[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 932 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 932

 To amend the Food Security Act of 1985 to establish the conservation 
                           security program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2001

Mr. Harkin (for himself, Mr. Smith of Oregon, Mr. Johnson, Mr. Daschle, 
   Mr. Leahy, Mr. Schumer, Mr. Dorgan, Mr. Dayton, Mrs. Clinton, Ms. 
     Stabenow, Mr. Kennedy, Mr. Kohl, Mr. Kerry, Mr. Sarbanes, Mr. 
 Wellstone, Mr. Durbin, and Mrs. Boxer) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To amend the Food Security Act of 1985 to establish the conservation 
                           security program.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conservation Security Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) in addition to producing food and fiber, agricultural 
        producers can contribute to the public good by providing 
        improved soil productivity, clean air and water, fish and 
        wildlife habitat, landscape and recreational amenities, and 
        other natural resources and environmental benefits;
            (2) agricultural producers in the United States have a long 
        history of embracing environmentally friendly conservation 
        practices and desire to continue those practices and engage in 
        new and additional conservation practices;
            (3) agricultural producers that engage in conservation 
        practices--
                    (A) may not receive economic rewards for 
                implementing conservation practices; and
                    (B) should be encouraged to engage in good 
                stewardship, and should be rewarded for doing so;
            (4) despite significant progress in recent years, 
        significant environmental challenges on agricultural land 
        remain;
            (5) since the 1930's, when agricultural conservation became 
        a national priority, Federal resources for conservation 
        assistance have declined over 50 percent, when adjusted for 
        inflation;
            (6) existing conservation programs do not provide 
        opportunities for all interested agricultural producers to 
        participate;
            (7) a voluntary, incentive-based conservation program open 
        to all agricultural producers that qualify and desire to 
        participate would--
                    (A) encourage greater improvement of natural 
                resources and the environment;
                    (B) address the economic implications of 
                conservation practices in a manner consistent with 
                international obligations of the United States;
                    (C) enable United States farmers and ranchers to 
                produce food for a growing world population; and
                    (D) encourage conservation practices that provide a 
                public benefit while not infringing on the freedom of 
                an agricultural producer to manage agricultural 
                operations as the agricultural producer chooses;
            (8) total farm conservation planning can help producers 
        increase profitability, enhance resource protection, and 
        improve quality of life;
            (9) on-farm practices may help deter invasive species that 
        jeopardize native species or impair agricultural land of the 
        United States; and
            (10) a conservation program described in paragraph (7) 
        would help achieve a better balance between Federal payments 
        supporting conservation on land used for agricultural 
        production and Federal payments for the purpose of retiring 
        agricultural land from production.

SEC. 3. 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 the 
following:

               ``CHAPTER 6--CONSERVATION SECURITY PROGRAM

``SEC. 1240P. DEFINITIONS.

    ``In this chapter:
            ``(1) Conservation practice.--The term `conservation 
        practice' means a land-based farming technique that--
                    ``(A) requires planning, implementation, 
                management, and maintenance; and
                    ``(B) promotes 1 or more of the purposes described 
                in section 1240Q(a).
            ``(2) Conservation security contract.--The term 
        `conservation security contract' means a contract described in 
        section 1240Q(e).
            ``(3) Conservation security plan.--The term `conservation 
        security plan' means a plan described in section 1240Q(c).
            ``(4) Conservation security program.--The term 
        `conservation security program' means the program established 
        under section 1240Q(a).
            ``(5) Nutrient management.--The term `nutrient management' 
        means management of the quantity, source, placement, form, and 
        timing of the land application of nutrients on land enrolled in 
        the conservation security program and other additions to soil--
                    ``(A) to achieve or maintain adequate soil 
                fertility for agricultural production; and
                    ``(B) to minimize the potential for loss of 
                environmental quality, including soil, water, fish and 
                wildlife habitat, and air quality impairment.
            ``(6) Resource of concern.--The term `resource of concern' 
        means a conservation priority of the State and locality under 
        section 1240Q(c)(3).
            ``(7) Resource-conserving crop.--The term `resource-
        conserving crop' means--
                    ``(A) a perennial grass;
                    ``(B) a legume grown for use as forage, seed for 
                planting, or green manure;
                    ``(C) a legume-grass mixture;
                    ``(D) a small grain grown in combination with a 
                grass or legume, whether interseeded or planted in 
                succession; and
                    ``(E) such other plantings, including trees and 
                annual grasses, as the Secretary considers appropriate 
                for a particular area.
            ``(8) Resource-conserving crop rotation.--The term 
        `resource-conserving crop rotation' means a crop rotation 
        that--
                    ``(A) includes at least 1 resource-conserving crop;
                    ``(B) reduces erosion;
                    ``(C) improves soil fertility and tilth; and
                    ``(D) interrupts pest cycles.
