[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1727 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1727

To reward the stewards of America's farms, ranches, public and private 
   lands, wildlife, water quality and supply, to reduce the risk of 
           specialty crop production, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 16, 2001

    Mr. Reid (for himself, Mr. Leahy, Mr. Chafee, Mr. Jeffords, Mr. 
   Kennedy, Mr. Reed, Mr. Lieberman, Mr. Sarbanes, Mr. Schumer, Mr. 
 Torricelli, Mr. Corzine, and Mr. Dodd) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To reward the stewards of America's farms, ranches, public and private 
   lands, wildlife, water quality and supply, to reduce the risk of 
           specialty crop production, and for other purposes.

    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 ``Conservation 
Assistance and Regional Equity Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                 TITLE I--SPECIALTY CROP RISK REDUCTION

Sec. 101. Specialty crop cost-of-production insurance.
                 TITLE II--FARM AND RANCH PRESERVATION

Sec. 201. Farmland protection program. 
Sec. 202. Socially disadvantaged farmers.
         TITLE III--ENVIRONMENTAL STEWARDSHIP ON WORKING LANDS

Sec. 211. Environmental quality incentives program.
Sec. 212. Definitions.
Sec. 213. Establishment and administration.
Sec. 214. Evaluation of offers and payments.
Sec. 215. Limitation on payments. 
Sec. 216. Reauthorization of funding.
Sec. 217. Funding.
Sec. 218. Allocation for livestock and other conservation priorities.
Sec. 219. State reserve. 
               TITLE IV--PRESERVATION OF WILDLIFE HABITAT

Sec. 221. Wildlife habitat incentives program.
Sec. 222. Wetlands reserve program. 
Sec. 223. Conservation reserve program.
Sec. 224. Conservation of grazing lands. 
Sec. 225. Grassland reserve and enhancement program. 
Sec. 226. Water Conservation Program. 
                        TITLE V--ORGANIC FARMING

Sec. 231. Organic agriculture research trust fund.
Sec. 232. Establishment of national organic research endowment 
                            institute.
                     TITLE VI--TECHNICAL ASSISTANCE

Sec. 241. Reimbursement for program administration.
Sec. 242. Conservation technical assistance by third parties.
Sec. 243. Conservation practice standards. 
          TITLE VII--FARMLAND STEWARDSHIP ENHANCEMENT PROGRAM

Sec. 251. Farmland stewardship enhancement program.
Sec. 252. Farmland stewardship enhancement plan. 
Sec. 253. Funding requirements.
           TITLE VIII--MISCELLANEOUS CONSERVATION PROVISIONS

Sec. 261. Conservation program performance review and evaluation. 
                       TITLE IX--REGIONAL EQUITY

Sec. 271. Allocation of conservation funds by State.
                 TITLE X--CONSERVATION SECURITY PROGRAM

Sec. 281. Conservation security program.
             TITLE XI--RURAL COMMUNITY ECONOMIC ENHANCEMENT

Sec. 291. Expansion of State marketing programs. 

                 TITLE I--SPECIALTY CROP RISK REDUCTION

SEC. 101. SPECIALTY CROP COST-OF-PRODUCTION INSURANCE.

    Out of the funds in Treasury not otherwise appropriated, the 
Secretary of the Treasury shall pay to the Secretary of Agriculture 
$750,000,000 per year for the purpose of additional premium subsidies 
for the purchase of a cost of production policy for specialty crops. 
The existing contract for research and development regarding cost of 
production policy under the Agricultural Risk Protection Act 2000, 
section 522 (c)(9) will be modified to include all specialty crops, to 
the extent practicable, by January 1, 2003.

                 TITLE II--FARM AND RANCH PRESERVATION

SEC. 201. FARMLAND PROTECTION PROGRAM.

    Section 388 of the Federal Agriculture Improvement and Reform Act 
of 1996 (16 U.S.C. 3830 note) is amended to read as follows:

``SEC. 388. FARMLAND PROTECTION PROGRAM.

    ``(a) Establishment and Purpose.--The Secretary of Agriculture (in 
this section referred to as the `Secretary') shall carry out a farmland 
protection program for the purpose of protecting farm and ranch lands 
by limiting nonagricultural uses of such lands. Under the program, the 
Secretary shall provide matching grants to eligible entities to 
facilitate their purchase of conservation easements over such lands 
from willing sellers.
    ``(b) Definitions.--In this section, the following terms shall have 
the following meanings:
            ``(1) `Farm and ranch lands' shall include lands devoted to 
        agricultural use with:
                    ``(A) prime, unique or other productive soils; or
                    ``(B) historic or archaeological resources 
                officially designated as such by a State or local 
                government agency or professional society devoted to 
                protecting such resources.
            ``(2) `Eligible entity' shall include any of the following:
                    ``(A) An agency of a State or local government.
                    ``(B) A federally recognized Indian tribe.
                    ``(C) Any organization that is organized for, and 
                at all times since its formation has been operating 
                principally for, one or more conservation purposes 
                specified in clause (i), (ii) or (iii) of section 
                170(h)(4)(A) of the Internal Revenue Code of 1986 and--
                            ``(i) is described in section 501(c)(3) of 
                        the Code;
                            ``(ii) is exempt from taxation under 
                        section 501(a) of the Code; and
                            ``(iii) is described in paragraph (2) of 
                        section 509(a) of the Code, or paragraph (3) of 
                        such section, but is controlled by an 
                        organization described in paragraph (2) of such 
                        section.
    ``(c) Conservation Plan.--Land enrolled in the program shall be 
subject to a conservation plan developed in accordance with the 
National Handbook of Conservation Practices and the field office 
technical guides of the Natural Resources Conservation Service.
    ``(d) Maximum Federal Share.--The Federal share of the cost of 
purchasing a conservation easement under subsection (a)(1) shall not 
exceed 50 percent of the total cost of purchasing the easement.
    ``(e) Non-Federal Share.--The non-Federal share for any project may 
include donations of documented value, including donations of 
conservation easements in the project area, if such donations 
materially advance the goals of the project.
    ``(f) Title Enforcement.--An eligible entity may hold title to a 
conservation easement purchased using grant funds provided under 
subsection (a)(1) and enforce the conservation requirements of the 
easement.
    ``(g) State Certification.--As a condition of the receipt by an 
eligible entity of a grant under subsection (a)(1), the attorney 
general of the State in which the conservation easement is to be 
purchased using the grant funds shall certify that the conservation 
easement to be purchased is in a form that is sufficient, under the 
laws of the State, to achieve the purposes of the farmland protection 
program and the terms and conditions of the grant.
    ``(h) Funding.--
            ``(1) Use of commodity credit corporation funds.--The 
        Secretary shall use not more than: $150,000,000 in fiscal year 
        2002; $250,000,000 in fiscal year 2003; $400,000,000 in fiscal 
        year 2004; $450,000,000 in fiscal year 2005; and $500,000,000 
        in fiscal year 2006 of the funds of the Commodity Credit 
        Corporation to carry out this section.
            ``(2) Limitation on technical assistance.--To provide 
        technical assistance to carry out this section, the Secretary 
        may use not more than 10 percent of the amount made available 
        for any fiscal year under paragraph (1).
    ``(i) Grants and Assistance to Enhance Farm Viability.--For each 
year for which funds are available for the program under this section, 
the Secretary may use not more than $10,000,000 to provide matching 
market development grants and technical assistance to farm and ranch 
operators who participate in the program. As a condition of receiving 
such a grant, the grantee shall provide an amount equal to the grant 
from non-Federal sources.''.

SEC. 202. SOCIALLY DISADVANTAGED FARMERS.

    Section 2501(a)(3) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279(a)(3)) is amended--
            (1) by striking ``$10,000,000'' and inserting ``$15,000,000 
        from the Commodity Credit Corporation'' ; and
            (2) by adding at the end the following: ``Any agency of the 
        Department of Agriculture may participate jointly in any grant 
        or contract entered in furtherance of the objectives of this 
        section if it agreed that the objectives of the grant or 
        contract will further the authorized programs of the 
        contributing agency.''.

