[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2419 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
December 14, 2007.
Resolved, That the bill from the House of Representatives (H.R.
2419) entitled ``An Act to provide for the continuation of agricultural
programs through fiscal year 2012, and for other purposes.'', do pass
with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Food and Energy
Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--PRODUCER INCOME PROTECTION PROGRAMS
Sec. 1001. Definitions.
Subtitle A--Traditional Payments and Loans
PART I--Direct Payments and Counter-Cyclical Payments
Sec. 1101. Base acres and payment acres for a farm.
Sec. 1102. Payment yields.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of
direct payments and counter-cyclical
payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Special rule for long grain and medium grain rice.
Sec. 1108. Period of effectiveness.
PART II--Marketing Assistance Loans and Loan Deficiency Payments
Sec. 1201. Availability of nonrecourse marketing assistance loans for
loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains
and seed cotton.
Sec. 1210. Adjustments of loans.
PART III--Peanuts
Sec. 1301. Definitions.
Sec. 1302. Base acres for peanuts for a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of
direct payments and counter-cyclical
payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for
peanuts.
Sec. 1308. Adjustments of loans.
Subtitle B--Average Crop Revenue Program
Sec. 1401. Availability of average crop revenue payments.
Sec. 1402. Producer agreement as condition of average crop revenue
payments.
Sec. 1403. Planting flexibility.
Subtitle C--Sugar
Sec. 1501. Sugar program.
Sec. 1502. Storage facility loans.
Sec. 1503. Commodity Credit Corporation storage payments.
Sec. 1504. Flexible marketing allotments for sugar.
Sec. 1505. Sense of the Senate regarding NAFTA sugar coordination.
Subtitle D--Dairy
Sec. 1601. Dairy product price support program.
Sec. 1602. National dairy market loss payments.
Sec. 1603. Dairy export incentive and dairy indemnity programs.
Sec. 1604. Funding of dairy promotion and research program.
Sec. 1605. Revision of Federal marketing order amendment procedures.
Sec. 1606. Dairy forward pricing program.
Sec. 1607. Report on Department of Agriculture reporting procedures for
nonfat dry milk.
Sec. 1608. Federal Milk Marketing Order Review Commission.
Sec. 1609. Mandatory reporting of dairy commodities.
Sec. 1610. Additional mandatory dairy reporting.
Subtitle E--Administration
Sec. 1701. Administration generally.
Sec. 1702. Suspension of permanent price support authority.
Sec. 1703. Payment limitations.
Sec. 1704. Adjusted gross income limitation.
Sec. 1705. Availability of quality incentive payments for certain
producers.
Sec. 1706. Hard white wheat development program.
Sec. 1707. Durum wheat quality program.
Sec. 1708. Storage facility loans.
Sec. 1709. Personal liability of producers for deficiencies.
Sec. 1710. Extension of existing administrative authority regarding
loans.
Sec. 1711. Assignment of payments.
Sec. 1712. Cotton classification services.
Sec. 1713. Designation of States for cotton research and promotion.
Sec. 1714. Government publication of cotton price forecasts.
Sec. 1715. State, county, and area committees.
Sec. 1716. Prohibition on charging certain fees.
Sec. 1717. Signature authority.
Sec. 1718. Modernization of Farm Service Agency.
Sec. 1719. Geospatial systems.
Sec. 1720. Leasing office space.
Sec. 1721. Repeals.
Subtitle F--Specialty Crop Programs
Sec. 1801. Definitions.
PART I--Marketing, Information, and Education
Sec. 1811. Fruit and vegetable market news allocation.
Sec. 1812. Farmers' market promotion program.
Sec. 1813. Food safety initiatives.
Sec. 1814. Census of specialty crops.
PART II--Organic Production
Sec. 1821. Organic data collection and price reporting.
Sec. 1822. Exemption of certified organic products from assessments.
Sec. 1823. National Organic Certification Cost Share Program.
Sec. 1824. National organic program.
PART III--International Trade
Sec. 1831. Foreign market access study and strategy plan.
Sec. 1832. Technical assistance for specialty crops.
Sec. 1833. Consultations on sanitary and phytosanitary restrictions for
fruits and vegetables.
PART IV--Specialty Crops Competitiveness
Sec. 1841. Specialty crop block grants.
Sec. 1842. Grant program to improve movement of specialty crops.
Sec. 1843. Healthy Food Enterprise Development Center.
PART V--Miscellaneous
Sec. 1851. Clean plant network.
Sec. 1852. Market loss assistance for asparagus producers.
Sec. 1853. Mushroom promotion, research, and consumer information.
Sec. 1854. National Honey Board.
Sec. 1855. Identification of honey.
Sec. 1856. Expedited marketing order for Hass avocados for grades and
standards and other purposes.
Subtitle G--Risk Management
Sec. 1901. Definition of organic crop.
Sec. 1902. General powers.
Sec. 1903. Reduction in loss ratio.
Sec. 1904. Controlled business insurance.
Sec. 1905. Administrative fee.
Sec. 1906. Time for payment.
Sec. 1907. Surcharge prohibition.
Sec. 1908. Premium reduction plan.
Sec. 1909. Enterprise and whole farm units.
Sec. 1910. Denial of claims.
Sec. 1911. Measurement of farm-stored commodities.
Sec. 1912. Reimbursement rate.
Sec. 1913. Renegotiation of standard reinsurance agreement.
Sec. 1914. Change in due date for Corporation payments for underwriting
gains.
Sec. 1915. Access to data mining information.
Sec. 1916. Producer eligibility.
Sec. 1917. Contracts for additional crop policies.
Sec. 1918. Research and development.
Sec. 1919. Funding from insurance fund.
Sec. 1920. Camelina pilot program.
Sec. 1921. Sesame insurance pilot program.
Sec. 1922. Risk management education for beginning farmers or ranchers.
Sec. 1923. Agricultural management assistance.
Sec. 1924. Crop insurance mediation.
Sec. 1925. Drought coverage for aquaculture under noninsured crop
assistance program.
Sec. 1926. Increase in service fees for noninsured crop assistance
program.
Sec. 1927. Determination of certain sweet potato production.
Sec. 1928. Perennial crop report.
Sec. 1929. Malting barley.
Sec. 1930. Definition of basic unit.
TITLE II--CONSERVATION
Subtitle A--Definitions
Sec. 2001. Definitions.
Subtitle B--Highly Erodible Land Conservation
Sec. 2101. Review of good faith determinations; exemptions.
Subtitle C--Wetland Conservation
Sec. 2201. Review of good faith determinations.
Subtitle D--Agricultural Resources Conservation Program
Chapter 1--Comprehensive Conservation Enhancement
subchapter a--comprehensive conservation enhancement program
Sec. 2301. Reauthorization and expansion of programs covered.
subchapter b--conservation reserve
Sec. 2311. Conservation reserve program.
Sec. 2312. Flooded farmland program.
Sec. 2313. Wildlife habitat program.
subchapter c--wetlands reserve program
Sec. 2321. Wetlands reserve program.
Sec. 2322. Easements and agreements.
Sec. 2323. Payments.
subchapter d--healthy forests reserve program
Sec. 2331. Healthy forests reserve program.
``subchapter d--healthy forests reserve program
``Sec. 1237M. Establishment of healthy forests reserve program.
``Sec. 1237N. Eligibility and enrollment of lands in program.
``Sec. 1237O. Restoration plans.
``Sec. 1237P. Financial assistance.
``Sec. 1237Q. Technical assistance.
``Sec. 1237R. Protections and measures.
``Sec. 1237S. Involvement by other agencies and organizations.
``Sec. 1237T. Authorization of appropriations.
Chapter 2--Comprehensive Stewardship Incentives Program
subchapter a--general provisions
Sec. 2341. Comprehensive stewardship incentives program.
``Chapter 6--Comprehensive Stewardship Incentives Program
``subchapter a--comprehensive stewardship incentives program
``Sec. 1240T. Comprehensive stewardship incentives program.
``subchapter b--conservation stewardship program
``Sec. 1240U. Purposes.
``Sec. 1240V. Definitions.
``Sec. 1240W. Establishment of program.
``Sec. 1240X. Eligibility.
``Sec. 1240Y. Regulations.
subchapter b--environmental quality incentives program
Sec. 2351. Purposes.
Sec. 2352. Definitions.
Sec. 2353. Establishment and administration of environmental quality
incentives program.
Sec. 2354. Evaluation of offers and payments.
Sec. 2355. Duties of producers.
Sec. 2356. Environmental quality incentives program plan.
Sec. 2357. Limitation on payments.
Sec. 2358. Conservation innovation grants.
Sec. 2359. Ground and surface water conservation.
Sec. 2360. Organic conversion.
Sec. 2361. Chesapeake Bay watershed conservation program.
Chapter 3--Farmland Protection
subchapter a--farmland protection program
Sec. 2371. Farmland protection program.
subchapter b--grassland reserve program
Sec. 2381. Grassland reserve program.
``subchapter c--grassland reserve program
``Sec. 1238N. Definitions.
``Sec. 1238O. Grassland reserve program.
``Sec. 1238P. Duties.
``Sec. 1238Q. Terms and conditions.
Chapter 4--Other Conservation Programs
Sec. 2391. Conservation security program.
Sec. 2392. Conservation of private grazing land.
Sec. 2393. Reauthorization of wildlife habitat incentive program.
Sec. 2394. Grassroots source water protection program.
Sec. 2395. Great Lakes basin program for soil erosion and sediment
control.
Sec. 2396. Farm viability program.
Sec. 2397. Discovery watershed demonstration program.
Sec. 2398. Emergency landscape restoration program.
Sec. 2399. Voluntary public access and habitat incentive program.
Subtitle E--Funding and Administration
Sec. 2401. Funding and administration.
Sec. 2402. Regional equity.
Sec. 2403. Conservation access.
Sec. 2404. Delivery of technical assistance.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Conservation programs in environmental services markets.
Subtitle F--State Technical Committees
Sec. 2501. State technical committees.
Subtitle G--Other Authorities
Sec. 2601. Agricultural management assistance.
Sec. 2602. Agriculture conservation experienced services program.
Sec. 2603. Technical assistance.
Sec. 2604. Small watershed rehabilitation program.
Sec. 2605. Resource conservation and development program.
Sec. 2606. National Natural Resources Conservation Foundation.
Sec. 2607. Desert Terminal Lakes.
Sec. 2607A. Desert Terminal Lakes.
Sec. 2608. Crop insurance ineligibility relating to crop production on
native sod.
Sec. 2609. High Plains water study.
Sec. 2610. Payment of expenses.
Sec. 2611. Use of funds in Basin funds for salinity control activities
upstream of Imperial Dam.
Sec. 2612. Technical corrections to the Federal Insecticide, Fungicide,
and Rodenticide Act.
TITLE III--TRADE
Subtitle A--Food for Peace Act
Sec. 3001. Short title.
Sec. 3002. United States policy.
Sec. 3003. Food aid to developing countries.
Sec. 3004. Trade and development assistance.
Sec. 3005. Agreements regarding eligible countries and private
entities.
Sec. 3006. Use of local currency payments.
Sec. 3007. General authority.
Sec. 3008. Provision of agricultural commodities.
Sec. 3009. Microenterprise activities.
Sec. 3010. Levels of assistance.
Sec. 3011. Food Aid Consultative Group.
Sec. 3012. Administration.
Sec. 3013. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable
prepackaged foods.
Sec. 3014. Pilot program for local purchase.
Sec. 3015. General authorities and requirements.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Expiration date.
Sec. 3019. Authorization of appropriations.
Sec. 3020. Micronutrient fortification programs.
Sec. 3021. Germplasm conservation.
Sec. 3022. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
Subtitle B--Agricultural Trade Act of 1978 and Related Statutes
Sec. 3101. Export credit guarantee program.
Sec. 3102. Market access program.
Sec. 3103. Export enhancement program.
Sec. 3104. Voluntary certification of child labor status of
agricultural imports.
Sec. 3105. Foreign market development cooperator program.
Sec. 3106. Food for Progress Act of 1985.
Sec. 3107. McGovern-Dole International Food for Education and Child
Nutrition Program.
Subtitle C--Miscellaneous
Sec. 3201. Bill Emerson Humanitarian Trust.
Sec. 3202. Emerging markets and facility guarantee loan program.
Sec. 3203. Biotechnology and agricultural trade program.
Sec. 3204. Technical assistance for the resolution of trade disputes.
Sec. 3205. Importation of live dogs.
Sec. 3206. Report on the importation of high protein food ingredients.
Sec. 3207. Quality requirements for clementines.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food and Nutrition Program
PART I--Renaming of Food Stamp Program
Sec. 4001. Renaming of food stamp program.
PART II--Improving Program Benefits
Sec. 4101. Exclusion of certain military payments from income.
Sec. 4102. Strengthening the food purchasing power of low-income
Americans.
Sec. 4103. Supporting working families with child care expenses.
Sec. 4104. Encouraging retirement and education savings among food
stamp recipients.
Sec. 4105. Facilitating simplified reporting.
Sec. 4106. Accrual of benefits.
Sec. 4107. Eligibility for unemployed adults.
Sec. 4108. Transitional benefits option.
Sec. 4109. Minimum benefit.
Sec. 4110. Availability of commodities for the emergency food
assistance program.
PART III--Improving Program Operations
Sec. 4201. Technical clarification regarding eligibility.
Sec. 4202. Issuance and use of program benefits.
Sec. 4203. Clarification of split issuance.
Sec. 4204. State option for telephonic signature.
Sec. 4205. Privacy protections.
Sec. 4206. Study on comparable access to food and nutrition assistance
for Puerto Rico.
Sec. 4207. Civil rights compliance.
Sec. 4208. Employment, training, and job retention.
Sec. 4209. Codification of access rules.
Sec. 4210. Expanding the use of EBT cards at farmers' markets.
Sec. 4211. Review of major changes in program design.
Sec. 4212. Preservation of access and payment accuracy.
Sec. 4213. Nutrition education.
PART IV--Improving Program Integrity
Sec. 4301. Major systems failures.
Sec. 4302. Performance standards for biometric identification
technology.
Sec. 4303. Civil penalties and disqualification of retail food stores
and wholesale food concerns.
Sec. 4304. Funding of employment and training programs.
Sec. 4305. Eligibility disqualification.
PART V--Miscellaneous
Sec. 4401. Definition of staple foods.
Sec. 4402. Accessory food items.
Sec. 4403. Pilot projects to evaluate health and nutrition promotion in
the food and nutrition program.
Sec. 4404. Bill Emerson National Hunger Fellows and Mickey Leland
International Hunger Fellows.
Sec. 4405. Hunger-free communities.
Sec. 4406. State performance on enrolling children receiving program
benefits for free school meals.
Sec. 4407. Sense of Congress regarding Nutrition education under the
Food and Nutrition Program.
Subtitle B--Food Distribution Program on Indian Reservations
Sec. 4501. Assessing the nutritional value of the FDPIR food package.
Subtitle C--Administration of Emergency Food Assistance Program and
Commodity Supplemental Food Program
Sec. 4601. Emergency food assistance.
Sec. 4602. Commodity supplemental food program.
Subtitle D--Senior Farmers' Market Nutrition Program
Sec. 4701. Exclusion of benefits in determining eligibility for other
programs.
Sec. 4702. Prohibition on collection of sales tax.
Subtitle E--Reauthorization of Federal Food Assistance Programs
Sec. 4801. Food and nutrition program.
Sec. 4802. Commodity distribution.
Sec. 4803. Nutrition information and awareness pilot program.
Subtitle F--Miscellaneous
Sec. 4901. Periodic surveys of foods purchased by school food
authorities.
Sec. 4902. Purchases of locally grown fruits and vegetables.
Sec. 4903. Healthy food education and program replicability.
Sec. 4904. Fresh fruit and vegetable program.
Sec. 4905. Team nutrition network.
Sec. 4906. Buy American requirements.
Sec. 4907. Minimum purchases of fruits, vegetables, and nuts through
section 32 to support domestic nutrition
assistance programs.
Sec. 4908. Agricultural policy and public health.
Sec. 4909. Conforming amendments to renaming of food stamp program.
Sec. 4910. Effective and implementation dates.
Sec. 4911. Application.
Sec. 4912. Grain pilot program.
Sec. 4913. Report on Federal hunger programs.
Sec. 4914. Food employment empowerment and development program.
Sec. 4915. Infrastructure and transportation grants to support rural
food bank delivery of healthy perishable
foods.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 5001. Direct loans.
Sec. 5002. Purposes of loans.
Sec. 5003. Soil and water conservation and protection.
Sec. 5004. Limitations on amount of farm ownership loans.
Sec. 5005. Down payment loan program.
Sec. 5006. Beginning farmer or rancher contract land sales program.
Subtitle B--Operating Loans
Sec. 5101. Farming experience as eligibility requirement.
Sec. 5102. Limitations on amount of operating loans.
Sec. 5103. Limitation on period borrowers are eligible for guaranteed
assistance.
Subtitle C--Administrative Provisions
Sec. 5201. Beginning farmer and rancher individual development accounts
pilot program.
Sec. 5202. Inventory sales preferences; loan fund set-asides.
Sec. 5203. Transition to private commercial or other sources of credit.
Sec. 5204. Loan authorization levels.
Sec. 5205. Interest rate reduction program.
Sec. 5206. Deferral of shared appreciation recapture amortization.
Sec. 5207. Rural development, housing, and farm loan program
activities.
Subtitle D--Farm Credit
Sec. 5301. Authority to pass along cost of insurance premiums.
Sec. 5302. Technical correction.
Sec. 5303. Confirmation of Chairman.
Sec. 5304. Premiums.
Sec. 5305. Certification of premiums.
Sec. 5306. Rural utility loans.
Sec. 5307. Equalization of loan-making powers of certain district
associations.
Subtitle E--Miscellaneous
Sec. 5401. Loans to purchasers of highly fractioned land.
Sec. 5402. Determination on merits of Pigford claims.
Sec. 5403. Sense of the Senate relating to claims brought by socially
disadvantaged farmers or ranchers.
Sec. 5404. Eligibility of equine farmers and ranchers for emergency
loans.
TITLE VI--RURAL DEVELOPMENT AND INVESTMENT
Subtitle A--Consolidated Farm and Rural Development Act
Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. Rural business opportunity grants.
Sec. 6003. Child day care facility grants, loans, and loan guarantees.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Multijurisdictional regional planning organizations.
Sec. 6006. Rural hospital loans and loan guarantees.
Sec. 6007. Tribal college and university essential community
facilities.
Sec. 6008. Community facility loans and grants for freely associated
States and outlying areas.
Sec. 6009. Priority for community facility loan and grant projects with
high non-Federal share.
Sec. 6010. SEARCH grants.
Sec. 6011. Emergency and imminent community water assistance grant
program.
Sec. 6012. Water systems for rural and native villages in Alaska.
Sec. 6013. Grants to develop wells in rural areas.
Sec. 6014. Cooperative equity security guarantee.
Sec. 6015. Rural cooperative development grants.
Sec. 6016. Grants to broadcasting systems.
Sec. 6017. Locally-produced agricultural food products.
Sec. 6018. Appropriate technology transfer for rural areas.
Sec. 6019. Rural economic area partnership zones.
Sec. 6020. Definitions.
Sec. 6021. Geographically disadvantaged farmers and ranchers.
Sec. 6022. Rural microenterprise assistance program.
Sec. 6023. Artisanal cheese centers.
Sec. 6024. National Rural Development Partnership.
Sec. 6025. Historic barn preservation.
Sec. 6026. Grants for NOAA weather radio transmitters.
Sec. 6027. Grants to train farm workers in new technologies and to
train farm workers in specialized skills
necessary for higher value crops.
Sec. 6028. Grants for expansion of employment opportunities for
individuals with disabilities in rural
areas.
Sec. 6029. Delta Regional Authority.
Sec. 6030. Northern Great Plains Regional Authority.
Sec. 6031. Rural business investment program.
Sec. 6032. Rural collaborative investment program.
Sec. 6033. Funding of pending rural development loan and grant
applications.
Sec. 6034. Northern Border Economic Development Commission.
Subtitle B--Rural Electrification Act of 1936
Sec. 6101. Energy efficiency programs.
Sec. 6102. Loans and grants for electric generation and transmission.
Sec. 6103. Fees for electrification baseload generation loan
guarantees.
Sec. 6104. Deferment of payments to allow loans for improved energy
efficiency and demand reduction.
Sec. 6105. Rural electrification assistance.
Sec. 6106. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6107. Expansion of 911 access.
Sec. 6108. Electric loans to rural electric cooperatives.
Sec. 6109. Agency procedures.
Sec. 6110. Access to broadband telecommunications services in rural
areas.
Sec. 6111. Comprehensive rural broadband.
Sec. 6112. Substantially underserved trust areas.
Sec. 6113. Study of Federal assistance for broadband infrastructure.
Subtitle C--Connect the Nation Act
Sec. 6201. Short title.
Sec. 6202. Grants to encourage State initiatives to improve broadband
service.
Subtitle D--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 6301. Rural electronic commerce extension program.
Sec. 6302. Telemedicine, library connectivity, public television, and
distance learning services in rural areas.
Subtitle E--Miscellaneous
Sec. 6401. Value-added agricultural product market development grants.
Sec. 6402. Insurance of loans for housing and related facilities for
domestic farm labor.
Subtitle F--Housing Assistance Council
Sec. 6501. Short title.
Sec. 6502. Assistance to Housing Assistance Council.
Sec. 6503. Audits and reports.
Sec. 6504. Persons not lawfully present in the United States.
Sec. 6505. Limitation on use of authorized amounts.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
Sec. 7001. Definitions.
Sec. 7002. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7003. Veterinary medicine loan repayment.
Sec. 7004. Eligibility of University of the District of Columbia for
grants and fellowships for food and
agricultural sciences education.
Sec. 7005. Grants to 1890 Institutions to expand extension capacity.
Sec. 7006. Expansion of food and agricultural sciences awards.
Sec. 7007. Grants and fellowships for food and agricultural sciences
education.
Sec. 7008. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from
agricultural commodities and forest
products.
Sec. 7009. Policy research centers.
Sec. 7010. Human nutrition intervention and health promotion research
program.
Sec. 7011. Pilot research program to combine medical and agricultural
research.
Sec. 7012. Nutrition education program.
Sec. 7013. Purposes and findings relating to animal health and disease
research.
Sec. 7014. Continuing animal health and disease research programs.
Sec. 7015. Appropriations for research on national or regional
problems.
