretary may exempt from this 
        paragraph seeds of peanuts that--
                    ``(A) are unique strains; and
                    ``(B) are not commercially available.
            ``(4) Marketing year.--The term `marketing year' means, in 
        the case of peanuts, the 12-month period beginning August 1 and 
        ending July 31.
            ``(5) Person.--The term `person' means a producer, owner, 
        or operator who possesses a quota established under section 
        358(b) or who is involved in the production of additional 
        peanuts.
            ``(6) Quota peanuts.--The term `quota peanuts' means, for 
        any marketing year, any peanuts produced by a person who 
        possesses a poundage quota, as determined under section 358(b), 
        that--
                    ``(A) are eligible for domestic edible use as 
                determined by the Secretary;
                    ``(B) are marketed or considered marketed from a 
                farm, excluding undermarketings; and
                    ``(C) do not exceed the poundage quota for the 
                year.

``SEC. 358. NATIONAL POUNDAGE QUOTAS FOR 1999 THROUGH 2001 CROPS OF 
              PEANUTS.

    ``(a) National Poundage Quotas.--
            ``(1) Establishment.--The Secretary shall establish the 
        national poundage quota for peanuts for each of the 1999 
        through 2001 marketing years.
            ``(2) Advisory committee.--The Secretary shall establish 
        the national poundage quota after considering recommendations 
        from an all-industry advisory committee appointed by the 
        Secretary.
            ``(3) Level.--The Secretary shall establish the national 
        poundage quota at a level that is equal to the quantity of 
        peanuts (in tons) that the Secretary estimates will be devoted 
        in each marketing year referred to in paragraph (1) to domestic 
        edible and related uses, plus a reasonable quantity of peanuts, 
        as determined by the Secretary, for carryover to ensure 
        continuity of supply between marketing years. In establishing 
        the quota, the Secretary shall take into account--
                    ``(A) any stocks of peanuts on hand in the 
                inventory of the Commodity Credit Corporation;
                    ``(B) peanuts or products of peanuts imported into 
                the United States;
                    ``(C) projected purchases of additional peanuts by 
                the Department of Defense and other Federal and State 
                agencies; and
                    ``(D) additional peanuts used for domestic edible 
                use in a quantity equal to the projected imports of 
                peanuts, products of peanuts, and peanut-containing 
                products.
            ``(4) Announcement.--The national poundage quota for a 
        marketing year shall be announced by the Secretary not later 
        than the December 15 preceding the marketing year.
    ``(b) Poundage Quotas.--
            ``(1) In general.--
                    ``(A) Establishment.--A poundage quota for each of 
                the 1999 through 2001 marketing years shall be 
                established--
                            ``(i) for a person if--
                                    ``(I)(aa) the person held a quota 
                                in the previous marketing year; or
                                    ``(bb) in the case of the 1995 
                                marketing year, quota was assigned to 
                                the farm of the person;
                                unless the quota was sold; and
                                    ``(II) the person has produced or 
                                marketed, or is considered to have 
                                produced or marketed, peanuts in at 
                                least 2 of the 3 immediately preceding 
                                marketing years, as determined by the 
                                Secretary; or
                            ``(ii) as approved and determined by the 
                        Secretary for each person who produces peanuts 
                        in connection with experimental and research 
                        programs.
                    ``(B) Quantity.--
                            ``(i) In general.--The poundage quota for 
                        each of the 1999 through 2001 marketing years 
                        shall not be increased--
                                    ``(I) for undermarketings from any 
                                previous years; or
                                    ``(II) as the result of the 
                                allocation of quotas voluntarily 
                                released for 1 year under paragraph 
                                (6).
                            ``(ii) Increased quota.--The poundage 
                        quota, if any, for each of the 1999 through 
                        2001 marketing years, shall be equal to the 
                        quantity of peanuts allocated under paragraph 
                        (2).
                    ``(C) Transfers.--For purposes of this subsection, 
                if the poundage quota, or any part of the quota, is 
                permanently transferred in accordance with this Act, 
                the receiving person shall be considered as possessing 
                the poundage quota (or part of the quota) of the 
                transferring person as of the date of the transfer and 
                for all subsequent marketing years.
            ``(2) Adjustments.--
                    ``(A) Allocation of increased quota generally.--If 
                the national poundage quota for any of the 1999 through 
                2001 marketing years is increased over the national 
                poundage quota for the immediately preceding marketing 
                year, the increase shall be allocated, proportionately, 
                among persons who possess quota if the persons produced 
                peanuts in at least 2 of the 3 immediately preceding 
                marketing years, as determined by the Secretary.
                    ``(B) Decrease.--If the national poundage quota for 
                any of the 1999 through 2001 marketing years is 
                decreased from the national poundage quota for the 
                immediately preceding marketing year, the decrease 
                shall be allocated, proportionately, among persons who 
                possess a quota if the persons produced peanuts in at 
                least 2 of the 3 immediately preceding marketing years, 
                as determined by the Secretary.
            ``(3) Quota not produced.--
                    ``(A) In general.--Insofar as practicable and on 
                such fair and equitable basis as the Secretary may by 
                regulation prescribe, the poundage quota established 
                for a person for any of the 1999 through 2001 marketing 
                years shall be reduced to the extent that the Secretary 
                determines that the poundage quota established for the 
                person for any 2 of the 3 marketing years preceding the 
                marketing year for which the determination is being 
                made was not produced, or considered produced.
                    ``(B) Exclusions.--For the purposes of this 
                paragraph, the poundage quota for any such preceding 
                marketing year shall not include--
                            ``(i) any increases for undermarketing of 
                        quota peanuts from previous years; or
                            ``(ii) any increase resulting from the 
                        allocation of quotas voluntarily released for 1 
                        year under paragraph (6).
            ``(4) Quota considered produced.--For purposes of this 
        subsection, the poundage quota shall be considered produced by 
        a person if--
                    ``(A) the poundage quota was not produced because 
                of drought, flood, or any other natural disaster, or 
                any other condition beyond the control of the person, 
                as determined by the Secretary; or
                    ``(B) the poundage quota for the person was 
                released voluntarily under paragraph (6) for only 1 of 
                the 3 marketing years immediately preceding the 
                marketing year for which the determination is being 
                made.
            ``(5) Quota permanently released.--
                    ``(A) In general.--The poundage quota established 
                for a person, or any part of the quota, may be 
                permanently released.
                    ``(B) Adjustment of quota.--The poundage quota for 
                the person for which the quota is released shall be 
                adjusted downward to reflect the quota that is 
                released.
                    ``(C) Unused quota.--Any quota not produced, 
                considered produced, or not leased or sold shall be 
                considered permanently released.
            ``(6) Quota temporarily released.--
                    ``(A) In general.--The poundage quota, or any 
                portion of the quota, established for a person for a 
                marketing year may be voluntarily released to the 
                Secretary to the extent that the quota, or any part of 
                the quota, will not be produced by the person for the 
                marketing year. Any poundage quota so released shall be 
                allocated to other persons on such basis as the 
                Secretary may by regulation prescribe.
                    ``(B) Effective period.--Except as otherwise 
                provided in this section, any adjustment in the 
                poundage quota for a person under subparagraph (A) 
                shall be effective only for the marketing year for 
                which the adjustment is made and shall not be taken 
                into consideration in establishing a poundage quota for 
                the person from which the quota was released for any 
                subsequent marketing year.
            ``(7) Released quota.--Any poundage quota permanently 
        released may not be reallocated in the subsequent marketing 
        year.
    ``(c) Referendum Respecting Poundage Quotas.--
            ``(1) In general.--Not later than December 15, 1999, the 
        Secretary shall conduct a referendum of all producers engaged 
        in the production of peanuts to determine whether the producers 
        are in favor of or opposed to poundage quotas with respect to 
        the crops of peanuts produced in the remaining marketing years 
        authorized by this part, except that, if as many as \2/3\ of 
        the producers voting in any referendum vote in favor of 
        poundage quotas, no referendum shall be held with respect to 
        quotas for the remaining marketing years authorized by this 
        part. Each producer voting in the referendum may cast 1 vote.
            ``(2) Proclamation.--The Secretary shall proclaim the 
        result of the referendum within 30 days after the date on which 
        the referendum is held.
            ``(3) Vote against quotas.--If more than \1/3\ of the 
        producers voting in the referendum vote against quotas, the 
        Secretary shall proclaim that poundage quotas will not be in 
        effect for the remaining marketing years authorized by this 
        part.

``SEC. 358A. SALE, LEASE, OR TRANSFER OF POUNDAGE QUOTA FOR 1999 
              THROUGH 2001 CROPS OF PEANUTS.

    ``(a) In General.--Subject to such terms and conditions as the 
Secretary may prescribe, a person for which a poundage quota has been 
established under this Act may sell, lease, or transfer all or any part 
of the poundage quota to any other owner, operator, or producer of 
peanuts without geographic limitation. Sales, leases, or transfers 
shall be allowed so as to rationalize production for owners, operators, 
or producers in areas or regions that may be the most efficient and 
productive.
    ``(b) Treatment of Lessors.--For purposes of this part, a lessor 
who is a person who leases all or any part of a poundage quota for a 
marketing year shall be considered to have produced or marketed the 
quota for that marketing year.
    ``(c) Limits.--A sale, lease, or transfer of poundage quotas under 
this section shall be subject to the following conditions:
            ``(1) Lienholders.--No transfer of the poundage quota from 
        a farm subject to a mortgage or other lien is effective unless 
        the transfer is agreed to by the lienholders.
            ``(2) Record.--No transfer of the poundage quota shall be 
        effective until the Secretary and all lienholders are given 
notice of the transfer, as determined by the Secretary.
            ``(3) Limitation.--The Secretary may not establish a 
        limitation on the quantity or geographical location of poundage 
        quota that may be transferred.
            ``(4) Other terms.--The Secretary may establish by 
        regulation other terms and conditions.

``SEC. 358B. MARKETING PENALTIES AND DISPOSITION OF ADDITIONAL PEANUTS 
              FOR 1999 THROUGH 2001 CROPS OF PEANUTS.