         TITLE III--ENVIRONMENTAL STEWARDSHIP ON WORKING LANDS

SEC. 211. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is 
amended--
            (1) by striking ``to'' and all that follows through 
        ``provides'' and inserting ``to provide'';
            (2) inserting ``air'' after ``that face the most serious 
        threats to'';
            (3) by redesignating the subparagraphs (A) through (D) that 
        follow the matter amended by 266 paragraph (2) of this section 
        as paragraphs (1) through (4), respectively; and
            (4) by striking ``farmers and ranchers'' each place it 
        appears and inserting ``producers''.

SEC. 212. DEFINITIONS.

    Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aaB1) 
is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``nonindustrial private forest 
                land,'' before ``and other land''; and
                    (B) by striking all after ``poses a serious threat 
                to'' and inserting ``air, soil, water, or related 
                resources.''; and
            (2) in paragraph (4), by inserting ``, including non-
        industrial private forestry'' before the period.

SEC. 213. ESTABLISHMENT AND ADMINISTRATION.

    (a) Reauthorization.--Section 1240B(a)(1) of the Food Security Act 
of 1985 (16 U.S.C. 3839aaB2(a)(1)) is amended by striking ``2002'' and 
inserting ``2006''.
    (b) Incentive Payments.--Section 1240B of such Act (16 U.S.C. 
3839aaB2) is amended by adding at the end the following:
            ``(1) In general.--The Secretary shall expand the 
        Environmental Quality Incentives Program (EQIP) to allow pilot 
        programs to improve water quality in individual watersheds 
        nationwide. Except as otherwise provided in this subsection, 
        these pilot programs shall be administered in accordance with 
        the terms of the Environmental Quality Incentives Program. 
        These will include:
                    ``(A) Drinking water suppliers pilot program.--
                            ``(i) In general.--The Secretary shall 
                        establish a pilot program in 15 watersheds, as 
                        defined by the U.S. Geological Survey, to 
                        improve water quality in cooperation with local 
                        water utilities.
                            ``(ii) Pilot program.--The Secretary shall 
                        select the watersheds and make available funds 
                        to be allocated to producers in partnership 
                        with drinking water utilities in the 
                        watersheds, provided that drinking water 
                        utilities measure water quality and target 
                        incentives payments to improve water quality.
                    ``(B) Nutrient reduction pilot program.--The 
                Secretary shall use up to $100,000,000 annually of the 
                funds provided under this subsection in 5 impaired 
                watersheds each year to provide incentives for 
                agricultural producers to reduce nitrogen and 
                phosphorous applications by at least 15 percent below 
                the average rates used by comparable farms in the 
                State. Incentive payments shall reflect the extent to 
                which producers reduce nitrogen and phosphorous 
                applications.
            ``(2) Consistency with watershed plan.--In allocating funds 
        to EQIP water quality pilot programs, the Secretary shall 
        consider the extent to which an application for the funds is 
        consistent with a locally developed watershed plan, in addition 
to the other factors established by section 1240C.
            ``(3) Contracts.--The Secretary shall enter into contracts 
        in accordance with this section with producers whose activities 
        affect water quality, including the quality of public drinking 
        water supplies, to implement and maintain nutrient management, 
        pest management, soil erosion practices, and other conservation 
        activities that protect water quality and protect human health. 
        The contracts shall--
                    ``(A) describe the nutrient management, pest 
                management or soil loss practices to be implemented, 
                maintained, or improved;
                    ``(B) contain a schedule of implementation;
                    ``(C) address water quality priorities of the 
                watershed in which the operation is located to the 
                greatest extent possible; and
                    ``(D) contain such other terms as the Secretary 
                determines to be appropriate.
            ``(4) Voluntary water quality benefits evaluation.--On 
        approval of the producer, the Secretary may include the cost of 
        water quality benefits evaluation as part of a contract.
            ``(5) Recognition of state efforts.--The Secretary shall 
        recognize the financial contribution of States, among other 
        factors, during the allocation of funding under this 
        subsection.''.
    (c) Non-Federal Assistance.--Section 1240B(g) of such Act (16 
U.S.C. 3839aaB2(g)) is amended by inserting ``drinking water utility'' 
after ``forestry agency''.

SEC. 214. EVALUATION OF OFFERS AND PAYMENTS.

    Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aaB3) 
is amended to read as follows:

``SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

    ``The Secretary shall establish a ranking process and benefits 
index to prioritize technical assistance, cost-share payments, and 
incentives payments to producers to maximize soil and water quality and 
wildlife habitat and other environmental benefits per dollar expended. 
The ranking process shall be weighted to ensure that technical 
assistance, cost-share payments, and incentives are provided to small 
or socially-disadvantaged farmers (as defined in section 8(a)(5) of the 
Small Business Act) and to give priority to producers who have 
previously implemented stewardship practices at their own expense. The 
Secretary shall consult with local, State, and Federal public and 
private entities to develop the ranking process and benefits index.''.

SEC. 215. LIMITATION ON PAYMENTS.

    Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aaB7) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``$10,000'' and 
                inserting ``$30,000''; and
                    (B) in paragraph (2), by striking ``$50,000'' and 
                inserting ``$150,000'';
            (2) in subsection (b)--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) to share the cost of digesters.''; and
            (3) by striking subsection (c).

SEC. 216. REAUTHORIZATION OF FUNDING.

    Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)) is amended by striking ``2002'' and inserting ``2006''.

SEC. 217. FUNDING.

    Section 1241(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3841(b)(1)) is amended--
            (1) by striking ``$130,000,000'' and all that follows 
        through ``2002'' and inserting ``$250,000,000 for fiscal year 
        2002, $400,000,000 for fiscal year 2003, $700,000,000 for 
        fiscal year 2004, $850,000,000 for fiscal year 2005, and 
        $970,000,000 for fiscal year 2006'';
            (2) by inserting ``(other than under section 1240B(h))'' 
        before the period; and
            (3) by adding at the end the following: ``In addition, the 
        Commodity Credit Corporation shall make available to the 
        Secretary, under section 1240B(h): $150,000,000 for fiscal year 
        2002; $250,000,000 for fiscal year 2003; $450,000,000 for 
        fiscal year 2004; $550,000,000 for fiscal year 2005, and 
        $630,000,000 for 2006 for this section in order to provide 
        incentive payments to producers who implement watershed quality 
        incentive contracts.''.

SEC. 218. ALLOCATION FOR LIVESTOCK AND OTHER CONSERVATION PRIORITIES.

    (a) In General.--Section 1241(b)(2) of the Food Security Act of 
1985 (16 U.S.C. 3841(b)(2)) is amended--
            (1) by striking ``2002'' and inserting ``2006''; and
            (2) by inserting ``(other than under section 1240B(h))'' 
        before ``shall''.
    (b) Agricultural Sustainability.--Section 1241(b) of such Act (16 
U.S.C. 3841(b)) is amended by adding at the end the following:
            ``(3) Targeting of practices to promote agricultural 
        sustainability.--
                    ``(A) ______.--To the maximum extent practicable, 
                the Secretary shall attempt to dedicate at least 10 
                percent of the funding in this subsection to each of 
                the following practices to promote agricultural 
                sustainability:
                            ``(i) Managed grazing.
                            ``(ii) Innovative manure management.
                            ``(iii) Pesticide and herbicide reduction, 
                        including practices that reduce direct human 
                        exposure.
                    ``(B) Definitions.--In subparagraph (A):
                            ``(i) Managed grazing.--The term `managed 
                        grazing' means practices which frequently 
                        rotate animals on grazing lands to enhance 
                        plant health, limit soil erosion, protect 
                        ground and surface water quality, or benefit 
                        wildlife.
                            ``(ii) Innovative manure management.--The 
                        term `innovative manure management' means 
manure management technologies which--
                                    ``(I) eliminate the discharge of 
                                animal waste to surface and 
                                groundwaters through direct discharge, 
                                seepage, and runoff;
                                    ``(II) substantially eliminate 
                                atmospheric emissions of ammonia;
                                    ``(III) substantially eliminate the 
                                emission of odor;
                                    ``(IV) substantially eliminate the 
                                release of disease-transmitting vectors 
                                and pathogens;
                                    ``(V) substantially eliminate 
                                nutrient heavy metal contamination; or
                                    ``(VI) encourage reprocessing and 
                                cost-effective transportation of animal 
                                waste.
            ``(4) Reservation for water conservation.--Not less than 25 
        percent of the funds made available by this section shall be 
        used to share the cost of structural and nonstructural measures 
        designed to conserve water, including but not limited to low-
        energy precision application, low-flow irrigation systems, and 
        tailwater reuse systems in the Klamath Basin, Truckee-Carson 
        Basin, Walker River Basin and other appropriate regions.''