Sec. 7016. Animal health and disease research program.
Sec. 7017. Authorization level for extension at 1890 land-grant
colleges.
Sec. 7018. Authorization level for agricultural research at 1890 land-
grant colleges.
Sec. 7019. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including
Tuskegee University.
Sec. 7020. Grants to upgrade agriculture and food sciences facilities
at the District of Columbia land grant
university.
Sec. 7021. National research and training virtual centers.
Sec. 7022. Matching funds requirement for research and extension
activities of 1890 Institutions.
Sec. 7023. Hispanic-serving institutions.
Sec. 7024. Hispanic-serving agricultural colleges and universities.
Sec. 7025. International agricultural research, extension, and
education.
Sec. 7026. Competitive grants for international agricultural science
and education programs.
Sec. 7027. Indirect costs.
Sec. 7028. Research equipment grants.
Sec. 7029. University research.
Sec. 7030. Extension Service.
Sec. 7031. Indirect cost recovery.
Sec. 7032. Supplemental and alternative crops.
Sec. 7033. Aquaculture research facilities.
Sec. 7034. Rangeland research.
Sec. 7035. Special authorization for biosecurity planning and response.
Sec. 7036. Resident instruction and distance education grants program
for insular area institutions of higher
education.
Sec. 7037. Farm management training and public farm benchmarking
database.
Sec. 7038. Tropical and subtropical agricultural research.
Sec. 7039. Regional centers of excellence.
Sec. 7040. National Drought Mitigation Center.
Sec. 7041. Agricultural development in the American-Pacific region.
Sec. 7042. Borlaug international agricultural science and technology
fellowship program.
Sec. 7043. New Era Rural Technology Program.
Sec. 7044. Farm and ranch stress assistance network.
Sec. 7045. Rural entrepreneurship and enterprise facilitation program.
Sec. 7046. Seed distribution.
Sec. 7047. Farm and ranch safety.
Sec. 7048. Women and minorities in STEM fields.
Sec. 7049. Natural products research program.
Sec. 7050. International anti-hunger and nutrition program.
Sec. 7051. Consortium for Agricultural and Rural Transportation
Research and Education.
Sec. 7052. Regional centers of excellence in food systems veterinary
medicine.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 7101. National genetic resources program.
Sec. 7102. High-priority research and extension initiatives.
Sec. 7103. Nutrient management research and extension initiative.
Sec. 7104. Organic agriculture research and extension initiative.
Sec. 7105. Agricultural telecommunications program.
Sec. 7106. Assistive technology program for farmers with disabilities.
Sec. 7107. National Rural Information Center Clearinghouse.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
Sec. 7201. Initiative for Future Agriculture and Food Systems.
Sec. 7202. Partnerships for high-value agricultural product quality
research.
Sec. 7203. Precision agriculture.
Sec. 7204. Biobased products.
Sec. 7205. Thomas Jefferson initiative for crop diversification.
Sec. 7206. Integrated research, education, and extension competitive
grants program.
Sec. 7207. Support for research regarding diseases of wheat, triticale,
and barley caused by Fusarium graminearum
or by Tilletia indica.
Sec. 7208. Bovine Johne's disease control program.
Sec. 7209. Grants for youth organizations.
Sec. 7210. Agricultural biotechnology research and development for
developing countries.
Sec. 7211. Specialty crop research initiative.
Sec. 7212. Office of Pest Management Policy.
Sec. 7213. Food animal residue avoidance database program.
Subtitle D--Other Laws
Sec. 7301. Critical Agricultural Materials Act.
Sec. 7302. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7303. Smith-Lever Act.
Sec. 7304. Hatch Act of 1887.
Sec. 7305. Research Facilities Act.
Sec. 7306. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Sec. 7307. Competitive, Special, and Facilities Research Grant Act.
Sec. 7308. Education grants to Alaska Native serving institutions and
Native Hawaiian serving institutions.
Sec. 7309. Beginning farmer and rancher development program.
Sec. 7310. McIntire-Stennis Cooperative Forestry Act.
Sec. 7311. National Aquaculture Act of 1980.
Sec. 7312. National Arboretum.
Sec. 7313. Eligibility of University of the District of Columbia for
certain land-grant university assistance.
Sec. 7314. Exchange or sale authority.
Sec. 7315. Carbon cycle research.
Sec. 7316. Enhanced use lease authority pilot program.
Sec. 7317. Research and education grants for the study of antibiotic-
resistant bacteria in livestock.
Subtitle E--National Institute of Food and Agriculture
Sec. 7401. National Institute of Food and Agriculture.
Sec. 7402. Coordination of Agricultural Research Service and National
Institute of Food and Agriculture.
Subtitle F--Miscellaneous
Sec. 7501. Joint nutrition monitoring and related research activities.
Sec. 7502. Demonstration project authority for temporary positions.
Sec. 7503. Review of plan of work requirements.
Sec. 7504. Study and report on access to nutritious foods.
Sec. 7505. Sense of Senate regarding organic research.
Sec. 7506. Modifications to information technology service.
Sec. 7507. Studies and reports by the Department of Agriculture, the
Department of Health and Human Services,
and the National Academy of Sciences on
food products from cloned animals.
Sec. 7508. Animal bioscience facility, Bozeman, Montana.
TITLE VIII--FORESTRY
Subtitle A--Cooperative Forestry Assistance Act of 1978
Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Community forest and open space conservation program.
Sec. 8003. Federal, State, and local coordination and cooperation.
Sec. 8004. Comprehensive statewide forest planning.
Sec. 8005. Assistance to the Federated States of Micronesia, the
Republic of the Marshall Islands, and the
Republic of Palau.
Subtitle B--Tribal-Forest Service Cooperative Relations
Sec. 8101. Definitions.
PART I--Collaboration Between Indian Tribes and Forest Service
Sec. 8111. Forest Legacy Program.
Sec. 8112. Forestry and resource management assistance for Indian
tribes.
PART II--Cultural and Heritage Cooperation Authority
Sec. 8121. Purposes.
Sec. 8122. Definitions.
Sec. 8123. Reburial of human remains and cultural items.
Sec. 8124. Temporary closure for traditional and cultural purposes.
Sec. 8125. Forest products for traditional and cultural purposes.
Sec. 8126. Prohibition on disclosure.
Sec. 8127. Severability and savings provisions.
Subtitle C--Amendments to Other Laws
Sec. 8201. Renewable resources extension activities.
Sec. 8202. Office of International Forestry.
Sec. 8203. Green Mountain National Forest boundary adjustment.
Sec. 8204. Prevention of illegal logging practices.
Sec. 8205. Sale and exchange of National Forest System land, Vermont.
Subtitle D--Qualifying Timber Contract Options
Sec. 8301. Qualifying timber contract options.
TITLE IX--ENERGY
Sec. 9001. Energy.
Sec. 9002. Sense of the Senate concerning higher levels of ethanol
blended gasoline.
Sec. 9003. Conforming amendments.
Sec. 9004. Sense of Congress regarding cooperative regional research,
extension, and education programs on
biofuels and bioproducts.
TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS
Subtitle A--Marketing
Sec. 10001. Livestock mandatory reporting.
Sec. 10002. Grading and inspection.
Sec. 10003. Country of origin labeling.
Sec. 10004. Disclosure of country of harvest for ginseng.
Subtitle B--Agricultural Fair Practices
Sec. 10101. Definitions.
Sec. 10102. Prohibited practices.
Sec. 10103. Enforcement.
Sec. 10104. Rules and regulations.
Subtitle C--Packers and Stockyards
Sec. 10201. Special Counsel for Agricultural Competition.
Sec. 10202. Investigation of live poultry dealers.
Sec. 10203. Production contracts.
Sec. 10204. Right to discuss terms of contract.
Sec. 10205. Attorneys' fees.
Sec. 10206. Appointment of outside counsel.
Sec. 10207. Prohibition on packers owning, feeding, or controlling
livestock.
Sec. 10208. Regulations.
Subtitle D--Related Programs
Sec. 10301. Sense of Congress regarding pseudorabies eradication
program.
Sec. 10302. Sense of Congress regarding cattle fever tick eradication
program.
Sec. 10303. National Sheep and Goat Industry Improvement Center.
Sec. 10304. Trichinae certification program.
Sec. 10305. Protection of information in the animal identification
system.
Sec. 10306. Low pathogenic avian influenza.
Sec. 10307. Study on bioenergy operations.
Sec. 10308. Sense of the Senate on indemnification of livestock
producers.
Sec. 10309. Coordination of dairy oversight.
TITLE XI--MISCELLANEOUS
Subtitle A--Agricultural Security
Sec. 11011. Definitions.
Sec. 11012. National plant disease recovery system and national
veterinary stockpile.
Sec. 11013. Research and development of agricultural countermeasures.
Sec. 11014. Veterinary workforce grant program.
Sec. 11015. Assistance to build local capacity in agricultural
biosecurity planning, preparedness, and
response.
Sec. 11016. Live virus of foot and mouth disease research.
Sec. 11017. Plant protection.
Subtitle B--Other Programs
Sec. 11051. Foreclosure.
Sec. 11052. Outreach and technical assistance for socially
disadvantaged farmers and ranchers.
Sec. 11053. Additional contracting authority.
Sec. 11054. Improved program delivery by the Department of Agriculture
on Indian reservations.
Sec. 11055. Accurate documentation in the census of agriculture and
certain studies.
Sec. 11056. Improved data requirements.
Sec. 11057. Receipt for service or denial of service.
Sec. 11058. National Appeals Division.
Sec. 11059. Farmworker Coordinator.
Sec. 11060. Congressional Bipartisan Food Safety Commission.
Sec. 11061. Emergency grants to assist low-income migrant and seasonal
farmworkers.
Sec. 11062. Grants to reduce production of methamphetamines from
anhydrous ammonia.
Sec. 11063. Invasive species management, Hawaii.
Sec. 11064. Oversight and compliance.
Sec. 11065. Report of civil rights complaints, resolutions, and
actions.
Sec. 11066. Grants to improve supply, stability, safety, and training
of agricultural labor force.
Sec. 11067. Interstate shipment of meat and poultry inspected by
Federal and State agencies for certain
small establishments.
Sec. 11068. Amendment to the Right to Financial Privacy Act of 1978.
Sec. 11069. Elimination of statute of limitations applicable to
collection of debt by administrative
offset.
Sec. 11070. Report on stored quantities of propane.
Sec. 11071. Closure of certain county FSA offices.
Sec. 11072. Action by President and Congress based on report.
Sec. 11073. Payments to deceased individuals and estates.
Sec. 11074. GAO report on access to health care for farmers.
Sec. 11075. Conveyance of land to Chihuahuan Desert Nature Park.
Sec. 11076. Prohibitions on dog fighting ventures.
Sec. 11077. Regulations to improve management and oversight of certain
regulated articles.
Sec. 11078. Invasive pest and disease emergency response funding
clarification.
Sec. 11079. Protection of pets.
Sec. 11080. Exemption from AQI user fees.
Sec. 11081. Department of Agriculture conference transparency.
Sec. 11082. Report relating to the ending of childhood hunger in the
United States.
Sec. 11083. National emergency grant to address effects of Greensburg,
Kansas tornado.
Sec. 11084. Report on program results.
Sec. 11085. Sense of the Senate on the U.S. Department of Agriculture's
Wildlife Services Competing Against Private
Industry for Nuisance Bird Control Work.
Sec. 11086. Oversight of national aquatic animal health plan.
Sec. 11087. Food safety improvement.
Sec. 11088. Office of Small Farms and Beginning Farmers and Ranchers.
Sec. 11089. Study of impacts of local food systems and commerce.
Sec. 11090. Invasive Species Revolving Loan Fund.
Sec. 11091. Cooperative agreements relating to invasive species
prevention activities.
Sec. 11092. Southwest regional dairy, environment, and private land
program.
Sec. 11093. Enforcement of United States-Canada softwood lumber
agreement.
Subtitle C--Domestic Pet Turtle Market Access
Sec. 11101. Short title.
Sec. 11102. Findings.
Sec. 11103. Review, report, and action on the sale of baby turtles.
Subtitle D--Disaster Loan Program
Sec. 11111. Short title.
Sec. 11112. Definitions.
PART I--Disaster Planning and Response
Sec. 11121. Disaster loans to nonprofits.
Sec. 11122. Disaster loan amounts.
Sec. 11123. Small business development center portability grants.
Sec. 11124. Assistance to out-of-State businesses.
Sec. 11125. Outreach programs.
Sec. 11126. Small business bonding threshold.
Sec. 11127. Termination of program.
Sec. 11128. Increasing collateral requirements.
Sec. 11129. Public awareness of disaster declaration and application
periods.
Sec. 11130. Consistency between Administration regulations and standard
operating procedures.
Sec. 11131. Processing disaster loans.
Sec. 11132. Development and implementation of major disaster response
plan.
Sec. 11133. Disaster planning responsibilities.
Sec. 11134. Additional authority for district offices of the
Administration.
Sec. 11135. Assignment of employees of the Office of Disaster
Assistance and Disaster Cadre.
PART II--Disaster Lending
Sec. 11141. Small Business Act catastrophic national disaster
declaration.
Sec. 11142. Private disaster loans.
Sec. 11143. Technical and conforming amendments.
Sec. 11144. Expedited disaster assistance loan program.
Sec. 11145. HUBZones.
PART III--Disaster Assistance Oversight
Sec. 11161. Congressional oversight.
TITLE XII--TRADE AND TAX PROVISIONS
Sec. 12001. Short title; etc.
Subtitle A--Supplemental Agricultural Disaster Assistance From the
Agriculture Disaster Relief Trust Fund
Sec. 12101. Supplemental agriculture disaster assistance.
Subtitle B--Conservation Provisions
PART I--Land and Species Preservation Provisions
Sec. 12201. Conservation reserve tax credit.
Sec. 12202. Exclusion of Conservation Reserve Program payments from
SECA tax for certain individuals.
Sec. 12203. Permanent extension of special rule encouraging
contributions of capital gain real property
for conservation purposes.
Sec. 12204. Tax credit for recovery and restoration of endangered
species.
Sec. 12205. Deduction for endangered species recovery expenditures.
Sec. 12206. Exclusion for certain payments and programs relating to
fish and wildlife.
Sec. 12207. Credit for easements granted under certain Department of
Agriculture conservation programs.
PART II--Timber Provisions
Sec. 12211. Forest conservation bonds.
Sec. 12212. Deduction for qualified timber gain.
Sec. 12213. Excise tax not applicable to section 1203 deduction of real
estate investment trusts.
Sec. 12214. Timber REIT modernization.
Sec. 12215. Mineral royalty income qualifying income for timber REITs.
Sec. 12216. Modification of taxable REIT subsidiary asset test for
timber REITs.
Sec. 12217. Safe harbor for timber property.
Subtitle C--Energy Provisions
PART I--Electricity Generation
Sec. 12301. Credit for residential and business wind property.
Sec. 12302. Landowner incentive to encourage electric transmission
build-out.
Sec. 12303. Exception to reduction of renewable electricity credit.
PART II--Alcohol Fuel
Sec. 12311. Expansion of special allowance to cellulosic biofuel plant
property.
Sec. 12312. Credit for production of cellulosic biofuel.
Sec. 12313. Extension of small ethanol producer credit.
Sec. 12314. Credit for producers of fossil free alcohol.
Sec. 12315. Modification of alcohol credit.
Sec. 12316. Calculation of volume of alcohol for fuel credits.
Sec. 12317. Ethanol tariff extension.
Sec. 12318. Limitations on, and reductions of, duty drawback on certain
imported ethanol.
PART III--Biodiesel and Renewable Diesel Fuel
Sec. 12321. Extension and modification of credit for biodiesel and
renewable diesel used as fuel.
Sec. 12322. Treatment of qualified alcohol fuel mixtures and qualified
biodiesel fuel mixtures as taxable fuels.
PART IV--Alternative Fuel
Sec. 12331. Extension and modification of alternative fuel credit.
Sec. 12332. Extension of alternative fuel vehicle refueling property
credit.
Subtitle D--Agricultural Provisions
Sec. 12401. Increase in loan limits on agricultural bonds.
Sec. 12402. Modification of installment sale rules for certain farm
property.
Sec. 12403. Allowance of section 1031 treatment for exchanges involving
certain mutual ditch, reservoir, or
irrigation company stock.
Sec. 12404. Credit to holders of rural renaissance bonds.
Sec. 12405. Agricultural chemicals security credit.
Sec. 12406. Credit for drug safety and effectiveness testing for minor
animal species.
Sec. 12407. Certain farming business machinery and equipment treated as
5-year property.
Sec. 12408. Expensing of broadband Internet access expenditures.
Sec. 12409. Credit for energy efficient motors.
Subtitle E--Revenue Provisions
PART I--Miscellaneous Revenue Provisions
Sec. 12501. Limitation on farming losses of certain taxpayers.
Sec. 12502. Modification to optional method of computing net earnings
from self-employment.
Sec. 12503. Information reporting for Commodity Credit Corporation
transactions.
Sec. 12504. Modification of section 1031 treatment for certain real
estate.
Sec. 12505. Modification of effective date of leasing provisions of the
American Jobs Creation Act of 2004.
Sec. 12506. Time for payment of corporate estimated taxes.
Sec. 12507. Denial of deduction for certain fines, penalties, and other
amounts.
Sec. 12508. Increase in information return penalties.
Sec. 12509. Asset treatment of horses.
Sec. 12510. Elimination of private payment test for professional sports
facility bonds.
Sec. 12511. Modification of penalty for failure to file partnership
returns; limitation on disclosure.
Sec. 12512. Participants in government section 457 plans allowed to
treat elective deferrals as Roth
contributions.
PART II--Economic Substance Doctrine
Sec. 12521. Clarification of economic substance doctrine.
Sec. 12522. Penalty for understatements attributable to transactions
lacking economic substance, etc.
Sec. 12523. Denial of deduction for interest on underpayments
attributable to noneconomic substance
transactions.
Subtitle F--Protection of Social Security
Sec. 12601. Protection of Social Security.
Sec. 12602. Interest rates for water and waste disposal facilities
loans.
Subtitle G--Kansas Disaster Tax Relief Assistance
Sec. 12701. Temporary tax relief for Kiowa County, Kansas and
surrounding area.
Subtitle H--Other Provisions
Sec. 12801. Income averaging for amounts received in connection with
the Exxon Valdez litigation.
Sec. 12802. 2-year extension and expansion of charitable deduction for
contributions of food inventory.
Sec. 12803. Mileage reimbursements to charitable volunteers excluded
from gross income.
Sec. 12804. Basis adjustment to stock of S corporations making
charitable contributions of property.
Sec. 12805. Private payment test for professional sports facility
bonds.
Sec. 12806. Application of rehabilitation credit and depreciation
schedules to certain low-income housing for
the elderly.
Sec. 12807. Competitive certification awards modification authority.
Sec. 12808. Qualified forestry conservation bonds.
TITLE XIII--AMENDMENTS TO COMMODITY EXCHANGE ACT
Sec. 13001. Short title.
Subtitle A--General Provisions
Sec. 13101. CFTC authority over off-exchange retail foreign currency
transactions.
Sec. 13102. Liaison with Department of Justice.
Sec. 13103. Anti-fraud authority over principal-to-principal
transactions.
Sec. 13104. Criminal and civil penalties.
Sec. 13105. Authorization of appropriations.
Sec. 13106. Technical and conforming amendments.
Sec. 13107. Portfolio Margining and Security Index Issues.
Subtitle B--Significant Price Discovery Contracts on Exempt Commercial
Markets
Sec. 13201. Significant price discovery contracts.
Sec. 13202. Large trader reporting.
Sec. 13203. Conforming amendments.
Sec. 13204. Effective date.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
TITLE I--PRODUCER INCOME PROTECTION PROGRAMS
SEC. 1001. DEFINITIONS.
In this title (other than part III of subtitle A):
(1) Average crop revenue payment.--The term ``average crop
revenue payment'' means a payment made to producers on a farm
under section 1401.
(2) Base acres.--The term ``base acres'', with respect to a
covered commodity on a farm, means the number of acres
established under section 1101 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911) as in effect on the day
before the date of enactment of this Act, subject to any
adjustment under section 1101 of this Act.
(3) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1104.
(4) Covered commodity.--The term ``covered commodity''
means wheat, corn, grain sorghum, barley, oats, upland cotton,
long grain rice, medium grain rice, pulse crops, soybeans, and
other oilseeds.
(5) Direct payment.--The term ``direct payment'' means a
payment made to producers on a farm under section 1103.
(6) Effective price.--The term ``effective price'', with
respect to a covered commodity for a crop year, means the price
calculated by the Secretary under section 1104 to determine
whether counter-cyclical payments are required to be made for
that crop year.
(7) Extra long staple cotton.--The term ``extra long staple
cotton'' means cotton that--
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid of the species, or
other similar types of extra long staple cotton,
designated by the Secretary, having characteristics
needed for various end uses for which United States
upland cotton is not suitable and grown in irrigated
cotton-growing regions of the United States designated
by the Secretary or other areas designated by the
Secretary as suitable for the production of the
varieties or types; and
(B) is ginned on a roller-type gin or, if
authorized by the Secretary, ginned on another type gin
for experimental purposes.
(8) Loan commodity.--The term ``loan commodity'' means
wheat, corn, grain sorghum, barley, oats, upland cotton, extra
long staple cotton, long grain rice, medium grain rice,
soybeans, other oilseeds, wool, mohair, honey, dry peas,
lentils, small chickpeas, and large chickpeas.
(9) Medium grain rice.--The term ``medium grain rice''
includes short grain rice.
(10) Other oilseed.--The term ``other oilseed'' means a
crop of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, crambe, sesame seed, camelina, or any oilseed
designated by the Secretary.
(11) Payment acres.--The term ``payment acres'' means, in
the case of direct payments and counter-cyclical payments, 85
percent of the base acres of a covered commodity on a farm on
which direct payments or counter-cyclical payments are made.
(12) Payment yield.--The term ``payment yield'' means the
yield established for direct payments and counter-cyclical
payments under section 1102 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7912) as in effect on the day
before the date of enactment of this Act, or under section 1102
of this Act, for a farm for a covered commodity.
(13) Producer.--
(A) In general.--The term ``producer'' means an
owner, operator, landlord, tenant, or sharecropper that
shares in the risk of producing a crop and is entitled
to share in the crop available for marketing from the
farm, or would have shared had the crop been produced.