    ``(a) Marketing Penalties.--
            ``(1) In general.--
                    ``(A) Marketing peanuts in excess of quota.--The 
                marketing of any peanuts for domestic edible use in 
                excess of the poundage quota for a person shall be 
                subject to a penalty at a rate equal to 140 percent of 
                the support price for quota peanuts for the marketing 
                year in which the marketing occurs. The penalty shall 
                not apply to the marketing of breeder or Foundation 
                seed peanuts grown and marketed by a publicly owned 
                agricultural experiment station (including a State 
                operated seed organization), nor to additional peanuts 
                marketed under contracts between handlers and producers 
                under subsection (e).
                    ``(B) Marketing additional peanuts.--The marketing 
                of any additional peanuts shall be subject to the same 
                penalty as the penalty prescribed in subparagraph (A) 
                unless the peanuts, in accordance with regulations 
                established by the Secretary, are--
                            ``(i) placed under loan at the additional 
                        loan rate in effect for the peanuts under 
                        section 155 of the Agricultural Market 
                        Transition Act (7 U.S.C. 7271) and not redeemed 
                        by the producers;
                            ``(ii) marketed or used for seed in 
                        accordance with regulations issued by the 
                        Secretary, and under the supervision of agents 
                        designated by the Secretary; or
                            ``(iii) marketed under contracts between 
                        handlers and producers pursuant to subsection 
                        (e).
            ``(2) Payer.--The penalty shall be paid by the person who 
        buys or otherwise acquires the peanuts from the producer or, if 
        the peanuts are marketed by the producer through an agent, the 
        penalty shall be paid by the agent. The person or agent may 
        deduct an amount equivalent to the penalty from the price paid 
        to the producer.
            ``(3) Failure to collect.--If the person required to 
        collect the penalty fails to collect the penalty, the person 
        and all persons entitled to share in the peanuts marketed from 
        the farm or the proceeds of the marketing shall be jointly and 
        severally liable with the person who failed to collect the 
        penalty for the amount of the penalty.
            ``(4) Application of quota.--Peanuts produced in a calendar 
        year in which poundage quotas are in effect for the marketing 
        year beginning in the calendar year shall be subject to the 
        quotas even though the peanuts are marketed prior to the date 
        on which the marketing year begins.
            ``(5) False information.--If any producer falsely 
        identifies, fails to accurately certify planted acres, or fails 
        to account for the disposition of any peanuts produced on the 
        planted acres, a quantity of peanuts equal to the greater of 
        the average or actual yield of the farm, as determined by the 
        Secretary, multiplied by the number of planted acres, shall be 
        deemed to have been marketed in violation of permissible uses 
        of quota and additional peanuts. Any penalty payable under this 
        paragraph shall be paid and remitted by the producer.
            ``(6) Unintentional violations.--The Secretary shall 
        authorize, under such regulations as the Secretary shall issue, 
        the county committees established under section 8(b) of the 
        Soil Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)) to waive or reduce marketing penalties provided for 
        under this subsection in cases which the committees determine 
        that the violations that were the basis of the penalties were 
        unintentional or without knowledge on the part of the parties 
        concerned.
            ``(7) De minimis violations.--An error in weight that does 
        not exceed \1/10\ of 1 percent in the case of any 1 marketing 
        document shall not be considered to be a marketing violation 
        except in a case of fraud or conspiracy.
    ``(b) Use of Quota and Additional Peanuts.--
            ``(1) Quota peanuts.--Quota peanuts may be retained for use 
        on a farm. If the peanuts are used on the farm, the peanuts 
        shall be considered marketed.
            ``(2) Additional peanuts.--Additional peanuts may be sold 
        for seed or used on a farm and may not be marketed for domestic 
        edible use, except as provided in subsection (e) and section 
        155(a)(5) of the Agricultural Market Transition Act (7 U.S.C. 
        7271(a)(5)). If the peanuts are used on the farm, the peanuts 
        shall be considered marketed.
    ``(c) Marketing Peanuts With Excess Quantity, Grade, or Quality.--
On a finding by the Secretary that the peanuts marketed from any crop 
for domestic edible use by a handler are larger in quantity or higher 
in grade or quality than the peanuts that could reasonably be produced 
from the quantity of peanuts having the grade, kernel content, and 
quality of the quota peanuts acquired by the handler from the crop for 
the marketing, the handler shall be subject to a penalty equal to 140 
percent of the loan level for quota peanuts on the quantity of peanuts 
that the Secretary determines are in excess of the quantity, grade, or 
quality of the peanuts that could reasonably have been produced from 
the peanuts so acquired.
    ``(d) Handling and Disposal of Additional Peanuts.--
            ``(1) In general.--A handler who provides adequate 
        assurances to the Secretary under paragraph (3) shall be 
        eligible to handle, process, and export additional peanuts.
            ``(2) Supervision by handlers.--
                    ``(A) In general.--Supervision of the handling and 
                disposal of additional peanuts by a handler shall not 
                be required if the handler agrees in writing, prior to 
                any handling or disposal of the peanuts, to comply with 
                regulations that the Secretary shall issue.
                    ``(B) Regulations.--The regulations issued by the 
                Secretary shall include the following:
                            ``(i) Types of exported or crushed 
                        peanuts.--Handlers of shelled or milled peanuts 
                        may export or crush--
                                    ``(I) sound split kernel additional 
                                peanuts purchased by the handler that 
                                are discounted due to the percentage of 
                                sound splits per pound;
                                    ``(II) sound mature kernel 
                                additional peanuts in an amount equal 
                                to the poundage of the additional 
                                peanuts purchased by the handler, less 
                                the total poundage of sound split 
                                kernel peanuts; and
                                    ``(III) the remaining quantity of 
                                additional peanuts purchased by the 
                                handler.
                            ``(ii) Documentation.--A handler shall 
                        ensure that any additional peanuts exported or 
                        crushed are evidenced by onboard bills of 
                        lading or other appropriate documentation as 
                        may be required by the Secretary.
                            ``(iii) Loss of peanuts.--If a handler 
                        suffers a loss of peanuts as a result of fire, 
                        flood, or any other condition beyond the 
                        control of the handler, the portion of the loss 
                        allocated to contracted additional peanuts 
                        shall not be greater than the portion of the 
                        total peanut purchases of the handler for the 
                        year for export or crushing.
                            ``(iv) Shrinkage allowance.--
                                    ``(I) In general.--The obligation 
                                of a handler to export or crush peanuts 
                                in quantities described in this 
                                subparagraph shall be reduced by a 
                                shrinkage allowance, to be determined 
                                by the Secretary, to reflect actual 
                                dollar value shrinkage experienced by 
                                handlers in commercial operations, 
                                except that the allowance shall not be 
                                less than 4 percent.
                                    ``(II) Common industry practices.--
                                The Secretary may provide a lower 
                                shrinkage allowance for a handler who 
                                fails to comply with shrinkage criteria 
                                specified by the Secretary, taking into 
                                account common industry practice.
            ``(3) Adequate finances and facilities.--A handler shall 
        submit to the Secretary adequate assurances that the handler is 
        fiscally sound. The Secretary shall not require proof of 
        capacity to process peanuts.
            ``(4) Commingling of like peanuts.--Quota and additional 
        peanuts of like type and segregation or quality may, under 
        regulations issued by the Secretary, be commingled and 
        exchanged on a dollar value basis to facilitate warehousing, 
        handling, and marketing.
            ``(5) Penalty.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the failure by a handler to comply 
                with regulations issued by the Secretary governing the 
                disposition and handling of additional peanuts shall 
                subject the handler to a penalty at a rate equal to 140 
                percent of the loan level for quota peanuts on the 
                quantity of peanuts involved in the violation.
                    ``(B) Nondelivery.--A handler shall not be subject 
                to a penalty for failure to export additional peanuts 
                if the peanuts were not delivered to the handler.
            ``(6) Reentry of exported peanuts.--
                    ``(A) Penalty.--If any additional peanuts exported 
                by a handler are reentered into the United States in 
                commercial quantities as determined by the Secretary, 
                the importer of the peanuts shall be subject to a 
                penalty at a rate equal to 140 percent of the loan 
                level for quota peanuts on the quantity of peanuts 
                reentered.
                    ``(B) Records.--Each person, firm, or handler who 
                imports peanuts into the United States shall maintain 
                such records and documents as are required by the 
                Secretary to ensure compliance with this subsection.
    ``(e) Contracts for Purchase of Additional Peanuts.--
            ``(1) In general.--Handlers may, under such regulations as 
        the Secretary may issue, contract with producers for the 
        purchase of additional peanuts for--
                    ``(A) crushing;
                    ``(B) export;
                    ``(C) use as seed;
                    ``(D) sale to the Department of Defense or another 
                agency of the Federal, State, or local government;
                    ``(E) domestic edible use in a quantity equal to 
                the projected imports of peanuts, products of peanuts, 
                and peanut-containing products; or
                    ``(F) any combination of the uses referred to in 
                subparagraphs (A) through (E).
            ``(2) Information for handling and processing additional 
        peanuts.--Any person wishing to handle or process additional 
        peanuts as a handler shall submit to the Secretary such 
        information as the Secretary may require.
            ``(3) Suspension of restrictions on imported peanuts.--
        Notwithstanding any other provision of this Act, if the 
        President issues a proclamation under section 404(b) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3601(b)) expanding the 
        quantity of peanuts subject to the in-quota rate of duty under 
        a tariff-rate quota, or under section 22 of the Agricultural 
        Adjustment Act (7 U.S.C. 624), reenacted with amendments by the 
        Agricultural Marketing Agreement Act of 1937, temporarily 
        suspending restrictions on the importation of peanuts, the 
        Secretary shall, subject to such terms and conditions as the 
        Secretary may prescribe, permit a handler, with the written 
        consent of the producer, to purchase additional peanuts from 
        any producer who contracted with the handler and to offer the 
        peanuts for sale for domestic edible use.
    ``(f) Administration.--
            ``(1) Interest.--The person liable for payment or 
        collection of any penalty provided for in this section shall be 
        liable also for interest on the penalty at a rate per annum 
        equal to the rate per annum of interest that was charged the 
        Commodity Credit Corporation by the Treasury of the United 
        States on the date the penalty became due.
            ``(2) De minimis quantity.--This section shall not apply to 
        peanuts produced on any farm on which the acreage harvested for 
        peanuts is 1 acre or less if the producers who share in the 
        peanuts produced on the farm do not share in the peanuts 
        produced on any other farm.
            ``(3) Liens.--Until the amount of the penalty provided by 
        this section is paid, a lien on the crop of peanuts with 
        respect to which the penalty is incurred, and on any subsequent 
        crop of peanuts subject to poundage quotas in which the person 
        liable for payment of the penalty has an interest, shall be in 
        effect in favor of the United States.
            ``(4) Information.--A person possessing a poundage quota, 
        and a producer of additional peanuts, shall provide any 
        information required by the Secretary to carry out this 
        section.
            ``(5) Penalties.--
                    ``(A) Procedures.--The liability for and the amount 
                of any penalty assessed under this section shall be 
                determined in accordance with such procedures as the 
                Secretary may prescribe by regulation. The facts 
                constituting the basis for determining the liability 
                for or amount of any penalty assessed under this 
                section, when officially determined in conformity with 
                the applicable regulations prescribed by the Secretary, 
                shall be final and conclusive and shall not be 
                reviewable by any other officer or agency of the 
                Federal Government.
                    ``(B) Judicial review.--Nothing in this section 
                prohibits any court of competent jurisdiction from 
                reviewing any determination made by the Secretary with 
                respect to whether the determination was made in 
                conformity with the applicable law.
            ``(6) Reduction of penalties.--The Secretary may reduce the 
        amount of any penalty assessed against a handler under this 
        section by any appropriate amount, including, in an appropriate 
        case, eliminating the penalty entirely, if the Secretary finds 
        that the violation on which the penalty is based was minor or 
        inadvertent, and that the reduction of the penalty will not 
        impair the operation of the peanut program.