SEC. 219. STATE RESERVE.

    (a) In General.--For each of the fiscal years 2002 through 2006, of 
the funds made available under paragraph (1), the Secretary shall 
reserve $250,000,000, of which $5,000,000 shall be for producers in 
each State.
    (b) Availability.--Funds reserved under paragraph (a) shall remain 
available for producers only until September 15 of the fiscal year in 
which the funds are made available.

               TITLE IV--PRESERVATION OF WILDLIFE HABITAT

SEC. 221. WILDLIFE HABITAT INCENTIVES PROGRAM.

    (a) Extension and Funding Increase.--Section 387(c) of the Federal 
Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3836a) is 
amended to read as follows:
    ``(c) Funding from Commodity Credit Corporation.--The Commodity 
Credit Corporation shall make available $100,000,000 for fiscal year 
2002, $200,000,000 for fiscal year 2003, $400,000,000 for fiscal year 
2004, and $450,000,000 for each of fiscal years 2005 and 2006 to the 
Secretary to carry out this section.''.
    (b) Additional Incentives for Wildlife Conservation.--Section 
387(b) of such Act (16 U.S.C. 10 3836(b)) is amended by inserting ``, 
or for other costs relating to wildlife conservation,'' before 
``approved by the Secretary''.
    (c) Program Modifications.--Section 387 of such Act (16 U.S.C. 
3836a) is amended by adding at the end the following:
    ``(d) Incentive Payments.--The Secretary may provide incentive 
payments to landowners, and other specified parties in this section, in 
exchange for the implementation of land management practices designed 
to create or preserve wildlife habitat, including the preservation of 
water for wildlife and the eradication or mitigation of invasive and 
noxious species in wildlife habitat. The payments may be in an amount 
and at a rate determined by the Secretary to be necessary to encourage 
a landowner to engage in the practice.
    ``(e) Specified Parties Eligible.--With the agreement of State 
wildlife officials, the Secretary may provide incentive payments to 
private landowners and non-profit organizations that maintain, protect, 
and manage public lands for wildlife habitat.
    ``(f) Funding Priority.--The Secretary shall give priority to 
landowners whose lands contain important habitat for imperiled species 
or habitat identified by State conservation plans, where available.
    ``(g) Consultation.--To the extent practicable, the Secretary shall 
consult with Federal, State, local, and private experts, as considered 
appropriate by the Secretary, to ensure that projects under this 
section maximize conservation benefits and are regionally equitable.
    ``(h) Acquisition of Easements.--Beginning with fiscal year 2003, 
not more than 10 percent of the funds available shall be used to 
acquire permanent easements, provided that land enrolled in an easement 
is not land taken out of agricultural production.''.

SEC. 222. WETLANDS RESERVE PROGRAM.

    (a) Enrollment Authority.--Section 1237(b)(1) 14 of the Food 
Security Act of 1985 (16 U.S.C. 3837(b)(1)) is amended to read as 
follows:
            ``(1) Enrollment.--The Secretary shall enroll in the 
        wetlands reserve program a total of not less than 250,000 acres 
        in fiscal years 2002 and 2003, and not less than 250,000 acres 
        in each of fiscal years 2004 through 2006.''.
    (b) Regional Equity.--Section 1237 of such Act (16 U.S.C. 3837) is 
amended by adding at the end the following:
    ``(h) Not later than 60 days after the date of the enactment of 
this sentence, the Secretary shall devise a plan to promote wetlands 
conservation in all regions where opportunities exist for wetlands 
restoration.''.

SEC. 223. CONSERVATION RESERVE PROGRAM.

    (a) Enrollment Authority.--Section 1231 of the Food Security Act of 
1985 (16 U.S.C. 3831) is amended--
            (1) in subsection (a)--
                    (A) by striking ``2002'' and inserting ``2006''; 
                and
                    (B) by striking ``and water'' and inserting ``, 
                water, and wildlife'';
            (2) in subsection (d)--
                    (A) by striking ``36,400,000'' and inserting 
                ``42,000,000''; and
                    (B) by striking ``2002'' and inserting ``2006''; 
                and
            (3) in subsection (h)(1), by striking ``and 2002'' and 
        inserting ``through 2006''.
    (b) Eligibility.--Section 1231(b) of such Act (16 U.S.C. 3831(b)) 
is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) pasture, hay, and rangeland if the land will be 
        restored as a wetland, or is within 300 feet of a riparian area 
and will be restored in native vegetation; and''; and
            (2) in paragraph (4)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) if the Secretary determines that--
                            ``(i) the lands contribute to the 
                        degradation of soil, water, or air quality, or 
                        may affect the habitat of sensitive, threatened 
                        or endangered species; and
                            ``(ii) the lands would pose an on-site or 
                        off-site environmental threat to soil, water, 
                        or air quality if permitted to remain in 
                        agricultural production; and
                            ``(iii) soil, water, and air quality 
                        objectives with respect to the land cannot be 
                        achieved under the environmental quality 
                        incentives program established under chapter 
                        4;'';
                    (B) by striking ``or'' at the end of subparagraph 
                (C);
                    (C) by striking the period at the end of 
                subparagraph (D) and inserting ``; or''; and
                    (D) by adding at the end the following:
                    ``(E) if the Secretary determines that enrollment 
                of the lands would contribute to conservation of ground 
                or surface water. For purposes of the program under 
                this subchapter, buffer strips on lands used for the 
                production of fruits, vegetables, sod, orchards, or 
                specialty crops shall be considered cropland.''.
    (c) Environmentally Sensitive Lands and Buffer Strips.--Section 
1231(d) of such Act (16 U.S.C. 3831(d)) is amended by adding at the end 
the following: ``Until December 31, 2007, of the acreage authorized for 
enrollment, not less than 5,500,000 acres shall be used to enroll 
environmentally sensitive lands through the continuous enrollment 
program and the conservation reserve enhancement program.''.
    (d) Limited Permanent Easement Authority.--Section 1231(e) of such 
Act (16 U.S.C. 3831(e)) is amended by adding at the end the following:
            ``(3) Permanent easements.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                the Secretary may enroll up to 3,000,000 acres in the 
                conservation reserve using permanent easements to 
                protect critically important environmentally sensitive 
                lands and habitats such as native prairies, native 
                shrublands, small wetlands, springs, seeps, fens, and 
                other rare and declining habitats. The terms of the 
                easement shall be consistent with section 1232(a).
                    ``(B) Limitations on transferability.--The 
                Secretary may transfer a permanent easement established 
                under subparagraph (A) to a State or local government 
                or a qualified nonprofit conservation organization. The 
                holder of such a permanent easement may not transfer 
                the easement to an entity other than a State or local 
                government or a qualified nonprofit conservation 
                organization.''.
    (e) Continuous Enrollment of Buffer Strips.--Section 1231 of such 
Act (16 U.S.C. 3831) is amended by adding at the end the following:
    ``(i) Continuous Enrollment of Buffer Strips.--The Secretary shall 
allow continuous enrollment of buffers whose width and vegetation is 
designed to provide significant wildlife or water quality benefits, as 
determined by the Secretary.
    ``(j) Irrigated Lands.--Irrigated lands shall be enrolled at 
irrigated land rates unless the Secretary determines that other 
compensation is appropriate.
    ``(k) Exception to Payment Limitation.--Payments made in connection 
with the enrollment of lands pursuant to the continuous enrollment or 
the conservation reserve enhancement program shall not be subject to 
any payment limitations under section 1239c(f)(1).
    ``(l) Limited Exceptions to Prohibitions on Economic Uses.--
Notwithstanding the prohibitions on economic use on lands enrolled in 
the Conservation Reserve Program under section 1232(a), the Secretary 
may permit on such lands the collection of native seeds and the use of 
wind turbines, so long as such activities preserve the conservation 
values of the land and take into account wildlife and wildlife 
habitat.''.