(B) Hybrid seed.--In determining whether a grower
of hybrid seed is a producer, the Secretary shall--
(i) not take into consideration the
existence of a hybrid seed contract; and
(ii) ensure that program requirements do
not adversely affect the ability of the grower
to receive a payment under this title.
(14) Pulse crop.--The term ``pulse crop'' means dry peas,
lentils, small chickpeas, and large chickpeas.
(15) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(16) Target price.--The term ``target price'' means the
price per bushel, pound, or hundredweight (or other appropriate
unit) of a covered commodity used to determine the payment rate
for counter-cyclical payments.
(17) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
Subtitle A--Traditional Payments and Loans
PART I--DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS
SEC. 1101. BASE ACRES AND PAYMENT ACRES FOR A FARM.
(a) Adjustment of Base Acres.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for covered
commodities for a farm whenever the following circumstances
occurs:
(A) A conservation reserve contract entered into
under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with respect to the farm expires or is
voluntarily terminated.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary.
(C) The producer has eligible pulse crop or
camelina acreage.
(D) The producer has eligible oilseed acreage as
the result of the Secretary designating additional
oilseeds.
(2) Special conservation reserve acreage payment rules.--
For the crop year in which a base acres adjustment under
subparagraph (A) or (B) of paragraph (1) is first made, the
owner of the farm shall elect to receive either direct payments
and counter-cyclical payments with respect to the acreage added
to the farm under this subsection or a prorated payment under
the conservation reserve contract, but not both.
(b) Prevention of Excess Base Acres.--
(1) Required reduction.--If the sum of the base acres for a
farm, together with the acreage described in paragraph (2)
exceeds the actual cropland acreage of the farm, the Secretary
shall reduce the base acres for 1 or more covered commodities
for the farm or the base acres for peanuts for the farm so that
the sum of the base acres and acreage described in paragraph
(2) does not exceed the actual cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for peanuts for the farm.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve
program under chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
Federal conservation program for which payments are
made in exchange for not producing an agricultural
commodity on the acreage.
(D) Any eligible pulse crop or camelina acreage,
which shall be determined in the same manner as
eligible oilseed acreage under section 1101(a)(2) of
the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional
oilseeds, any eligible oilseed acreage, which shall be
determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for a
covered commodity or the base acres for peanuts for the farm
against which the reduction required by paragraph (1) will be
made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the
case of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1302(b) when applying the
requirements of this subsection.
(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may reduce, at
any time, the base acres for any covered commodity for
the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in a
manner prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall suspend all
direct, counter-cyclical, and average crop revenue
payments on base acres for covered commodities for land
that is no longer a farming operation or used in
conjunction with a farming operation, as determined by
the Secretary.
(B) Reduction.--The Secretary shall reduce base
acres for covered commodities in a manner prescribed by
the Secretary, for land that--
(i) has been developed for commercial or
industrial use unless the producer demonstrates
that the land remains devoted exclusively to
agricultural production; or
(ii) has been subdivided and developed for
multiple residential units or other nonfarming
uses, unless the producer demonstrates that the
land remains devoted exclusively to
agricultural production.
(3) Review and report.--Each year, to ensure, to the
maximum extent practicable, that payments are received only by
producers, the Secretary shall--
(A) track each reconstitution of land that is
reported by a producer that is covered by paragraph
(2);
(B) include in any end-of-the-year review for
purposes of payment limitations or other compliance
inspections or other actions taken by the Secretary, a
review to ensure compliance with paragraph (2); and
(C) submit to Congress a report that describes the
results of the actions taken under subparagraphs (A)
and (B).
SEC. 1102. PAYMENT YIELDS.
(a) Establishment and Purpose.--For the purpose of making direct
payments and counter-cyclical payments under this subtitle, the
Secretary shall provide for the establishment of a yield for each farm
for any designated oilseed, camelina, or eligible pulse crop for which
a payment yield was not established under section 1102 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7912) in accordance
with this section.
(b) Payment Yields for Designated Oilseeds, Camelina, and Eligible
Pulse Crops.--
(1) Determination of average yield.--In the case of
designated oilseeds, camelina, and eligible pulse crops, the
Secretary shall determine the average yield per planted acre
for the designated oilseed, camelina, or pulse crop on a farm
for the 1998 through 2001 crop years, excluding any crop year
in which the acreage planted to the designated oilseed,
camelina, or pulse crop was zero.
(2) Adjustment for payment yield.--
(A) In general.--The payment yield for a farm for a
designated oilseed, camelina, or eligible pulse crop
shall be equal to the product of the following:
(i) The average yield for the designated
oilseed, camelina, or pulse crop determined
under paragraph (1).
(ii) The ratio resulting from dividing the
national average yield for the designated
oilseed, camelina, or pulse crop for the 1981
through 1985 crops by the national average
yield for the designated oilseed, camelina, or
pulse crop for the 1998 through 2001 crops.
(B) No national average yield information
available.--To the extent that national average yield
information for a designated oilseed, camelina, or
pulse crop is not available, the Secretary shall use
such information as the Secretary determines to be fair
and equitable to establish a national average yield
under this section.
(3) Use of partial county average yield.--If the yield per
planted acre for a crop of a designated oilseed, camelina, or
pulse crop for a farm for any of the 1998 through 2001 crop
years was less than 75 percent of the county yield for that
designated oilseed, camelina, or pulse crop, the Secretary
shall assign a yield for that crop year equal to 75 percent of
the county yield for the purpose of determining the average
under paragraph (1).
(4) No historic yield data available.--In the case of
establishing yields for designated oilseeds, camelina, and
eligible pulse crops, if historic yield data is not available,
the Secretary shall use the ratio for dry peas calculated under
paragraph (2)(A)(ii) in determining the yields for designated
oilseeds, camelina, and eligible pulse crops, as determined to
be fair and equitable by the Secretary.
SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.
(a) Payment Required.--Except as provided in section 1401, for each
of the 2008 through 2012 crop years of each covered commodity (other
than pulse crops), the Secretary shall make direct payments to
producers on farms for which payment yields and base acres are
established.
(b) Payment Rate.--The payment rates used to make direct payments
with respect to covered commodities for a crop year are as follows:
(1) Wheat, $0.52 per bushel.
(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Long grain rice, $2.35 per hundredweight.
(8) Medium grain rice, $2.35 per hundredweight.
(9) Soybeans, $0.44 per bushel.
(10) Other oilseeds, $0.80 per hundredweight.
(c) Payment Amount.--The amount of the direct payment to be paid to
the producers on a farm for a covered commodity for a crop year shall
be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(d) Time for Payment.--
(1) In general.--In the case of each of the 2008 through
2012 crop years, the Secretary shall make direct payments under
this section not earlier than October 1 of the calendar year in
which the crop of the covered commodity is harvested.
(2) Advance payments.--
(A) Option.--At the option of the producers on a
farm, the Secretary shall pay in advance up to 22
percent of the direct payment for a covered commodity
for any of the 2008 through 2011 crop years to the
producers on a farm.
(B) Month.--
(i) Selection.--Subject to clauses (ii) and
(iii), the producers on a farm shall select the
month during which the advance payment for a
crop year will be made.
(ii) Options.--The month selected may be
any month during the period--
(I) beginning on December 1 of the
calendar year before the calendar year
in which the crop of the covered
commodity is harvested; and
(II) ending during the month within
which the direct payment would
otherwise be made.
(iii) Change.--The producers on a farm may
change the selected month for a subsequent
advance payment by providing advance notice to
the Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year ceases
to be a producer on that farm, or the extent to which the
producer shares in the risk of producing a crop changes, before
the date the remainder of the direct payment is made, the
producer shall be responsible for repaying the Secretary the
applicable amount of the advance payment, as determined by the
Secretary.
SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
(a) Payment Required.--Subject to sections 1107 and 1401, for each
of the 2008 through 2012 crop years for each covered commodity, the
Secretary shall make counter-cyclical payments to producers on farms
for which payment yields and base acres are established with respect to
the covered commodity if the Secretary determines that the effective
price for the covered commodity is less than the target price for the
covered commodity.
(b) Effective Price.--
(1) Covered commodities other than rice.--Except as
provided in paragraph (2), for purposes of subsection (a), the
effective price for a covered commodity is equal to the sum of
the following:
(A) The higher of the following:
(i) The national average market price
received by producers during the 12-month
marketing year for the covered commodity, as
determined by the Secretary.
(ii) The national average loan rate for a
marketing assistance loan for the covered
commodity in effect for the applicable period
under part II.
(B) The payment rate in effect for the covered
commodity under section 1103 for the purpose of making
direct payments with respect to the covered commodity.
(2) Rice.--In the case of long grain rice and medium grain
rice, for purposes of subsection (a), the effective price for
each type or class of rice is equal to the sum of the
following:
(A) The higher of the following:
(i) The national average market price
received by producers during the 12-month
marketing year for the type or class of rice,
as determined by the Secretary.
(ii) The national average loan rate for a
marketing assistance loan for the type or class
of rice in effect for the applicable period
under part II.
(B) The payment rate in effect for the type or
class of rice under section 1103 for the purpose of
making direct payments with respect to the type or
class of rice.
(c) Target Price.--
(1) In general.--For purposes of each of the 2008 through
2012 crop years, the target prices for covered commodities
shall be as follows:
(A) Wheat, $4.20 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.63 per bushel.
(D) Barley, $2.63 per bushel.
(E) Oats, $1.83 per bushel.
(F) Upland cotton, $0.7225 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $6.00 per bushel.
(J) Other oilseeds, $12.74 per hundredweight.
(K) Dry peas, $8.33 per hundredweight.
(L) Lentils, $12.82 per hundredweight.
(M) Small chickpeas, $10.36 per hundredweight.
(N) Large chickpeas, $12.82 per hundredweight.
(2) Separate target price.--The Secretary may not establish
a target price for a covered commodity that is different from
the target price specified in paragraph (1) for the covered
commodity.
(d) Payment Rate.--The payment rate used to make counter-cyclical
payments with respect to a covered commodity for a crop year shall be
equal to the difference between--
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection (b) for
the covered commodity.
(e) Payment Amount.--If counter-cyclical payments are required to
be paid for any of the 2008 through 2012 crop years of a covered
commodity, the amount of the counter-cyclical payment to be paid to the
producers on a farm for that crop year shall be equal to the product of
the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(f) Time for Payments.--
(1) General rule.--If the Secretary determines under
subsection (a) that counter-cyclical payments are required to
be made under this section for the crop of a covered commodity,
the Secretary shall make the counter-cyclical payments for the
crop beginning October 1, or as soon as practicable thereafter,
after the end of the applicable marketing year for the covered
commodity.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the 12-month
marketing year for a covered commodity, the Secretary
estimates that counter-cyclical payments will be
required for the crop of the covered commodity, the
Secretary shall give producers on a farm the option to
receive partial payments of the counter-cyclical
payment projected to be made for that crop of the
covered commodity.
(B) Election.--
(i) In general.--The Secretary shall allow
producers on a farm to make an election to
receive partial payments for a covered
commodity under subparagraph (A) at any time
but not later than 30 days prior to the end of
the marketing year for that covered commodity.
(ii) Date of issuance.--The Secretary shall
issue the partial payment after the date of an
announcement by the Secretary but not later
than 30 days prior to the end of the marketing
year.
(3) Time for partial payments.--When the Secretary makes
partial payments for a covered commodity for any of the 2008
through 2010 crop years--
(A) the first partial payment shall be made after
completion of the first 180 days of the marketing year
for the covered commodity; and
(B) the final partial payment shall be made
beginning October 1, or as soon as practicable
thereafter, after the end of the applicable marketing
year for the covered commodity.
(4) Amount of partial payment.--
(A) First partial payment.--For each of the 2008
through 2010 crops of a covered commodity, the first
partial payment under paragraph (3) to the producers on
a farm may not exceed 40 percent of the projected
counter-cyclical payment for the covered commodity for
the crop year, as determined by the Secretary.
(B) Final payment.--The final payment for a covered
commodity for a crop year shall be equal to the
difference between--
(i) the actual counter-cyclical payment to
be made to the producers for the covered
commodity for that crop year; and
(ii) the amount of the partial payment made
to the producers under subparagraph (A).
(5) Repayment.--The producers on a farm that receive a
partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total
of the partial payments exceed the actual counter-cyclical
payment to be made for the covered commodity for that crop
year.
SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF
DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive direct payments or counter-cyclical payments with
respect to the farm, the producers shall agree, during the crop
year for which the payments are made and in exchange for the
payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 1106;
(D) to use the land on the farm, in a quantity
equal to the attributable base acres for the farm and
any base acres for peanuts for the farm under part III,
for an agricultural or conserving use, and not for a
nonagricultural commercial, industrial, or residential
use (including land subdivided and developed into
residential units or other nonfarming uses, or that is
otherwise no longer intended to be used in conjunction
with a farming operation), as determined by the
Secretary; and
(E) to effectively control noxious weeds and
otherwise maintain the land in accordance with sound
agricultural practices, as determined by the Secretary,
if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to
in subparagraph (D).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph
(2), a transfer of (or change in) the interest of the
producers on a farm in base acres for which direct
payments or counter-cyclical payments are made shall
result in the termination of the payments with respect
to the base acres, unless the transferee or owner of
the acreage agrees to assume all obligations under
subsection (a).
(B) Effective date.--The termination shall take
effect on the date determined by the Secretary.
(2) Exception.--If a producer entitled to a direct payment
or counter-cyclical payment dies, becomes incompetent, or is
otherwise unable to receive the payment, the Secretary shall
make the payment, in accordance with rules issued by the
Secretary.
(c) Acreage Reports.--
(1) In general.--As a condition on the receipt of any
benefits under this part or part II, the Secretary shall
require producers on a farm to submit to the Secretary annual
acreage reports with respect to all cropland on the farm.
(2) Penalties.--No penalty with respect to benefits under
this part or part II shall be assessed against the producers on
a farm for an inaccurate acreage report unless the producers on
the farm knowingly and willfully falsified the acreage report.
(d) Tenants and Sharecroppers.--In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for the
sharing of direct payments and counter-cyclical payments among the
producers on a farm on a fair and equitable basis.
SEC. 1106. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on base acres on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres unless the commodity, if planted, is destroyed
before harvest.
(2) Treatment of trees and other perennials.--The planting
of an agricultural commodity specified in paragraph (3) that is
produced on a tree or other perennial plant shall be prohibited
on base acres.
(3) Covered agricultural commodities.--Paragraphs (1) and
(2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse
crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not
limit the planting of an agricultural commodity specified in paragraph
(3) of that subsection--
(1) in any region in which there is a history of double-
cropping of covered commodities with agricultural commodities
specified in subsection (b)(3), as determined by the Secretary,
in which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on base acres, except that direct payments and counter-
cyclical payments shall be reduced by an acre for each acre
planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a specific
agricultural commodity specified in subsection (b)(3), except
that--
(A) the quantity planted may not exceed the average
annual planting history of such agricultural commodity
by the producers on the farm in the 1991 through 1995
or 1998 through 2001 crop years (excluding any crop
year in which no plantings were made), as determined by
the Secretary; and
(B) direct payments and counter-cyclical payments
shall be reduced by an acre for each acre planted to
such agricultural commodity.
(d) Planting Transferability Pilot Project.--
(1) Pilot project authorized.--In addition to the
exceptions provided in subsection (c), the Secretary shall
carry out a pilot project in the State of Indiana under which
paragraphs (1) and (2) of subsection (b) shall not limit the
planting of tomatoes grown for processing on up to 10,000 base
acres during each of the 2008 through 2009 crop years.
(2) Contract and management requirements.--To be eligible
for selection to participate in the pilot project, the
producers on a farm shall--
(A) have entered into a contract to produce
tomatoes for processing; and
(B) agree to produce the tomatoes as part of a
program of crop rotation on the farm to achieve
agronomic and pest and disease management benefits.
(3) Temporary reduction in base acres.--The base acres on a
farm participating in the pilot program for a crop year shall
be reduced by an acre for each acre planted to tomatoes under
the pilot program.
(4) Recalculation of base acres.--
(A) In general.--If the Secretary recalculates base
acres for a farm while the farm is included in the
pilot project, the planting and production of tomatoes
on base acres for which a temporary reduction was made
under this section shall be considered to be the same
as the planting and production of a covered commodity.
(B) Prohibition.--Nothing in this paragraph
provides authority for the Secretary to recalculate
base acres for a farm.
SEC. 1107. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.
(a) Calculation Method.--Subject to subsections (b) and (c), for
the purposes of determining the amount of the counter-cyclical payments
to be paid to the producers on a farm for long grain rice and medium
grain rice under section 1104, the base acres of rice on the farm shall
be apportioned using the 4-year average of the percentages of acreage
planted in the applicable State to long grain rice and medium grain
rice during the 2003 through 2006 crop years, as determined by the
Secretary.
(b) Producer Election.--As an alternative to the calculation method
described in subsection (a), the Secretary shall provide producers on a
farm the opportunity to elect to apportion rice base acres on the farm
using the 4-year average of--
(1) the percentages of acreage planted on the farm to long
grain rice and medium grain rice during the 2003 through 2006
crop years;
(2) the percentages of any acreage on the farm that the
producers were prevented from planting to long grain rice and
medium grain rice during the 2003 through 2006 crop years
because of drought, flood, other natural disaster, or other
condition beyond the control of the producers, as determined by
the Secretary; and
(3) in the case of a crop year for which a producer on a
farm elected not to plant to long grain and medium grain rice
during the 2003 through 2006 crop years, the percentages of
acreage planted in the applicable State to long grain rice and
medium grain rice, as determined by the Secretary.
(c) Limitation.--In carrying out this section, the Secretary shall
use the same total base acres, payment acres, and payment yields
established with respect to rice under sections 1101 and 1102 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7912),
as in effect on the day before the date of enactment of this Act,
subject to any adjustment under section 1101 of this Act.
SEC. 1108. PERIOD OF EFFECTIVENESS.
This part shall be effective beginning with the 2008 crop year of
each covered commodity through the 2012 crop year.
PART II--MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR
LOAN COMMODITIES.
(a) Nonrecourse Loans Available.--
(1) Availability.--Except as provided in section 1401, for
each of the 2008 through 2012 crops of each loan commodity, the
Secretary shall make available to producers on a farm
nonrecourse marketing assistance loans for loan commodities
produced on the farm.
(2) Terms and conditions.--The marketing assistance loans
shall be made under terms and conditions that are prescribed by
the Secretary and at the loan rate established under section
1202 for the loan commodity.
(b) Eligible Production.--The producers on a farm shall be eligible
for a marketing assistance loan under subsection (a) for any quantity
of a loan commodity produced on the farm.
(c) Treatment of Certain Commingled Commodities.--In carrying out
this part, the Secretary shall make loans to producers on a farm that
would be eligible to obtain a marketing assistance loan, but for the
fact the loan commodity owned by the producers on the farm is
commingled with loan commodities of other producers in facilities
unlicensed for the storage of agricultural commodities by the Secretary
or a State licensing authority, if the producers obtaining the loan
agree to immediately redeem the loan collateral in accordance with
section 166 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7286).
(d) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under
subsection (a), the producer shall comply with applicable conservation
requirements under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection
requirements under subtitle C of title XII of the Act (16 U.S.C. 3821
et seq.) during the term of the loan.
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.
(a) Loan Rates.--For each of the 2008 through 2012 crop years, the
loan rate for a marketing assistance loan under section 1201 for a loan
commodity shall be equal to the following:
(1) In the case of wheat, $2.94 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of the base quality of upland cotton, $0.52
per pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) in the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per
hundredweight.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.20 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.72 per pound.
(b) Single County Loan Rate for Other Oilseeds.--The Secretary
shall establish a single loan rate in each county for each kind of
other oilseeds described in subsection (a)(10).
(c) Grading Basis for Marketing Loans for Pulse Crops.--The loan
rate for pulse crops--
(1) shall be based on a grade not less than grade number 2
or other grade factors, including the fair and average quality
of the 1 or more crops in any year; and
(2) may be adjusted by the Secretary to reflect the normal
market discounts for grades less than number 2 quality.
(d) Corn and Grain Sorghum.--The Secretary shall--
(1) establish a single county loan rate for corn and grain
sorghum in each county;
(2) establish a single national average loan rate for corn
and grain sorghum; and
(3) determine each county loan rate and the national
average loan rate for corn and grain sorghum, and any and all
other program loan rates applicable to corn and grain sorghum,
from a data set that includes prices for both corn and grain
sorghum.
SEC. 1203. TERM OF LOANS.
(a) Term of Loan.--In the case of each loan commodity, a marketing
assistance loan under section 1201 shall have a term of 9 months
beginning on the first day of the first month after the month in which
the loan is made.
(b) Extensions Prohibited.--The Secretary may not extend the term
of a marketing assistance loan for any loan commodity.
SEC. 1204. REPAYMENT OF LOANS.
(a) General Rule.--The Secretary shall permit the producers on a
farm to repay a marketing assistance loan under section 1201 for a loan
commodity (other than upland cotton, long grain rice, medium grain
rice, extra long staple cotton, and confectionery and each other kind
of sunflower seed (other than oil sunflower seed)) at a rate that is
the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity;
(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally; and
(E) minimize discrepancies in marketing loan
benefits across State boundaries and across county
boundaries.
(b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium
Grain Rice.--The Secretary shall permit producers to repay a marketing
assistance loan under section 1201 for upland cotton, long grain rice,
and medium grain rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity
(adjusted to United States quality and location), as determined
by the Secretary.
(c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
marketing assistance loan for extra long staple cotton shall be at the
loan rate established for the commodity under section 1202, plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) Prevailing World Market Price.--For purposes of this section
and section 1207, the Secretary shall prescribe by regulation--
(1) a formula to determine--
(A) the prevailing world market price for upland
cotton (adjusted to United States quality and
location); and
(B) the prevailing world market price for long
grain rice and medium grain rice, adjusted to United
States quality and location; and
(2) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for upland
cotton, long grain rice, and medium grain rice.
(e) Adjustment of Prevailing World Market Price for Upland
Cotton.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending July 31, 2013, the Secretary
may further adjust the prevailing world market price for upland
cotton (adjusted to United States quality and location) if the
Secretary determines the adjustment is necessary--
(A) to minimize potential loan forfeitures;
(B) to minimize the accumulation of stocks of
upland cotton by the Federal Government;
(C) to allow upland cotton produced in the United
States to be marketed freely and competitively, both
domestically and internationally;
(D) to ensure that upland cotton produced in the
United States is competitive in world markets; and
(E) to ensure an appropriate transition between
current-crop and forward-crop price quotations, except
that the Secretary may use forward-crop price
quotations prior to July 31 of a marketing year only
if--
(i) there are insufficient current-crop
price quotations; and
(ii) the forward-crop price quotation is
the lowest such quotation available.