            ``(9) Resource management system.--The term `resource 
        management system' means a system of conservation practices and 
        management relating to land or water use that is designed to 
        prevent resource degradation and permit sustained use of the 
        land and water, as defined in the Natural Resource Conservation 
        Service technical guidance handbooks.

``SEC. 1240Q. 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 for 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) soil, plant, or animal health and well-being;
            ``(6) diversity of flora and fauna;
            ``(7) on-farm conservation and regeneration of biological 
        resources, including plant and animal germplasm;
            ``(8) wetland restoration, conservation, and enhancement;
            ``(9) wildlife habitat management, with special emphasis on 
        species identified by the Natural Heritage Program of the 
        State;
            ``(10) reduction of greenhouse gas emissions and 
        enhancement of carbon sequestration;
            ``(11) systems that protect human health and safety;
            ``(12) environmentally sound management of invasive 
        species; or
            ``(13) 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 (other than to 
        receive technical assistance under subsection (h)(6) for the 
        development of conservation security contracts), 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.--Except as provided in 
                subparagraph (C)(iii), 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) Forested land.--Private forested land shall 
                be eligible for enrollment in the conservation security 
                program if the forested land is integrated into the 
                agricultural operation, including land that is used 
                for--
                            ``(i) alleycropping;
                            ``(ii) forest farming;
                            ``(iii) forest buffers;
                            ``(iv) windbreaks;
                            ``(v) silvopasture systems; and
                            ``(vi) such other uses as the Secretary may 
                        determine appropriate.
                    ``(C) Exclusions.--
                            ``(i) Conservation reserve program.--Land 
                        enrolled in the conservation reserve program 
                        under subchapter B of chapter I 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 preserve program 
                        established under subchapter C of chapter 1 of 
                        subtitle D shall not be eligible for enrollment 
                        in the conservation security program.
                            ``(iii) Tolerance level.--The Secretary 
                        shall promulgate regulations to ensure that 
                        land shall not be eligible for enrollment in 
                        the conservation security program if the land--
                                    ``(I) is initially used for the 
                                production of an agricultural commodity 
                                after the date of enactment of this 
                                chapter; and
                                    ``(II) 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.--
            ``(1) In general.--A conservation security plan shall--
                    ``(A) identify the resources and designated land to 
                be conserved under the conservation security plan;
                    ``(B) 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;
                    ``(C) contain a schedule for the implementation, 
                maintenance, or improvement of the conservation 
                practices described in the conservation security plan 
                during the term of the conservation security contract;
                    ``(D) meet the requirements of the highly erodible 
                land and wetland conservation requirements of subtitles 
                B and C; and
                    ``(E) contain such other terms as the Secretary 
                determines to be appropriate.
            ``(2) Comprehensive planning.--The Secretary shall 
        encourage owners and operators that enter into conservation 
        security contracts--
                    ``(A) to undertake a comprehensive examination of 
                the opportunities for conserving natural resources and 
                improving the profitability, environmental health, and 
                quality of life in relation to their entire 
                agricultural operations;
                    ``(B) to develop a long-term strategy for 
                implementing, monitoring, and evaluating conservation 
                practices and environmental results in the entire 
                agricultural operation;
                    ``(C) to participate in other Federal, State, 
                local, or private conservation programs;
                    ``(D) to maintain the agricultural integrity of the 
                land; and
                    ``(E) to adopt innovative conservation technologies 
                and management practices.
            ``(3) State and local conservation priorities.--To the 
        maximum extent practicable and in a manner consistent with the 
        conservation security program, each conservation security plan 
        shall address the conservation priorities of the State and 
        locality in which the agricultural operation is located (as 
        determined by the State conservationist in consultation with 
        the State technical committee established under subtitle G and 
        the local working groups of the State technical committee).
    ``(d) Conservation Practices.--
            ``(1) In general.--
                    ``(A) Establishment of tiers.--The Secretary shall 
                establish 3 tiers of conservation practices that are 
                eligible for payment under a conservation security 
                contract.
                    ``(B) Eligible conservation practices.--
                            ``(i) In general.--The Secretary shall make 
                        eligible for payment under a conservation 
                        security contract land management, vegetative, 
                        and structural practices that--
                                    ``(I) are necessary to achieve the 
                                objectives of the conservation security 
                                plan; and
                                    ``(II) primarily provide for and 
                                have as the primary purpose resource 
                                protection and environmental 
                                improvement.
                            ``(ii) Determination.--
                                    ``(I) In general.--In determining 
                                the eligibility of a practice described 
                                in clause (i), the Secretary shall 
                                require the lowest cost alternatives be 
                                used to fulfill the objectives of the 
                                conservation security plan.
                                    ``(II) Limitation.--Notwithstanding 
                                subclause (I), the adoption of 
                                innovative technologies shall, to the 
                                maximum extent practicable, not be 
                                limited.