SEC. 224. CONSERVATION OF GRAZING LANDS.

    Section 386 of the Federal Agriculture Improvement and Reform Act 
of 1996 (16 U.S.C. 2005b) is amended by striking subsection (f) and 
inserting the following:
    ``(f) Incentive Payments.--The Secretary may enter into 5-year, 10-
year and 20-year contracts with landowners to provide financial 
assistance for landowner efforts to improve the ecological health of 
grazing lands, including practices that reduce erosion, employ 
prescribed burns, restore riparian area, control or eliminate exotic 
species, reestablish native grasses, or otherwise enhance wildlife 
habitat.
    ``(g) Funding from Commodity Credit Corporation.--The Commodity 
Credit Corporation shall make available $50,000,000 for each of the 
fiscal years 2002 through 2006 to the Secretary to carry out this 
section.''.

SEC. 225. GRASSLAND RESERVE AND ENHANCEMENT PROGRAM.

    Chapter 1 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3830B3837f) is amended by adding at the end the 
following:

       ``Subchapter D--Grassland Reserve and Enhancement Program

``SEC. 1238. GRASSLAND RESERVE AND ENHANCEMENT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a program to 
use contracts and easements to protect 3,000,000 acres of 
environmentally critical grasslands, shrubs, and blufflands.
    ``(b) Enrollment Conditions.--
            ``(1) Maximum enrollment.--The total number of acres 
        enrolled in the program shall not exceed 3,000,000 acres. The 
        Secretary shall enroll lands using permanent easements to meet 
        demand, but in no case shall more than 50 percent of the 
        available acreage be enrolled in permanent easements, and the 
        balance shall be enrolled in contracts through which the 
Secretary shall provide assistance and incentive payments.
            ``(2) Terms of contracts or easements.--The Secretary shall 
        enroll in the program for a willing owner not less than 100 
        contiguous acres of land west of the 100th meridian or not less 
        than 50 contiguous acres of land east of the 90th meridian 
        through 30-year contracts or permanent easements.
    ``(c) Eligible Land.--Land shall be eligible to be enrolled in the 
program if the Secretary determines that--
            ``(1) the land is natural grass or shrubland;
            ``(2) the land--
                    ``(A) is located in an area that has been 
                historically dominated by natural grass or shrubland; 
                and
                    ``(B) has potential to serve as habitat for animal 
                or plant populations of significant ecological value if 
                the land is restored to natural grass or shrubland; or
            ``(3) the land is adjacent to land described in paragraph 
        (1) or (2), and the Secretary determines it is necessary to 
        maintain or restore native grassland or shrubland under this 
        section.
    ``(d) Limitations on Authorization of Appropriations.--To carry out 
this section, there shall be available for each of fiscal years 2002 
through 2011 such sums as may be necessary from the funds of the 
Commodity Credit Corporation.

``SEC. 1238A. CONTRACTS AND AGREEMENTS.

    ``(a) Requirements of Landowner.--To be eligible to enroll land in 
the program, the owner of the land shall--
            ``(1) agree to comply with the terms of the contract and 
        related restoration agreements; and
            ``(2) agree to the suspension of any existing cropland base 
        and allotment history for the land under any program 
        administered by the Secretary.
    ``(b) Terms of Contract or Easement.--A contract or easement under 
subsection (a) shall--
            ``(1) permit--
                    ``(A) common grazing practices on the land in a 
                manner that is consistent with maintaining the 
                viability of natural grass and shrub species indigenous 
                to that locality;
                    ``(B) haying, mowing, or haying for seed 
                production, except that such uses shall not be 
                permitted until after the end of the nesting and brood-
                rearing season for birds in the local area which are in 
                significant decline or are conserved pursuant to State 
                or Federal law, as determined by the Natural Resources 
                Conservation Service State conservationist;
                    ``(C) construction of fire breaks and fences, 
                including placement of the posts necessary for fences; 
                and
                    ``(D) practices that reduce erosion, restore native 
                species, control and eradicate exotic species, enhance 
                habitat for native wildlife, and improve the health of 
                riparian areas;
            ``(2) prohibit--
                    ``(A) forestry and the production of any 
                agricultural commodity (other than hay);
                    ``(B) unless allowed under subsection (d), the 
                conduct of any other activity that would disturb the 
                surface of the land covered by the contract or 
                easement; and
                    ``(C) the development of homes, businesses or other 
                structures on land subject to the contract or easement; 
                and
            ``(3) include such additional provisions as the Secretary 
        determines are appropriate to carry out or facilitate the 
        administration of this subchapter.
    ``(c) Ranking Applications.--
            ``(1) Establishment of criteria.--The Secretary shall 
        establish criteria to evaluate and rank applications for 
        contracts under this subchapter.
            ``(2) Emphasis.--In establishing the criteria, the 
        Secretary shall emphasize support for native grass and 
        shrubland, grazing operations, and plant and animal 
        biodiversity.
    ``(d) Restoration Agreements.--The Secretary shall prescribe the 
terms by which grassland that is subject to a contract under the 
program shall be restored. The agreement shall include duties of the 
land owner and the Secretary, including the Federal share of 
restoration payments and technical assistance.
    ``(e) Violations.--On the violation of the terms or conditions of a 
contract or restoration agreement entered into under this section--
            ``(1) the contract shall remain in force; and
            ``(2) the Secretary may require the owner to refund all or 
        part of any payments received by the owner under this 
        subchapter, with interest on the payments as determined 
        appropriate by the Secretary.

``SEC. 1238B. DUTIES OF SECRETARY.

    ``(a) In General.--In return for the granting of a contract by an 
owner under this subchapter, the Secretary shall make contract payments 
and payments of the Federal share of restoration and provide technical 
assistance to the owner in accordance with this section. The Secretary 
shall base the amount paid for an easement on the fair market value of 
the easement.
    ``(b) Federal Share of Restoration.--The Secretary shall make 
payments to the owner of not more than--
            ``(1) in the case of virgin (never cultivated) grassland, 
        90 percent of the costs of carrying out measures and practices 
        necessary to restore grassland functions and values; or
            ``(2) in the case of restored grassland, 75 percent of such 
        costs.
    ``(c) Technical Assistance.--A landowner who is receiving a benefit 
under this subchapter shall be eligible to receive technical assistance 
in accordance with section 1243(d) to assist the owner or operator in 
carrying out a contract entered into under this subchapter.
    ``(d) Payments to Others.--If an owner who is entitled to a payment 
under this subchapter dies, becomes incompetent, is otherwise unable to 
receive the payment, or is succeeded by another person who renders or 
completes the required performance, the Secretary shall make the 
payment, in accordance with regulations promulgated by the Secretary 
and without regard to any other provision of law, in such manner as the 
Secretary determines is fair and reasonable in light of all the 
circumstances.''.

SEC. 226. WATER CONSERVATION PROGRAM

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

               ``Subchapter E--Water Conservation Program

``SEC. 1239. DEFINITIONS.

    ``In this subchapter:
            ``(1) Eligible land.--The term `eligible land' means any 
        land whose enrollment in this program will further the goals of 
        this subchapter.
            ``(2) Endangered species.--The term `endangered species' 
        has the meaning given the term in section 3 of the Endangered 
        Species Act of 1973 (16 U.S.C. 1532).
            ``(3) Program.--The term `program' means the water 
        conservation program established under section 1238A.
            ``(4) Sensitive species.--The term `sensitive species' has 
        the meaning given the term `candidate species' within the 
        meaning of section 424.02(b) of title 50, Code of Federal 
        Regulations (or a successor regulation).
            ``(5) Threatened species.--The term `threatened species' 
        has the meaning given the term in section 3 of the Endangered 
        Species Act of 1973 (16 U.S.C. 1532).

``SEC. 1239A. PROGRAM.