(2) Guidelines for additional adjustments.--In making
adjustments under this subsection, the Secretary shall
establish a mechanism for determining and announcing the
adjustments in order to avoid undue disruption in the United
States market.
(f) Repayment Rates for Confectionery and Other Kinds of Sunflower
Seeds.--The Secretary shall permit the producers on a farm to repay a
marketing assistance loan under section 1201 for confectionery and each
other kind of sunflower seed (other than oil sunflower seed) at a rate
that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the repayment rate established for oil sunflower seed.
(g) Quality Grades for Pulse Crops.--The loan repayment rate for
pulse crops shall be based on the quality grades for the applicable
commodity specified in section 1202(c).
(h) Payment of Cotton Storage Costs.--Effective for the 2008
through 2012 crop years, the Secretary shall use the funds of the
Commodity Credit Corporation to provide cotton storage payments in the
same manner, and at the same rates, as the Secretary provided those
payments for the 2006 crop of cotton.
SEC. 1205. LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--
(1) In general.--Except as provided in subsection (d) and
section 1401, the Secretary may make loan deficiency payments
available to producers on a farm that, although eligible to
obtain a marketing assistance loan under section 1201 with
respect to a loan commodity, agree to forgo obtaining the loan
for the commodity in return for loan deficiency payments under
this section.
(2) Unshorn pelts, hay, and silage.--
(A) Marketing assistance loans.--Subject to
subparagraph (B), nongraded wool in the form of unshorn
pelts and hay and silage derived from a loan commodity
are not eligible for a marketing assistance loan under
section 1201.
(B) Loan deficiency payment.--Effective for the
2008 through 2012 crop years, the Secretary may make
loan deficiency payments available under this section
to producers on a farm that produce unshorn pelts or
hay and silage derived from a loan commodity.
(b) Computation.--A loan deficiency payment for a loan commodity or
commodity referred to in subsection (a)(2) shall be computed by
multiplying--
(1) the payment rate determined under subsection (c) for
the commodity; by
(2) the quantity of the commodity produced by the eligible
producers, excluding any quantity for which the producers
obtain a marketing assistance loan under section 1201.
(c) Payment Rate.--
(1) In general.--In the case of a loan commodity, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202
for the loan commodity; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section
1204.
(2) Unshorn pelts.--In the case of unshorn pelts, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202
for ungraded wool; exceeds
(B) the rate at which a marketing assistance loan
for ungraded wool may be repaid under section 1204.
(3) Hay and silage.--In the case of hay or silage derived
from a loan commodity, the payment rate shall be the amount by
which--
(A) the loan rate established under section 1202
for the loan commodity from which the hay or silage is
derived; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section
1204.
(d) Exception for Extra Long Staple Cotton.--This section shall not
apply with respect to extra long staple cotton.
(e) Effective Date for Payment Rate Determination.--
(1) Loss of beneficial interest.--The Secretary shall
determine the amount of the loan deficiency payment to be made
under this section to the producers on a farm with respect to a
quantity of a loan commodity or commodity referred to in
subsection (a)(2) using the payment rate in effect under
subsection (c) as soon as practicable after the date on which
the producers on the farm lose beneficial interest.
(2) On-farm consumption.--For the quantity of a loan
commodity or commodity referred to in subsection (a)(2)
consumed on a farm, the Secretary shall provide procedures to
determine a date on which the producers on the farm lose
beneficial interest.
(3) Applicability.--This subsection does not apply for the
2009 through 2012 crop years.
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
ACREAGE.
(a) Eligible Producers.--
(1) In general.--Except as provided in section 1401,
effective for the 2008 through 2012 crop years, in the case of
a producer that would be eligible for a loan deficiency payment
under section 1205 for wheat, barley, or oats, but that elects
to use acreage planted to the wheat, barley, or oats for the
grazing of livestock, the Secretary shall make a payment to the
producer under this section if the producer enters into an
agreement with the Secretary to forgo any other harvesting of
the wheat, barley, or oats on that acreage.
(2) Grazing of triticale acreage.--Effective for the 2008
through 2012 crop years, with respect to a producer on a farm
that uses acreage planted to triticale for the grazing of
livestock, the Secretary shall make a payment to the producer
under this section if the producer enters into an agreement
with the Secretary to forgo any other harvesting of triticale
on that acreage.
(b) Payment Amount.--
(1) In general.--The amount of a payment made under this
section to a producer on a farm described in subsection (a)(1)
shall be equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect, as of the date of the
agreement, for the county in which the farm is located;
by
(B) the payment quantity determined by
multiplying--
(i) the quantity of the grazed acreage on
the farm with respect to which the producer
elects to forgo harvesting of wheat, barley, or
oats; and
(ii) the payment yield in effect for the
calculation of direct payments under part I
with respect to that loan commodity on the farm
or, in the case of a farm without a payment
yield for that loan commodity, an appropriate
yield established by the Secretary in a manner
consistent with section 1102(c).
(2) Grazing of triticale acreage.--The amount of a payment
made under this section to a producer on a farm described in
subsection (a)(2) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect for wheat, as of the
date of the agreement, for the county in which the farm
is located; by
(B) the payment quantity determined by
multiplying--
(i) the quantity of the grazed acreage on
the farm with respect to which the producer
elects to forgo harvesting of triticale; and
(ii) the payment yield in effect for the
calculation of direct payments under part I
with respect to wheat on the farm or, in the
case of a farm without a payment yield for
wheat, an appropriate yield established by the
Secretary in a manner consistent with section
1102(c).
(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan deficiency
payments are made under section 1205.
(2) Availability.--
(A) In general.--The Secretary shall establish an
availability period for the payments authorized by this
section.
(B) Certain commodities.--In the case of wheat,
barley, and oats, the availability period shall be
consistent with the availability period for the
commodity established by the Secretary for marketing
assistance loans authorized by this part.
(d) Prohibition on Crop Insurance Indemnity or Noninsured Crop
Assistance.--A 2008 through 2012 crop of wheat, barley, oats, or
triticale planted on acreage that a producer elects, in the agreement
required by subsection (a), to use for the grazing of livestock in lieu
of any other harvesting of the crop shall not be eligible for an
indemnity under a policy or plan of insurance authorized under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop
assistance under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.
(a) Special Import Quota.--
(1) Definition of special import quota.--In this
subsection, the term ``special import quota'' means a quantity
of imports that is not subject to the over-quota tariff rate of
a tariff-rate quota.
(2) Establishment.--
(A) In general.--The President shall carry out an
import quota program during the period beginning on the
date of the enactment of this Act through July 31,
2013, as provided in this subsection.
(B) Program requirements.--Whenever the Secretary
determines and announces that for any consecutive 4-
week period, the Friday through Thursday average price
quotation for the lowest-priced United States growth,
as quoted for Middling (M) 1\3/32\-inch cotton,
delivered to a definable and significant international
market, as determined by the Secretary, exceeds the
prevailing world market price, there shall immediately
be in effect a special import quota.
(3) Quantity.--The quota shall be equal to 1 week's
consumption of cotton by domestic mills at the seasonally
adjusted average rate of the most recent 3 months for which
data are available.
(4) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under paragraph (2) and entered into
the United States not later than 180 days after that date.
(5) Overlap.--A special quota period may be established
that overlaps any existing quota period if required by
paragraph (2), except that a special quota period may not be
established under this subsection if a quota period has been
established under subsection (b).
(6) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act
(19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19
U.S.C. 2463(d)); and
(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(7) Limitation.--The quantity of cotton entered into the
United States during any marketing year under the special
import quota established under this subsection may not exceed
the equivalent of 10 week's consumption of upland cotton by
domestic mills at the seasonally adjusted average rate of the 3
months immediately preceding the first special import quota
established in any marketing year.
(b) Limited Global Import Quota for Upland Cotton.--
(1) Definitions.--In this subsection:
(A) Supply.--The term ``supply'' means, using the
latest official data of the Bureau of the Census, the
Department of Agriculture, and the Department of the
Treasury--
(i) the carry-over of upland cotton at the
beginning of the marketing year (adjusted to
480-pound bales) in which the quota is
established;
(ii) production of the current crop; and
(iii) imports to the latest date available
during the marketing year.
(B) Demand.--The term ``demand'' means--
(i) the average seasonally adjusted annual
rate of domestic mill consumption of cotton
during the most recent 3 months for which data
are available; and
(ii) the larger of--
(I) average exports of upland
cotton during the preceding 6 marketing
years; or
(II) cumulative exports of upland
cotton plus outstanding export sales
for the marketing year in which the
quota is established.
(C) Limited global import quota.--The term
``limited global import quota'' means a quantity of
imports that is not subject to the over-quota tariff
rate of a tariff-rate quota.
(2) Program.--The President shall carry out an import quota
program that provides that whenever the Secretary determines
and announces that the average price of the base quality of
upland cotton, as determined by the Secretary, in the
designated spot markets for a month exceeded 130 percent of the
average price of the quality of cotton in the markets for the
preceding 36 months, notwithstanding any other provision of
law, there shall immediately be in effect a limited global
import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available or as
estimated by the Secretary.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12 months, the quantity of the quota next established
under this subsection shall be the smaller of 21 days
of domestic mill consumption calculated under
subparagraph (A) or the quantity required to increase
the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the
Harmonized Tariff Schedule.
(D) Quota entry period.--When a quota is
established under this subsection, cotton may be
entered under the quota during the 90-day period
beginning on the date the quota is established by the
Secretary.
(3) No overlap.--Notwithstanding paragraph (2), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(a).
(c) Economic Adjustment Assistance to Users of Upland Cotton.--
(1) In general.--Subject to paragraph (2), the Secretary
shall, on a monthly basis, provide economic adjustment
assistance to domestic users of upland cotton in the form of
payments for all documented use of that upland cotton during
the previous monthly period regardless of the origin of the
upland cotton.
(2) Value of assistance.--
(A) Beginning period.--During the period beginning
on August 1, 2008, and ending on June 30, 2013, the
value of the assistance provided under paragraph (1)
shall be 4 cents per pound.
(B) Subsequent period.--Effective beginning on July
1, 2013, the value of the assistance provided under
paragraph (1) shall be 0 cents per pound.
(3) Allowable purposes.--Economic adjustment assistance
under this subsection shall be made available only to domestic
users of upland cotton that certify that the assistance shall
be used only to acquire, construct, install, modernize,
develop, convert, or expand land, plant, buildings, equipment,
facilities, or machinery.
(4) Review or audit.--The Secretary may conduct such review
or audit of the records of a domestic user under this
subsection as the Secretary determines necessary to carry out
this subsection.
(5) Improper use of assistance.--If the Secretary
determines, after a review or audit of the records of the
domestic user, that economic adjustment assistance under this
subsection was not used for the purposes specified in paragraph
(3), the domestic user shall be--
(A) liable to repay the assistance to the
Secretary, plus interest, as determined by the
Secretary; and
(B) ineligible to receive assistance under this
subsection for a period of 1 year following the
determination of the Secretary.
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.
(a) Competitiveness Program.--Notwithstanding any other provision
of law, during the period beginning on the date of the enactment of
this Act through July 31, 2013, the Secretary shall carry out a
program--
(1) to maintain and expand the domestic use of extra long
staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton
produced in the United States; and
(3) to ensure that extra long staple cotton produced in the
United States remains competitive in world markets.
(b) Payments Under Program; Trigger.--Under the program, the
Secretary shall make payments available under this section whenever--
(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is below the prevailing United
States price for a competing growth of extra long staple
cotton; and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is less than 134 percent of the
loan rate for extra long staple cotton.
(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long staple
cotton produced in the United States and exporters of extra long staple
cotton produced in the United States that enter into an agreement with
the Commodity Credit Corporation to participate in the program under
this section.
(d) Payment Amount.--Payments under this section shall be based on
the amount of the difference in the prices referred to in subsection
(b)(1) during the fourth week of the consecutive 4-week period
multiplied by the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such a
consecutive 4-week period.
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS
AND SEED COTTON.
(a) High Moisture Feed Grains.--
(1) Definition of high moisture state.--In this subsection,
the term ``high moisture state'' means corn or grain sorghum
having a moisture content in excess of Commodity Credit
Corporation standards for marketing assistance loans made by
the Secretary under section 1201.
(2) Recourse loans available.--For each of the 2008 through
2012 crops of corn and grain sorghum, the Secretary shall make
available recourse loans, as determined by the Secretary, to
producers on a farm that--
(A) normally harvest all or a portion of their crop
of corn or grain sorghum in a high moisture state;
(B) present--
(i) certified scale tickets from an
inspected, certified commercial scale,
including a licensed warehouse, feedlot, feed
mill, distillery, or other similar entity
approved by the Secretary, pursuant to
regulations issued by the Secretary; or
(ii) field or other physical measurements
of the standing or stored crop in regions of
the United States, as determined by the
Secretary, that do not have certified
commercial scales from which certified scale
tickets may be obtained within reasonable
proximity of harvest operation;
(C) certify that they were the owners of the feed
grain at the time of delivery to, and that the quantity
to be placed under loan under this subsection was in
fact harvested on the farm and delivered to, a feedlot,
feed mill, or commercial or on-farm high-moisture
storage facility, or to a facility maintained by the
users of corn and grain sorghum in a high moisture
state; and
(D) comply with deadlines established by the
Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection
within deadlines established by the Secretary.
(3) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain sorghum
of the same crop acquired by the producer equivalent to a
quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the producer's farm;
by
(B) the lower of the farm program payment yield
used to make counter-cyclical payments under part I or
the actual yield on a field, as determined by the
Secretary, that is similar to the field from which the
corn or grain sorghum was obtained.
(b) Recourse Loans Available for Seed Cotton.--For each of the 2008
through 2012 crops of upland cotton and extra long staple cotton, the
Secretary shall make available recourse seed cotton loans, as
determined by the Secretary, on any production.
(c) Repayment Rates.--Repayment of a recourse loan made under this
section shall be at the loan rate established for the commodity by the
Secretary, plus interest (determined in accordance with section 163 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7283)).
SEC. 1210. ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--Subject to subsections (e) and (f), the
Secretary may make appropriate adjustments in the loan rates for any
loan commodity (other than cotton) for differences in grade, type,
quality, location, and other factors.
(b) Manner of Adjustment.--The adjustments under subsection (a)
shall, to the maximum extent practicable, be made in such a manner that
the average loan level for the commodity will, on the basis of the
anticipated incidence of the factors, be equal to the level of support
determined in accordance with this subtitle and subtitles B through E.
(c) Adjustment on County Basis.--
(1) In general.--The Secretary may establish loan rates for
a crop for producers in individual counties in a manner that
results in the lowest loan rate being 95 percent of the
national average loan rate, if those loan rates do not result
in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection shall
not result in an increase in the national average loan rate for
any year.
(d) Adjustment in Loan Rate for Cotton.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan rate for cotton for differences in
quality factors.
(2) Revisions to quality adjustments for upland cotton.--
(A) In general.--Not later than 180 days after the
enactment of this Act and after consultation with the
private sector in accordance with paragraph (3), the
Secretary shall implement revisions in the
administration of the marketing assistance loan program
for upland cotton to more accurately and efficiently
reflect market values for upland cotton.
(B) Mandatory revisions.--Revisions under
subparagraph (A) shall include--
(i) the elimination of warehouse location
differentials;
(ii) the establishment of differentials for
the various quality factors and staple lengths
of cotton based on a 3-year, weighted moving
average of the weighted designated spot market
regions, as determined by regional production;
(iii) the elimination of any artificial
split in the premium or discount between upland
cotton with a 32 or 33 staple length due to
micronaire; and
(iv) a mechanism to ensure that no premium
or discount is established that exceeds the
premium or discount associated with a leaf
grade that is 1 better than the applicable
color grade.
(C) Discretionary revisions.--Revisions under
subparagraph (A) may include--
(i) the use of non-spot market price data,
in addition to spot market price data, that
would enhance the accuracy of the price
information used in determining quality
adjustments under this subsection;
(ii) adjustments in the premiums or
discounts associated with upland cotton with a
staple length of 33 or above due to micronaire
with the goal of eliminating any unnecessary
artificial splits in the calculations of the
premiums or discounts; and
(iii) such other adjustments as the
Secretary determines appropriate, after
consultations conducted in accordance with
paragraph (3).
(3) Consultation with private sector.--
(A) Prior to revision.--Prior to implementing any
revisions to the administration of the marketing
assistance loan program for upland cotton, the
Secretary shall consult with a private sector committee
that--
(i) is in existence as of the date of
enactment of this Act;
(ii) has a membership that includes
representatives of the production, ginning,
warehousing, cooperative, and merchandising
segments of the United States cotton industry;
and
(iii) has developed recommendations
concerning the revisions.
(B) Review of adjustments.--The Secretary shall
consult with the committee described in subparagraph
(A) when conducting a review of adjustments in the
operation of the loan program for upland cotton in
accordance with paragraph (4).
(C) Inapplicability of federal advisory committee
act.--The Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply to consultations under this
subsection.
(4) Review of adjustments.--The Secretary may review the
operation of the upland cotton quality adjustments implemented
pursuant to this subsection and may make further revisions to
the administration of the loan program for upland cotton, by--
(A) revoking or revising any actions taken under
paragraph (2)(B); or
(B) revoking or revising any actions taken or
authorized to be taken under paragraph (2)(C).
(5) Adjustments in effect prior to revision.--The quality
differences (premiums and discounts for quality factors)
applicable to the loan program for upland cotton (prior to any
revisions in accordance with this subsection) shall be
established by the Secretary by giving equal weight to--
(A) loan differences for the preceding crop; and
(B) market differences for the crop in the
designated United States spot markets.
(e) Corn and Grain Sorghum.--In the case of corn and grain sorghum,
the Secretary--
(1) shall administer the applicable loan, marketing loan,
and related programs using a single loan rate for corn and
grain sorghum that is identical in each individual county;
(2) shall provide that any adjustment in the corn and grain
sorghum loan rate for location shall be determined and applied
on the basis of the combined corn and grain sorghum data set in
a manner that any transportation adjustment shall be the same
for corn and grain sorghum in each individual county; and
(3) may provide for adjustments for grade, type, and
quality, as appropriate, for the corn or grain sorghum involved
in each specific transaction.
(f) Rice.--The Secretary shall not make adjustments in the loan
rates for long grain rice and medium grain rice, except for differences
in grade and quality (including milling yields).
PART III--PEANUTS
SEC. 1301. DEFINITIONS.
In this part:
(1) Base acres for peanuts.--The term ``base acres for
peanuts'' means the number of acres assigned to a farm pursuant
to section 1302 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 7952), as in effect on the day before the
date of enactment of this Act, subject to any adjustment under
section 1302 of this Act.
(2) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1304.
(3) Direct payment.--The term ``direct payment'' means a
direct payment made to producers on a farm under section 1303.
(4) Effective price.--The term ``effective price'' means
the price calculated by the Secretary under section 1304 for
peanuts to determine whether counter-cyclical payments are
required to be made under that section for a crop year.
(5) Payment acres.--The term ``payment acres'' means 85
percent of the base acres for peanuts.
(6) Payment yield.--The term ``payment yield'' means the
yield established for direct payments and counter-cyclical
payments under section 1302 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7952), as in effect on the day
before the date of enactment of this Act, for a farm for
peanuts.
(7) Producer.--
(A) In general.--The term ``producer'' means an
owner, operator, landlord, tenant, or sharecropper that
shares in the risk of producing a crop on a farm and is
entitled to share in the crop available for marketing
from the farm, or would have shared had the crop been
produced.
(B) Hybrid seed.--In determining whether a grower
of hybrid seed is a producer, the Secretary shall--
(i) not take into consideration the
existence of a hybrid seed contract; and
(ii) ensure that program requirements do
not adversely affect the ability of the grower
to receive a payment under this part.
(8) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(9) Target price.--The term ``target price'' means the
price per ton of peanuts used to determine the payment rate for
counter-cyclical payments.
(10) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM.
(a) Adjustment of Base Acreage for Peanuts.--
(1) Treatment of conservation reserve contract acreage.--
The Secretary shall provide for an adjustment, as appropriate,
in the base acres for peanuts for a farm whenever either of the
following circumstances occur:
(A) A conservation reserve contract entered into
under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with respect to the farm expires or is
voluntarily terminated.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary.
(C) The producer has eligible pulse crop or
camelina acreage.
(D) The producer has eligible oilseed acreage as
the result of the Secretary designating additional
oilseeds.
(2) Special conservation reserve acreage payment rules.--
For the crop year in which a base acres for peanuts adjustment
under paragraph (1) is first made, the owner of the farm shall
elect to receive either direct payments and counter-cyclical
payments with respect to the acreage added to the farm under
this subsection or a prorated payment under the conservation
reserve contract, but not both.
(b) Prevention of Excess Base Acres for Peanuts.--
(1) Required reduction.--If the sum of the base acres for
peanuts for a farm, together with the acreage described in
paragraph (2), exceeds the actual cropland acreage of the farm,
the Secretary shall reduce the base acres for peanuts for the
farm or the base acres for 1 or more covered commodities for
the farm so that the sum of the base acres for peanuts and
acreage described in paragraph (2) does not exceed the actual
cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for the farm for a covered
commodity.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve
program under chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
Federal conservation program for which payments are
made in exchange for not producing an agricultural
commodity on the acreage.
(D) Any eligible pulse crop or camelina acreage,
which shall be determined in the same manner as
eligible oilseed acreage under section 1101(a)(2) of
the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional
oilseeds, any eligible oilseed acreage, which shall be
determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for
peanuts or the base acres for covered commodities against which
the reduction required by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the
case of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1101(b) when applying the
requirements of this subsection.
(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may reduce, at
any time, the base acres for peanuts for the farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in a
manner prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall suspend all
direct, counter-cyclical, and average crop revenue
payments on base acres for peanuts for land that is no
longer a farming operation or used in conjunction with
a farming operation, as determined by the Secretary.
(B) Reduction.--The Secretary shall reduce base
acres for peanuts in a manner prescribed by the
Secretary, for land that--
(i) has been developed for commercial or
industrial use unless the producer demonstrates
that the land remains devoted exclusively to
agricultural production; or
(ii) has been subdivided and developed for
multiple residential units or other nonfarming
uses, unless the producer demonstrates that the
land remains devoted exclusively to
agricultural production.