            ``(2) Sustainable economic uses.--With respect to land 
        enrolled in the conservation security program, including all 
        land use adjustment activities specified under Tier II, the 
        Secretary shall permit economic uses of the land that--
                    ``(A) maintain the agricultural nature of land;
                    ``(B) achieve the natural resource and 
                environmental benefits of the plan; and
                    ``(C) are approved as part of the conservation 
                security plan.
            ``(3) On-farm research and demonstration.--With respect to 
        land enrolled in the conservation security program that will be 
        maintained using a Tier II or Tier III conservation practice 
        established under paragraph (5), the Secretary may approve a 
        conservation security plan that includes on-farm research and 
        demonstration activities, including innovative approaches to--
                    ``(A) total farm planning;
                    ``(B) total resource management;
                    ``(C) integrated farming systems;
                    ``(D) germplasm conservation and regeneration;
                    ``(E) greenhouse gas reduction and carbon 
                sequestration;
                    ``(F) agro-ecological restoration and wildlife 
                habitat restoration;
                    ``(G) agro-forestry;
                    ``(H) invasive species control;
                    ``(I) energy conservation and management; or
                    ``(J) farm and environmental results monitoring and 
                evaluation.
            ``(4) Use of handbook and guides.--
                    ``(A) In general.--In determining eligible 
                conservation practices under the conservation security 
                program, the Secretary shall use the National Handbook 
                of Conservation Practices and the field office 
                technical guides of the Natural Resources Conservation 
                Service.
                    ``(B) Conservation practice standards.--To the 
                maximum extent practicable, the Secretary shall 
                establish guidance standards for implementation of 
                eligible conservation practices that shall include 
                measurable goals for enhancing and preventing 
                degradation of resources.
                    ``(C) Adjustments.--After providing notice and an 
                opportunity for public participation, the Secretary 
                shall make such adjustments to the National Handbook of 
                Conservation Practices as are necessary to carry out 
                this chapter.
                    ``(D) Pilot testing.--
                            ``(i) In general.--Under any of the 3 tiers 
                        of conservation practices established under 
                        paragraph (5), the Secretary may approve 
                        requests by an owner or operator for pilot 
                        testing of new technologies and innovative 
                        conservation practices and systems.
                            ``(ii) Incorporation into standards.--After 
                        evaluation by the Secretary and provision of 
                        notice and an opportunity for public 
                        participation, the Secretary may incorporate 
                        new technologies and innovative conservation 
                        practices and systems into the standards for 
                        implementation of conservation practices 
                        established under paragraph (1)(C).
            ``(5) Tiers.--To carry out this subsection, the Secretary 
        shall establish the following 3 tiers of conservation 
        practices:
                    ``(A) Tier i.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program that will be maintained using 
                        Tier I conservation practices shall--
                                    ``(I) if applicable, address at 
                                least 1 resource of concern to the 
                                particular agricultural operation;
                                    ``(II) apply to the total 
                                agricultural operation or to a 
                                particular unit of the agricultural 
                                operation;
                                    ``(III) cover both--
                                            ``(aa) conservation 
                                        practices that are being 
                                        implemented as of the date on 
                                        which the conservation security 
                                        contract is entered into; and
                                            ``(bb) conservation 
                                        practices that are newly 
                                        implemented under the 
                                        conservation security contract; 
                                        and
                                    ``(IV) meet applicable standards 
                                for implementation of conservation 
                                practices established under paragraph 
                                (4);
                            ``(ii) Conservation practices.--Tier I 
                        conservation practices shall consist of, as 
                        appropriate for the agricultural operation of 
                        an owner or operator, 1 or more of the 
                        following basic conservation activities:
                                    ``(I) Soil conservation, quality, 
                                and residue management.
                                    ``(II) Nutrient management.
                                    ``(III) Pest management.
                                    ``(IV) Invasive species management.
                                    ``(V) Irrigation water conservation 
                                and water quality management.
                                    ``(VI) Grazing, pasture, and 
                                rangeland management.
                                    ``(VII) Fish and wildlife habitat 
                                management, with special emphasis on 
                                species identified by the Natural 
                                Heritage Program of the State or the 
                                appropriate State agency.
                                    ``(VIII) Fish and wildlife 
                                protection and enhancement.
                                    ``(IX) Air quality management.
                                    ``(X) Energy conservation measures.
                                    ``(XI) Biological resource 
                                conservation and regeneration.
                                    ``(XII) Worker health and safety 
                                protection measures.
                                    ``(XIII) Animal welfare management.
                                    ``(XIV) Plant and animal germplasm 
                                conservation, evaluation, and 
                                development.
                                    ``(XV) Contour farming.
                                    ``(XVI) Strip cropping.
                                    ``(XVII) Cover cropping.
                                    ``(XVIII) Sediment dams.
                                    ``(XIX) Recordkeeping.
                                    ``(XX) Monitoring and evaluation.
                                    ``(XXI) Any other conservation 
                                practice that the Secretary determines 
                                to be appropriate and comparable to 
                                other conservation practices described 
                                in this clause.