    ``(a) Establishment.--Effective for each of the 2003 through 2006 
calendar years, the Secretary shall establish, and carry out the 
enrollment of eligible land described in subsection (b) through the use 
of contracts in a water conservation program to provide for the 
temporary transfer of water, or permanent acquisition of water or water 
rights, from willing sellers, including in the Klamath Basin, the 
Truckee-Carson Basin and the Walker River Basin.
    ``(b) Enrollment of Eligible Land.--
            ``(1) CRP land.--
                    ``(A) In general.--The Secretary shall enroll in 
                the program not less than 2,000,000 acres of the acres 
                authorized to be enrolled in the conservation reserve 
                program under section 1231(d).
                    ``(B) Timing.--To the maximum extent practicable, 
                an enrollment under subparagraph (A) shall occur during 
                the enrollment period for the conservation reserve 
                program in accordance with section 1234(c)(2)(A).
            ``(2) Other eligible land.--
                    ``(A) In general.--In addition to land described in 
                paragraph (1), if the Secretary determines that the 
                condition under subparagraph (B) is met, the Secretary 
                shall enroll in the program such acres of land as the 
                Secretary determines to be appropriate that, but for 
                water rights associated with the land, would be 
                marginal if used for agricultural production or as 
                pasture.
                    ``(B) Condition.--The condition referred to in 
                subparagraph (A) is that any contract governing the 
                enrollment of land described in subparagraph (A) 
                provides for the transfer to the Secretary, or 
                permanent acquisition by the Secretary, of water rights 
                associated with the land, to be used to protect 1 or 
                more endangered species, sensitive species, or 
                threatened species or for the conservation or recovery 
                of such species.
                    ``(C) Priority in enrollment.--In enrolling 
                eligible land in the program, the Secretary shall give 
                priority to land with associated water rights that--
                            ``(i) could be used to significantly 
                        advance the goals of Federal, State, Tribal and 
                        local fish, wildlife, and plant conservation 
                        plans, including--
                                    ``(I) plans that address multiple 
                                endangered species, sensitive species, 
                                or threatened species; and
                                    ``(II) agreements entered into, or 
                                conservation plans submitted, under 
                                section 6 or 10(a)(2)(A) of the 
                                Endangered Species Act of 1973 (16 
                                U.S.C. 1535, 1539(a)(2)(A)), 
                                respectively; or
                            ``(ii) would benefit fish, wildlife, or 
                        plants of 1 or more refuges within the National 
                        Wildlife Refuge System.

``SEC. 1239B. DURATION AND NATURE OF CONTRACTS.

    ``(a) In General.--In enrolling eligible land in the program, the 
Secretary shall enter into a contract described in subparagraph (b) or 
(c), as appropriate, with a willing owner.
    ``(b) Transfer of Water Rights.--In enrolling eligible land in the 
program, for the purpose of transferring water rights associated with 
eligible land or providing dry year options on such water rights, the 
Secretary shall, in accordance with the water law of the State in which 
eligible land sought to be enrolled is located, enter into a contract 
with the owner of the eligible land for the transfer of those rights 
that has a term of not less than one but not more than 15 years, or 
shall provide for dry year option contract or other similar agreement 
which effectuates the purposes of this section.
    ``(c) Permanent Acquisition of Water Rights.--In enrolling eligible 
land in the program, for the purpose of permanently acquiring water 
rights associated with the eligible land, the Secretary may enter into 
a contract or agreement for the acquisition of those rights with--
            ``(1) the owner of the eligible land; and
            ``(2) to the extent that matching funds are provided for 
        the acquisition of the water rights--
                    ``(A) a State (including a political subdivision); 
                or
                    ``(B) nonprofit organization; or
                    ``(C) Tribes.''

``SEC. 1239C. DUTIES OF OWNERS.

    ``(a) In General.--The owner of eligible land enrolled in the 
program under a contract described in subsection (b) or (c) of section 
1238B shall, in accordance with the contract--
            ``(1) agree to transfer to the Secretary water rights 
        associated with enrolled eligible land;
            ``(2) agree to take no action that would interfere with the 
        quantity or quality of water transferred or acquired under the 
        contract;
            ``(3) at the option of the Secretary, use, or transfer or 
        sell to an entity approved by the Secretary, water described in 
        paragraph (2) to protect 251 or more endangered species, 
        sensitive species, or threatened species; and
            ``(4) on violation of any term of the contract that the 
        Secretary determines is of such a nature as to warrant 
        termination of the contract--
                    ``(A) forfeit all rights to receive payments under 
                the contract; and
                    ``(B) refund to the Secretary any payments received 
                as of the date of the violation (including interest on 
                the payments, as determined by the Secretary).
    ``(b) Transfer of Eligible Land by Owner.--
            ``(1) In general.--If the owner of eligible land enrolled 
        in the program transfers any right or interest in the eligible 
        land subject to a contract described in subsection (b) or (c) 
        of section 1239B, the owner shall--
                    ``(A) forfeit all rights to receive payments under 
                the contract; and
                    ``(B)(i) refund to the Secretary any payments 
                received as of the date of the violation (including 
                interest on the payments, as determined by the 
                Secretary); or
                    ``(ii) accept such payment adjustments or make such 
                refunds as the Secretary determines to be appropriate.
            ``(2) Exceptions.--Paragraph (1) shall not apply in any 
        case in which--
                    ``(A) a transferee of eligible land or an interest 
                in eligible land described in paragraph (1) agrees with 
                the Secretary--
                            ``(i) to assume all obligations under a 
                        contract described in subsection (b) or (c) of 
                        section 1239B to which the transferred eligible 
                        land is subject; or
                            ``(ii) to modify the contract in a manner 
                        that is consistent with this section; or
                    ``(B) eligible land or an interest in eligible land 
                described in paragraph (1) is purchased by or for the 
                United States Fish and Wildlife Service, Tribe, or 
                others.

``SEC. 1239D. DUTIES OF THE SECRETARY.

    ``(a) Payments.--The Secretary shall make payments for eligible 
land enrolled in the program in accordance with section 1239E.
    ``(b) State Applications and Process.--At the request of an owner, 
the Secretary shall submit any necessary State application, and 
complete any applicable State legal process, for the transfer or 
acquisition of water under a contract described in subsection (b) or 
(c) of section 1239B.

``SEC. 1239E. PAYMENTS.

    ``(a) In General.--
            ``(1) Temporary transfer of water rights.--In a case in 
        which the Secretary enters into a contract described in section 
        1238B(b), for each year of the term of the contract, the 
        Secretary shall pay to the owner of the enrolled eligible land 
        a payment in such amount as the Secretary and the owner jointly 
        determine is appropriate to compensate the owner for the use of 
        the water rights transferred under the contract.
            ``(2) Permanent acquisition of water rights.--In a case in 
        which the Secretary enters into a contract described in section 
        1238B(c), the Secretary shall make a single payment to the 
        owner of enrolled eligible land in such amount as the Secretary 
        and the owner jointly determine is appropriate to compensate 
        for the acquisition of water rights associated with the 
        enrolled eligible land.
    ``(b) Timing.--The Secretary shall make payments for obligations 
incurred during the fiscal year by the Secretary under this section as 
soon as practicable after October 1 of the fiscal year.
    ``(c) Determination of Payment Amount.--The Secretary may determine 
the amount to be paid to the owner of eligible land under paragraph (1) 
or (2) of subsection (a) by--
            ``(1) taking into consideration such minimum amount as the 
        Secretary determines is necessary to encourage owners to 
        participate in the program;
            ``(2) soliciting and reviewing bids for enrollment 
        contracts from owners in such manner as the Secretary may 
        prescribe, except that the bidding process for eligible land 
        enrolled under the program shall be separate from the bidding 
        process for eligible land under the conservation reserve 
program under section 1234; or
            ``(3) using such other means as the Secretary determines to 
        be appropriate.
    ``(d) Acceptance of Contract Offers.--In determining whether to 
accept an offer for a contract from an owner of eligible land to enroll 
the eligible land in the program, the Secretary shall--
            ``(1) to the maximum extent practicable as determined by 
        the Secretary, incorporate the applicable provisions of 
        priority system established under section 1230(d); and
            ``(2) explicitly encourage, and give priority to the 
        permanent and long-term acquisition of water and water rights 
        that accompany the eligible land to be enrolled in the program 
        by providing enhanced payments for--
                    ``(A) the permanent acquisition of water or water 
                rights; or
                    ``(B) the transfer of water or water rights for 
                terms of at least 10 years.