(3) Review and report.--Each year, to ensure, to the
maximum extent practicable, that payments are received only by
producers, the Secretary shall--
(A) track each reconstitution of land that is
reported by a producer that is covered by paragraph
(2);
(B) include in any end-of-the-year review for
purposes of payment limitations or other compliance
inspections or other actions taken by the Secretary, a
review to ensure compliance with paragraph (2); and
(C) submit to Congress a report that describes the
results of the actions taken under subparagraphs (A)
and (B).
SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.
(a) Payment Required.--Except as provided in section 1401, for each
of the 2008 through 2012 crop years for peanuts, the Secretary shall
make direct payments to the producers on a farm to which a payment
yield and base acres for peanuts are established.
(b) Payment Rate.--The payment rate used to make direct payments
with respect to peanuts for a crop year shall be equal to $36 per ton.
(c) Payment Amount.--The amount of the direct payment to be paid to
the producers on a farm for the 2008 through 2012 crops of peanuts
shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(d) Time for Payment.--
(1) In general.--In the case of each of the 2008 through
2012 crop years, the Secretary shall make direct payments under
this section not earlier than October 1 of the calendar year in
which the crop is harvested.
(2) Advance payments.--
(A) Option.--At the option of the producers on a
farm, the Secretary shall pay in advance up to 22
percent of the direct payment for peanuts for any of
the 2008 through 2011 crop years to the producers on a
farm.
(B) Month.--
(i) Selection.--Subject to clauses (ii) and
(iii), the producers on a farm shall select the
month during which the advance payment for a
crop year will be made.
(ii) Options.--The month selected may be
any month during the period--
(I) beginning on December 1 of the
calendar year before the calendar year
in which the crop of peanuts is
harvested; and
(II) ending during the month within
which the direct payment would
otherwise be made.
(iii) Change.--The producers on a farm may
change the selected month for a subsequent
advance payment by providing advance notice to
the Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year ceases
to be a producer on that farm, or the extent to which the
producer shares in the risk of producing a crop changes, before
the date the remainder of the direct payment is made, the
producer shall be responsible for repaying the Secretary the
applicable amount of the advance payment, as determined by the
Secretary.
SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.
(a) Payment Required.--Except as provided in section 1401, for each
of the 2008 through 2012 crop years for peanuts, the Secretary shall
make counter-cyclical payments to producers on farms for which payment
yields and base acres for peanuts are established if the Secretary
determines that the effective price for peanuts is less than the target
price for peanuts.
(b) Effective Price.--For purposes of subsection (a), the effective
price for peanuts is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price for peanuts
received by producers during the 12-month marketing
year for peanuts, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for peanuts in effect for the
applicable period under this part.
(2) The payment rate in effect for peanuts under section
1303 for the purpose of making direct payments.
(c) Target Price.--For purposes of subsection (a), the target price
for peanuts shall be equal to $495 per ton.
(d) Payment Rate.--The payment rate used to make counter-cyclical
payments for a crop year shall be equal to the difference between--
(1) the target price; and
(2) the effective price determined under subsection (b).
(e) Payment Amount.--If counter-cyclical payments are required to
be paid for any of the 2008 through 2012 crops of peanuts, the amount
of the counter-cyclical payment to be paid to the producers on a farm
for that crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(f) Time for Payments.--
(1) General rule.--If the Secretary determines under
subsection (a) that counter-cyclical payments are required to
be made under this section for a crop year, the Secretary shall
make the counter-cyclical payments for the crop year beginning
on October 1 or as soon as practicable after the end of the
marketing year.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the 12-month
marketing year, the Secretary estimates that counter-
cyclical payments will be required under this section
for a crop year, the Secretary shall give producers on
a farm the option to receive partial payments of the
counter-cyclical payment projected to be made for the
crop.
(B) Election.--
(i) In general.--The Secretary shall allow
participants to make an election to receive
partial payments under subparagraph (A) at any
time but not later than 30 days prior to the
end of the marketing year for the crop.
(ii) Date of issuance.--The Secretary shall
issue the partial payment after the date of an
announcement by the Secretary but not later
than 30 days prior to the end of the marketing
year.
(3) Time for partial payments.--When the Secretary makes
partial payments available for any of the 2008 through 2010
crop years--
(A) the first partial payment shall be made after
completion of the first 180 days of the marketing year
for that crop; and
(B) the final partial payment shall be made on
October 1 of the fiscal year starting in the same
calendar year as the end of the marketing year for that
crop.
(4) Amount of partial payments.--
(A) First partial payment.--For each of the 2008
through 2010 crop years, the first partial payment
under paragraph (3) to the producers on a farm may not
exceed 40 percent of the projected counter-cyclical
payment for the crop year, as determined by the
Secretary.
(B) Final payment.--The final payment for a crop
year shall be equal to the difference between--
(i) the actual counter-cyclical payment to
be made to the producers for that crop year;
and
(ii) the amount of the partial payment made
to the producers under subparagraph (A).
(5) Repayment.--The producers on a farm that receive a
partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total
of the partial payments exceed the actual counter-cyclical
payment to be made for that crop year.
SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF
DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive direct payments or counter-cyclical payments under this
part with respect to the farm, the producers shall agree,
during the crop year for which the payments are made and in
exchange for the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 1306;
(D) to use the land on the farm, in a quantity
equal to the attributable base acres for peanuts and
any base acres for the farm under part I, for an
agricultural or conserving use, and not for a
nonagricultural commercial, industrial, or residential
use (including land subdivided and developed into
residential units or other nonfarming uses, or that is
otherwise no longer intended to be used in conjunction
with a farming operation), as determined by the
Secretary; and
(E) to effectively control noxious weeds and
otherwise maintain the land in accordance with sound
agricultural practices, as determined by the Secretary,
if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to
in subparagraph (D).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph
(2), a transfer of (or change in) the interest of the
producers on a farm in the base acres for peanuts for
which direct payments or counter-cyclical payments are
made shall result in the termination of the payments
with respect to those acres, unless the transferee or
owner of the acreage agrees to assume all obligations
under subsection (a).
(B) Effective date.--The termination shall take
effect on the date determined by the Secretary.
(2) Exception.--If a producer entitled to a direct payment
or counter-cyclical payment dies, becomes incompetent, or is
otherwise unable to receive the payment, the Secretary shall
make the payment, in accordance with rules issued by the
Secretary.
(c) Acreage Reports.--
(1) In general.--As a condition on the receipt of any
benefits under this part, the Secretary shall require producers
on a farm to submit to the Secretary annual acreage reports
with respect to all cropland on the farm.
(2) Penalties.--No penalty with respect to benefits under
this part shall be assessed against the producers on a farm for
an inaccurate acreage report unless the producers on the farm
knowingly and willfully falsified the acreage report.
(d) Tenants and Sharecroppers.--In carrying out this part, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for the
sharing of direct payments and counter-cyclical payments among the
producers on a farm on a fair and equitable basis.
SEC. 1306. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on the base acres for peanuts on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres for peanuts unless the commodity, if planted, is
destroyed before harvest.
(2) Treatment of trees and other perennials.--The planting
of an agricultural commodity specified in paragraph (3) that is
produced on a tree or other perennial plant shall be prohibited
on base acres for peanuts.
(3) Covered agricultural commodities.--Paragraphs (1) and
(2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse
crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not
limit the planting of an agricultural commodity specified in paragraph
(3) of that subsection--
(1) in any region in which there is a history of double-
cropping of peanuts with agricultural commodities specified in
subsection (b)(3), as determined by the Secretary, in which
case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on the base acres for peanuts, except that direct
payments and counter-cyclical payments shall be reduced by an
acre for each acre planted to such an agricultural commodity;
or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a specific
agricultural commodity specified in subsection (b)(3), except
that--
(A) the quantity planted may not exceed the average
annual planting history of such agricultural commodity
by the producers on the farm in the 1991 through 1995
or 1998 through 2001 crop years (excluding any crop
year in which no plantings were made), as determined by
the Secretary; and
(B) direct payments and counter-cyclical payments
shall be reduced by an acre for each acre planted to
such agricultural commodity.
SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR
PEANUTS.
(a) Nonrecourse Loans Available.--
(1) Availability.--Except as provided in section 1401, for
each of the 2008 through 2012 crops of peanuts, the Secretary
shall make available to producers on a farm nonrecourse
marketing assistance loans for peanuts produced on the farm.
(2) Terms and conditions.--The loans shall be made under
terms and conditions that are prescribed by the Secretary and
at the loan rate established under subsection (b).
(3) Eligible production.--The producers on a farm shall be
eligible for a marketing assistance loan under this subsection
for any quantity of peanuts produced on the farm.
(4) Treatment of certain commingled commodities.--In
carrying out this subsection, the Secretary shall make loans to
producers on a farm that would be eligible to obtain a
marketing assistance loan, but for the fact the peanuts owned
by the producers on the farm are commingled with other peanuts
in facilities unlicensed for the storage of agricultural
commodities by the Secretary or a State licensing authority, if
the producers obtaining the loan agree to immediately redeem
the loan collateral in accordance with section 166 of the
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7286).
(5) Options for obtaining loan.--A marketing assistance
loan under this subsection, and loan deficiency payments under
subsection (e), may be obtained at the option of the producers
on a farm through--
(A) a designated marketing association or marketing
cooperative of producers that is approved by the
Secretary; or
(B) the Farm Service Agency.
(6) Storage of loan peanuts.--As a condition on the
Secretary's approval of an individual or entity to provide
storage for peanuts for which a marketing assistance loan is
made under this section, the individual or entity shall agree--
(A) to provide such storage on a nondiscriminatory
basis; and
(B) to comply with such additional requirements as
the Secretary considers appropriate to accomplish the
purposes of this section and promote fairness in the
administration of the benefits of this section.
(7) Storage, handling, and associated costs.--
(A) In general.--Beginning with the 2007 crop of
peanuts, to ensure proper storage of peanuts for which
a loan is made under this section or section 1307 of
the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7957), the Secretary shall use the funds of the
Commodity Credit Corporation to pay handling and other
associated costs (other than storage costs) incurred at
the time at which the peanuts are placed under loan, as
determined by the Secretary.
(B) Redemption and forfeiture.--The Secretary
shall--
(i) require the repayment of handling and
other associated costs paid under subparagraph
(A) for all peanuts pledged as collateral for a
loan that is redeemed under this section or
section 1307 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7957); and
(ii) pay storage, handling, and other
associated costs for all peanuts pledged as
collateral that are forfeited under this
section or section 1307 of that Act.
(8) Marketing.--A marketing association or cooperative may
market peanuts for which a loan is made under this section in
any manner that conforms to consumer needs, including the
separation of peanuts by type and quality.
(b) Loan Rate.--The loan rate for a marketing assistance loan for
peanuts under subsection (a) shall be equal to $355 per ton.
(c) Term of Loan.--
(1) In general.--A marketing assistance loan for peanuts
under subsection (a) shall have a term of 9 months beginning on
the first day of the first month after the month in which the
loan is made.
(2) Extensions prohibited.--The Secretary may not extend
the term of a marketing assistance loan for peanuts under
subsection (a).
(d) Repayment Rate.--The Secretary shall permit producers on a farm
to repay a marketing assistance loan for peanuts under subsection (a)
at a rate that is the lesser of--
(1) the loan rate established for peanuts under subsection
(b), plus interest (determined in accordance with section 163
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7283)); or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of peanuts
by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing peanuts; and
(D) allow peanuts produced in the United States to
be marketed freely and competitively, both domestically
and internationally.
(e) Loan Deficiency Payments.--
(1) Availability.--The Secretary may make loan deficiency
payments available to producers on a farm that, although
eligible to obtain a marketing assistance loan for peanuts
under subsection (a), agree to forgo obtaining the loan for the
peanuts in return for loan deficiency payments under this
subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the payment rate determined under paragraph (3)
for peanuts; by
(B) the quantity of the peanuts produced by the
producers, excluding any quantity for which the
producers obtain a marketing assistance loan under
subsection (a).
(3) Payment rate.--For purposes of this subsection, the
payment rate shall be the amount by which--
(A) the loan rate established under subsection (b);
exceeds
(B) the rate at which a loan may be repaid under
subsection (d).
(4) Effective date for payment rate determination.--
(A) In general.--The Secretary shall determine the
amount of the loan deficiency payment to be made under
this subsection to the producers on a farm with respect
to a quantity of peanuts using the payment rate in
effect under paragraph (3) as soon as practicable after
the date on which the producers on the farm lose
beneficial interest.
(B) Applicability.--This paragraph does not apply
for the 2009 through 2012 crop years.
(f) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under
subsection (a), the producer shall comply with applicable conservation
requirements under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection
requirements under subtitle C of title XII of that Act (16 U.S.C. 3821
et seq.) during the term of the loan.
(g) Reimbursable Agreements and Payment of Administrative
Expenses.--The Secretary may implement any reimbursable agreements or
provide for the payment of administrative expenses under this part only
in a manner that is consistent with such activities in regard to other
commodities.
SEC. 1308. ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--The Secretary may make appropriate
adjustments in the loan rates for peanuts for differences in grade,
type, quality, location, and other factors.
(b) Manner of Adjustment.--The adjustments under subsection (a)
shall, to the maximum extent practicable, be made in such a manner that
the average loan level for peanuts will, on the basis of the
anticipated incidence of the factors, be equal to the level of support
determined in accordance with this subtitle and subtitles B through E.
(c) Adjustment on County Basis.--
(1) In general.--The Secretary may establish loan rates for
a crop of peanuts for producers in individual counties in a
manner that results in the lowest loan rate being 95 percent of
the national average loan rate, if those loan rates do not
result in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection shall
not result in an increase in the national average loan rate for
any year.
Subtitle B--Average Crop Revenue Program
SEC. 1401. AVAILABILITY OF AVERAGE CROP REVENUE PAYMENTS.
(a) Availability and Election of Alternative Approach.--
(1) Availability of average crop revenue payments.--As an
alternative to receiving payments or loans under subtitle A
with respect to all covered commodities and peanuts on a farm
(other than loans for graded and nongraded wool, mohair, and
honey), the Secretary shall give the producers on the farm an
opportunity to make a 1-time election to instead receive
average crop revenue payments under this section for--
(A) the 2010, 2011, and 2012 crop years;
(B) the 2011 and 2012 crop years; or
(C) the 2012 crop year.
(2) Election; time for election.--
(A) In general.--The Secretary shall provide notice
to producers regarding the opportunity to make the
election described in paragraph (1).
(B) Notice requirements.--The notice shall
include--
(i) notice of the opportunity of the
producers on a farm to make the election; and
(ii) information regarding the manner in
which the election must be made and the time
periods and manner in which notice of the
election must be submitted to the Secretary.
(3) Election deadline.--Within the time period and in the
manner prescribed pursuant to paragraph (2), the producers on a
farm shall submit to the Secretary notice of the election made
under paragraph (1).
(4) Effect of failure to make election.--If the producers
on a farm fail to make the election under paragraph (1) or fail
to timely notify the Secretary of the election made, as
required by paragraph (3), the producers shall be deemed to
have made the election to receive payments and loans under
subtitle A for all covered commodities and peanuts on the farm
for the applicable crop year.
(b) Payments Required.--
(1) In general.--In the case of producers on a farm who
make the election under subsection (a) to receive average crop
revenue payments, for any of the 2010 through 2012 crop years
for all covered commodities and peanuts, the Secretary shall
make average crop revenue payments available to the producers
on a farm in accordance with this subsection.
(2) Fixed payment component.--Subject to paragraph (3), in
the case of producers on a farm described in paragraph (1), the
Secretary shall make average crop revenue payments available to
the producers on a farm for each crop year in an amount equal
to not less than the product obtained by multiplying--
(A) $15 per acre; and
(B) 100 percent of the quantity of base acres on
the farm for all covered commodities and peanuts (as
adjusted in accordance with the terms and conditions of
section 1101 or 1302, as determined by the Secretary).
(3) Revenue component.--The Secretary shall increase the
amount of the average crop revenue payments available to the
producers on a farm in a State for a crop year if--
(A) the actual State revenue for the crop year for
the covered commodity or peanuts in the State
determined under subsection (c); is less than
(B) the average crop revenue program guarantee for
the crop year for the covered commodity or peanuts in
the State determined under subsection (d).
(4) Time for payments.--In the case of each of the 2010
through 2012 crop years, the Secretary shall make average crop
revenue payments beginning October 1, or as soon as practicable
thereafter, after the end of the applicable marketing year for
the covered commodity or peanuts.
(c) Actual State Revenue.--
(1) In general.--For purposes of subsection (b)(3)(A), the
amount of the actual State revenue for a crop year of a covered
commodity shall equal the product obtained by multiplying--
(A) the actual State yield for each planted acre
for the crop year for the covered commodity or peanuts
determined under paragraph (2); and
(B) the average crop revenue program harvest price
for the crop year for the covered commodity or peanuts
determined under paragraph (3).
(2) Actual state yield.--For purposes of paragraph (1)(A)
and subsection (d)(1)(A), the actual State yield for each
planted acre for a crop year for a covered commodity or peanuts
in a State shall equal (as determined by the Secretary)--
(A) the quantity of the covered commodity or
peanuts that is produced in the State during the crop
year; divided by
(B) the number of acres that are planted to the
covered commodity or peanuts in the State during the
crop year.
(3) Average crop revenue program harvest price.--
(A) In general.--For purposes of paragraph (1)(B),
subject to subparagraph (B), the average crop revenue
program harvest price for a crop year for a covered
commodity or peanuts in a State shall equal the harvest
price that is used to calculate revenue under revenue
coverage plans that are offered for the crop year for
the covered commodity or peanuts in the State under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
(B) Assigned price.--If the Secretary cannot
establish the harvest price for a crop year for a
covered commodity or peanuts in a State in accordance
with subparagraph (A), the Secretary shall assign a
price for the covered commodity or peanuts in the State
on the basis of comparable price data.
(d) Average Crop Revenue Program Guarantee.--
(1) In general.--The average crop revenue program guarantee
for a crop year for a covered commodity or peanuts in a State
shall equal 90 percent of the product obtained by multiplying--
(A) the expected State yield for each planted acre
for the crop year for the covered commodity or peanuts
in a State determined under paragraph (2); and
(B) the average crop revenue program pre-planting
price for the crop year for the covered commodity or
peanuts determined under paragraph (3).
(2) Expected state yield.--
(A) In general.--For purposes of paragraph (1)(A),
subject to subparagraph (B), the expected State yield
for each planted acre for a crop year for a covered
commodity or peanuts in a State shall equal the
projected yield for the crop year for the covered
commodity or peanuts in the State, based on a linear
regression trend of the yield per acre planted to the
covered commodity or peanuts in the State during the
1980 through 2006 period using National Agricultural
Statistics Service data.
(B) Assigned yield.--If the Secretary cannot
establish the expected State yield for each planted
acre for a crop year for a covered commodity or peanuts
in a State in accordance with subparagraph (A) or if
the linear regression trend of the yield per acre
planted to the covered commodity or peanuts in the
State (as determined under subparagraph (A)) is
negative, the Secretary shall assign an expected State
yield for each planted acre for the crop year for the
covered commodity or peanuts in the State on the basis
of expected State yields for planted acres for the crop
year for the covered commodity or peanuts in similar
States.
(3) Average crop revenue program pre-planting price.--
(A) In general.--For purposes of paragraph (1)(B),
subject to subparagraphs (B) and (C), the average crop
revenue program pre-planting price for a crop year for
a covered commodity or peanuts in a State shall equal
the average price that is used to calculate revenue
under revenue coverage plans that are offered for the
covered commodity in the State under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) for the crop year
and the preceding 2 crop years.
(B) Assigned price.--If the Secretary cannot
establish the pre-planting price for a crop year for a
covered commodity or peanuts in a State in accordance
with subparagraph (A), the Secretary shall assign a
price for the covered commodity or peanuts in the State
on the basis of comparable price data.
(C) Minimum and maximum price.--In the case of each
of the 2011 through 2012 crop years, the average crop
revenue program pre-planting price for a crop year for
a covered commodity or peanuts under subparagraph (A)
shall not decrease or increase more than 15 percent
from the pre-planting price for the preceding year.
(e) Payment Amount.--If average crop revenue payments are required
to be paid for any of the 2010 through 2012 crop years of a covered
commodity or peanuts under subsection (b)(3), in addition to the amount
payable under subsection (b)(2), the amount of the average crop revenue
payment to be paid to the producers on the farm for the crop year under
this section shall be increased by an amount equal to the product
obtained by multiplying--
(1) the difference between--
(A) the average crop revenue program guarantee for
the crop year for the covered commodity or peanuts in
the State determined under subsection (d); and
(B) the actual State revenue from the crop year for
the covered commodity or peanuts in the State
determined under subsection (c);
(2) 85 percent of the quantity of base acres on the farm
for the covered commodity or peanuts (as adjusted in accordance
with the terms and conditions of section 1101 or 1302, as
determined by the Secretary);
(3) the quotient obtained by dividing--
(A)(i) the yield used to calculate crop insurance
coverage for the covered commodity or peanuts on the
farm under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.) (commonly referred to as ``actual
production history''); or
(ii) if actual production history for the covered
commodity or peanuts on the farm is not available, a
comparable yield as determined by the Secretary; by
(B) the expected State yield for the crop year, as
determined under subsection (d)(2); and
(4) 90 percent.
(f) Recourse Loans.--For each of the 2010 through 2012 crops of a
covered commodity or peanuts, the Secretary shall make available to
producers on a farm who elect to receive payments under this section
recourse loans, as determined by the Secretary, on any production of
the covered commodity.
SEC. 1402. PRODUCER AGREEMENT AS CONDITION OF AVERAGE CROP REVENUE
PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive average crop revenue payments with respect to the farm,
the producers shall agree, and in the case of subparagraph (C),
the Farm Service Agency shall certify, during the crop year for
which the payments are made and in exchange for the payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.); and
(C) that the individuals or entities receiving
payments are producers;
(D) to use the land on the farm, in a quantity
equal to the attributable base acres for the farm and
any base acres for peanuts for the farm under part III
of subtitle A, for an agricultural or conserving use,
and not for a nonagricultural commercial, industrial,
or residential use (including land subdivided and
developed into residential units or other nonfarming
uses, or that is otherwise no longer intended to be
used in conjunction with a farming operation), as
determined by the Secretary; and
(E) to effectively control noxious weeds and
otherwise maintain the land in accordance with sound
agricultural practices, as determined by the Secretary,
if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to
in subparagraph (D).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph
(2), a transfer of (or change in) the interest of the
producers on a farm for which average crop revenue
payments are made shall result in the termination of
the payments, unless the transferee or owner of the
farm agrees to assume all obligations under subsection
(a).