                            ``(iii) Tier ii practices.--A conservation 
                        security plan for land enrolled in the 
                        conservation security program that will be 
                        maintained using Tier I conservation practices 
                        may include Tier II conservation practices.
                    ``(B) Tier ii.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program that will be maintained using 
                        Tier II conservation practices shall--
                                    ``(I) address at least 1 resource 
                                of concern as specified in the 
                                conservation security plan covering the 
                                total agricultural operation;
                                    ``(II) cover both--
                                            ``(aa) conservation 
                                        practices that are being 
                                        implemented as of the date on 
                                        which the conservation security 
                                        contract is entered into; and
                                            ``(bb) conservation 
                                        practices that are newly 
                                        implemented under the 
conservation security contract; and
                                    ``(III) meet applicable resource 
                                management system criteria for the 
                                chosen resource of concern of the 
                                agricultural operation;
                            ``(ii) Conservation practices.--Tier II 
                        conservation practices shall consist of, as 
                        appropriate for the agricultural operation of 
                        an owner or operator, any of the Tier I 
                        conservation practices and 1 or more of the 
                        following land use adjustment or protection 
                        practices:
                                    ``(I) Resource-conserving crop 
                                rotations.
                                    ``(II) Controlled, rotational 
                                grazing.
                                    ``(III) Conversion of portions of 
                                cropland from a soil-depleting use to a 
                                soil-conserving use, including 
                                production of cover crops.
                                    ``(IV) Partial field conservation 
                                practices (including windbreaks, grass 
                                waterways, shelter belts, filter 
                                strips, riparian buffers, wetland 
                                buffers, contour buffer strips, living 
                                snow fences, crosswind trap strips, 
                                field borders, grass terraces, wildlife 
                                corridors, and critical area planting 
                                appropriate to the agricultural 
                                operation).
                                    ``(V) Fish and wildlife habitat 
                                protection and restoration.
                                    ``(VI) Native grassland and prairie 
                                protection and restoration.
                                    ``(VII) Wetland protection and 
                                restoration.
                                    ``(VIII) Agroforestry practices and 
                                systems.
                                    ``(IX) Any other conservation 
                                practice involving modification of the 
                                use of land that the Secretary 
                                determines to be appropriate and 
                                comparable to other conservation 
                                practices described in this clause.
                    ``(C) Tier iii.--
                            ``(i) In general.--A conservation security 
                        plan for land enrolled in the conservation 
                        security program that will be maintained using 
                        Tier III conservation practices shall--
                                    ``(I) address all resources of 
                                concern in the total agricultural 
                                operation;
                                    ``(II) cover both--
                                            ``(aa) conservation 
                                        practices that are being 
                                        implemented as of the date on 
                                        which the conservation security 
                                        contract is entered into; and
                                            ``(bb) conservation 
                                        practices that are newly 
                                        implemented under the 
                                        conservation security contract; 
                                        and
                                    ``(III) meet applicable resource 
                                management system criteria;
                            ``(ii) Conservation practices.--Tier III 
                        conservation practices shall consist of, as 
                        appropriate for the agricultural operation of 
                        an owner or operator--
                                    ``(I) appropriate Tier I and Tier 
                                II conservation practices; and
                                    ``(II) development, implementation, 
                                and maintenance of a conservation 
                                security plan that, over the term of 
                                the conservation security contract--
                                            ``(aa) integrates a full 
                                        complement of conservation 
                                        practices to foster 
                                        environmental enhancement and 
                                        the long-term sustainability of 
                                        the natural resource base of an 
                                        agricultural operation; and
                                            ``(bb) improves 
                                        profitability and quality of 
                                        life associated with the 
                                        agricultural operation.
    ``(e) Conservation Security Contracts.--
            ``(1) In general.--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.
            ``(2) Term.--Subject to paragraphs (3) and (4)--
                    ``(A) a conservation security contract for land 
                enrolled in the conservation security program that will 
                be maintained using 1 or more Tier I conservation 
                practices shall have a term of 5 years; and
                    ``(B) a conservation security contract for land 
                enrolled in the conservation security program that 
                implements a conservation security plan that meets the 
                requirements of subparagraph (B) or (C) of subsection 
                (d)(5) shall have a term of 5 to 10 years, at the 
                option of the owner or operator.
            ``(3) Modifications.--
                    ``(A) Optional modifications.--
                            ``(i) In general.--An owner or operator may 
                        apply to the Secretary to modify the 
                        conservation security plan in a manner 
                        consistent with the purposes of the 
                        conservation security program.
                            ``(ii) Approval by the secretary.--Any 
                        modification under clause (i)--
                                    ``(I) shall be approved by the 
                                Secretary; and
                                    ``(II) shall authorize the 
                                Secretary to redetermine, if necessary, 
                                the amount and timing of the payments 
                                pursuant to the conservation security 
contract under subsection (h)(2)(C).