``SEC. 358C. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS.

    ``(a) In General.--The Secretary may permit a portion of the 
national poundage quota for peanuts established under section 358(a) to 
be provided to land-grant institutions identified in the Act of May 8, 
1914 (38 Stat. 372, chapter 79; 7 U.S.C. 341 et seq.), and colleges 
eligible to receive funds under the Act of August 30, 1890 (26 Stat. 
419, chapter 841; 7 U.S.C. 321 et seq.), including Tuskegee Institute 
and, as appropriate, the Agricultural Research Service of the 
Department of Agriculture, to be used for experimental and research 
purposes.
    ``(b) Quantity.--The quantity of the quota allocated to an 
institution under this section shall not exceed the quantity of the 
quota held by each such institution during the 1995 marketing year.
    ``(c) Limitation.--The director of an agricultural experiment 
station shall be required to ensure, to the extent practicable, that 
participating farm operators or producers who do not produce quota 
peanuts under subsection (a) in excess of the quantity needed for 
experimental and research purposes.

``SEC. 358D. CROPS.

    ``This part shall be effective only for the 1999 through 2001 crops 
of peanuts.''.

SEC. 122. TERMINATION OF MARKETING QUOTAS FOR 2002 AND SUBSEQUENT CROPS 
              OF PEANUTS.

    (a) In General.--Effective beginning with the 2002 crop of peanuts, 
part VI of subtitle B of title III of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1357 et seq.) is repealed.
    (b) Conforming Amendments.--
            (1) Administrative provisions.--Section 361 of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is amended 
        by striking ``peanuts,''.
            (2) Adjustment of quotas.--Section 371 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
                    (A) in the first sentence of subsection (a), by 
                striking ``peanuts,''; and
                    (B) in the first sentence of subsection (b), by 
                striking ``peanuts''.
            (3) Reports and records.--Section 373 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
                    (A) in the first sentence of subsection (a)--
                            (i) by striking ``peanuts,'' each place it 
                        appears;
                            (ii) by inserting ``and'' after ``from 
                        producers,''; and
                            (iii) by striking ``for producers, all'' 
                        and all that follows through the period at the 
                        end of the sentence and inserting ``for 
                        producers.''; and
                    (B) in subsection (b), by striking ``peanuts,''.
            (4) Eminent domain.--Section 378(c) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1378(c)) is amended in the 
        first sentence--
                    (A) by striking ``cotton,'' and inserting ``cotton 
                and''; and
                    (B) by striking ``and peanuts,''.
    (c) Crops.--This section and the amendments made by this section 
shall become effective beginning with the 2002 crop of peanuts.

           CHAPTER 2--MARKET TRANSITION PROGRAMS FOR PEANUTS

SEC. 125. MARKET TRANSITION PROGRAM FOR 1999 THROUGH 2001 CROPS OF 
              QUOTA AND ADDITIONAL PEANUTS.

    Effective beginning with the 1999 crop of peanuts, section 155 of 
the Agricultural Market Transition Act (7 U.S.C. 7271) is amended to 
read as follows:

``SEC. 155. PEANUT PROGRAM.

    ``(a) Quota Peanuts.--
            ``(1) In general.--The Secretary shall make nonrecourse 
        loans available to producers of each of the 1999 through 2001 
        crops of quota peanuts.
            ``(2) Disbursement.--The Secretary shall initially disburse 
        only 80 percent of the loans for each of the 1999, 2000, and 
        2001 crops and provide for the disbursement to producers at 
        maturity of any balances due the producers on the loans that 
        may remain to be settled at maturity. The remainder of the 
        loans shall be paid only if payment would result in no net cost 
        to the Commodity Credit Corporation for the immediately 
        preceding and current crops of quota peanuts.
            ``(3) Support rates.--The national average quota support 
        rate for quota peanuts shall not be more than $515 per ton for 
        the 1999 crop, $480 per ton for the 2000 crop, and $445 per ton 
        for the 2001 crop.
            ``(4) Inspection, handling, or storage.--The levels of 
        support determined under paragraph (3) shall not be reduced by 
        any deduction for inspection, handling, or storage.
            ``(5) Marketing of peanuts owned or controlled by the 
        commodity credit corporation.--Any peanuts owned or controlled 
        by the Commodity Credit Corporation may be made available for 
        domestic edible use, in accordance with regulations issued by 
        the Secretary and sales price restrictions applicable to the 
        Corporation.
            ``(6) Location and other factors.--The Secretary may make 
        adjustments for location of peanuts and such other factors as 
        are authorized by section 403.
    ``(b) Additional Peanuts.--The Secretary shall make nonrecourse 
loans available to producers of each of the 1999 through 2001 crops of 
additional peanuts at such levels as the Secretary considers 
appropriate, taking into consideration the demand for peanut oil and 
peanut meal, the expected prices of other vegetable oils and protein 
meals, and the demand for peanuts in foreign markets, except that the 
Secretary shall set the support rate on additional peanuts at a level 
estimated by the Secretary to ensure that there are no losses to the 
Commodity Credit Corporation on the sale or disposal of the peanuts.
    ``(c) Pools for Quota and Additional Peanuts.--
            ``(1) In general.--The Secretary shall require a 
        participating marketing association to establish pools and 
        maintain complete and accurate records by area and segregation 
        for quota peanuts handled under loan and for additional peanuts 
        placed under loan, except that separate pools shall be 
        established for Valencia peanuts produced in New Mexico. Bright 
        hull and dark hull Valencia peanuts shall be considered as 
        separate types for the purpose of establishing the pools.
            ``(2) Net gains.--Net gains on peanuts in each pool, unless 
        otherwise approved by the Secretary, shall be distributed only 
        to producers who placed peanuts in the pool and shall be 
        distributed in proportion to the value of the peanuts placed in 
        the pool by each producer. Net gains for peanuts in each pool 
        shall consist of the net gains over and above the loan 
        indebtedness and other costs or losses incurred on peanuts 
        placed in the pool.
            ``(3) Losses.--A loss in an area quota pool shall be offset 
        by any gain or profit from other area quota pools (other than 
        the quota pool for Valencia peanuts for New Mexico). A quota 
        pool shall be administered at no cost to the Commodity Credit 
        Corporation.
    ``(d) Disapproval of Quotas.--No loan may be made available by the 
Secretary for any crop of peanuts with respect to which poundage quotas 
have been disapproved by producers, as provided for in section 358(c) 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358(c)).
    ``(e) Marketing Assessment.--
            ``(1) Definition of first purchaser.--In this subsection, 
        the term `first purchaser' means a person acquiring peanuts 
        from a producer, except that in the case of peanuts forfeited 
        by a producer to the Commodity Credit Corporation, the term 
        means the person acquiring the peanuts from the Commodity 
        Credit Corporation.
            ``(2) Assessment.--The Secretary shall provide, by 
        regulation, for a nonrefundable marketing assessment applicable 
        to each of the 1999 through 2001 crops of peanuts. The 
        assessment shall be made in accordance with this subsection and 
        shall be on a per pound basis in an amount equal to 1.2 percent 
        of the national average quota or additional peanut support rate 
        per pound, as applicable, for the applicable crop. No peanuts 
        shall be assessed more than 1.2 percent of the applicable 
        support rate under this subsection.
            ``(3) First purchasers.--Except as provided under 
        paragraphs (4) and (5), the first purchaser of peanuts shall--
                    ``(A) collect from the producer a marketing 
                assessment equal to the quantity of peanuts acquired 
                multiplied by .65 percent of the applicable national 
                average support rate;
                    ``(B) pay, in addition to the amount collected 
                under subparagraph (A), a marketing assessment in an 
                amount equal to the quantity of peanuts acquired 
                multiplied by .55 percent of the applicable national 
                average support rate; and
                    ``(C) remit the amounts required under 
                subparagraphs (A) and (B) to the Commodity Credit 
                Corporation in a manner specified by the Secretary.
            ``(4) Other private marketings.--In the case of a private 
        marketing by a producer directly to a consumer through a retail 
        or wholesale outlet or in the case of a marketing by the 
        producer outside of the continental United States, the producer 
        shall be responsible for the full amount of the assessment and 
        shall remit the assessment by such time as is specified by the 
        Secretary.
            ``(5) Loan peanuts.--In the case of peanuts that are 
        pledged as collateral for a loan made under this section, \1/2\ 
        of the assessment shall be deducted from the proceeds of the 
        loan. The remainder of the assessment shall be paid by the 
        first purchaser of the peanuts. For the purposes of computing 
        net gains on peanuts under this section, the reduction in loan 
        proceeds shall be treated as having been paid to the producer.
            ``(6) Penalties.--If any person fails to collect or remit 
        the reduction required by this subsection or fails to comply 
        with such requirements for recordkeeping or otherwise as are 
        required by the Secretary to carry out this subsection, the 
        person shall be liable to the Secretary for a civil penalty up 
        to an amount determined by multiplying--
                    ``(A) the quantity of peanuts involved in the 
                violation; by
                    ``(B) the national average quota support rate for 
                the applicable crop year.
            ``(7) Enforcement.--The Secretary may enforce this 
        subsection in the courts of the United States.
    ``(f) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(g) Crops.--This section shall be effective for the 1999 through 
2001 crops of peanuts.''.

SEC. 126. NONRECOURSE LOANS FOR 2002 AND SUBSEQUENT CROPS OF PEANUTS.

    Effective beginning with the 2002 crop of peanuts, section 155 of 
the Agricultural Market Transition Act (7 U.S.C. 7271) is amended to 
read as follows:

``SEC. 155. PEANUT PROGRAM.

    ``(a) In General.--
            ``(1) Loans.--The Secretary shall make nonrecourse loans 
        available to producers of peanuts for each of the 2002 and 
        subsequent crops of peanuts.
            ``(2) Rate.--In carrying out paragraph (1), the Secretary 
        shall offer to all peanut producers nonrecourse loans at a 
        level not less than 85 percent of the simple average price 
        received by producers for peanuts, as determined by the 
        Secretary, during the marketing year for each of the 
        immediately preceding 5 crops of peanuts, excluding the year in 
        which the average price was the highest and the year in which 
        the average price was the lowest during the period, but not 
        more than $350 per ton. The loans shall be administered at no 
        net cost to the Commodity Credit Corporation.
            ``(3) Inspection, handling, or storage.--The levels of 
        support determined under paragraph (2) shall not be reduced by 
        any deduction for inspection, handling, or storage.
            ``(4) Marketing of peanuts owned or controlled by the 
        commodity credit corporation.--Any peanuts owned or controlled 
        by the Commodity Credit Corporation may be made available for 
        domestic edible use, in accordance with regulations issued by 
        the Secretary, so long as doing so results in no net cost to 
        the Commodity Credit Corporation.
            ``(5) Location and other factors.--The Secretary may make 
        adjustments for the location of peanuts and such other factors 
        as are authorized by section 403.
            ``(6) Announcement.--The Secretary shall announce the level 
        of support for each crop of peanuts not later than the February 
        15 preceding the marketing year for which the level of support 
        is being determined.
    ``(b) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(c) Crops.--This section shall be effective for each of the 2002 
and subsequent crops of peanuts.''.