(B) Effective date.--The termination shall take
effect on the date determined by the Secretary.
(2) Exception.--If a producer entitled to an average crop
revenue payment dies, becomes incompetent, or is otherwise
unable to receive the payment, the Secretary shall make the
payment, in accordance with rules issued by the Secretary.
(c) Acreage Reports.--
(1) In general.--As a condition on the receipt of any
benefits under this subtitle, the Secretary shall require
producers on a farm to submit to the Secretary annual acreage
reports with respect to all cropland on the farm.
(2) Penalties.--No penalty with respect to benefits under
subtitle shall be assessed against the producers on a farm for
an inaccurate acreage report unless the producers on the farm
knowingly and willfully falsified the acreage report.
(d) Tenants and Sharecroppers.--In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for the
sharing of average crop revenue payments among the producers on a farm
on a fair and equitable basis.
(f) Audit and Report.--Each year, to ensure, to the maximum extent
practicable, that payments are received only by producers, the
Secretary shall--
(1) conduct an audit of average crop revenue payments; and
(2) submit to Congress a report that describes the results
of that audit.
SEC. 1403. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on base acres on a farm for which the producers on
a farm elect to receive average crop revenue payments (referred to in
this section as ``base acres'').
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres unless the commodity, if planted, is destroyed
before harvest.
(2) Treatment of trees and other perennials.--The planting
of an agricultural commodity specified in paragraph (3) that is
produced on a tree or other perennial plant shall be prohibited
on base acres.
(3) Covered agricultural commodities.--Paragraphs (1) and
(2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse
crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not
limit the planting of an agricultural commodity specified in paragraph
(3) of that subsection--
(1) in any region in which there is a history of double-
cropping of covered commodities with agricultural commodities
specified in subsection (b)(3), as determined by the Secretary,
in which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on base acres, except that average crop revenue payments
shall be reduced by an acre for each acre planted to such an
agricultural commodity; or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a specific
agricultural commodity specified in subsection (b)(3), except
that--
(A) the quantity planted may not exceed the average
annual planting history of such agricultural commodity
by the producers on the farm in the 1991 through 1995
or 1998 through 2001 crop years (excluding any crop
year in which no plantings were made), as determined by
the Secretary; and
(B) average crop revenue payments shall be reduced
by an acre for each acre planted to such agricultural
commodity.
(d) Planting Transferability Pilot Project.--Producers on a farm
that elect to receive average crop revenue payments shall be eligible
to participate in the pilot program established under section 1106(d)
under the same terms and conditions as producers that receive direct
payments and counter-cyclical payments.
(e) Production of Fruits or Vegetables for Processing.--
(1) In general.--Subject to paragraphs (2) through (4),
effective beginning with the 2010 crop years, producers on a
farm that elect to receive average crop revenue payments, with
the consent of the owner of and any other producers on the
farm, may reduce the base acres for a covered commodity for the
farm if the reduced acres are used for the planting and
production of fruits or vegetables for processing.
(2) Reversion to base acres for covered commodity.--Any
reduced acres on a farm devoted to the planting and production
of fruits or vegetables during a crop year under paragraph (1)
shall be included in base acres for the covered commodity for
the subsequent crop year, unless the producers on the farm make
the election described in paragraph (1) for the subsequent crop
year.
(3) Recalculation of base acres.--
(A) In general.--Subject to subparagraph (B), if
the Secretary recalculates base acres for a farm, the
planting and production of fruits or vegetables for
processing under paragraph (1) shall be considered to
be the same as the planting, prevented planting, or
production of a covered commodity.
(B) Authority.--Nothing in this subsection provides
authority for the Secretary to recalculate base acres
for a farm covered by this subsection other than as
provided in this subsection.
(4) Limitations.--
(A) In general.--This subsection applies in land
located in each of the States of Illinois, Indiana,
Iowa, Michigan, Minnesota, Ohio, and Wisconsin.
(B) Acreage limit.--The total number of base acres
that may be reduced in any State under this subsection
shall not exceed 10,000.
Subtitle C--Sugar
SEC. 1501. SUGAR PROGRAM.
Section 156 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7272) is amended to read as follows:
``SEC. 156. SUGAR PROGRAM.
``(a) Sugarcane.--The Secretary shall make loans available to
processors of domestically grown sugarcane at a rate equal to--
``(1) 18.00 cents per pound for raw cane sugar for the 2008
crop year;
``(2) 18.25 cents per pound for raw cane sugar for the 2009
crop year;
``(3) 18.50 cents per pound for raw cane sugar for the 2010
crop year;
``(4) 18.75 cents per pound for raw cane sugar for the 2011
crop year; and
``(5) 19.00 cents per pound for raw cane sugar for the 2012
crop year.
``(b) Sugar Beets.--The Secretary shall make loans available to
processors of domestically grown sugar beets at a rate per pound for
refined beet sugar that is equal to 128.5 percent of the loan rate per
pound of raw cane sugar for the applicable crop year under subsection
(a).
``(c) Term of Loans.--
``(1) In general.--A loan under this section during any
fiscal year shall be made available not earlier than the
beginning of the fiscal year and shall mature at the earlier
of--
``(A) the end of the 9-month period beginning on
the first day of the first month after the month in
which the loan is made; or
``(B) the end of the fiscal year in which the loan
is made.
``(2) Supplemental loans.--In the case of a loan made under
this section in the last 3 months of a fiscal year, the
processor may repledge the sugar as collateral for a second
loan in the subsequent fiscal year, except that the second loan
shall--
``(A) be made at the loan rate in effect at the
time the first loan was made; and
``(B) mature in 9 months less the quantity of time
that the first loan was in effect.
``(d) Loan Type; Processor Assurances.--
``(1) Nonrecourse loans.--The Secretary shall carry out
this section through the use of nonrecourse loans.
``(2) Processor assurances.--
``(A) In general.--The Secretary shall obtain from
each processor that receives a loan under this section
such assurances as the Secretary considers adequate to
ensure that the processor will provide payments to
producers that are proportional to the value of the
loan received by the processor for the sugar beets and
sugarcane delivered by producers to the processor.
``(B) Minimum payments.--
``(i) In general.--Subject to clause (ii),
the Secretary may establish appropriate minimum
payments for purposes of this paragraph.
``(ii) Limitation.--In the case of sugar
beets, the minimum payment established under
clause (i) shall not exceed the rate of payment
provided for under the applicable contract
between a sugar beet producer and a sugar beet
processor.
``(3) Administration.--The Secretary may not impose or
enforce any prenotification requirement, or similar
administrative requirement not otherwise in effect on May 13,
2002, that has the effect of preventing a processor from
electing to forfeit the loan collateral (of an acceptable grade
and quality) on the maturity of the loan.
``(e) Loans for In-Process Sugar.--
``(1) Definition of in-process sugars and syrups.--In this
subsection, the term `in-process sugars and syrups' does not
include raw sugar, liquid sugar, invert sugar, invert syrup, or
other finished product that is otherwise eligible for a loan
under subsection (a) or (b).
``(2) Availability.--The Secretary shall make nonrecourse
loans available to processors of a crop of domestically grown
sugarcane and sugar beets for in-process sugars and syrups
derived from the crop.
``(3) Loan rate.--The loan rate shall be equal to 80
percent of the loan rate applicable to raw cane sugar or
refined beet sugar, as determined by the Secretary on the basis
of the source material for the in-process sugars and syrups.
``(4) Further processing on forfeiture.--
``(A) In general.--As a condition of the forfeiture
of in-process sugars and syrups serving as collateral
for a loan under paragraph (2), the processor shall,
within such reasonable time period as the Secretary may
prescribe and at no cost to the Commodity Credit
Corporation, convert the in-process sugars and syrups
into raw cane sugar or refined beet sugar of acceptable
grade and quality for sugars eligible for loans under
subsection (a) or (b).
``(B) Transfer to corporation.--Once the in-process
sugars and syrups are fully processed into raw cane
sugar or refined beet sugar, the processor shall
transfer the sugar to the Commodity Credit Corporation.
``(C) Payment to processor.--On transfer of the
sugar, the Secretary shall make a payment to the
processor in an amount equal to the amount obtained by
multiplying--
``(i) the difference between--
``(I) the loan rate for raw cane
sugar or refined beet sugar, as
appropriate; and
``(II) the loan rate the processor
received under paragraph (3); by
``(ii) the quantity of sugar transferred to
the Secretary.
``(5) Loan conversion.--If the processor does not forfeit
the collateral as described in paragraph (4), but instead
further processes the in-process sugars and syrups into raw
cane sugar or refined beet sugar and repays the loan on the in-
process sugars and syrups, the processor may obtain a loan
under subsection (a) or (b) for the raw cane sugar or refined
beet sugar, as appropriate.
``(6) Term of loan.--The term of a loan made under this
subsection for a quantity of in-process sugars and syrups, when
combined with the term of a loan made with respect to the raw
cane sugar or refined beet sugar derived from the in-process
sugars and syrups, may not exceed 9 months, consistent with
subsection (c).
``(f) Feedstock Flexibility Program for Bioenergy Producers.--
``(1) Definitions.--In this subsection:
``(A) Bioenergy.--The term `bioenergy' means fuel
grade ethanol and other biofuel.
``(B) Bioenergy producer.--The term `bioenergy
producer' means a producer of bioenergy that uses an
eligible commodity to produce bioenergy under this
subsection.
``(C) Eligible commodity.--The term `eligible
commodity' means a form of raw or refined sugar or in-
process sugar that is eligible--
``(i) to be marketed in the United States
for human consumption; or
``(ii) to be used for the extraction of
sugar for human consumption.
``(D) Eligible entity.--The term `eligible entity'
means an entity located in the United States that
markets an eligible commodity in the United States.
``(2) Feedstock flexibility program.--
``(A) Purchases and sales.--For each of fiscal
years 2008 through 2012, the Secretary shall purchase
eligible commodities from eligible entities and sell
such commodities to bioenergy producers for the purpose
of producing bioenergy in a manner that ensures that
this section is operated at no cost to the Federal
Government and avoids forfeitures to the Commodity
Credit Corporation.
``(B) Competitive procedures.--In carrying out the
purchases and sales required under subparagraph (A),
the Secretary shall, to the maximum extent practicable,
use competitive procedures, including the receiving,
offering, and accepting of bids, when entering into
contracts with eligible entities and bioenergy
producers, provided that the procedures are consistent
with the purposes of subparagraph (A).
``(C) Limitation.--The purchase and sale of
eligible commodities under subparagraph (A) shall only
be made for a fiscal year for which the purchases and
sales are necessary to ensure that the program under
this section is operated at no cost to the Federal
Government by avoiding forfeitures to the Commodity
Credit Corporation.
``(3) Notice.--
``(A) In general.--As soon as practicable after the
date of enactment of the Food and Energy Security Act
of 2007, and each September 1 thereafter through fiscal
year 2011, the Secretary shall provide notice to
eligible entities and bioenergy producers of the
quantity of eligible commodities that shall be made
available for purchase and sale for the subsequent
fiscal year under this subsection.
``(B) Reestimates.--Not later than the first day of
each of the second through fourth quarters of each of
fiscal years 2008 through 2012, the Secretary shall
reestimate the quantity of eligible commodities
determined under subparagraph (A), and provide notice
and make purchases and sales based on the reestimates.
``(4) Commodity credit corporation inventory.--To the
extent that an eligible commodity is owned and held in
inventory by the Commodity Credit Corporation (accumulated
pursuant to the program under this section), the Secretary
shall sell the eligible commodity to bioenergy producers under
this subsection.
``(5) Transfer rule; storage fees.--
``(A) General transfer rule.--Except as provided in
subparagraph (C), the Secretary shall ensure that
bioenergy producers that purchase eligible commodities
pursuant to this subsection take possession of the
eligible commodities not later than 30 calendar days
after the date of the purchase from the Commodity
Credit Corporation.
``(B) Payment of storage fees prohibited.--
``(i) In general.--The Secretary shall, to
the maximum extent practicable, carry out this
subsection in a manner that ensures no storage
fees are paid by the Commodity Credit
Corporation in the administration of this
subsection.
``(ii) Exception.--Clause (i) shall not
apply with respect to any commodities owned and
held in inventory by the Commodity Credit
Corporation (accumulated pursuant to the
program under this section).
``(C) Option to prevent storage fees.--
``(i) In general.--The Secretary may enter
into contracts with bioenergy producers to sell
eligible commodities to the bioenergy producers
prior in time to entering into contracts with
eligible entities to purchase the eligible
commodities to be used to satisfy the contracts
entered into with the bioenergy producers.
``(ii) Special transfer rule.--If the
Secretary makes a sale and purchase referred to
in clause (i), the Secretary shall ensure that
the bioenergy producer that purchased eligible
commodities takes possession of the eligible
commodities not later than 30 calendar days
after the date on which the Commodity Credit
Corporation purchases the eligible commodities.
``(6) Relation to other laws.--If sugar that is subject to
a marketing allotment under part VII of subtitle B of title III
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et
seq.) is the subject of a purchase by the Secretary under
paragraph (2), the sugar shall be considered marketed and shall
count against the allocation of a processor of an allotment
under that part, as applicable.
``(7) Funding.--The Secretary shall use the funds,
facilities, and authorities of the Commodity Credit
Corporation, including the use of such sums as are necessary,
to carry out this subsection.
``(g) Avoiding Forfeitures; Corporation Inventory Disposition.--
``(1) In general.--Subject to subsection (d)(3), to the
maximum extent practicable, the Secretary shall operate the
program established under this section at no cost to the
Federal Government by avoiding the forfeiture of sugar to the
Commodity Credit Corporation.
``(2) Inventory disposition.--
``(A) In general.--To carry out paragraph (1), the
Commodity Credit Corporation may accept bids to obtain
raw cane sugar or refined beet sugar in the inventory
of the Commodity Credit Corporation from (or otherwise
make available such commodities, on appropriate terms
and conditions, to) processors of sugarcane and
processors of sugar beets (acting in conjunction with
the producers of the sugarcane or sugar beets processed
by the processors) in return for the reduction of
production of raw cane sugar or refined beet sugar, as
appropriate.
``(B) Bioenergy feedstock.--Sugar beets or
sugarcane planted on acreage diverted from production
to achieve any reduction required under subparagraph
(A) may not be used for any commercial purpose other
than as a bioenergy feedstock.
``(C) Additional authority.--The authority provided
under this paragraph is in addition to any authority of
the Commodity Credit Corporation under any other law.
``(h) Information Reporting.--
``(1) Duty of processors and refiners to report.--A
sugarcane processor, cane sugar refiner, and sugar beet
processor shall furnish the Secretary, on a monthly basis, such
information as the Secretary may require to administer sugar
programs, including the quantity of purchases of sugarcane,
sugar beets, and sugar, and production, importation,
distribution, and stock levels of sugar.
``(2) Duty of producers to report.--
``(A) Proportionate share states.--As a condition
of a loan made to a processor for the benefit of a
producer, the Secretary shall require each producer of
sugarcane located in a State (other than the
Commonwealth of Puerto Rico) in which there are in
excess of 250 producers of sugarcane to report, in the
manner prescribed by the Secretary, the sugarcane
yields and acres planted to sugarcane of the producer.
``(B) Other states.--The Secretary may require each
producer of sugarcane or sugar beets not covered by
subparagraph (A) to report, in a manner prescribed by
the Secretary, the yields of, and acres planted to,
sugarcane or sugar beets, respectively, of the
producer.
``(3) Duty of importers to report.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall require an
importer of sugars, syrups, or molasses to be used for
human consumption or to be used for the extraction of
sugar for human consumption to report, in the manner
prescribed by the Secretary, the quantities of the
products imported by the importer and the sugar content
or equivalent of the products.
``(B) Tariff-rate quotas.--Subparagraph (A) shall
not apply to sugars, syrups, or molasses that are
within the quantities of tariff-rate quotas that are
subject to the lower rate of duties.
``(4) Information on mexico.--
``(A) Collection.--The Secretary shall collect--
``(i) information of the production,
consumption, stocks, and trade of sugar in
Mexico, including United States exports of
sugar to Mexico; and
``(ii) publicly-available information on
Mexican production, consumption, and trade of
high fructose corn syrups.
``(B) Publication.--The data collected under
subparagraph (A) shall be published in each edition of
the World Agricultural Supply and Demand Estimates.
``(5) Penalty.--Any person willfully failing or refusing to
furnish the information required under paragraph (1), (2), or
(3), or furnishing willfully any false information, shall be
subject to a civil penalty of not more than $10,000 for each
such violation.
``(6) Monthly reports.--Taking into consideration the
information received under this subsection, the Secretary shall
publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar.
``(i) Substitution of Refined Sugar.--For purposes of Additional
U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the
United States and the reexport programs and polyhydric alcohol program
administered by the Secretary, all refined sugars (whether derived from
sugar beets or sugarcane) produced by cane sugar refineries and beet
sugar processors shall be fully substitutable for the export of sugar
and sugar-containing products under those programs.
``(j) Effective Period.--
``(1) In general.--This section shall be effective only for
the 2008 through 2012 crops of sugar beets and sugarcane.
``(2) Transition.--The Secretary shall make loans for raw
cane sugar and refined beet sugar available for the 2007 crop
year on the terms and conditions provided in this section as in
effect on the day before the date of enactment of the Food and
Energy Security Act of 2007.''.
SEC. 1502. STORAGE FACILITY LOANS.
Section 1402(c) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7971(c)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3);
(3) by inserting after paragraph (1) the following:
``(2) not include any penalty for prepayment''; and
(4) in paragraph (3) (as redesignated by paragraph (2)), by
inserting ``other'' after ``on such''.
SEC. 1503. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.
Subtitle E of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7281 et seq.) is amended by adding at the end the
following:
``SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.
``(a) Initial Crop Years.--Notwithstanding any other provision of
law, for each of the 2008 through 2011 crop years, the Commodity Credit
Corporation shall establish rates for the storage of forfeited sugar in
an amount that is not less than--
``(1) in the case of refined sugar, 15 cents per
hundredweight of refined sugar per month; and
``(2) in the case of raw cane sugar, 10 cents per
hundredweight of raw cane sugar per month.
``(b) Subsequent Crop Years.--For each of the 2012 and subsequent
crop years, the Commodity Credit Corporation shall establish rates for
the storage of forfeited sugar in the same manner as was used on the
day before the date of enactment of this section.''.
SEC. 1504. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
(a) Definitions.--Section 359a of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359aa) is amended--
(1) by redesignating paragraphs (1), (2), (3), and (4) as
paragraphs (2), (4), (5), and (6), respectively;
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Human consumption.--The term `human consumption',
when used in the context of a reference to sugar (whether in
the form of sugar, in-process sugar, syrup, molasses, or in
some other form) for human consumption, includes sugar for use
in human food, beverages, or similar products.''; and
(3) by inserting after paragraph (2) (as so redesignated)
the following:
``(3) Market.--
``(A) In general.--The term `market' means to sell
or otherwise dispose of in commerce in the United
States.
``(B) Inclusions.--The term `market' includes--
``(i) the forfeiture of sugar under the
loan program for sugar established under
section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C.
7272);
``(ii) with respect to any integrated
processor and refiner, the movement of raw cane
sugar into the refining process; and
``(iii) the sale of sugar for the
production of ethanol or other bioenergy
product, if the disposition of the sugar is
administered by the Secretary under section
156(f) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7272(f)).
``(C) Marketing year.--Forfeited sugar described in
subparagraph (B)(i) shall be considered to have been
marketed during the crop year for which a loan is made
under the loan program described in that
subparagraph.''.
(b) Flexible Marketing Allotments for Sugar.--Section 359b of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended to
read as follows:
``SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
``(a) Sugar Estimates.--
``(1) In general.--Not later than August 1 before the
beginning of each of the 2008 through 2012 crop years for
sugarcane and sugar beets, the Secretary shall estimate--
``(A) the quantity of sugar that will be subject to
human consumption in the United States during the crop
year;
``(B) the quantity of sugar that would provide for
reasonable carryover stocks;
``(C) the quantity of sugar that will be available
from carry-in stocks for human consumption in the
United States during the crop year;
``(D) the quantity of sugar that will be available
from the domestic processing of sugarcane, sugar beets,
and in-process beet sugar; and
``(E) the quantity of sugars, syrups, and molasses
that will be imported for human consumption or to be
used for the extraction of sugar for human consumption
in the United States during the crop year, whether the
articles are under a tariff-rate quota or are in excess
or outside of a tariff-rate quota.
``(2) Exclusion.--The estimates under this subsection shall
not apply to sugar imported for the production of polyhydric
alcohol or to any sugar refined and reexported in refined form
or in products containing sugar.
``(3) Reestimates.--The Secretary shall make reestimates of
sugar consumption, stocks, production, and imports for a crop
year as necessary, but not later than the beginning of each of
the second through fourth quarters of the crop year.
``(b) Sugar Allotments.--
``(1) Establishment.--By the beginning of each crop year,
the Secretary shall establish for that crop year appropriate
allotments under section 359c for the marketing by processors
of sugar processed from sugar cane or sugar beets or in-process
beet sugar (whether the sugar beets or in-process beet sugar
was produced domestically or imported) at a level that is--
``(A) sufficient to maintain raw and refined sugar
prices above forfeiture levels so that there will be no
forfeitures of sugar to the Commodity Credit
Corporation under the loan program for sugar
established under section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272); but
``(B) not less than 85 percent of the estimated
quantity of sugar for domestic human consumption for
the crop year.
``(2) Products.--The Secretary may include sugar products,
the majority content of which is sucrose for human consumption,
derived from sugar cane, sugar beets, molasses, or sugar in the
allotments established under paragraph (1) if the Secretary
determines it to be appropriate for purposes of this part.
``(c) Coverage of Allotments.--
``(1) In general.--The marketing allotments under this part
shall apply to the marketing by processors of sugar intended
for domestic human consumption that has been processed from
sugar cane, sugar beets, or in-process beet sugar, whether such
sugar beets or in-process beet sugar was produced domestically
or imported.