``SEC. 1239F. CONSULTATION.

    ``In enrolling eligible land in the program, to ensure, to the 
maximum extent practicable, that all water rights transferred or 
acquired under this section are used to protect endangered species, 
sensitive species, and threatened species, the Secretary shall consult 
with--
            ``(1) the Secretary of the Interior;
            ``(2) the head of the lead water agency of the State in 
        which the enrolled eligible land is located; and
            ``(3) any affected Tribes.

``SEC. 1239G. ADDITIONAL APPLICABLE PROVISIONS.

    ``The terms and conditions of subsections (e), (g), and (h) of 
section 1234 and subsections (a) through (d) of section 1235 apply to 
the enrollment of eligible land in the program, to the extent 
determined to be appropriate by the Secretary.

``SEC. 1239H. STATE WATER LAW.

    ``Nothing in this section shall be construed to preempt State water 
law.''.
    (b) Funding.--Section 1241(a) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)) is amended--
            (1) in paragraph (2), by striking ``; and'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following:
            ``(3) subchapter E of chapter 1 of subtitle D; and''.

                        TITLE V--ORGANIC FARMING

SEC. 231. ORGANIC AGRICULTURE RESEARCH TRUST FUND.

    (a) Establishment.--There shall be established in the Treasury of 
the United States an account to be known as the ``Organic Agriculture 
Research Trust Fund''.
    (b) Authorization of Appropriations; Transfer of Moneys; 
Investments.--
            (1) The Credit Corporation shall make available 
        $250,000,000 to the Secretary to carry out this section.
            (2) Moneys deposited in the Fund under paragraph (1) shall 
        be invested by the Secretary of the Treasury in obligations of 
        the United States or any agency thereof, in general obligations 
        of any State or any political subdivision thereof, in any 
        interest-bearing account or certificate of deposit of a bank 
        that is a member of the Federal Reserve System, or in 
        obligations fully guaranteed as to principal and interest by 
        the United States. Interest, dividends, and other payments that 
        accrue from such investments shall be deposited in the Fund and 
        also shall be so invested, subject to subsection (c) of this 
        section.
    (c) Availability of Monies for Authorized and Approved 
Activities.--Monies in the Fund shall be available to the Board in such 
amounts, and for such activities, as the Secretary may approve to 
implement organic research plans or projects as authorized by Section 
1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5925b).

SEC. 232. ESTABLISHMENT OF NATIONAL ORGANIC RESEARCH ENDOWMENT 
              INSTITUTE.

    The Secretary of Agriculture, in consultation with the National 
Organic Standards Board, may establish in the Department of Agriculture 
a National Organic Research Endowment Institute whose function shall be 
to aid the organic industry through the implementation of the organic 
products research order, which its Board of Trustees shall administer, 
and the use of monies made available to its Board of Trustees from the 
Organic Research Trust Fund to implement the order. In implementing the 
order, the Institute shall provide a permanent system for funding 
scientific research activities designed to facilitate the expansion of 
markets for organic products marketed in the United States. The 
Institute shall be headed by a Board of Trustees composed of the 
members of the National Organic Promotion and Research Board. The Board 
may appoint from among its members an executive committee whose 
membership shall reflect equally each of the different regions in the 
United States in which organic products are produced. The executive 
committee shall have such duties and powers as are delegated to it by 
the board. The members of the Board shall serve without compensation. 
While away from their homes or regular places of business in the 
performance of services for the Board, members of the Board shall be 
allowed reasonable travel expenses, including a per diem allowance in 
lieu of subsistence, as recommended by the Board and approved by the 
Secretary, except that there shall be no duplication of payment for 
such expenses.

                     TITLE VI--TECHNICAL ASSISTANCE

SEC. 241. REIMBURSEMENT FOR PROGRAM ADMINISTRATION.

    Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841-3843) is amended--
            (1) by inserting ``(1)'' before the first unnumbered 
        paragraph;
            (2) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (B);
            (3) by moving the newly designated subparagraphs (A) 
        through (B) 3 items to the right; and
            (4) by adding at the end the following:
            ``(2) For each of fiscal years 1996 through 2011, the 
        Secretary shall use the funds of the Commodity Credit 
        Corporation for the provision of technical assistance to allow 
        for full reimbursement of actual costs for delivering all 
        conservation programs funded through the Commodity Credit 
        Corporation for which technical assistance is required.''.

SEC. 242. CONSERVATION TECHNICAL ASSISTANCE BY THIRD PARTIES.

    Section 1243(d) of the Food Security Act of 1985 (16 U.S.C. 
3843(d)) is amended--
            (1) by striking ``In the preparation'' and inserting the 
        following:
            ``(1) In general.--In the preparation'' and
            (2) by adding at the end the following:
            ``(2) Certification of third-party providers.--
                    ``(A) In general.--Not later than 6 months after 
                the date of the enactment of this Act, the Secretary of 
                Agriculture shall, by regulation, establish a system 
                for approving persons to provide technical assistance 
                pursuant to this title. In the system, the Secretary 
                shall give priority to a person who has a memorandum of 
                understanding regarding the provision of technical 
                assistance in place with the Secretary.
                    ``(B) Expertise required.--In prescribing such 
                regulations, the Secretary shall ensure that persons 
                with expertise in the technical aspects of conservation 
                planning, watershed planning, environmental 
                engineering, including commercial entities, qualified 
                nonprofit entities, State or local governments or 
                agencies, and other Federal agencies, are eligible to 
                become approved providers of such technical assistance.
                    ``(C) Qualified nonprofit organizations.--Qualified 
                nonprofit organizations shall include organizations 
                whose missions primarily promote the stewardship of 
                working farmland and ranchland.
            ``(3) Quality assurance program.--The Secretary shall 
        establish a program to assess the quality of the technical 
        assistance provided by third parties.''.

SEC. 243. CONSERVATION PRACTICE STANDARDS.

    The Secretary of Agriculture shall--
            (1) revise standards and, when necessary, establish 
        standards for eligible conservation practices to include 
        measurable goals for enhancing natural resources, including 
        innovative practices;
            (2) within 6 months after the date of the enactment of this 
        section, revise the National Handbook of Conservation Practices 
        and field office technical guides; and
            (3) not less frequently than once every 5 years, update the 
        Handbook and technical guides to reflect the best available 
        science.

          TITLE VII--FARMLAND STEWARDSHIP ENHANCEMENT PROGRAM

SEC. 251. FARMLAND STEWARDSHIP ENHANCEMENT PROGRAM.

    (a) Purpose.--The purpose of this subtitle is to provide for the 
establishment of a program that recognizes the leveraged benefit of an 
ecosystem-based application of the Department of Agriculture 
conservation programs, addresses the increasing and extraordinary 
threats to agriculture in many areas of the United States, and 
recognizes the importance of local and regional involvement in the 
protection of economically and ecologically important farmlands.
    (b) Establishment.--The Secretary of Agriculture (in this subtitle 
referred to as the ``Secretary'') shall establish a Farmland 
Stewardship Enhancement Program through which States, local 
governments, tribes, and combinations of States may submit, and the 
Secretary may approve, plans to integrate agriculture and forestry 
conservation programs of the United States Department of Agriculture 
with State, local, tribal, and private efforts to address farm 
preservation, water quality, wildlife, and other conservation needs in 
critical areas, watersheds, and corridors in a manner that enhances the 
conservation benefits of the individual programs, tailors programs to 
State and local needs, and promotes and supports ecosystem and 
watershed-based conservation.
    (c) Memorandum of Agreement.--On approval of a proposed plan, the 
Secretary may enter into a memorandum of agreement with a State, a 
combination of States, local governments, or tribes, that--
            (1) guarantees specific program resources for 
        implementation of the plan;
            (2) establishes different or automatic enrollment criteria 
        than otherwise established by regulation or policy, for 
        specific levels of enrollments of specific conservation 
        programs within the region, if doing so will achieve greater 
        conservation benefits;
            (3) establishes different compensation rates to the extent 
        the parties to the agreement consider justified;
            (4) establishes different conservation practice criteria if 
        doing so will achieve greater conservation benefits;
            (5) provides more streamlined and integrated paperwork 
        requirements; and
            (6) otherwise alters any other requirement established by 
        United States Department of Agriculture policy and regulation 
        to the extent not inconsistent with the statutory requirements 
        and purposes of an individual conservation program.