                       CHAPTER 3--IMPLEMENTATION

SEC. 128. REGULATIONS.

    The Secretary of Agriculture shall issue such regulations as are 
necessary to carry out this subtitle and the amendments made by this 
subtitle.

SEC. 129. APPLICATION.

    (a) Crops.--Except as otherwise specifically provided in this 
subtitle, this subtitle and the amendments made by this subtitle shall 
apply beginning with the 1999 crop of peanuts.
    (b) Prior Crops.--Except as otherwise specifically provided and 
notwithstanding any other provision of law, this subtitle and the 
amendments made by this subtitle shall not affect the authority of the 
Secretary of Agriculture to carry out a market transition or production 
adjustment program for any of the 1991 through 1998 crops of peanuts 
established under a provision of law in effect immediately before the 
enactment of this Act.

               Subtitle C--Other Agricultural Commodities

SEC. 131. EXTENSION OF TOBACCO DEFICIT REDUCTION ASSESSMENT.

    Section 106(g)(1) of the Agricultural Act of 1949 (7 U.S.C. 
1445(g)(1)) is amended by striking ``1998'' and inserting ``2003''.

SEC. 132. RECOURSE LOANS FOR PROCESSORS OF SUGARCANE AND SUGAR BEETS 
              AND REDUCTION IN LOAN RATES.

    (a) Gradual Reduction in Loan Rates.--
            (1) Sugarcane processor loans.--Section 156(a) of the 
        Agricultural Market Transition Act (7 U.S.C. 7272(a)) is 
        amended by striking ``equal to 18 cents per pound for raw cane 
        sugar.'' and inserting the following: ``, per pound for raw 
        cane sugar, equal to the following:
            ``(1) In the case of raw cane sugar processed from the 
        1996, 1997, or 1998 crop, $0.18.
            ``(2) In the case of raw cane sugar processed from the 1999 
        crop, $0.17.
            ``(3) In the case of raw cane sugar processed from the 2000 
        crop, $0.16.
            ``(4) In the case of raw cane sugar processed from the 2001 
        crop, $0.15.
            ``(5) In the case of raw cane sugar processed from the 2002 
        crop, $0.14.''.
            (2) Sugar beet processor loans.--Section 156(b) of the 
        Agricultural Market Transition Act (7 U.S.C. 7272(b)) is 
        amended by striking ``equal to 22.9 cents per pound for refined 
        beet sugar.'' and inserting the following: ``, per pound of 
        refined beet sugar, that reflects--
            ``(1) an amount that bears the same relation to the loan 
        rate in effect under subsection (a) for a crop as the weighted 
        average of producer returns for sugar beets bears to the 
        weighted average of producer returns for sugarcane, expressed 
        on a cents per pound basis for refined beet sugar and raw cane 
        sugar, for the most recent 5-year period for which data are 
        available; and
            ``(2) an amount that covers sugar beet processor fixed 
        marketing expenses.''.
    (b) Conversion to Recourse Loans.--Section 156(e) of the 
Agricultural Market Transition Act (7 U.S.C. 7272(e)) is amended--
            (1) in paragraph (1), by inserting ``only'' after ``this 
        section'';
            (2) in the first sentence of paragraph (2)--
                    (A) by striking ``During any fiscal year in which'' 
                and inserting ``If, during fiscal year 1997,''; and
                    (B) by striking ``carry out this section'' and 
                inserting ``carry out this section for the 1996 crop of 
                sugarcane and sugar beets''; and
            (3) by adding at the end the following:
            ``(4) National loan rates.--Recourse loans under this 
        section shall be made available at all locations nationally at 
        the rates specified in this section, without adjustment to 
        provide regional differentials.''.
    (c) Conversion to Private Sector Financing.--Section 156 of the 
Agricultural Market Transition Act (7 U.S.C. 7272) is amended--
            (1) by redesignating subsection (i) as subsection (j);
            (2) by inserting after subsection (h) the following:
    ``(i) Conversion to Private Sector Financing.--Notwithstanding any 
other provision of law--
            ``(1) no processor of any of the 2003 or subsequent crops 
        of sugarcane or sugar beets shall be eligible for a loan under 
        this section with respect to the crops; and
            ``(2) the Secretary may not make price support available, 
        whether in the form of loans, payments, purchases, or other 
        operations, for any of the 2003 and subsequent crops of sugar 
        beets and sugarcane by using the funds of the Commodity Credit 
        Corporation or other funds available to the Secretary.''; and
            (3) in subsection (j) (as redesignated by paragraph (1)), 
        by striking ``subsection (f)'' and inserting ``subsections (f) 
        and (i)''.
    (d) Termination of Marketing Quotas and Allotments.--
            (1) Termination.--Part VII of subtitle B of title III of 
        the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et 
        seq.) is repealed.
            (2) Conforming amendment.--Section 344(f)(2) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1344(f)(2)) is 
        amended by striking ``sugar cane for sugar, sugar beets for 
        sugar,''.
    (e) Other Conforming Amendments.--
            (1) Powers of commodity credit corporation.--Section 5(a) 
        of the Commodity Credit Corporation Charter Act (15 U.S.C. 
        714c(a)) is amended by inserting ``(except for sugarcane and 
        sugar beets of the 2003 and subsequent crops)'' after 
        ``agricultural commodities''.
            (2) Section 32 activities.--Section 32 of the Act of August 
        24, 1935 (7 U.S.C. 612c), is amended in the second sentence of 
        the first paragraph by inserting ``(other than sugarcane and 
        sugar beets)'' after ``commodity'' the last place it appears.
    (f) Assurance of Adequate Supplies of Sugar.--Section 902 of the 
Food Security Act of 1985 (7 U.S.C. 1446g note; Public Law 99-198) is 
amended by striking subsection (a) and inserting the following:
    ``(a) In General.--Beginning with the quota year for sugar imports 
that begins after the 1995/1996 quota year, the President shall use all 
authorities available to the President as may be necessary to enable 
the Secretary of Agriculture to ensure that adequate supplies of raw 
cane sugar are made available to the United States market at prices 
that are not greater than the higher of--
            ``(1) the world sugar price (adjusted to a delivered 
        basis); or
            ``(2) the raw cane sugar loan rate in effect under section 
        156 of the Agricultural Market Transition Act (7 U.S.C. 7272), 
        plus interest.''.

                          Subtitle D--Forestry

SEC. 141. ELIMINATION OF NATIONAL FOREST SALVAGE FUND.

    (a) In General.--Section 14(h) of the National Forest Management 
Act of 1976 (16 U.S.C. 472a(h)) is amended by striking the third and 
fourth sentences.
    (b) Unobligated Funds.--Any unobligated funds in the National 
Forest Salvage Fund established by section 14(h) of the National Forest 
Management Act of 1976 (16 U.S.C. 472a(h)) (as in effect before the 
amendment made by subsection (a)) shall be transferred to miscellaneous 
receipts in the Treasury of the United States.

SEC. 142. ELIMINATION OF BELOW-COST SALES OF TIMBER FROM NATIONAL 
              FOREST SYSTEM LANDS.

    (a) In General.--The National Forest Management Act of 1976 is 
amended by inserting after section 14 (16 U.S.C. 472a) the following:

``SEC. 14A. ELIMINATION OF BELOW-COST TIMBER SALES FROM NATIONAL FOREST 
              SYSTEM LANDS.

    ``(a) Definition of Below-Cost Timber Sale.--In this section, the 
term `below-cost timber sale' means a sale of timber in which the costs 
to be incurred by the Federal Government exceed the cash returns to the 
United States Treasury.
    ``(b) Requirement That Sale Revenues Exceed Costs.--Effective 
beginning October 1, 2002, in appraising timber and setting a minimum 
bid for trees, portions of trees, or forest products located on 
National Forest System land that are proposed for sale under section 14 
or any other provision of law, the Secretary of Agriculture shall 
ensure that the estimated cash returns to the United States Treasury 
from each sale equal or exceed the estimated costs to be incurred by 
the Federal Government in the preparation of the sale or as a result of 
the sale.
    ``(c) Costs To Be Considered.--For purposes of estimating under 
this section the costs to be incurred by the Federal Government from 
each timber sale, the Secretary shall assign to the sale the following 
costs:
            ``(1) The actual appropriated expenses for sale preparation 
        and harvest administration incurred or to be incurred by the 
        Federal Government from the sale and the payments to counties 
        to be made as a result of the sale.
            ``(2) A portion of the annual timber resource planning 
        costs, silvicultural examination costs, other resource support 
        costs, road design and construction costs, road maintenance 
        costs, transportation planning costs, appropriated 
        reforestation costs, timber stand improvement costs, forest 
        genetics research costs, general administrative costs 
        (including administrative costs of the national and regional 
        offices of the Forest Service), and facilities construction 
        costs of the Federal Government directly or indirectly related 
        to the timber harvest program conducted on National Forest 
        System land.
    ``(d) Method of Allocating Costs.--The Secretary shall allocate the 
costs referred to in subsection (c)(2) to each unit of the National 
Forest System, and each proposed timber sale in the unit, on the basis 
of harvest volume.
    ``(e) Transitional Requirements.--To ensure the elimination of all 
below-cost timber sales by the date specified in subsection (b), the 
Secretary shall progressively reduce the number and size of below-cost 
timber sales on National Forest System land as follows:
            ``(1) In fiscal year 1999, the quantity of timber sold in 
        below-cost timber sales on National Forest System land shall 
        not exceed 75 percent of the quantity of timber sold in such 
        sales in the preceding fiscal year.
            ``(2) In fiscal year 2000, the quantity of timber sold in 
        below-cost timber sales on National Forest System land shall 
        not exceed 65 percent of the quantity of timber sold in such 
        sales in fiscal year 1999.
            ``(3) In fiscal year 2001, the quantity of timber sold in 
        below-cost timber sales on National Forest System land shall 
        not exceed 50 percent of the quantity of timber sold in such 
        sales in fiscal year 2000.''.

SEC. 143. ELIMINATION OF PURCHASER ROAD CREDITS AS FINANCING METHOD FOR 
              NATIONAL FOREST ROAD CONSTRUCTION AND RECOVERY OF FEDERAL 
              COSTS OF FOREST ROAD CONSTRUCTION.

    (a) Elimination of Purchaser Road Credits.--Section 4 of Public Law 
88-657 (commonly known as the ``National Forest Roads and Trails Act'') 
(16 U.S.C. 535) is amended--
            (1) by striking ``Sec. 4.'' and inserting the following:

``SEC. 4. CONSTRUCTION OF FOREST DEVELOPMENT ROADS.