``(2) Exceptions.--Consistent with the administration of
marketing allotments during for each of the 2002 through 2007
crop years, the marketing allotments shall not apply to sugar
sold--
``(A) to facilitate the exportation of the sugar to
a foreign country, except that the exports of sugar
shall not be eligible to receive credits under reexport
programs for refined sugar or sugar containing products
administered by the Secretary;
``(B) to enable another processor to fulfill an
allocation established for that processor; or
``(C) for uses other than domestic human
consumption, except for the sale of sugar for the
production of ethanol or other bioenergy if the
disposition of the sugar is administered by the
Secretary under section 156(f) of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272(f)).
``(3) Requirement.--The sale of sugar described in
paragraph (2)(B) shall be--
``(A) made prior to May 1; and
``(B) reported to the Secretary.
``(d) Prohibitions.--
``(1) In general.--During all or part of any crop year for
which marketing allotments have been established, no processor
of sugar beets or sugarcane shall market for domestic human
consumption a quantity of sugar in excess of the allocation
established for the processor, except--
``(A) to enable another processor to fulfill an
allocation established for that other processor; or
``(B) to facilitate the exportation of the sugar.
``(2) Civil penalty.--Any processor who knowingly violates
paragraph (1) shall be liable to the Commodity Credit
Corporation for a civil penalty in an amount equal to 3 times
the United States market value, at the time of the commission
of the violation, of that quantity of sugar involved in the
violation.''.
(c) Establishment of Flexible Marketing Allotments.--Section 359c
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc) is
amended--
(1) by striking subsection (b) and inserting the following:
``(b) Overall Allotment Quantity.--
``(1) In general.--The Secretary shall establish the
overall quantity of sugar to be allotted for the crop year
(referred to in this part as the `overall allotment quantity')
at a level that is--
``(A) sufficient to maintain raw and refined sugar
prices above forfeiture levels to avoid forfeiture of
sugar to the Commodity Credit Corporation; but
``(B) not less than a quantity equal to 85 percent
of the estimated quantity of sugar for domestic human
consumption for the crop year.
``(2) Adjustment.--Subject to paragraph (1), the Secretary
shall adjust the overall allotment quantity to maintain--
``(A) raw and refined sugar prices above forfeiture
levels to avoid the forfeiture of sugar to the
Commodity Credit Corporation; and
``(B) adequate supplies of raw and refined sugar in
the domestic market.'';
(2) in subsection (d)(2), by inserting ``or in-process beet
sugar'' before the period at the end;
(3) in subsection (g)(1)--
(A) by striking ``(1) in general. The Secretary''
and inserting the following:
``(1) Adjustments.--
``(A) In general.--Subject to subparagraph (B), the
Secretary''; and
(B) by adding at the end the following:
``(B) Limitation.--In carrying out subparagraph
(A), the Secretary may not reduce the overall allotment
quantity to a quantity of less than 85 percent of the
estimated quantity of sugar for domestic human
consumption for the crop year.''; and
(4) by striking subsection (h).
(d) Allocation of Marketing Allotments.--Section 359d(b) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) is amended--
(1) in paragraph (1)(F), by striking ``Except as otherwise
provided in section 359f(c)(8), if'' and inserting ``If''; and
(2) in paragraph (2), by striking subparagraphs (H) and (I)
and inserting the following:
``(H) New entrants starting production or reopening
factories.--
``(i) Definition of new entrant.--
``(I) In general.--In this
subparagraph, the term `new entrant'
means an individual, corporation, or
other entity that--
``(aa) does not have an
allocation of the beet sugar
allotment under this part;
``(bb) is not affiliated
with any other individual,
corporation, or entity that has
an allocation of beet sugar
under this part (referred to in
this clause as a `third
party'); and
``(cc) will process sugar
beets produced by sugar beet
growers under contract with the
new entrant for the production
of sugar at the new or re-
opened factory that is the
basis for the new entrant
allocation.
``(II) Affiliation.--For purposes
of subclause (I)(bb), a new entrant and
a third party shall be considered to be
affiliated if--
``(aa) the third party has
an ownership interest in the
new entrant;
``(bb) the new entrant and
the third party have owners in
common;
``(cc) the third party has
the ability to exercise control
over the new entrant by
organizational rights,
contractual rights, or any
other means;
``(dd) the third party has
a contractual relationship with
the new entrant by which the
new entrant will make use of
the facilities or assets of the
third party; or
``(ee) there are any other
similar circumstances by which
the Secretary determines that
the new entrant and the third
party are affiliated.
``(ii) Allocation for a new entrant that
has constructed a new factory or reopened a
factory that was not operated since before
1998.--If a new entrant constructs a new sugar
beet processing factory, or acquires and
reopens a sugar beet processing factory that
last processed sugar beets prior to the 1998
crop year and there is no allocation currently
associated with the factory, the Secretary
shall--
``(I) assign an allocation for beet
sugar to the new entrant that provides
a fair and equitable distribution of
the allocations for beet sugar so as to
enable the new entrant to achieve a
factory utilization rate comparable to
the factory utilization rates of other
similarly-situated processors; and
``(II) reduce the allocations for
beet sugar of all other processors on a
pro rata basis to reflect the
allocation to the new entrant.
``(iii) Allocation for a new entrant that
has acquired an existing factory with a
production history.--
``(I) In general.--If a new entrant
acquires an existing factory that has
processed sugar beets from the 1998 or
subsequent crop year and has a
production history, on the mutual
agreement of the new entrant and the
company currently holding the
allocation associated with the factory,
the Secretary shall transfer to the new
entrant a portion of the allocation of
the current allocation holder to
reflect the historical contribution of
the production of the acquired factory
to the total allocation of the current
allocation holder.
``(II) Prohibition.--In the absence
of a mutual agreement described in
subclause (I), the new entrant shall be
ineligible for a beet sugar allocation.
``(iv) Appeals.--Any decision made under
this subsection may be appealed to the
Secretary in accordance with section 359i.''.
(e) Reassignment of Deficits.--Section 359e(b) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended in paragraphs
(1)(D) and (2)(C), by inserting ``of raw cane sugar'' after ``imports''
each place it appears.
(f) Provisions Applicable to Producers.--Section 359f(c) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is amended--
(1) by striking paragraph (8);
(2) by redesignating paragraphs (1) through (7) as
paragraphs (2) through (8), respectively;
(3) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Definition of seed.--
``(A) In general.--In this subsection, the term
`seed' means only those varieties of seed that are
dedicated to the production of sugarcane from which is
produced sugar for human consumption.
``(B) Exclusion.--The term `seed' does not include
seed of a high-fiber cane variety dedicated to other
uses, as determined by the Secretary'';
(4) in paragraph (3) (as so redesignated)--
(A) in the first sentence--
(i) by striking ``paragraph (1)'' and
inserting ``paragraph (2)''; and
(ii) by inserting ``sugar produced from''
after ``quantity of''; and
(B) in the second sentence, by striking ``paragraph
(7)'' and inserting ``paragraph (8)'';
(5) in the first sentence of paragraph (6)(C) (as so
redesignated), by inserting ``for sugar'' before ``in excess of
the farm's proportionate share''; and
(6) in paragraph (8) (as so redesignated), by inserting
``sugar from'' after ``the amount of''.
(g) Special Rules.--Section 359g of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359gg) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Transfer of Acreage Base History.--
``(1) In general.--For the purpose of establishing
proportionate shares for sugarcane farms under section 359f(c),
the Secretary, on application of any producer, with the written
consent of all owners of a farm, may transfer the acreage base
history of the farm to any other parcels of land of the
applicant.
``(2) Converted acreage base.--
``(A) In general.--Sugarcane base acreage
established under section 359f(c) that has been or is
converted to nonagricultural use on or after May 13,
2002, may be transferred to other land suitable for the
production of sugarcane that can be delivered to a
processor in a proportionate share State in accordance
with this paragraph.
``(B) Notification.--Not later than 90 days after
the date of the enactment of this paragraph, or on the
subsequent conversion of any sugarcane base acreage to
a nonagricultural use, the Administrator of the Farm
Service Agency shall notify the 1 or more affected
landowners of the transferability of the applicable
sugarcane acreage base.
``(C) Initial transfer period.--Not later than the
end of the 90-day period beginning on the date of
receipt of the notification under subparagraph (B), the
owner of the base attributable to the acreage at the
time of the conversion may transfer the base to 1 or
more farms owned by the owner.
``(D) Grower of record.--If a transfer under
subparagraph (C) cannot be accomplished during the
period specified in that subparagraph, the grower of
record with regard to the acreage base on the date on
which the acreage was converted to nonagricultural use
shall--
``(i) be notified; and
``(ii) have 90 days from the date of the
receipt of the notification to transfer the
base to 1 or more farms operated by the grower.
``(E) Pool distribution.--
``(i) In general.--If transfers under
subparagraphs (B) and (C) cannot be
accomplished during the periods specified in
those subparagraphs, the county committee of
the Farm Service Agency for the applicable
county shall place the acreage base in a pool
for possible assignment to other farms.
``(ii) Acceptance of requests.--After
providing reasonable notice to farm owners,
operators, and growers of record in the county,
the county committee shall accept requests from
owners, operators, and growers of record in the
county.
``(iii) Assignment.--The county committee
shall assign the acreage base to other farms in
the county that are eligible and capable of
accepting the acreage base, based on a random
drawing from among the requests received under
clause (ii).
``(F) Statewide reallocation.--
``(i) In general.--Any acreage base
remaining unassigned after the transfers and
processes described in subparagraphs (A)
through (E) shall be made available to the
State committee of the Farm Service Agency for
allocation among the remaining county
committees in the State representing counties
with farms eligible for assignment of the base,
based on a random drawing.
``(ii) Allocation.--Any county committee
receiving acreage base under this subparagraph
shall allocate the acreage base to eligible
farms using the process described in
subparagraph (E).
``(G) Status of reassigned base.--After acreage
base has been reassigned in accordance with this
subparagraph, the acreage base shall--
``(i) remain on the farm; and
``(ii) be subject to the transfer
provisions of paragraph (1).''; and
(2) in subsection (d)--
(A) in paragraph (1)--
(i) by inserting ``affected'' before
``crop-share owners'' each place it appears;
and
(ii) by striking ``, and from the
processing company holding the applicable
allocation for such shares,''; and
(B) in paragraph (2), by striking ``based on'' and
all that follows through the end of subparagraph (B)
and inserting ``based on--
``(A) the number of acres of sugarcane base being
transferred; and
``(B) the pro rata amount of allocation at the
processing company holding the applicable allocation
that equals the contribution of the grower to
allocation of the processing company for the sugarcane
acreage base being transferred.''.
(h) Appeals.--Section 359i of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359ii) is amended--
(1) in subsection (a), by inserting ``or 359g(d)'' after
``359f''; and
(2) by striking subsection (c).
(i) Reallocating Sugar Quota Import Shortfalls.--Section 359k of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is repealed.
(j) Administration of Tariff Rate Quotas.--Part VII of subtitle B
of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359aa) (as amended by subsection (i)) is amended by adding at the end
the following:
``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.
``(a) Establishment.--
``(1) In general.--Except as provided in paragraph (2) and
notwithstanding any other provision of law, at the beginning of
the quota year, the Secretary shall establish the tariff-rate
quotas for raw cane sugar and refined sugars at the minimum
level necessary to comply with obligations under international
trade agreements that have been approved by Congress.
``(2) Exception.--Paragraph (1) shall not apply to
specialty sugar.
``(b) Adjustment.--
``(1) Before april 1.--Before April 1 of each fiscal year,
if there is an emergency shortage of sugar in the United States
market that is caused by a war, flood, hurricane, or other
natural disaster, or other similar event as determined by the
Secretary--
``(A) the Secretary shall take action to increase
the supply of sugar in accordance with sections
359c(b)(2) and 359e(b), including an increase in the
tariff-rate quota for raw cane sugar to accommodate the
reassignment to imports; and
``(B) if there is still a shortage of sugar in the
United States market, and marketing of domestic sugar
has been maximized, the Secretary may increase the
tariff-rate quota for refined sugars sufficient to
accommodate the supply increase, if the further
increase will not threaten to result in the forfeiture
of sugar pledged as collateral for a loan under section
156 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7272).
``(2) On or after april 1.--On or after April 1 of each
fiscal year--
``(A) the Secretary may take action to increase the
supply of sugar in accordance with sections 359c(b)(2)
and 359e(b), including an increase in the tariff-rate
quota for raw cane sugar to accommodate the
reassignment to imports; and
``(B) if there is still a shortage of sugar in the
United States market, and marketing of domestic sugar
has been maximized, the Secretary may increase the
tariff-rate quota for raw cane sugar if the further
increase will not threaten to result in the forfeiture
of sugar pledged as collateral for a loan under section
156 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7272).''.
(k) Period of Effectiveness.--Part VII of subtitle B of title III
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) (as
amended by subsection (j)) is amended by adding at the end the
following:
``SEC. 359L. PERIOD OF EFFECTIVENESS.
``(a) In General.--This part shall be effective only for the 2008
through 2012 crop years for sugar.
``(b) Transition.--The Secretary shall administer flexible
marketing allotments for sugar for the 2007 crop year for sugar on the
terms and conditions provided in this part as in effect on the day
before the date of enactment of this section.''.
(l) United States Membership in the International Sugar
Organization.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall work with the Secretary of State to
restore, to the maximum extent practicable, United States membership in
the International Sugar Organization.
SEC. 1505. SENSE OF THE SENATE REGARDING NAFTA SUGAR COORDINATION.
It is the sense of the Senate that in order to further strengthen
the operations of the North American Free Trade Agreement--
(1) the United States Government and the Government of
Mexico should coordinate the operation of their respective
sugar policies, to the fullest extent consistent with the
international obligations of the United States; and
(2) the United States Government should consult with the
Government of Mexico on policies to avoid disruptions of the
United States and Mexican sweetener markets in order to
maximize the benefits of sugar policies for growers,
processors, and consumers of sugar in the United States and
Mexico, while supporting the interests of corn growers, corn
refiners, and sweetener users in both markets.
Subtitle D--Dairy
SEC. 1601. DAIRY PRODUCT PRICE SUPPORT PROGRAM.
(a) Support Activities.--During the period beginning on January 1,
2008, and ending on December 31, 2012, the Secretary shall support the
price of cheddar cheese, butter, and nonfat dry milk through the
purchase of such products made from milk produced in the United States.
(b) Purchase Price.--To carry out subsection (a), the Secretary
shall purchase cheddar cheese, butter, and nonfat dry milk at prices
that are equivalent to--
(1) in the case of cheddar cheese--
(A) in blocks, not less than $1.13 per pound;
(B) in barrels, not less than $1.10 per pound;
(2) in the case of butter, not less than $1.05 per pound;
and
(3) in the case of nonfat dry milk, not less than $0.80 per
pound.
(c) Uniform Purchase Price.--The prices that the Secretary pays for
cheese, butter, or nonfat dry milk under this section shall be uniform
for all regions of the United States.
(d) Sales From Inventories.--
(1) In general.--Except as provided in paragraph (2), in
the case of each commodity specified in subsection (b) that is
available for unrestricted use in inventories of the Commodity
Credit Corporation, the Secretary may sell the commodity at the
market prices prevailing for that commodity at the time of
sale.
(2) Minimum amount.--The sale price described in paragraph
(1) may not be less than 110 percent of the minimum purchase
price specified in subsection (b) for that commodity.
SEC. 1602. NATIONAL DAIRY MARKET LOSS PAYMENTS.
(a) Definitions.--In this section:
(1) Class i milk.--The term ``Class I milk'' means milk
(including milk components) classified as Class I milk under a
Federal milk marketing order.
(2) Eligible production.--The term ``eligible production''
means milk produced by a producer in a participating State.
(3) Federal milk marketing order.--The term ``Federal milk
marketing order'' means an order issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937.
(4) Participating state.--The term ``participating State''
means each State.
(5) Producer.--The term ``producer'' means an individual or
entity that directly or indirectly (as determined by the
Secretary)--
(A) shares in the risk of producing milk; and
(B) makes contributions (including land, labor,
management, equipment, or capital) to the dairy farming
operation of the individual or entity that are at least
commensurate with the share of the individual or entity
of the proceeds of the operation.
(b) Payments.--The Secretary shall offer to enter into contracts
with producers on a dairy farm located in a participating State under
which the producers receive payments on eligible production.
(c) Amount.--Payments to a producer under this section shall be
calculated by multiplying (as determined by the Secretary)--
(1) the payment quantity for the producer during the
applicable month established under subsection (d);
(2) the amount equal to--
(A) $16.94 per hundredweight; less
(B) the Class I milk price per hundredweight in
Boston under the applicable Federal milk marketing
order; by
(3)(A) for the period beginning October 1, 2007, and ending
September 30, 2008, 34 percent;
(B) for the period beginning October 1, 2008, and ending
August 31, 2012, 45 percent; and
(C) for the period beginning September 1, 2012, and
thereafter, 34 percent.
(d) Payment Quantity.--
(1) In general.--Subject to paragraph (2), the payment
quantity for a producer during the applicable month under this
section shall be equal to the quantity of eligible production
marketed by the producer during the month.
(2) Limitation.--
(A) In general.--The payment quantity for all
producers on a single dairy operation for which the
producers receive payments under subsection (b) shall
not exceed--
(i) for the period beginning October 1,
2007, and ending September 30, 2008, 2,400,000
pounds;
(ii) for the period beginning October 1,
2008, and ending August 31, 2012, 4,150,000
pounds; and
(iii) effective beginning September 1,
2012, 2,400,000 pounds.
(B) Standards.--For purposes of determining whether
producers are producers on separate dairy operations or
a single dairy operation, the Secretary shall apply the
same standards as were applied in implementing the
dairy program under section 805 of the Agriculture,
Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2001 (as enacted
into law by Public Law 106-387; 114 Stat. 1549A-50).
(3) Reconstitution.--The Secretary shall ensure that a
producer does not reconstitute a dairy operation for the sole
purpose of receiving additional payments under this section.
(e) Payments.--A payment under a contract under this section shall
be made on a monthly basis not later than 60 days after the last day of
the month for which the payment is made.
(f) Signup.--The Secretary shall offer to enter into contracts
under this section during the period beginning on the date that is 90
days after the date of enactment of this Act and ending on September
30, 2012.
(g) Duration of Contract.--
(1) In general.--Except as provided in paragraph (2), any
contract entered into by producers on a dairy farm under this
section shall cover eligible production marketed by the
producers on the dairy farm during the period starting with the
first day of month the producers on the dairy farm enter into
the contract and ending on September 30, 2012.
(2) Violations.--If a producer violates the contract, the
Secretary may--
(A) terminate the contract and allow the producer
to retain any payments received under the contract; or
(B) allow the contract to remain in effect and
require the producer to repay a portion of the payments
received under the contract based on the severity of
the violation.
SEC. 1603. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.
(a) Dairy Export Incentive Program.--Section 153(a) of the Food
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking
``2007'' and inserting ``2012''.
(b) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7
U.S.C. 450l) is amended by striking ``2007'' and inserting ``2012''.
SEC. 1604. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.
Section 113(e)(2) of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4504(e)(2)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 1605. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES.
Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural Marketing Agreement Act
of 1937, is amended by striking subsection (17) and inserting the
following:
``(17) Provisions applicable to amendments.--
``(A) Applicability to amendments.--The provisions
of this section and section 8d applicable to orders
shall be applicable to amendments to orders.
``(B) Supplemental rules of practice.--
``(i) In general.--Not later than 60 days
after the date of enactment of this
subparagraph, the Secretary shall issue, using
informal rulemaking, supplemental rules of
practice to define guidelines and timeframes
for the rulemaking process relating to
amendments to orders.
``(ii) Issues.--At a minimum, the
supplemental rules of practice shall
establish--
``(I) proposal submission
requirements;
``(II) pre-hearing information
session specifications;
``(III) written testimony and data
request requirements;
``(IV) public participation
timeframes; and
``(V) electronic document
submission standards.
``(iii) Effective date.--The supplemental
rules of practice shall take effect not later
than 120 days after the date of enactment of
this subparagraph, as determined by the
Secretary.
``(C) Hearing timeframes.--
``(i) In general.--Not more than 30 days
after the receipt of a proposal for an
amendment hearing regarding a milk marketing
order, the Secretary shall--
``(I) issue a notice providing an
action plan and expected timeframes for
completion of the hearing not more than
180 days after the date of the issuance
of the notice;
``(II)(aa) issue a request for
additional information to be used by
the Secretary in making a determination
regarding the proposal; and
``(bb) if the additional
information is not provided to the
Secretary within the timeframe
requested by the Secretary, issue a
denial of the request; or
``(III) issue a denial of the
request.
``(ii) Notice.--A notice issued under
clause (i)(I) shall be individualized for each
proceeding and take into consideration--
``(I) the number of orders
affected;
``(II) the complexity of issues
involved; and
``(III) the extent of the analyses
required by applicable Executive orders
(including Executive orders relating to
civil rights, regulatory flexibility,
and economic impact).
``(iii) Recommended decisions.--A
recommended decision on a proposed amendment to
an order shall be issued not later than 90 days
after the deadline established after the
hearing for the submission of post-hearing
briefs, unless otherwise provided in the
initial notice issued under clause (i)(I).
``(iv) Final decisions.--A final decision
on a proposed amendment to an order shall be
issued not later than 60 days after the
deadline for submission of comments and
exceptions to the recommended decision issued
under clause (ii), unless otherwise provided in
the initial notice issued under clause (i)(I).
``(D) Industry assessments.--If the Secretary
determines it is necessary to improve or expedite
rulemaking under this subsection, the Secretary may
impose an assessment on the affected industry to
supplement appropriated funds for the procurement of
service providers, such as court reporters.
``(E) Use of informal rulemaking.--The Secretary
may use rulemaking under section 553 of title 5, United
States Code, to amend orders, other than provisions of
orders that directly affecting milk prices.
``(F) Monthly feed and fuel costs for make
allowances.--As part of any hearing to adjust make
allowances under marketing orders, the Secretary
shall--
``(i) determine the average monthly prices
of feed and fuel incurred by dairy producers in
the relevant marketing area;
``(ii) consider the most recent monthly
feed and fuel price data available; and
``(iii) consider those prices in
determining whether or not to adjust make
allowances.''.
SEC. 1606. DAIRY FORWARD PRICING PROGRAM.