SEC. 252. FARMLAND STEWARDSHIP ENHANCEMENT PLAN.

    (a) Preparation.--To be eligible to participate in the program 
under this subtitle, a State, combination of States, political 
subdivision or agency of a State, tribe, or local government shall 
submit to the Secretary an enhancement plan that proposes specific 
criteria and commitment of resources in the geographic region 
designated, and describes how the linkage of Federal, State, and local 
resources will--
            (1) improve the economic viability of agriculture by 
        protecting contiguous tracts of land;
            (2) improve the ecological integrity of the ecosystems or 
        watersheds within the region by linking land with high 
        ecological and natural resource value; and
            (3) in the case of a multi-State plan, provide a draft 
        memorandum of agreement among entities in each State.
    (b) Submission and Review.--Within 90 days after receipt of the 
enhancement plan, the Secretary shall review the plan and approve it 
for implementation and funding under this subtitle if the Secretary 
determines that the plan and memorandum of agreement meet the criteria 
specified in subsection (c).
    (c) Criteria for Participation.--The Secretary may approve an 
enhancement plan only if, as determined by the Secretary, the plan 
provides for each of the following:
            (1) Actions taken under the enhancement plan are voluntary 
        and require the consent of willing landowners.
            (2) Criteria specified in the plan and memorandum of 
        agreement assure that enrollments in each conservation program 
        incorporated through the plan are of exceptionally high 
        conservation value.
            (3) The program provides benefits greater than the benefits 
        that would likely be achieved through individual application of 
        the Federal conservation programs because of such factors as--
                    (A) ecosystem- or watershed-based enrollment 
                criteria;
                    (B) lengthier or permanent conservation 
                commitments;
                    (C) integrated treatment of special natural 
                resource problems, including preservation and 
                enhancement of natural resource corridors; and
                    (D) improved economic viability for agriculture.
            (4) Staffing and marketing, considering both Federal and 
        non-Federal resources, are sufficient to assure program 
        success.
    (d) Approval and Implementation.--Within 90 days after approval of 
an enhancement plan, the Secretary shall begin to provide funds for the 
implementation of the plan.
    (e) Priority.--In carrying out this section, the Secretary shall 
give priority to multi-State or multi-tribal plans.

SEC. 253. FUNDING REQUIREMENTS.

    (a) Cost-Sharing.--As a further condition on the approval of a 
enhancement plan submitted by a non-Federal interest under section 272, 
the Secretary shall require the non-Federal interest to contribute at 
least 20 percent of the total cost of the Farmland Stewardship 
Enhancement Program.
    (b) Exception.--The Secretary may reduce the cost-share requirement 
in the case of a specific activity under the Farmland Stewardship 
Enhancement Program on good cause and demonstration that the project or 
activity is likely to achieve extraordinary natural resource benefits.
    (c) Coordination.--The Secretary shall require that non-Federal 
interests contributing financial resources for the Farmland Stewardship 
Enhancement Program shall implement streamlined paperwork requirements 
and other procedures to allow for integration with the Federal programs 
for participants in the program.
    (d) Reservation of Funds.--The Secretary shall direct funds on a 
priority basis to the Farmland Stewardship Enhancement Program and to 
projects in areas identified by the plan.
    (e) Administration.--A State may submit multiple plans, but the 
Secretary shall assure opportunity for submission by each State. 
Acreage committed as part of approved Conservation Reserve Enhancement 
Programs shall be considered acreage of the Conservation Reserve 
Program committed to a Conservation Enhancement Program.

           TITLE VIII--MISCELLANEOUS CONSERVATION PROVISIONS

SEC. 261. CONSERVATION PROGRAM PERFORMANCE REVIEW AND EVALUATION.

    (a) In General.--The Secretary shall establish a grant program to 
evaluate the benefits of the conservation programs under title XII of 
the Food Security Act of 1985 and under sections 242 and 262 of this 
Act.
    (b) Grants.--The Secretary shall make grants to land grant colleges 
and other research institutions whose applications are highly ranked 
under subsection (c) to evaluate the economic and environmental 
benefits of conservation programs, and shall use such research to 
identify and rank measures needed to improve water quality, fish and 
wildlife habitat, and other environmental goals of conservation 
programs.
    (c) Scientific Panels.--The Secretary shall establish a panel of 
independent scientific experts to review and rank the grant 
applications submitted under subsection (a).
    (d) Funding.--The Commodity Credit Corporation shall make available 
$10,000,000 to the Secretary for each of fiscal years 2002 through 2006 
to carry out this section.

                       TITLE IX--REGIONAL EQUITY

SEC. 271. ALLOCATION OF CONSERVATION FUNDS BY STATE.

    (a) State Allocation.--To the maximum extent practicable in each of 
fiscal years 2002 through 2006, the Secretary, subject to the rules of 
the conservation programs administered by the Secretary, shall ensure 
that each State receives at a minimum the State's share of 
$2,000,000,000 in this title based on the State's share of the total 
agricultural market value of production, with each State receiving not 
less than 0.52 percent and not more than 7 percent of such amount 
annually. Under this formula, each state will receive approximately the 
following annual amounts:
            (1) Alabama: $31,480,000;
            (2) Alaska: $10,000,000;
            (3) Arizona: $19,340,000;
            (4) Arkansas: $55,660,000;
            (5) California: $140,000,000;
            (6) Colorado: $46,060,000;
            (7) Connecticut: $10,000,000;
            (8) Delaware: $10,000,000;
            (9) Florida: $61,000,000;
            (10) Georgia: $50,720,000;
            (11) Hawaii: $10,000,000;
            (12) Idaho: $34,000,000;
            (13) Illinois: $86,920,000;
            (14) Indiana: $53,140,000;
            (15) Iowa: $121,400,000;
            (16) Kansas: $93,540,000;
            (17) Kentucky: $31,140,000;
            (18) Louisiana: $20,640,000;
            (19) Maine: $10,000,000;
            (20) Maryland: $13,320,000;
            (21) Massachusetts: $10,000,000;
            (22) Michigan: $36,240,000;
            (23) Minnesota: $84,220,000;
            (24) Mississippi: $31,780,000;
            (25) Missouri: $54,540,000;
            (26) Montana: $19,000,000;
            (27) Nebraska: $99,880,000;
            (28) Nevada: $10,000,000;
            (29) New Hampshire: $10,000,000;
            (30) New Jersey: $10,000,000;
            (31) New Mexico: $16,440,000;
            (32) New York: $28,880,000;
            (33) North Carolina: $77,980,000;
            (34) North Dakota: $29,160,000;
            (35) Ohio: $47,580,000;
            (36) Oklahoma: $42,120,000;
            (37) Oregon: $30,160,000;
            (38) Pennsylvania: $40,620,000;
            (39) Rhode Island: $10,000,000;
            (40) South Carolina: $16,140,000;
            (41) South Dakota: $36,260,000;
            (42) Tennessee: $22,140,000;
            (43) Texas: $139,860,000;
            (44) Utah: $10,000,000;
            (45) Vermont: $10,000,000;
            (46) Virginia: $23,800,000;
            (47) Washington: $48,440,000;
            (48) West Virginia: $10,000,000;
            (49) Wisconsin: $56,680,000; and
            (50) Wyoming: $10,000,000.
    (b) Transition and Unobligated Balances.--If the offices of the 
United States Department of Agriculture in each respective State cannot 
expend all funds allocated in this title within 2 consecutive fiscal 
years for the programs identified in this title, the funds shall be 
remitted to the Secretary for reallocation as the Secretary deems 
appropriate among States to address unmet conservation needs through 
the programs in this title, except that in no event shall these 
unobligated balances be used to fund technical assistance.
    (c) Regional Equity.--Section 1230 of the Food Security Act of 1985 
(16 U.S.C. 3830) is amended by adding at the end the following:
    ``(d) Regional Equity.--In carrying out the ECARP, the Secretary 
shall recognize the importance of regional equity, and the importance 
of accomplishing many conservation objectives that can sometimes only 
be achieved on land of high value.
    ``(e) Not later than October 1, 2002, the Secretary shall reform 
compensation and other policies to ensure that enrollments of land in 
ECARP achieve these objectives and are equitable on a regional 
basis.''.