    ``(a) Authorized Methods to Fund Construction.--'';
            (2) in paragraph (2) of the second sentence, by striking 
        ``including provisions for amortization of road costs in 
        contracts'' and inserting ``except that the Secretary may not 
        provide effective purchaser credit for road construction'';
            (3) by striking the last sentence; and
            (4) by adding at the end the following:
    ``(b) Effect on Existing Purchaser Road Credits.--Effective 
purchaser credit for any contract awarded before the date of enactment 
of this subsection may continue to be used in accordance with 
subsection (a), and rules issued under this section, as in effect on 
the day before the date of enactment of this subsection.''.
    (b) Level of Construction of Forest Roads.--Section 4 of Public Law 
88-657 (commonly known as the ``National Forest Roads and Trails Act'') 
(16 U.S.C. 535) (as amended by subsection (a)) is amended--
            (1) in the second sentence of subsection (a), by striking 
        ``: Provided,'' and all that follows through ``as may be 
        appropriate''; and
            (2) by adding at the end the following:
    ``(c) Level of Construction of Forest Roads.--In the case of a 
forest road constructed or paid for by a purchaser of national forest 
timber, the Secretary may not require the purchaser to design, 
construct, or maintain the road to a higher standard than the standard 
needed in the harvesting and removal of the timber and other products 
covered by the sale, consistent with existing environmental laws 
(including regulations).''.
    (c) Sense of Congress Regarding Recovery of Road Costs.--It is the 
sense of Congress that the Secretary of Agriculture should recover, 
when practicable, the full cost to the Federal Government of forest 
road design, construction, and maintenance through appropriate fees 
levied on the users of the roads, whether for logging, recreation, or 
other uses.
    (d) Conforming Amendments Regarding Purchaser Road Credits.--
            (1) Transportation system.--Section 10(a) of the Forest and 
        Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 
        1608(a)) is amended by striking ``benefits'' and all that 
        follows through the period at the end of the subsection and 
        inserting ``benefits.''.
            (2) Timber sales with purchaser credit provisions.--Section 
        14 of the National Forest Management Act of 1976 (16 U.S.C. 
472a) is amended by striking subsection (i).
            (3) Effect on existing contracts.--Subsection (i) of 
        section 14 of the National Forest Management Act of 1976 (16 
        U.S.C. 472a) (as in effect on the day before the date of 
        enactment of this Act) shall continue to apply with respect to 
        any timber contract described in that subsection awarded before 
        the date of enactment of this Act.

                Subtitle E--Other Agricultural Programs

SEC. 151. ELIMINATION OF INTEREST RATE SUBSIDY FOR INSURED ELECTRIC 
              LOANS.

    (a) In General.--Section 305 of the Rural Electrification Act of 
1936 (7 U.S.C. 935) is amended by striking subsection (c) and inserting 
the following:
    ``(c) Insured Electric Loans.--The Secretary shall make insured 
electric loans, to the extent of qualifying applications for the loans, 
at an interest rate equal to the then current cost of money to the 
Government of the United States for loans of similar maturity.''.
    (b) Application.--The amendment made by subsection (a) shall apply 
to an insured electric loan made under title III of the Rural 
Electrification Act of 1936 (7 U.S.C. 931 et seq.) after the date of 
enactment of this Act.

SEC. 152. ELIMINATION OF MARKET ACCESS PROGRAM.

    (a) In General.--Section 203 of the Agricultural Trade Act of 1978 
(7 U.S.C. 5623) is repealed.
    (b) Conforming Amendments.--
            (1) Section 211 of the Agricultural Trade Act of 1978 (7 
        U.S.C. 5641) is amended by striking subsection (c).
            (2) Section 402(a)(1) of the Agricultural Trade Act of 1978 
        (7 U.S.C. 5662(a)(1)) is amended by striking ``203,''.
            (3) Section 1302 of the Omnibus Budget Reconciliation Act 
        of 1993 (7 U.S.C. 5623 note; Public Law 103-66) is repealed.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 1998.

SEC. 153. ELIMINATION OF WILDLIFE SERVICES PROGRAM.

    Effective October 1, 1998, the Secretary of Agriculture shall 
terminate the Wildlife Services program of the Animal and Plant Health 
Inspection Service.

                 TITLE II--ENERGY AND NATURAL RESOURCES

                  Subtitle A--Hardrock Mining Royalty

SEC. 201. DEFINITIONS.

    In this subtitle:
            (1) Affiliate.--The term ``affiliate'' means, with respect 
        to any person, each of the following:
                    (A) Any partner of the person.
                    (B) Any person owning at least 10 percent of the 
                voting shares of the person.
                    (C) Any person that controls, is controlled by, or 
                is under common control with the person.
            (2) Fund.--The term ``Fund'' means the Abandoned Minerals 
        Mine Reclamation Fund established by section 203.
            (2) General mining laws.--The term ``general mining laws'' 
        means the Acts that generally comprise chapters 2, 12A, and 16, 
        and sections 161 and 162, of title 30, United States Code.
            (3) Locatable mineral.--The term ``locatable mineral'' 
        means a mineral that is not subject to disposition under any of 
        the following:
                    (A) The Mineral Leasing Act (30 U.S.C. 181 et 
                seq.).
                    (B) The Geothermal Steam Act of 1970 (30 U.S.C. 
                1001 et seq.).
                    (C) The Act of July 31, 1947 (commonly known as the 
                ``Materials Act of 1947'') (30 U.S.C. 601 et seq.).
                    (D) The Mineral Leasing for Acquired Lands Act (30 
                U.S.C. 351 et seq.).
            (4) Net smelter return.--The term ``net smelter return'' 
        means the gross income from mining (within the meaning of 
        section 613(c)(1) of the Internal Revenue Code of 1986).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 202. ROYALTY.

    (a) Reservation of Royalty.--Each person that produces a locatable 
mineral (including any associated mineral) from any mining claim 
located under the general mining laws, or a mineral concentrate derived 
from a locatable mineral produced from any mining claim located under 
the general mining laws, shall pay a royalty of 5 percent of the net 
smelter return from the production of the locatable mineral or 
concentrate.
    (b) Royalty Payments.--Each person responsible for making a royalty 
payment under this section shall make the payment to the Secretary not 
later than 30 days after the end of the calendar month in which the 
mineral or mineral concentrate is mined and first placed in marketable 
condition, consistent with prevailing practices in the mining industry.
    (c) Reporting Requirements.--
            (1) In general.--Each person holding a mining claim located 
        under the general mining laws shall provide to the Secretary 
        such information as the Secretary determines to be necessary to 
        ensure compliance with this section.
            (2) Information included.--Information described in 
        paragraph (1) includes quarterly reports, records, documents, 
        pertinent technical and financial data relating to the quantity 
        and quality of all minerals extracted from the mining claim, 
        and other data.
    (d) Audits.--The Secretary may conduct such audits of persons 
holding mining claims located under the general mining laws as the 
Secretary considers necessary for the purpose of ensuring compliance 
with this section.
    (e) Disposition of Receipts.--All receipts from royalties collected 
under this section shall be deposited in the Fund.
    (f) Compliance.--A person holding a mining claim located under the 
general mining laws that knowingly or willfully prepares, maintains, or 
submits false, inaccurate, or misleading information required by this 
section, or fails to submit the information, shall be subject to a 
penalty imposed by the Secretary.

SEC. 203. ABANDONED MINERALS MINE RECLAMATION FUND.

    (a) Establishment.--
            (1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the ``Abandoned 
        Minerals Mine Reclamation Fund''.
            (2) Administration.--The Fund shall be administered by the 
        Secretary.
            (3) Investments.--
                    (A) Notification.--The Secretary shall notify the 
                Secretary of the Treasury concerning what portion of 
                the Fund is not, in the judgment of the Secretary of 
                the Interior, required to meet current withdrawals.
                    (B) Permissible investments.--The Secretary of the 
                Treasury shall invest such portion of the Fund in 
                public debt securities with maturities suitable for the 
                needs of the Fund and bearing interest at rates 
                determined by the Secretary of the Treasury, taking 
                into consideration current market yields on outstanding 
                marketplace obligations of the United States of 
                comparable maturities.
                    (C) Crediting of income.--The income on the 
                investments shall be credited to, and form a part of, 
                the Fund.
    (b) Crediting of Amounts to the Fund.--The following amounts shall 
be credited to the Fund for the purposes of this subtitle:
            (1) All amounts received as royalty under section 202 or as 
        a mining claim maintenance fee under section 205.
            (2) All donations by persons, corporations, associations, 
        and foundations for the purposes of this subtitle.
    (c) Use and Objectives of the Fund.--Subject to the availability of 
appropriations, the Secretary may use amounts in the Fund for the 
reclamation and restoration of land and water resources adversely 
affected by the mining of a mineral (other than coal and fluid 
minerals), and mineral material mining, before the date of enactment of 
this Act, including any of the following:
            (1) Reclamation and restoration of abandoned surface mined 
        areas.
            (2) Reclamation and restoration of abandoned milling and 
        processing areas.
            (3) Sealing, filling, and grading abandoned deep mine 
        entries.
            (4) Planting of land adversely affected by mining (that 
        occurred before the date of enactment of this Act) to prevent 
        erosion and sedimentation.
            (5) Prevention, abatement, treatment and control of water 
        pollution created by abandoned mine drainage.
            (6) Control of surface subsidence due to abandoned deep 
        mines.
            (7) Such expenses as may be necessary to accomplish the 
        purposes of this section.
    (d) Eligible Areas.--
            (1) In general.--Land and waters eligible for reclamation 
        expenditures under this section shall be land and waters within 
        the boundaries of a State that has land subject to the general 
        mining laws that, before the date of enactment of this Act--
                    (A) was--
                            (i) mined or processed for minerals or 
                        mineral materials; or
                            (ii) affected by the mining or processing; 
                        and
                    (B) was abandoned or left in an inadequate 
                reclamation status; and
                    (C) for which the Secretary determines that--
                            (i) there is no continuing reclamation 
                        responsibility under Federal or State law; and
                            (ii) the land does not contain a mineral 
                        that could economically be extracted through 
                        the reprocessing or remining of the land.
            (2) Sites designated for remedial action.--Notwithstanding 
        paragraph (1), a site or area designated for remedial action 
        the Uranium Mill Tailings Radiation Control Act of 1978 (42 
        U.S.C. 7901 et seq.) or the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601 et seq.) shall not be eligible for expenditures from the 
        Fund.
    (e) Fund Expenditures.--Amounts in the Fund may be expended by the 
Director of the Bureau of Land Management directly, or making funds 
available to the Chief of the Forest Service and the Director of the 
National Park Service.
    (f) Authorization of Appropriations.--Amounts credited to the Fund 
are authorized to be appropriated for the purpose of this subtitle 
without fiscal year limitation.

SEC. 204. LIMITATION ON PATENT ISSUANCE.