                    ``(B) Other modifications.--
                            ``(i) In general.--The Secretary may in 
                        writing require an owner or operator to modify 
                        a conservation security contract before the 
                        expiration of the conservation security 
                        contract if the Secretary determines that a 
                        change made to the type, size, management, or 
                        other aspect of the agricultural operation of 
                        the owner or operator would, without the 
                        modification, significantly interfere with 
                        achieving the purposes of the conservation 
                        security program.
                            ``(ii) Payments.--The Secretary may adjust 
                        the amount and timing of the payment schedule 
                        under the conservation security contract to 
                        reflect any modifications required under this 
                        subparagraph.
                            ``(iii) Deadline.--The Secretary may 
                        terminate a conservation security contract if a 
                        modification required under this subparagraph 
                        is not submitted to the Secretary in the form 
                        of an amended conservation security contract by 
                        the date that is 90 days after the date of 
                        receipt of the written request for the 
                        modification.
                            ``(iv) Termination.--An owner or operator 
                        that is required to modify a conservation 
                        security contract under this subparagraph may, 
                        in lieu of modifying the contract--
                                    ``(I) terminate the conservation 
                                security contract; and
                                    ``(II) retain payments received 
                                under the conservation security 
                                contract, if the owner or operator 
                                fully complied with the obligations of 
                                the owner or operator under the 
                                conservation security contract.
            ``(4) Renewal.--
                    ``(A) In general.--At the option of an owner or 
                operator, the conservation security contract of the 
                owner or operator may be renewed, for a term described 
                in subparagraph (B), if--
                            ``(i) the owner or operator agrees to any 
                        modification of the applicable conservation 
                        security contract that the Secretary determines 
                        to be necessary to achieve the purposes of the 
                        conservation security program;
                            ``(ii) the Secretary determines that the 
                        owner or operator has complied with the terms 
                        and conditions of the conservation security 
                        contract, including the conservation security 
                        plan; and
                            ``(iii) in the case of a conservation 
                        security contract for land previously enrolled 
                        at the tier I level in the conservation 
                        security program, the owner or operator shall 
                        increase the level of conservation treatment on 
                        lands enrolled in the conservation security 
                        program by--
                                    ``(I) adopting new conservation 
                                practices; or
                                    ``(II) expanding existing practices 
                                to meet the resource management systems 
                                criteria.
                    ``(B) Terms of renewal.--Under subparagraph (A)--
                            ``(i) a conservation security contract for 
                        land enrolled in the conservation security 
                        program that will be maintained using a Tier I 
                        conservation practice may be renewed for 5-year 
                        terms;
                            ``(ii) a conservation security contract for 
                        land enrolled in the conservation security 
                        program that will be maintained using a Tier II 
                        or Tier III conservation practice may be 
                        renewed for 5-year to 10-year terms, at the 
                        option of the owner or operator; and
                            ``(iii) previous participation in the 
                        conservation security program does not bar 
                        renewal more than once.
    ``(f) No Violation for Noncompliance Due to Circumstances Beyond 
the Control of the Owner or Operator.--The Secretary shall include in 
the conservation security contract a provision, and may modify a 
conservation security contract under subsection (e)(3)(B), to ensure 
that an owner or operator shall not be considered in violation of a 
conservation security contract for failure to comply with the 
conservation security contract due to circumstances beyond the control 
of the owner or operator, including a disaster or related condition.
    ``(g) Duties of Owners and Operators.--Under a conservation 
security contract, an owner or operator shall agree, during the term 
specified under the conservation security contract--
            ``(1) to implement the applicable conservation security 
        plan approved by the Secretary;
            ``(2) to keep appropriate records showing the effective and 
        timely implementation of the conservation security plan;
            ``(3) not to engage in any activity that would interfere 
        with the purposes of the conservation security plan;
            ``(4) at the option of the Secretary, to refund all or a 
        portion of the payments to the Secretary if the owner or 
        operator fails to maintain a conservation practice, as 
        specified in the conservation security contract; and
            ``(5) on the violation of a term or condition of the 
        conservation security contract--
                    ``(A) if the Secretary determines that the 
                violation warrants termination of the conservation 
                security contract--
                            ``(i) to forfeit all rights to receive 
                        payments under the conservation security 
                        contract; and
                            ``(ii) to refund to the Secretary all or a 
                        portion of the payments received by the owner 
or operator under the conservation security contract, including an 
advance payment and interest on the payments, as determined by the 
Secretary; or
                    ``(B) if the Secretary determines that the 
                violation does not warrant termination of the 
                conservation security contract, to refund to the 
                Secretary, or accept adjustments to, the payments 
                provided to the owner or operator, as the Secretary 
                determines to be appropriate.