                 TITLE X--CONSERVATION SECURITY PROGRAM

SEC. 281. CONSERVATION SECURITY PROGRAM.

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

               ``CHAPTER 6--CONSERVATION SECURITY PROGRAM

``SEC. 1240P. CONSERVATION SECURITY PROGRAM.

    ``(a) In General.--The Secretary shall establish a conservation 
security program to assist owners and operators of agricultural 
operations to promote, as is applicable to each operation--
            ``(1) conservation of soil, water, energy, and other 
        related resources;
            ``(2) soil quality protection and improvement;
            ``(3) water quality protection and improvement;
            ``(4) air quality protection and improvement;
            ``(5) diversity of flora and fauna;
            ``(6) on-farm conservation and regeneration of biological 
        resources, including plant and animal germplasm;
            ``(7) wetland restoration, conservation, and enhancement;
            ``(8) wildlife habitat management, with special emphasis on 
        species identified by the Natural Heritage Program of the 
        State;
            ``(9) reduction of greenhouse gas emissions and enhancement 
        of carbon sequestration; and
            ``(10) any similar conservation purpose (as determined by 
        the Secretary).
    ``(b) Eligibility.--
            ``(1) Eligible owners and operators.--To be eligible to 
        participate in the conservation security program an owner or 
        operator shall--
                    ``(A) develop and submit to the Secretary, and 
                obtain the approval of the Secretary, of, a 
                conservation security plan that meets the requirements 
                of subsection (c)(1); and
                    ``(B) enter into a conservation security contract 
                with the Secretary to carry out the conservation 
                security plan.
            ``(2) Eligible land.--
                    ``(A) In general.--Private agricultural land 
                (including cropland, rangeland, grassland, and pasture 
                land) that is entirely used as part of the agricultural 
                operation of an owner or operator on the date of 
                enactment of this chapter shall be eligible for 
                enrollment in the conservation security program.
                    ``(B) Exclusions.--
                            ``(i) Conservation reserve program.--Land 
                        enrolled in the conservation reserve program 
                        under subchapter B of chapter 1 shall not be 
                        eligible for enrollment in the conservation 
                        security program except for land enrolled in 
                        partial field conservation practice enrollment 
                        options.
                            ``(ii) Wetlands reserve program.--Land 
                        enrolled in the wetlands reserve program 
                        established under subchapter C of chapter 1 of 
                        subtitle D shall not be eligible for enrollment 
                        in the conservation security program.
                            ``(iii) Tolerance levels.--The Secretary 
                        shall promulgate regulations to ensure that 
                        land shall not be eligible for enrollment in 
                        the conservation security program if the land 
                        is initially used for the production of an 
                        agricultural commodity after the date of 
                        enactment of this chapter and cannot be used 
                        for the production of an agricultural commodity 
                        without resulting in the loss of soil at a 
                        level that exceeds the soil loss tolerance 
                        level.
    ``(c) Conservation Security Plans.--A conservation security plan 
shall--
            ``(1) identify the resources and designated land to be 
        conserved under the conservation security plan;
            ``(2) describe the tier of conservation practices, and the 
        particular conservation practices to be implemented, 
        maintained, or improved, in accordance with subsection (d) on 
        the land covered by the conservation security contract for the 
        specified term;
            ``(3) contain a schedule of the implementation, 
        maintenance, or improvement of the conservation practices 
        described in the conservation security plan during the term of 
        the conservation security contract;
            ``(4) meet the requirements of the highly erodible land and 
        wetland conservation requirements of subtitles B and C;
            ``(5) address conservation priorities of State and locality 
        in which the operation is located to the greatest extent 
        possible; and
            ``(6) contain such other terms as the Secretary determines 
        to be appropriate.
    ``(d) Conservation Practices.--
            ``(1) Establishment of tiers.--The Secretary shall 
        establish 3 tiers of conservation practices that are eligible 
        for payment under a conservation security contract, including a 
        first tier consisting of basic conservation practices, a second 
        tier consisting of conservation practices that entail land use 
        adjustment, and a third tier that addresses all resources and a 
        full complement of conservation practices.
            ``(2) Conservation practice standards.--The Secretary shall 
        establish guidance standards for implementation of eligible 
        conservation practices.
    ``(e) Conservation Security Contracts.--On approval of a 
conservation security plan of an owner or operator, the Secretary shall 
enter into a conservation security contract with the owner or operator 
to enroll the land covered by the conservation security plan in the 
conservation security program for a period of not less than 5 years or 
longer than 10 years.
    ``(f) Annual Payments.--
            ``(1) In general.--The Secretary shall, in amounts and for 
        a period of years specified in the conservation security 
        contract and based on objective and transparent criteria 
        established by the Secretary, make an annual payment to the 
        owner or operator in an amount not to exceed a maximum payment 
        for a given tier established by the Secretary based on 
        environmental benefit, costs and any other factors the 
        Secretary determines appropriate.
            ``(2) Land enrolled in other conservation programs.--
        Notwithstanding any other provision of law, if an owner or 
        operator has land enrolled in another conservation program 
        administered by the Secretary and has applied to enroll the 
        same land in the conservation security program, the owner or 
        operator may elect to--
                    ``(A) convert the contract under the other 
                conservation program to a conservation security 
                contract, without penalty, except that this subclause 
                shall not apply to a long-term or permanent 
                conservation easement; or
                    ``(B) have each annual payment to the owner or 
                operator under this paragraph reduced to reflect 
                payment for practices the owner or operator receives 
                under the other conservation program, except that the 
                annual payment under this paragraph may include 
                incentives for qualified practices that enhance or 
                extend the conservation benefit achieved under the 
                other conservation program.
    ``(g) Technical Assistance.--For each fiscal year, the Secretary 
shall use such sums as are necessary from the funds of the Commodity 
Credit Corporation to provide technical assistance to owners and 
operators for the development and implementation of conservation 
security contracts. Technical assistance may be provided by persons not 
employed by USDA.
    ``(h) Education, Outreach, Monitoring, and Evaluation.--For each 
fiscal year, the Secretary shall use such sums as are necessary from 
the funds of the Commodity Credit Corporation to carry out education, 
outreach, monitoring, and evaluation activities in support of the 
conservation security program.
    ``(i) On-Farm Research, Demonstration and Pilot Projects.--The 
Secretary shall encourage participation in on-farm research and 
demonstration projects, as well as pilot projects that further 
accomplish the goals stated in section a(1).
    ``(j) Funding.--Of the funds of the Commodity Credit Corporation, 
the Corporation shall make available to carry out this chapter such 
sums as are necessary, to remain available until expended.''.
    (b) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out this section.

             TITLE XI--RURAL COMMUNITY ECONOMIC ENHANCEMENT

SEC. 291. EXPANSION OF STATE MARKETING PROGRAMS.

    (a) Federal-State Market Incentive Payments.--Section 204(b) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1623) is amended by 
striking ``such sums as he may deem appropriate'' and inserting 
``$10,000,000 from the Commodity Credit Corporation for each of the 
fiscal years 2002 through 2006''.
    (b) Market Development Grants.--Section 203(e)(1) of such Act (7 
U.S.C. 1622(e)(1)) is amended by adding at the end the following: ``The 
Secretary shall transfer to State departments of agriculture and other 
State marketing offices at least 10 percent of the funds appropriated 
for a fiscal year for this subsection to facilitate the development of 
local and regional markets for agricultural products, including direct 
farm-to-consumer markets.''.
                                 <all>