    No patent shall be issued to an applicant by the United States for 
any mining or mill site claim located under the general mining laws 
unless the Secretary determines that--
            (1) a patent application for the claim was filed with the 
        Secretary on or before September 30, 1994; and
            (2) all requirements established under--
                    (A) sections 2325 and 2326 of the Revised Statutes 
                (30 U.S.C. 29, 30) (in the case of a vein or lode 
                claim);
                    (B) sections 2329, 2330, 2331, and 2333 of the 
                Revised Statutes (30 U.S.C. 35, 36, 37) (in the case of 
                a placer claim); or
                    (C) section 2337 of the Revised Statutes (30 U.S.C. 
                42) (in the case of a mill site claim;
        were fully complied with by the applicant by September 30, 
        1994.

SEC. 205. MINING CLAIM MAINTENANCE REQUIREMENTS.

    (a) In General.--
            (1) Claims located before date of enactment.--The holder of 
        a mining claim located under the general mining laws before the 
        date of enactment of this Act shall pay the Secretary an annual 
        claim maintenance fee of $100 per claim per calendar year.
            (2) Claims located on or after date of enactment.--The 
        holder of a mining claim located under the general mining laws 
        on or after the date of enactment of this Act shall pay the 
        Secretary an annual claim maintenance fee of $125 per claim per 
        calendar year.
    (b) Purchasing Power Adjustment.--The Secretary shall adjust the 
amount of the claim maintenance fee payable under subsection (a) to 
reflect changes in the purchasing power of the dollar after the 
calendar year 1993, employing the Consumer Price Index for all urban 
consumers published by the Department of Labor as the basis for 
adjustment, and rounding according to the adjustment process of 
conditions of the Federal Civil Penalties Inflation Adjustment Act of 
1990 (28 U.S.C. 2461 note; Public Law 101-410).
    (c) Time of Payment.--Each claim holder shall pay the claim 
maintenance fee payable under subsection (a) for any year on or before 
August 31 of each year, except that for the initial calendar year in 
which the location is made, the initial claim maintenance fee shall be 
paid at the time at which the location notice is recorded with the 
Bureau of Land Management.
    (d) Oil Shale Claims Subject to Claim Maintenance Fees Under Energy 
Policy Act of 1992.--This section shall not apply to any oil shale 
claim for which a fee is required to be paid under section 2511(e)(2) 
of the Energy Policy Act of 1992 (30 U.S.C. 242(e)(2)).
    (e) Claim Maintenance Fees Payable Under 1993 Act.--The claim 
maintenance fees payable under this section for any period with respect 
to any mining claim shall be reduced by the amount of the claim 
maintenance fees paid under section 10101 of the Omnibus Budget 
Reconciliation Act of 1993 (30 U.S.C. 28f) with respect to that claim 
and with respect to the same period.
    (f) Waiver.--
            (1) In general.--The claim maintenance fee required under 
        this section may be waived for a claim holder that certifies in 
        writing to the Secretary, on or before the date on which 
        payment is due, that on the date on the payment is due, the 
        claim holder and all related parties held not more than 10 
        mining claims on land open to location.
            (2) Definition of related party.--For purposes of this 
        subsection, with respect to any claim holder, the term `related 
        party' means each of the following:
                    (A) The spouse and dependents (as defined in 
                section 152 of the Internal Revenue Code of 1986) of 
                the claim holder.
                    (B) Any affiliate of the claim holder.
    (g) Coownership.--
            (1) Notice of failure to pay portion of fee.--On the 
        failure of any 1 or more of several coowners to contribute the 
        coowners' portion of the fee under this section, any coowner 
        that has paid the fee may, after the payment due date, give the 
        delinquent coowner notice of the failure in writing by first 
        class mail (or by publication in the newspaper nearest the 
        claim at least once a week for at least 90 days).
            (2) Continued failure to pay.--If, at the expiration of 90 
        days after the giving of notice to a coowner under paragraph 
        (1), a coowner has continued to fail to contribute the 
        coowner's portion, the coowner's interest in the claim shall 
        become the property of the coowners that have paid the required 
        fee.

        Subtitle B--Other Energy and Natural Resources Programs

SEC. 211. FEDERAL IRRIGATION SUBSIDIES.

    (a) Definitions.--Section 202 of the Reclamation Reform Act of 1982 
(43 U.S.C. 390bb) is amended--
            (1) in paragraph (6), by striking ``owned or operated under 
        a lease which'' and inserting ``that is owned, leased, or 
        operated by an individual or legal entity and that'';
            (2) by redesignating paragraphs (7), (8), (9), (10), and 
        (11) as paragraphs (8), (10), (11), (12), and (13), 
        respectively;
            (3) by inserting after paragraph (6) the following:
            ``(7) Legal entity.--The term `legal entity' includes a 
        corporation, association, partnership, trust, joint tenancy, or 
        tenancy in common, or any other entity that owns, leases, or 
        operates a farm operation for the benefit of more than 1 
        individual under any form of agreement or arrangement.'';
            (4) by inserting after paragraph (8) (as redesignated by 
        paragraph (2)) the following:
            ``(9) Operator.--
                    ``(A) In general.--The term `operator' means an 
                individual or legal entity that operates a single farm 
                operation on a parcel (or parcels) of land that is 
                owned or leased by another person (or persons) under 
                any form of agreement or arrangement (or agreements or 
                arrangements).
                    ``(B) Inclusions.--The term `operator' includes, if 
                the individual or legal entity--
                            ``(i) is an employee of another individual 
                        or legal entity, each such other individual or 
                        legal entity; or
                            ``(ii) is a legal entity that controls, is 
                        controlled by, or is under common control with 
                        another legal entity, each such other legal 
                        entity.
                    ``(C) Operation of a farm operation.--For the 
                purposes of this paragraph, an individual or legal 
                entity shall be considered to operate a farm operation 
                if the individual or legal entity is the person that 
                performs the greatest proportion of the decisionmaking 
                for, and supervision of, the farm operation on land 
                served with irrigation water.''; and
            (5) by adding at the end the following:
            ``(14) Single farm operation.--
                    ``(A) In general.--The term `single farm operation' 
                means the total acreage of land served with irrigation 
                water for which an individual or legal entity is the 
                operator.
                    ``(B) Rules for determining whether separate 
                parcels are operated as a single farm operation.--
                            ``(i) Equipment- and labor-sharing 
                        activities.--The conduct of equipment- and 
                        labor-sharing activities on separate parcels of 
                        land by separate individuals or legal entities 
                        shall not by itself serve as a basis for 
                        concluding that the farm operations of the 
                        individuals or legal entities constitute a 
                        single farm operation.
                            ``(ii) Performance of certain services.--
                        The performance by an individual or legal 
                        entity of an agricultural chemical application, 
                        pruning, or harvesting for a farm operation on 
                        a parcel of land shall not by itself serve as a 
                        basis for concluding that the farm operation on 
                        that parcel of land is part of a single farm 
                        operation operated by the individual or entity 
                        on other parcels of land.''.
    (b) Identification of Owners, Lessees, and Operators of Single Farm 
Operations.--The Reclamation Reform Act of 1982 is amended by inserting 
after section 202 (43 U.S.C. 390bb) the following:

``SEC. 202A. IDENTIFICATION OF OWNERS, LESSEES, AND OPERATORS OF SINGLE 
              FARM OPERATIONS.

    ``(a) In General.--Subject to subsection (b), for each parcel of 
land to which irrigation water is delivered or proposed to be 
delivered, the Secretary shall identify a single individual or legal 
entity as the owner, lessee, or operator.
    ``(b) Shared Decisionmaking and Supervision.--If the Secretary 
determines that no single individual or legal entity is the owner, 
lessee, or other individual that performs the greatest proportion of 
decisionmaking for, and supervision of, the farm operation on a parcel 
of land--
            ``(1) all individuals and legal entities that own, lease, 
        or perform a proportion of decisionmaking and supervision that 
        is equal as among themselves but greater than the proportion 
        performed by any other individual or legal entity shall be 
        considered jointly to be the owner, lessee, or operator; and
            ``(2) all parcels of land of which any such individual or 
        legal entity is the owner, lessee, or operator shall be 
        considered to be part of the single farm operation of the 
        owner, lessee, or operator identified under paragraph (1).''.
    (c) Pricing.--Section 205 of the Reclamation Reform Act of 1982 (43 
U.S.C. 390ee) is amended by adding at the end the following:
    ``(d) Single Farm Operations Generating More Than $500,000 in Gross 
Farm Income.--
            ``(1) In general.--Notwithstanding subsections (a), (b), 
        and (c), in the case of--
                    ``(A) a qualified recipient that reports gross farm 
                income from a single farm operation in excess of 
                $500,000 for a taxable year; or
                    ``(B) a limited recipient that received irrigation 
                water on or before October 1, 1981, and that reports 
                gross farm income from a single farm operation in 
                excess of $500,000 for a taxable year;
        irrigation water may be delivered to the single farm operation 
        of the qualified recipient or limited recipient at less than 
        full cost to a number of acres that does not exceed the number 
        of acres determined under paragraph (2).
            ``(2) Maximum number of acres to which irrigation water may 
        be delivered at less than full cost.--The number of acres 
        determined under this paragraph is the number equal to the 
        number of acres of the single farm operation multiplied by a 
        fraction, the numerator of which is $500,000 and the 
        denominator of which is the amount of gross farm income 
        reported by the qualified recipient or limited recipient in the 
        most recent taxable year.
            ``(3) Inflation adjustment.--
                    ``(A) Definition of inflation adjustment factor.--
                            ``(i) In general.--In this paragraph, the 
                        term `inflation adjustment factor' means, with 
                        respect to any calendar year, a fraction the 
                        numerator of which is the GDP implicit price 
                        deflator for the preceding calendar year and 
                        the denominator of which is the GDP implicit 
                        price deflator for 1996. Not later than April 1 
                        of any calendar year, the Secretary shall 
                        publish the inflation adjustment factor for the 
                        preceding calendar year.
                            ``(ii) Definition of GDP implicit price 
                        deflator.--In clause (i), the term `GDP 
                        implicit price deflator' means the first 
                        revision of the implicit price deflator for the 
                        gross domestic product as computed and 
                        published by the Secretary of Commerce.
                    ``(B) Adjustment.--For any taxable year beginning 
                in a calendar year after 1997, the $500,000 amount 
                under paragraphs (1) and (2) shall be equal to the 
                product of--
                            ``(i) $500,000; and
                            ``(ii) the inflation adjustment factor for 
                        the taxable year.
                    ``(C) Rounding.--If any adjustment of the $500,000 
                amount determined under subparagraph (B) is not a 
                multiple of $100, the adjustment shall be rounded to 
                the next lowest multiple of $100.''.
    (d) Certification of Compliance.--Section 206 of the Reclamation 
Reform Act of 1982 (43 U.S.C. 390ff) is amended to read as follows:

``SEC. 206. CERTIFICATION OF COMPLIANCE.