    ``(h) Duties of the Secretary.--
            ``(1) Advance payment.--At the time at which a person 
        enters into a conservation security contract, the Secretary 
        shall make an advance payment to the person in an amount not to 
        exceed--
                    ``(A) in the case of a contract to maintain Tier I 
                conservation practices described in subsection 
                (d)(5)(A), the greater of--
                            ``(i) $1,000; or
                            ``(ii) 20 percent of the value of the 
                        annual payment under the contract, as 
                        determined by the Secretary;
                    ``(B) in the case of a contract to maintain Tier II 
                conservation practices described in subsection 
                (d)(5)(B), the greater of--
                            ``(i) $2,000; or
                            ``(ii) 20 percent of the value of the 
                        annual payment under the contract, as 
                        determined by the Secretary; or
                    ``(C) in the case of a contract to maintain Tier 
                III conservation practices described in subsection 
                (d)(5)(C), the greater of--
                            ``(i) $3,000; or
                            ``(ii) 20 percent of the value of the 
                        annual payment under the contract, as 
                        determined by the Secretary.
            ``(2) Annual payments.--
                    ``(A) In general.--Subject to subparagraphs (B) 
                through (F), under a conservation security contract, 
                the Secretary shall, in amounts and for a period of 
                years specified in the conservation security contract 
                and taking into account any advance payments, make an 
                annual payment to the person in an amount not to 
                exceed--
                            ``(i) in the case of a contract to maintain 
                        Tier I conservation practices described in 
                        subsection (d)(5)(A), $20,000;
                            ``(ii) in the case of a contract to 
                        maintain Tier II conservation practices 
                        described in subsection (d)(5)(B), $35,000; or
                            ``(iii) in the case of a contract to 
                        maintain Tier III conservation practices 
                        described in subsection (d)(5)(C), $50,000.
                    ``(B) Inflation adjustment.--The Secretary may 
                periodically, including at the time at which a 
                conservation security contract is renewed, adjust the 
                payment and payment limitations under subparagraph (A) 
                to reflect changes in the Prices Paid by Farmers Index.
                    ``(C) Time of payment.--The Secretary shall provide 
                payment under a conservation security contract as soon 
                as practicable after October 1 of each calendar year.
                    ``(D) Criteria for determining amount of 
                payments.--Subject to subparagraphs (A) and (F), the 
                Secretary shall establish criteria for determining the 
                amount of an annual payment to a person under this 
                paragraph that--
                            ``(i) shall be as objective and transparent 
                        as practicable; and
                            ``(ii) shall be based on--
                                    ``(I) to the maximum extent 
                                practicable, outcome-based factors 
                                related to the natural resource and 
                                environmental benefits that result from 
                                the adoption, maintenance, and 
                                improvement in implementation of the 
                                conservation practices carried out by 
                                the person;
                                    ``(II) practice-based factors, 
                                including--
                                            ``(aa) the number of 
                                        eligible practices established 
                                        or maintained;
                                            ``(bb) the schedule for the 
                                        conservation practices 
                                        described in subsection 
                                        (c)(1)(C);
                                            ``(cc) the cost of the 
                                        adoption, maintenance, and 
                                        improvement in implementation 
                                        of conservation practices that 
                                        are newly implemented under the 
                                        conservation security contract;
                                            ``(dd) the extent to which 
                                        compensation will ensure 
                                        maintenance and improvement of 
                                        conservation practices that are 
                                        or have been implemented;
                                            ``(ee) the extent to which 
                                        the conservation security plan 
                                        meets applicable resource 
                                        management system standards;
                                            ``(ff) the extent to which 
                                        the conservation security plan 
                                        addresses State and local 
                                        conservation priorities as 
                                        provided for under subsection 
                                        (c)(3); and
                                            ``(gg) the extent of 
                                        activities undertaken beyond 
                                        what is required to comply with 
                                        any applicable Federal 
                                        agricultural law;
                                    ``(III) additional cost factors, 
                                including--
                                            ``(aa) the income loss or 
                                        economic value forgone by the 
                                        person due to land use 
                                        adjustments resulting from the 
                                        adoption, maintenance, and 
                                        improvement of conservation 
                                        practices;
                                            ``(bb) the costs associated 
                                        with any on-farm research, 
                                        demonstration, or pilot testing 
                                        components of the conservation 
                                        security plan; and
                                            ``(cc) the costs associated 
                                        with monitoring and evaluating 
                                        results under the conservation 
                                        security plan; and
                                    ``(IV) such other factors as the 
                                Secretary determines to be appropriate 
                                to encourage participation in the 
                                conservation security program and to 
                                reward environmental stewardship.
                    ``(E) Bonus payment.--Subject to subparagraph (A), 
                the Secretary shall offer bonus payments based on--
                            ``(i) participation in a watershed or 
                        regional resource conservation plan involving 
                        at least 75 percent of landowners in the 
                        targeted area; and
                            ``(ii) the special considerations 
                        associated with an owner or operator that is a 
                        qualified beginning farmer or rancher (as 
                        defined in section 343(a) of the Consolidated 
                        Farm and Rural Development Act (7 U.S.C. 