    ``(a) In General.--As a condition to the receipt of irrigation 
water for land in a district that has a contract described in section 
203, each owner, lessee, or operator in the district shall furnish the 
district, in a form prescribed by the Secretary, a certificate that the 
owner, lessee, or operator is in compliance with this title, 
including--
            ``(1) a statement of the number of acres owned, leased, or 
        operated;
            ``(2) a statement of the terms of any lease or agreement 
        pertaining to the operation of a farm operation; and
            ``(3) in the case of a lessee or operator, a certification 
        that the rent or other fees paid reflect the reasonable value 
        of the irrigation water to the productivity of the land.
    ``(b) Documentation.--The Secretary may require a lessee or 
operator to submit for the Secretary's examination--
            ``(1) a complete copy of any lease or other agreement 
        executed by each of the parties to the lease or other 
        agreement; and
            ``(2) a copy of the return of income tax imposed by chapter 
        1 of the Internal Revenue Code of 1986 for any taxable year in 
        which the single farm operation of the lessee or operator 
        received irrigation water at less than full cost.''.
    (e) Trusts.--Section 214 of the Reclamation Reform Act of 1982 (43 
U.S.C. 390nn) is repealed.
    (f) Administrative Provisions.--
            (1) Penalties.--Section 224(c) of the Reclamation Reform 
        Act of 1982 (43 U.S.C. 390ww(c)) is amended--
                    (A) by striking ``(c) The Secretary'' and inserting 
                the following:
    ``(c) Regulations; Data Collection; Penalties.--
            ``(1) Regulations; data collection.--The Secretary''; and
                    (B) by adding at the end the following:
            ``(2) Penalties.--Notwithstanding any other provision of 
        law, the Secretary shall establish appropriate and effective 
        penalties for failure to comply with any provision of this Act 
        or any regulation promulgated under this Act.''.
            (2) Interest.--Section 224(i) of the Reclamation Reform Act 
        of 1982 (43 U.S.C. 390ww(i)) is amended by striking the last 
        sentence and inserting the following: ``The interest rate 
        applicable to underpayments shall be equal to the rate 
        applicable to expenditures under section 202(3)(C).''.
    (g) Reporting.--Section 228 of the Reclamation Reform Act of 1982 
(43 U.S.C. 390zz) is amended by inserting ``operator or'' before 
``contracting entity'' each place it appears.
    (h) Memorandum of Understanding.--The Reclamation Reform Act of 
1982 (43 U.S.C. 390aa et seq.) is amended--
            (1) by redesignating sections 229 and 230 as sections 230 
        and 231, respectively; and
            (2) by inserting after section 228 the following:

``SEC. 229. MEMORANDUM OF UNDERSTANDING.

    ``The Secretary, the Secretary of the Treasury, and the Secretary 
of Agriculture shall enter into a memorandum of understanding or other 
appropriate instrument to permit the Secretary, notwithstanding section 
6103 of the Internal Revenue Code of 1986, to have access to and use of 
available information collected or maintained by the Department of the 
Treasury and the Department of Agriculture that would aid enforcement 
of the ownership and pricing limitations of Federal reclamation law.''.

SEC. 212. ANNUAL DOMESTIC LIVESTOCK GRAZING FEE.

    The Federal Land Policy and Management Act of 1976 is amended by 
inserting after section 401 (43 U.S.C. 1751) the following:

``SEC. 401A. ESTABLISHMENT OF FAIR MARKET VALUE GRAZING FEES.

    ``(a) Establishment of Annual Domestic Livestock Grazing Fee.--
            ``(1) National forest system land.--Notwithstanding any 
        other provision of law, the Secretary of Agriculture, with 
        respect to National Forest System land in the 16 contiguous 
        Western States (except National Grassland) administered by the 
        Forest Service where domestic livestock grazing is permitted 
        under applicable law, shall establish an annual domestic 
        livestock grazing fee equal to fair market value.
            ``(2) Public domain land.--Notwithstanding any other 
        provision of law, the Secretary of the Interior, with respect 
        to public domain land administered by the Bureau of Land 
        Management where domestic livestock grazing is permitted under 
        applicable law, shall establish an annual domestic livestock 
        grazing fee equal to fair market value.
    ``(b) Calculation of Fair Market Value.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Appraised base value.--The term `Appraised 
                Base Value' means the 1983 Appraisal Value conclusions 
                for mature cattle and horses (expressed in dollars per 
                head or per month), as determined in the 1986 report 
                prepared jointly by the Secretary of Agriculture and 
                the Secretary of the Interior entitled `Grazing Fee 
                Review and Evaluation', dated February 1986, on a west-
                wide basis using the lowest appraised value of the 
                pricing areas adjusted for advanced payment and indexed 
                to 1997.
                    ``(B) Forage value index.--The term `Forage Value 
                Index' means the Forage Value Index computed annually 
                by the Economic Research Service of the Department of 
                Agriculture, and set with the 1997 Forage Value Index 
                equal to 100
            ``(2) Calculation.--For purposes of determining the annual 
        domestic livestock grazing fee under this section, the 
        Secretary concerned shall calculate fair market value using the 
        following formula:


    ``(c) Limitation on Fluctuations of Fees.--Notwithstanding the 
amount calculated under subsection (b) for a year, the domestic 
livestock grazing fee charged for any year shall not increase or 
decrease by more than 33.3 percent from the domestic livestock grazing 
fee for the previous year.
    ``(d) Effect on Executive Order.--Executive Order No. 12548, dated 
February 14, 1986 (51 Fed. Reg. 5985), shall not apply to grazing fees 
established under this section.
    ``(e) Effect on Grazing Advisory Boards.--
            ``(1) Abolition.--The grazing advisory boards established 
        pursuant to action by the Secretary of the Interior, notice of 
        which was published in the Federal Register on May 14, 1986 (51 
        Fed. Reg. 17874), are abolished.
            ``(2) Functions.--The advisory functions exercised by the 
        boards shall be exercised only by the appropriate councils 
        established under section 309.
    ``(f) Use of Fees and Range Improvement Funds.--
            ``(1) In general.--Funds appropriated under section 5 of 
        the Public Rangelands Improvement Act of 1978 (43 U.S.C. 1904) 
        or any other provision of law relating to the disposition of 
        the Federal share of receipts from fees for grazing on public 
        domain land or National Forest land in the 16 contiguous 
        western States shall be used for--
                    ``(A) restoration and enhancement of fish and 
                wildlife habitat;
                    ``(B) restoration and improved management of 
                riparian areas; and
                    ``(C) implementation and enforcement of applicable 
                land management plans, allotment plans, and regulations 
                regarding the use of the land for domestic livestock 
                grazing.
            ``(2) Distribution.--The funds shall be distributed as the 
        Secretary concerned considers advisable after consultation and 
        coordination with the advisory councils established under 
        section 309 and other interested parties.
    ``(g) Commencement Date for Fees.--The first annual domestic 
livestock grazing fee required by this section shall apply with respect 
to the grazing season commencing on March 1, 1999.''.

SEC. 213. SALE OF FEDERALLY-OWNED FACILITIES UNDER FEDERAL POWER 
              MARKETING ADMINISTRATIONS AND TERMINATION OF 
              ADMINISTRATIONS.

    (a) Sale of Federally-Owned Facilities.--
            (1) In General.--The Secretary of Energy shall take such 
        actions as are necessary to sell all electric power generation 
        and transmission facilities that (as of the date of enactment 
        of this Act) are owned and operated by Federal agencies under 
        the supervision of, or in coordination with, a Federal power 
        marketing administration.
            (2) Price.--In selling facilities under paragraph (1), the 
        Secretary shall obtain the highest practicable price for the 
        facilities (including the value of future tax revenues that 
        would have been derived from the facilities).
            (3) Compliance with environmental laws.--As a condition of 
        the purchase of a facility under paragraph (1), the purchaser 
        of the facility shall comply with all Federal, State, and local 
        environmental laws (including regulations) that a federally-
        owned facility under the jurisdiction of a Federal power 
        marketing administration was required to comply with 
        immediately before the purchase of the facility, as determined 
        by the Secretary.
            (4) Coordination with other federal agencies.--The heads of 
        other affected Federal agencies shall assist the Secretary in 
        implementing the sale of facilities under paragraph (1).
    (b) Termination of Power Marketing Administrations.--After the sale 
under subsection (a) of the electric power generation facilities and 
transmission facilities owned and operated by Federal agencies under 
the supervision of, or in coordination with, a Federal power marketing 
administration, the Secretary shall terminate the operations of the 
Federal power marketing administration.

SEC. 214. PLUTONIUM PYROPROCESSING PROGRAM.

    (a) In General.--The Secretary of Energy shall terminate each 
program or activity of the Department of Energy that involves 
pyroprocessing of plutonium.
    (b) Deauthorization of Liquid Metal Reactors.--
            (1) Definition of advanced nuclear reactor technologies.--
        Section 2121(b)(1)(B) of the Energy Policy Act of 1992 (42 
        U.S.C. 13491(b)(1)(B)) is amended by striking ``and liquid 
        metal reactors''.
            (2) Program goals.--Section 2122(b)(1)(B) of the Energy 
        Policy Act of 1992 (42 U.S.C. 13492(b)(1)(B)) is amended by 
        striking ``and the liquid metal reactor technology''.

SEC. 215. PETROLEUM RESEARCH AND DEVELOPMENT.

    (a) In General.--Except as provided in subsection (b), the 
Secretary of Energy shall not conduct any petroleum research and 
development activities.
    (b) Authority To Carry Out Termination Activities.--The Secretary 
may carry out--
            (1) such petroleum research and development activities as 
        are required by contracts entered into before the date of 
        enactment of this Act; and
            (2) such other activities as are necessary to terminate 
        ongoing petroleum research and development activities.
    (c) Report on Termination Activities.--Not later than 180 days 
after the date of enactment of this Act, the Secretary shall submit to 
Congress a report that--
            (1) sets forth a plan for terminating all petroleum 
        research and development activities of the Department of 
        Energy, including contract activities and all necessary cleanup 
        procedures, by September 30, 1999; and
            (2) identifies the assets of the Department that are used 
        for petroleum research and development activities and provides 
        for the appropriate disposition or reassignment of those 
        assets.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

                           TITLE III--DEFENSE

SEC. 301. TACTICAL AIRCRAFT REALIGNMENT.

    (a) Report.--
            (1) Recommendation and analysis required.--Not later than 
        60 days after the date of the enactment of this Act, the 
        Secretary of Defense shall submit to Congress a report 
        containing the Secretary's recommendation on which one of the 
        three new tactical fighter aircraft programs should be 
        terminated if only two of such programs were to be funded. The 
        report shall also contain an analysis of how the two remaining 
        new tactical fighter aircraft programs (not including the 
        tactical fighter aircraft program recommended for termination), 
        together with the current tactical aircraft assets of the Armed 
        Forces, will provide the Armed Forces with an effective, 
        affordable tactical fighter force structure that is capable of 
        meeting projected threats well into the twenty-first century.
            (2) Covered aircraft programs.--The three new tactical 
        fighter aircraft programs referred to in subsection (a) are as 
        follows:
                    (A) The F/A-18 E/F aircraft program.
                    (B) The F-22 aircraft program.
                    (C) The Joint Strike Fighter aircraft program.
    (b) Implementation of Recommendation.--
            (1) Termination of program.--The Secretary of Defense shall 
        terminate the program recommended in the report under 
        subsection (a) as the program that should be terminated.
            (2) Funding limitation.--Effective on the date on which the 
        report is submitted under subsection (a), funds available for 
        the program referred to in paragraph (1) may be expended for 
        that program only for costs necessary for terminating the 
        program.
    (c) Increased Procurement of Aircraft Under Existing Full-Scale 
Production Programs.--
            (1) Conditional authority.--The Secretary of Defense may 
        increase the number of tactical aircraft to be acquired under 
        existing tactical aircraft production programs to the extent 
        that the Secretary of Defense considers necessary to offset the 
        number of tactical aircraft planned to be acquired under the 
        program terminated under subsection (b) that are not acquired 
        by reason of the termination of the program.
            (2) Existing tactical aircraft production programs.--The 
        tactical aircraft production programs referred to in paragraph 
        (1) are the tactical aircraft acquisition programs of the 
        Department of Defense that are in full-scale production as of 
        the date of the enactment of this Act.

SEC. 302. UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    (a) Closure Required.--
            (1) Requirement.--The Secretary of Defense shall close the 
        Uniformed Services University of the Health Sciences upon the 
        completion of the education and training of the personnel 
        enrolled in the education and training programs of the 
        University as of December 31, 1998, who continue to be enrolled 
        in the programs without a break in enrollment after that date.
            (2) Repeal of prohibition on closure.--Section 2112a of 
        title 10, United States Code, is repealed.
    (b) Admissions After 1998 Prohibited.--Chapter 104 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2117. Admissions after 1998 prohibited
    ``No student may be admitted for enrollment in a program of the 
University after December 31, 1998.''.
    (c) Funding Limitation.--Funds available for education and training 
programs of the Uniformed Services University of the Health Sciences 
may be expended only for--
            (1) completing the education and training of the personnel 
        described in subsection (a)(1); and
            (2) closing the University.
    (d) Table of Sections.--The table of sections at the beginning of 
chapter 104 of title 10, United States Code, is amended--
            (1) by striking out the item relating to section 2112a; and
            (2) by adding at the end the following new item:

``2117. Admissions after 1998 prohibited.''.

SEC. 303. MAINTENANCE OF PURCHASING POWER.

    (a) Funds Made Excess Due to Revised Economic Projections.--The 
Secretary of Defense may not obligate or expend any amount of the funds 
available for the Department of Defense for fiscal year 1999, 2000, 
2001, 2002, or 2003 for a program of the Department of Defense that 
exceeds the amount equal to the excess (if any) of--
            (1) the portion of the total amount available for that 
        fiscal year for the program that constitutes an allowance to 
        meet increased costs of the program resulting from inflation, 
        fluctuations in exchange rates of foreign currencies, or 
        fluctuations in the costs of fuel, over
            (2) the total amount necessary to meet such increased 
        costs, as provided for in program budget decisions that are 
        issued for the program by the Under Secretary of Defense 
        (Comptroller) during fiscal year 1999 on the basis of--
                    (A) projections on economic conditions that were 
                issued by the Director of the Office of Management and 
                Budget in December 1997 or May 1998; or
                    (B) laws making appropriations for fiscal year 1999 
                for military activities of the Department of Defense 
                and military construction.
    (b) Return of Excess Amounts to General Fund.--The Secretary of 
Defense shall transfer to the General Fund of the Treasury the amounts 
determined excessive under subsection (a).

SEC. 304. THEATER HIGH ALTITUDE AREA DEFENSE SYSTEM MIDCOURSE 
              CORRECTION.

    (a) Maximum Annual Amount Obligated for Program.--The total amount 
obligated in any fiscal year after fiscal year 1998 for the Theater 
High Altitude Area Defense program of the Army may not exceed 
$400,000,000.
    (b) Limitation.--No funds may be obligated after the date of the 
enactment of this Act for the Theater High Altitude Area Defense 
program until the panel established under subsection (c) submits to the 
Secretary of Defense and to Congress a certification that the program 
is programmatically sound.
    (c) Independent Panel on Program Soundness.--
            (1) Establishment and duties.--The Secretary of Defense 
        shall establish a panel of 8 members to review the Theater High 
        Altitude Area Defense program and to determine the programmatic 
        soundness of the program. Upon making a determination that the 
        program is programmatically sound, the panel shall submit a 
        certification of that determination to the Secretary of Defense 
        and Congress.
            (2) Membership.--The Secretary shall appoint members of the 
        panel from among experts on major defense acquisition programs 
        who are independent of the Department of Defense. For the 
        purposes of the preceding sentence, a member or former member 
        of the Armed Forces entitled to retired or retainer pay may be 
        considered independent of the Department of Defense. The 
        Secretary shall designate one of the members to chair the 
        panel.
            (3) Support.--The Secretary shall provide the panel with 
        such support as the panel determines necessary to achieve the 
        purpose of the panel.

SEC. 305. ROTATION OF CREWS TO SHIPS DEPLOYED ABROAD.

    (a) Policy.--The Secretary of the Navy shall require that 
transportation by air be the means for transporting personnel in 
rotation to or from duty as members of the crew of a naval vessel 
deployed abroad unless the Secretary determines that--
            (1) another means for transporting the personnel would be 
        more cost-effective than transportation by air; or
            (2) the benefits of transporting the personnel by air are 
        outweighed by safety concerns or by concerns regarding adverse 
        effects on the capabilities of the Armed Forces.
    (b) Recommendations on Realignment of Force Structure Facilitated 
by Policy.--
            (1) Report on improved projection capabilities.--The 
        Secretary of the Navy shall submit to the Secretary of Defense, 
        on such schedule as the Secretary of Defense shall direct, a 
        report on the improvements in the power projection capabilities 
        and the power projection support capabilities of the Navy that 
        result from the implementation of the policy required under 
        subsection (a).
            (2) Submission to congress.--The Secretary of Defense shall 
        submit to Congress recommended reductions in naval force 
        structure to a force structure that is sufficient for the Navy 
        to meet its power projection requirements (as set forth in the 
        most recent National Military Strategy issued by the Secretary 
        before the date of the enactment of this Act).

SEC. 306. POST-COLD WAR READJUSTMENT OF STRATEGIC FORCE STRUCTURE.

    (a) Policy.--The Secretary of Defense shall ensure that the 
Department of Defense maintains the most cost-effective, safe, and 
reliable combination of delivery vehicles that--
            (1) is necessary to carry not more than the number of 
        warheads agreed to in the START II Treaty; and
            (2) comprises a force structure that is in compliance with 
        that treaty.
    (b) START II Treaty Defined.--In this section, the term ``START II 
Treaty'' means the Treaty Between the United States of America and the 
Russian Federation on Further Reduction and Limitation of Strategic 
Offensive Arms, signed at Moscow on January 3, 1993, including the 
following protocols and memorandum of understanding, all such documents 
being integral parts of and collectively referred to as the ``START II 
Treaty'' (contained in Treaty Document 103-1):
            (1) The Protocol on Procedures Governing Elimination of 
        Heavy ICBMs and on Procedures Governing Conversion of Silo 
        Launchers of Heavy ICBMs Relating to the Treaty Between the 
        United States of America and the Russian Federation on Further 
        Reduction and Limitation of Strategic Offensive Arms (also 
        known as the ``Elimination and Conversion Protocol'').
            (2) The Protocol on Exhibitions and Inspections of Heavy 
        Bombers Relating to the Treaty Between the United States and 
        the Russian Federation on Further Reduction and Limitation of 
        Strategic Offensive Arms (also known as the ``Exhibitions and 
        Inspections Protocol'').
            (3) The Memorandum of Understanding on Warhead Attribution 
        and Heavy Bomber Data Relating to the Treaty Between the United 
        States of America and the Russian Federation on Further 
        Reduction and Limitation of Strategic Offensive Arms (also 
        known as the ``Memorandum on Attribution'').

SEC. 307. D5 (TRIDENT II) MISSILE PROGRAM.

    (a) Termination of Program.--The Secretary of Defense shall 
terminate the D5 missile program.
    (b) Funding Limitation.--Effective on the date of the enactment of 
this Act, funds appropriated or otherwise made available for the 
Department of Defense for the D5 missile program may not be obligated 
for that program except for payment of the costs necessary for 
terminating the program.

SEC. 308. EXPEDITED INVENTORY DRAWDOWN.

    The Secretary of Defense shall--
            (1) expeditiously review the inventory requirements of the 
        Department of Defense for stocks of equipment and supplies to 
        identify requirements that result in excessive inventory; and
            (2) take such actions as are necessary to increase, by 
        September 30, 2003, the total amount realized each fiscal year 
        from sales and other disposals of excessive inventory of 
        equipment and supplies by 50 percent over the total amount 
        realized from sales and other disposals of excessive inventory 
        during fiscal year 1998.

SEC. 309. EXTREMELY LOW FREQUENCY COMMUNICATION SYSTEM OF THE NAVY.

    (a) Termination of Program.--The Secretary of Defense shall 
terminate the Extremely Low Frequency Communication System program of 
the Navy.
    (b) Funding Limitation.--Effective on the date of the enactment of 
this Act, funds appropriated or otherwise made available for the 
Department of Defense for the Extremely Low Frequency Communication 
System program may not be obligated for that program except for payment 
of the costs necessary for terminating the program.

SEC. 310. CONSOLIDATION OF TACTICAL AIRCRAFT PILOT TRAINING.

    (a) Policy.--The Secretary of Defense shall require the Armed 
Forces to use a single program for training members of the Armed Forces 
as pilots of tactical aircraft.
    (b) Implementation of Policy.--To carry out subsection (a), the 
Secretary of Defense shall--
            (1) not later than September 30, 1999, select one of the 
        Armed Forces to train members of the Armed Forces as pilots of 
        tactical aircraft; and
            (2) terminate all such programs that are carried out by the 
        other Armed Forces.
    (c) Waiver Authority.--The Secretary of Defense may waive the 
requirements of this section if the Secretary determines that it is in 
the national security interests of the United States to use more than 
one of the Armed Forces to train members of the Armed Forces as pilots 
of tactical aircraft.

            TITLE IV--COMMERCE, SCIENCE, AND TRANSPORTATION

SEC. 401. TERMINATION OF UNITED STATES PARTICIPATION IN THE 
              INTERNATIONAL SPACE STATION PROGRAM.

    (a) Termination.--The Administrator of the National Aeronautics and 
Space Administration (referred to in this section as the 
``Administrator'') shall terminate the participation of the United 
States in the International Space Station program.
    (b) Termination Costs.--
            (1) In general.--Subject to the limitation under paragraph 
        (2), on and after the date of enactment of this Act, the 
        Administrator may obligate funds made available to the 
        Administrator for the participation of the United States in the 
        International Space Station program only for the costs of 
        terminating the participation of the United States in that 
        program.
            (2) Limitation.--The Administrator may not obligate under 
        this subsection an aggregate amount greater than $700,000,000.
                                 <all>