                        1991(a))).
                    ``(F) Land enrolled in other conservation 
                programs.--
                            ``(i) In general.--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--
                                    ``(I) 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 
                                permanent conservation or easement; or
                                    ``(II) 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.
                            ``(ii) Payment limitations.--If an owner or 
                        operator has identical land enrolled in the 
                        conservation security program and 1 or more 
                        other conservation programs administered by the 
                        Secretary, the Secretary shall include all 
                        payments, other than easement or rental 
                        payments, from the conservation security 
                        program and the other conservation programs in 
                        applying the annual payment limitations under 
                        subparagraph (A).
                            ``(iii) Payment from non-federal 
                        agricultural programs.--Payments received from 
                        a Federal program administered by the 
                        Secretary, or any State, local, or private 
                        agricultural program, shall not be considered 
                        an annual payment for purposes of the annual 
                        payment limitations under subparagraph (A).
                    ``(G) Waste storage or treatment facilities.--An 
                annual payment to an owner or operator under this 
                paragraph shall not be provided for the purpose of 
                construction or maintenance of animal waste storage or 
                treatment facilities or associated waste transport or 
                transfer devices for animal feeding operations.
            ``(3) Regulations.--
                    ``(A) In general.--The Secretary shall issue 
                regulations--
                            ``(i) defining the term `person' for the 
                        purposes of this chapter--
                                    ``(I) which regulations shall 
                                conform, to the extent practicable, to 
                                the regulations defining the term 
                                `person' issued under section 1001; and
                                    ``(II) which term shall be defined 
                                so that no individual directly or 
                                indirectly may receive payments 
                                exceeding the applicable amount 
                                specified in paragraph (1) or (2);
                            ``(ii) providing adequate safeguards to 
                        protect the interests of tenants and 
                        sharecroppers, including provision for sharing, 
                        on a fair and equitable basis; and
                            ``(iii) prescribing such other rules as the 
                        Secretary determines to be necessary to ensure 
                        a fair and reasonable application of the 
                        limitations established under paragraphs (1) 
                        and (2).
                    ``(B) Penalties for schemes or devices.--
                            ``(i) In general.--If the Secretary 
                        determines that a person has adopted a scheme 
                        or device to evade, or that has the purpose of 
                        evading, the regulations issued under 
                        subparagraph (A), the person shall be 
                        ineligible to participate in the conservation 
                        security program for the year for which the 
                        scheme or device was adopted and each of the 
                        following 5 years.
                            ``(ii) Fraud.--If the Secretary determines 
                        that fraud was committed in connection with the 
                        scheme or device, the person shall be 
                        ineligible to participate in the conservation 
                        security program for the year for which the 
                        scheme or device was adopted and each of the 
                        following 10 years.
            ``(4) Termination.--
                    ``(A) In general.--Subject to subsection (g), the 
                Secretary shall allow an owner or operator to terminate 
                the conservation security contract.
                    ``(B) Payments.--The owner or operator may retain 
                any or all payments received under a terminated 
                conservation security contract if--
                            ``(i) the owner or operator is in full 
                        compliance with the terms and conditions, 
                        including any maintenance requirements, of the 
                        conservation security contract; and
                            ``(ii) the Secretary determines that 
                        retention of payment will not defeat the goals 
                        enumerated in the conservation security plan of 
                        the owner or operator.
            ``(5) Transfer or change of interest in land subject to 
        conservation security contract.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the transfer, or change in the 
                interest, of an owner or operator in land subject to a 
                conservation security contract shall result in the 
                termination of the conservation security contract.
                    ``(B) Transfer of duties and rights.--Subparagraph 
                (A) shall not apply if, not later than 60 days after 
                the date of the transfer or change in the interest in 
                land, the transferee of the land provides written 
                notice to the Secretary that all duties and rights 
under the conservation security contract have been transferred to the 
transferee.
            ``(6) Technical assistance.--
                    ``(A) In general.--For each fiscal year, the 
                Secretary shall use such sums as are necessary from 
                funds of the Commodity Credit Corporation to provide 
                technical assistance to owners and operators for the 
                development and implementation of conservation security 
                contracts.
                    ``(B) Technical assistance provided by persons not 
                employed by the department of agriculture.--
                            ``(i) In general.--Under subparagraph (A), 
                        subject to clause (ii), technical assistance 
                        provided by qualified persons not employed by 
                        the Department of Agriculture, including 
                        farmers, ranchers, and local conservation 
                        district personnel, may include--
                                    ``(I) conservation planning;
                                    ``(II) design, installation, and 
                                certification of conservation 
                                practices;
                                    ``(III) training for producers; and
                                    ``(IV) such other activities as the 
                                Secretary determines to be appropriate.
                            ``(ii) Outside assistance.--
                                    ``(I) In general.--The Secretary 
                                may contract directly with qualified 
                                persons not employed by the Department 
                                of Agriculture to provide technical 
                                assistance.
                                    ``(II) Payment by secretary.--The 
                                Secretary may provide a payment or 
                                voucher to an owner or operator 
                                enrolled in the conservation security 
                                program if the owner or operator 
                                chooses to contract with qualified 
                                persons not employed by the Department 
                                of Agriculture.
                            ``(iii) Coordination by the secretary.--The 
                        Secretary shall provide overall technical 
                        coordination and leadership for the 
                        conservation security program, including final 
                        approval of all conservation security plans.
            ``(7) Education, outreach, monitoring, and evaluation.--
                    ``(A) In general.--
                            ``(i) Funding.--In addition to the amounts 
                        made available under paragraph (6), for each 
                        fiscal year, the Secretary shall use such sums 
                        as are necessary from funds of the Commodity 
                        Credit Corporation to carry out education, 
                        outreach, monitoring, and evaluation activities 
                        in support of the conservation security 
                        program, of which not less than 50 percent of 
                        the sums shall be used for monitoring and 
                        evaluation activities.
                            ``(ii) Amount.--For each fiscal year, the 
                        amount made available under clause (i) shall be 
                        not less than 40 percent of the amount made 
                        available for technical assistance under 
                        paragraph (6) for the fiscal year.
                    ``(B) Use of persons not affiliated with department 
                of agriculture.--
                            ``(i) In general.--In carrying out 
                        activities described in subparagraph (A), the 
                        Secretary may use persons not employed by the 
                        Department of Agriculture, including networks 
                        of agricultural producers operating in a small 
                        watershed, local conservation district 
                        personnel, or other appropriate local entity.
                            ``(ii) Education, outreach, and 
                        monitoring.--The Secretary may contract with 
                        private non-profit, community-based 
                        organizations, and educational institutions 
                        with demonstrated experience in providing 
                        education, outreach, monitoring, evaluation, or 
                        related services to agricultural producers 
                        (including owners and operators of small and 
                        medium-size farms, socially disadvantaged 
                        agricultural producers, and limited resource 
                        agricultural producers).
                    ``(C) Included activities.--Activities described in 
                subparagraph (A) may include innovative uses of 
                computer technology and remote sensing to monitor and 
                evaluate resource and environmental results on a local, 
                regional, or national level.
            ``(8) Socially disadvantaged and limited resource owners 
        and operators.--The Secretary shall provide outreach, training, 
        and technical assistance specifically to encourage and assist 
        socially disadvantaged owners and operators to participate in 
        the conservation security program.
            ``(9) Program evaluation.--The Secretary shall maintain 
        data concerning conservation security plans, conservation 
        practices planned or implemented, environmental outcomes, 
        economic costs, and related matters under this section.
            ``(10) Confidentiality.--To maintain confidentiality, the 
        Secretary shall not release or disclose publicly the 
        conservation security plan of an owner or operator under this 
        chapter unless the Secretary--
                    ``(A) obtains the authorization of the owner or 
                operator for the release or disclosure;
                    ``(B) releases the information in an anonymous or 
                aggregated form; or
                    ``(C)(i) is otherwise required by law to release or 
                disclose the plan and;
                    ``(ii) releases the plan in an anonymous or 
                aggregated form.
            ``(11) Mediation and informal hearings.--If the Secretary 
        makes a decision under this chapter that is adverse to an owner 
        or operator, at the request of the owner or operator, the 
        Secretary shall provide the owner or operator with mediation 
        services or an informal hearing on the decision.
    ``(i) Reports.--Not later than 18 months after the date of 
enactment of this chapter and at the end of each 2-year period 
thereafter, the Secretary shall submit to Congress a report evaluating 
the results of the conservation security program, including--
            ``(1) an evaluation of the scope, quality, and outcomes of 
        the conservation practices carried out under this section; and
            ``(2) recommendations for achieving specific and 
        quantifiable improvements for each of the purposes specified in 
        subsection (a).
    ``(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.
    ``(k) Exemption From Automatic Sequester.--Notwithstanding any 
other provision of law, no order issued for any fiscal year under 
section 252 of the Balanced Budget and Emergency Deficit Control Act of 
1985 (2 U.S.C. 902) shall affect any payment under this chapter.''.
    (b) Administration.--Section 1243(a) of the Food Security Act of 
1985 (16 U.S.C. 3843(a)) is amended--
            (1) in paragraph (1)(C), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) the conservation security program established under 
        chapter 6 of subtitle D.''.
    (c) State Technical Committees.--Section 1262(c)(8) of the Food 
Security Act of 1985 (16 U.S.C. 3862(c)(8)) is amended by striking 
``chapter 4'' and inserting ``chapters 4 and 6''.

SEC. 4. REGULATIONS.

    The Secretary of Agriculture shall promulgate such regulations as 
are necessary to carry out this Act and the amendments made by this 
Act.
                                 <all>