(a) In General.--Section 23 of the Agricultural Adjustment Act (7
U.S.C. 627), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, is amended--
(1) in the section heading, by striking ``pilot'';
(2) by striking subsection (a) and inserting the following:
``(a) Program Required.--The Secretary of Agriculture shall
establish a program under which milk producers and cooperative
associations of producers are authorized to voluntarily enter into
forward price contracts with milk handlers.'';
(3) in subsection (c)--
(A) in the subsection heading, by striking
``Pilot''; and
(B) in paragraph (1), by striking ``pilot'';
(4) by striking subsections (d) and (e); and
(5) by adding at the end the following:
``(d) Voluntary Program.--
``(1) In general.--A milk handler may not require
participation in a forward price contract as a condition of the
handler receiving milk from a producer or cooperative
association of producers.
``(2) Effect of nonparticipation.--A producer or
cooperative association that does not enter into a forward
price contract may continue to have milk priced under the
minimum payment provisions of the applicable milk marketing
order.
``(3) Complaints.--The Secretary shall--
``(A) investigate complaints made by producers or
cooperative associations of coercion by handlers to
enter into forward price contracts; and
``(B) if the Secretary finds evidence of coercion,
take appropriate action.
``(e) Duration.--No forward price contract under this section may--
``(1) be entered into after September 30, 2012; or
``(2) may extend beyond September 30, 2015.''.
(b) Conforming Amendments.--Section 23 of the Agricultural
Adjustment Act (7 U.S.C. 627), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, is amended by striking
``cooperatives'' each place it appears in subsections (b) and (c)(2)
and inserting ``cooperative associations of producers''.
SEC. 1607. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR
NONFAT DRY MILK.
Not later than 90 days after the date of the enactment of this Act,
the Secretary shall submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report regarding Department of Agriculture
reporting procedures for nonfat dry milk and the impact of the
procedures on Federal milk marketing order minimum prices during the
period beginning on July 1, 2006, and ending on the date of the
enactment of this Act.
SEC. 1608. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.
(a) Definition of ASCARR Institution.--In this section:
(1) In general.--The term ``ASCARR Institution'' means a
public college or university offering a baccalaureate or higher
degree in the study of agriculture.
(2) Exclusions.--The term ``ASCARR Institution'' does not
include an institution eligible to receive funds under--
(A) the Act of July 2, 1862 (commonly known as the
``First Morrill Act'') (7 U.S.C. 301 et seq.);
(B) the Act of August 30, 1890 (commonly known as
the ``Second Morrill Act'') (7 U.S.C. 321 et seq.); or
(C) the Equity in Educational Land-Grant Status Act
of 1994 (Public Law 103-382; 7 U.S.C. 301 note).
(b) Establishment.--Subject to the availability of funds
appropriated to carry out this section, the Secretary shall establish a
commission to be known as the ``Federal Milk Marketing Order Review
Commission'' (referred to in this section as the ``Commission''), which
shall conduct a comprehensive review and evaluation of--
(1) the Federal milk marketing order system in effect on
the date of enactment of this Act; and
(2) non-Federal milk marketing order systems.
(c) Elements of Review and Evaluation.--As part of the review and
evaluation under subsection (b), the Commission shall consider
legislative and regulatory options for--
(1) ensuring that the competitiveness of dairy products
with other competing products in the marketplace is preserved
and enhanced;
(2) ensuring that dairy producers receive fair and
reasonable minimum prices;
(3) enhancing the competitiveness of United States dairy
producers in world markets;
(4) preventing anticompetitive behavior and ensuring that
dairy markets are not prone to manipulation;
(5) increasing the responsiveness of the Federal milk
marketing order system to market forces;
(6) streamlining and expediting the process by which
amendments to Federal milk market orders are adopted;
(7) simplifying the Federal milk marketing order system;
(8) evaluating whether the Federal milk marketing order
system, established during the Great Depression, continues to
serve the interests of the public, dairy processors, and dairy
producers;
(9) evaluating whether Federal milk marketing orders are
operating in a manner to minimize costs to taxpayers and
consumers, while still maintaining a fair price for producers;
(10) evaluating the nutritional composition of milk,
including the potential benefits and costs of adjusting the
milk content standards;
(11) evaluating the economic benefits to milk producers of
establishing a 2-class system of classifying milk consisting of
a fluid milk class and a manufacturing grade milk class, with
the price of both classes determined using the component prices
of butterfat, protein, and other solids; and
(12) evaluating a change in advance pricing that is used to
calculate the advance price of Class II skim milk under Federal
milk marketing orders using the 4-week component prices that
are used to calculate prices for Class III and Class IV milk.
(d) Membership.--
(1) Composition.--The Commission shall consist of 18
members.
(2) Members.--As soon as practicable after the date on
which funds are first made available to carry out this
section--
(A) 2 members of the Commission shall be appointed
by the Chairman of the Committee on Agriculture of the
House of Representatives, in consultation with the
ranking member of that committee;
(B) 2 members of the Commission shall be appointed
by the Chairman of the Committee on Agriculture,
Nutrition, and Forestry of the Senate, in consultation
with the ranking member of that committee;
(C) 10 members of the Commission shall be appointed
by the Secretary;
(D) 2 members of the Commission shall be appointed
by the Chairman of the Subcommittee on Agriculture,
Rural Development, Food and Drug Administration, and
Related Agencies of the House of Representatives, in
consultation with the ranking member of that
subcommittee; and
(E) 2 members of the Commission shall be appointed
by the Chairman of the Subcommittee on Agriculture,
Rural Development, Food and Drug Administration, and
Related Agencies of the Senate, in consultation with
the ranking member of that subcommittee.
(3) Special appointment requirements.--In the case of
members of the Commission appointed under paragraph (2)(C), the
Secretary shall ensure that--
(A) at least 1 member represents a national
consumer organization;
(B) at least 4 members represent land-grant
colleges or universities (as defined in section 1404 of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)) or ASCARR
institutions with accredited dairy economic programs,
with at least 2 of those members being experts in the
field of economics;
(C) at least 1 member represents the food and
beverage retail sector; and
(D) 4 dairy producers and 4 dairy processors are
appointed in a manner that will--
(i) balance geographical distribution of
milk production and dairy processing;
(ii) reflect all segments of dairy
processing; and
(iii) represent all regions of the United
States equitably, including States that operate
outside of a Federal milk marketing order.
(4) Chair.--The Commission shall elect 1 of the members of
the Commission to serve as chairperson for the duration of the
proceedings of the Commission.
(5) Vacancy.--Any vacancy occurring before the termination
of the Commission shall be filled in the same manner as the
original appointment.
(6) Compensation.--A member of the Commission shall serve
without compensation, but shall be reimbursed by the Secretary
from existing budget authority for necessary and reasonable
expenses incurred in the performance of the duties of the
Commission.
(e) Report.--
(1) In general.--Not later than 2 years after the date of
the first meeting of the Commission, the Commission shall
submit to Congress and the Secretary a report describing the
results of the review and evaluation conducted under this
section, including such recommendations regarding the
legislative and regulatory options considered under subsection
(c) as the Commission considers to be appropriate.
(2) Support.--The report findings shall reflect, to the
maximum extent practicable, a consensus opinion of the
Commission members, but the report may include majority and
minority findings regarding those matters for which consensus
was not reached.
(f) Advisory Nature.--The Commission is wholly advisory in nature
and the recommendations of the Commission are nonbinding.
(g) No Effect on Existing Programs.--The Secretary shall not allow
the existence of the Commission to impede, delay, or otherwise affect
any decisionmaking process of the Department of Agriculture, including
any rulemaking procedures planned, proposed, or near completion.
(h) Administrative Assistance.--The Secretary shall provide such
administrative support to the Commission, and expend such funds as
necessary from budget authority available to the Secretary, as is
necessary to carry out this section.
(i) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
(j) Termination of Effectiveness.--The authority provided by this
section terminates effective on the date of the submission of the
report under subsection (e).
SEC. 1609. MANDATORY REPORTING OF DAIRY COMMODITIES.
Section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C.
1637b) is amended by striking subsections (a) and (b) and inserting the
following:
``(a) Daily Reporting.--
``(1) In general.--Not later than 180 days after the
enactment of the Food and Energy Security Act of 2007, the
Secretary shall--
``(A) establish a program for mandatory daily dairy
product information reporting that--
``(i) provides timely, accurate, and
reliable market information;
``(ii) facilitates more informed marketing
decisions; and
``(iii) promotes competition in the dairy
product manufacturing industry; and
``(B) require officers or officially designated
representatives of each dairy processor to report daily
pricing information for relevant sales transaction
involving a dairy product, as determined by the
Secretary.
``(2) Publication.--The Secretary shall make the
information reported under paragraph (1) available to the
public not less frequently than once each reporting day,
categorized by appropriate product characteristics, as
determined by the Secretary.
``(b) Requirements.--
``(1) Price reporting.--
``(A) In general.--Subject to the conditions
described in paragraph (3), on each business day of the
Department of Agriculture, each dairy manufacturer
shall report to the Secretary on all sales of dairy
products that the dairy manufacturer made on the
immediately preceding day or since the last report by
the dairy manufacturer.
``(B) Requirements.--A dairy manufacturer shall
report such price, quantity, and product
characteristics as the Secretary determines
appropriate.
``(C) Submission.--Reports under this paragraph
shall be submitted by electronic means at such time as
designated by the Secretary.
``(D) Availability.--The Secretary shall compile
the information reported under this paragraph and make
the compiled information available to the public on the
same day as the information is reported.
``(2) Storage reporting.--
``(A) In general.--The Secretary shall require each
dairy manufacturer or other person storing dairy
products to report, at periodic intervals determined by
the Secretary, information regarding the quantities of
dairy products in storage.
``(B) Availability.--The Secretary shall make
information described under subparagraph (A) available
to the public in a timely manner.
``(3) Conditions.--The conditions referred to in paragraph
(1) are that the information required under that paragraph is
required only--
``(A) with respect to those package sizes actually
used to establish minimum prices for Class III or Class
IV milk under a Federal milk marketing order; and
``(B) to the extent that the information is
actually used to establish minimum prices for Class III
or Class IV milk under a Federal milk marketing order.
``(4) Exemption for small processors.--The daily reporting
requirements of this subsection shall not apply to a processor
that processes not more than 1,000,000 pounds of dairy products
a year.
``(5) Periodic review.--The Secretary shall--
``(A) periodically review the information reported
for products under this subsection; and
``(B) propose changes for the information required
to be reported under this subsection, through the
public hearing process established under the applicable
Federal milk marketing order.
``(6) Electronic reporting.--To the maximum extent
practicable, the Secretary shall carry out the program
established under this subsection using electronic reporting
technology.''.
SEC. 1610. ADDITIONAL MANDATORY DAIRY REPORTING.
Subsection (b)(3) of section 273 of the Agricultural Marketing Act
of 1946 (7 U.S.C. 1637b) (as redesignated by section 1609(2)) is
amended--
(1) by striking ``shall take such actions'' and inserting
``shall--
``(A) take such actions'';
(2) in subparagraph (A) (as designated by paragraph (1)),
by striking the period at the end and inserting ``; and''; and
(3) by adding at the end the following:
``(B) include regular audits and comparisons with
other related dairy market statistics on at least a
quarterly basis.''.
Subtitle E--Administration
SEC. 1701. ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--Except as otherwise
provided in subtitles A through D and this subtitle, the Secretary
shall use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out subtitles A through D and this
subtitle.
(b) Determinations by Secretary.--A determination made by the
Secretary under this title shall be final and conclusive.
(c) Regulations.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary and the Commodity
Credit Corporation, as appropriate, shall promulgate such
regulations as are necessary to implement this title and the
amendments made by this title.
(2) Procedure.--The promulgation of the regulations and
administration of this title and the amendments made by this
title shall be made without regard to--
(A) chapter 35 of title 44, United States Code
(commonly known as the ``Paperwork Reduction Act'');
(B) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking and
public participation in rulemaking; and
(C) the notice and comment provisions of section
553 of title 5, United States Code.
(3) Congressional review of agency rulemaking.--In carrying
out this subsection, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(d) Adjustment Authority Related to Trade Agreements Compliance.--
(1) Required determination; adjustment.--If the Secretary
determines that expenditures under subtitles A through D and
this subtitle that are subject to the total allowable domestic
support levels under the Uruguay Round Agreements (as defined
in section 2 of the Uruguay Round Agreements Act (19 U.S.C.
3501)) will exceed such allowable levels for any applicable
reporting period, the Secretary shall, to the maximum extent
practicable, make adjustments in the amount of such
expenditures during that period to ensure that such
expenditures do not exceed such allowable levels.
(2) Congressional notification.--Before making any
adjustment under paragraph (1), the Secretary shall submit to
the Committee on Agriculture of the House of Representatives or
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report describing the determination made under that
paragraph and the extent of the adjustment to be made.
(e) Treatment of Advance Payment Option.--Section 1601(d) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7991(d)) is
amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) the advance payment of direct payments and counter-
cyclical payments under title I of the Food and Energy Security
Act of 2007.''.
SEC. 1702. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--The following provisions
of the Agricultural Adjustment Act of 1938 shall not be applicable to
the 2008 through 2012 crops of covered commodities and sugar and shall
not be applicable to milk during the period beginning on the date of
enactment of this Act through December 31, 2012:
(1) Parts II through V of subtitle B of title III (7 U.S.C.
1326 et seq.).
(2) In the case of upland cotton, section 377 (7 U.S.C.
1377).
(3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
(4) Title IV (7 U.S.C. 1401 et seq.).
(b) Agricultural Act of 1949.--The following provisions of the
Agricultural Act of 1949 shall not be applicable to the 2008 through
2012 crops of covered commodities and sugar and shall not be applicable
to milk during the period beginning on the date of enactment of this
Act and through December 31, 2012:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).
(c) Suspension of Certain Quota Provisions.--The joint resolution
entitled ``A joint resolution relating to corn and wheat marketing
quotas under the Agricultural Adjustment Act of 1938, as amended'',
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable
to the crops of wheat planted for harvest in the calendar years 2008
through 2012.
SEC. 1703. PAYMENT LIMITATIONS.
(a) Extension of Limitations.--Sections 1001 and 1001C(a) of the
Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are amended by
striking ``Farm Security and Rural Investment Act of 2002'' each place
it appears and inserting ``Food and Energy Security Act of 2007''.
(b) Revision of Limitations.--
(1) Definitions.--Section 1001(a) of the Food Security Act
of 1985 (7 U.S.C. 1308) is amended--
(A) in the matter preceding paragraph (1), by
inserting ``and section 1001A'' after ``section'';
(B) by striking paragraph (2) and redesignating
paragraph (3) as paragraph (5); and
(C) by inserting after paragraph (1) the following:
``(2) Family member.--The term `family member' means an
individual to whom a member in the farming operation is related
as lineal ancestor, lineal descendant, sibling, or spouse.
``(3) Legal entity.--The term `legal entity' means an
entity that is created under Federal or State law and that--
``(A) owns land or an agricultural commodity; or
``(B) produces an agricultural commodity.
``(4) Person.--The term `person' means a natural person,
and does not include a legal entity.''.
(2) Limitation on direct payments and counter-cyclical
payments.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended by striking subsections (b), (c) and
(d) and inserting the following:
``(b) Limitation on Direct and Counter-Cyclical Payments for
Covered Commodities (other Than Peanuts).--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or legal entity
(except a joint venture or a general partnership) for any crop
year under part I of subtitle A of title I of the Food and
Energy Security Act of 2007 for 1 or more covered commodities
(except for peanuts), or average crop revenue payments
determined under section 1401(b)(2) of that Act, may not exceed
$40,000.
``(2) Counter-cyclical payments.--The total amount of
counter-cyclical payments received, directly or indirectly, by
a person or legal entity (except a joint venture or a general
partnership) for any crop year under part I of subtitle A of
title I of the Food and Energy Security Act of 2007 for one or
more covered commodities (except for peanuts), or average crop
revenue payments determined under section 1401(b)(3) of that
Act, may not exceed $60,000.
``(c) Limitation on Direct Payments and Counter-Cyclical Payments
for Peanuts.--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or legal entity
(except a joint venture or a general partnership) for any crop
year under part III of subtitle A of title I of the Food and
Energy Security Act of 2007 for peanuts, or average crop
revenue payments determined under section 1401(b)(2) of that
Act, may not exceed $40,000.
``(2) Counter-cyclical payments.--The total amount of
counter-cyclical payments received, directly or indirectly, by
a person or legal entity (except a joint venture or a general
partnership) for any crop year under part III of subtitle A of
title I of the Food and Energy Security Act of 2007 for
peanuts, or average crop revenue payments determined under
section 1401(b)(3) of that Act, may not exceed $60,000.''.
``(d) Limitation on Applicability.--Nothing in this section
authorizes any limitation on any benefit associated with the marketing
assistance loan program or the loan deficiency payment program under
title I of the Food and Energy Security Act of 2007.''.
(3) Direct attribution.--Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended by striking subsection
(e) and redesignating subsections (f) and (g) as (g) and (h),
respectively, and inserting the following:
``(e) Attribution of Payments.--
``(1) In general.--In implementing subsections (b) and (c)
and a program described in section 1001D(b)(2)(C), the
Secretary shall issue such regulations as are necessary to
ensure that the total amount of payments are attributed to a
person by taking into account the direct and indirect ownership
interests of the person in a legal entity that is eligible to
receive the payments.
``(2) Payments to a person.--Each payment made directly to
a person shall be combined with the pro rata interest of the
person in payments received by a legal entity in which the
person has a direct or indirect ownership interest unless the
payments of the legal entity have been reduced by the pro rata
share of the person.
``(3) Payments to a legal entity.--
``(A) In general.--Each payment made to a legal
entity shall be attributed to those persons who have a
direct or indirect ownership interest in the legal
entity unless the payment to the legal entity has been
reduced by the pro rata share of the person.
``(B) Attribution of payments.--
``(i) Payment limits.--Except as provided
in clause (ii), payments made to a legal entity
shall not exceed the amounts specified in
subsections (b) and (c).
``(ii) Exception for joint ventures and
general partnerships.--Payments made to a joint
venture or a general partnership shall not
exceed, for each payment specified in
subsections (b) and (c), the amount determined
by multiplying the maximum payment amount
specified in subsections (b) and (c) by the
number of persons and legal entities (other
than joint ventures and general partnerships)
that comprise the ownership of the joint
venture or general partnership.
``(iii) Reduction.--Payments made to a
legal entity shall be reduced proportionately
by an amount that represents the direct or
indirect ownership in the legal entity by any
individual or legal entity that has otherwise
exceeded the applicable maximum payment
limitation.
``(4) 4 levels of attribution for embedded legal
entities.--
``(A) In general.--Attribution of payments made to
legal entities shall be traced through 4 levels of
ownership in legal entities.
``(B) First level.--Any payments made to a legal
entity (a first-tier legal entity) that is owned in
whole or in part by a person shall be attributed to the
person in an amount that represents the direct
ownership in the first-tier legal entity by the person.
``(C) Second level.--
``(i) In general.--Any payments made to a
first-tier legal entity that is owned (in whole
or in part) by another legal entity (a second-
tier legal entity) shall be attributed to the
second-tier legal entity in proportion to the
ownership of the second-tier legal entity in
the first-tier legal entity.
``(ii) Ownership by a person.--If the
second-tier legal entity is owned (in whole or
in part) by a person, the amount of the payment
made to the first-tier legal entity shall be
attributed to the person in the amount that
represents the indirect ownership in the first-
tier legal entity by the person.
``(D) Third and fourth levels.--
``(i) In general.--Except as provided in
clause (ii), the Secretary shall attribute
payments at the third and fourth tiers of
ownership in the same manner as specified in
subparagraph (C).
``(ii) Fourth-tier ownership.--If the
fourth-tier of ownership is that of a fourth-
tier legal entity and not that of a person, the
Secretary shall reduce the amount of the
payment to be made to the first-tier legal
entity in the amount that represents the
indirect ownership in the first-tier legal
entity by the fourth-tier legal entity.
``(f) Special Rules.--
``(1) Minor children.--
``(A) In general.--Except as provided in
subparagraph (B), payments received by a child under
the age of 18 shall be attributed to the parents of the
child.
``(B) Regulations.--The Secretary shall issue
regulations specifying the conditions under which
payments received by a child under the age of 18 will
not be attributed to the parents of the child.
``(2) Marketing cooperatives.--Subsections (b) and (c)
shall not apply to a cooperative association of producers with
respect to commodities produced by the members of the
association that are marketed by the association on behalf of
the members of the association but shall apply to the producers
as persons.
``(3) Trusts and estates.--
``(A) In general.--With respect to irrevocable
trusts and estates, the Secretary shall administer this
section through section 1001F in such manner as the
Secretary determines will ensure the fair and equitable
treatment of the beneficiaries of the trusts and
estates.
``(B) Irrevocable trust.--
``(i) In general.--In order for a trust to
be considered an irrevocable trust, the terms
of the trust agreement shall not--
``(I) allow for modification or
termination of the trust by the
grantor;
``(II) allow for the grantor to
have any future, contingent, or
remainder interest in the corpus of the
trust; or
``(III) except as provided in
clause (ii), provide for the transfer
of the corpus of the trust to the
remainder beneficiary in less than 20
years beginning on the date the trust
is established.
``(ii) Exception.--Clause (i)(III) shall
not apply in a case in which the transfer is--
``(I) contingent on the remainder
beneficiary achieving at least the age
of majority; or
``(II) is contingent on the death
of the grantor or income beneficiary.
``(C) Revocable trust.--For the purposes of this
section through section 1001F, a revocable trust shall
be considered to be the same person as the grantor of
the trust.
``(4) Cash rent tenants.--
``(A) Definition.--In this paragraph, the term
`cash rent tenant' means a person or legal entity that
rents land--
``(i) for cash; or
``(ii) for a crop share guaranteed as to
the amount of the commodity to be paid in rent.
``(B) Restriction.--A cash rent tenant who makes a
significant contribution of active personal management,
but not of personal labor, with respect to a farming
operation shall be eligible to receive a payment
described in subsection (b) or (c) only if the tenant
makes a significant contribution of equipment to the
farming operation.
``(5) Federal agencies.--
``(A) In general.--A Federal agency shall not be
eligible to receive any payment described in subsection
(b) or (c).
``(B) Land rental.--A lessee of land owned by a
Federal agency may receive a payment described in
subsection (b) or (c) if the lessee otherwise meets all
applicable criteria.
``(6) State and local governments.--
``(A) In general.--Except as provided in subsection
(g), a State or local government, or political
subdivision or agency of the government, shall not be
eligible to receive a payment described in subsection
(b) or (c).
``(B) Tenants.--A lessee of land owned by a State
or local government, or political subdivision or agency
of the government, may receive payments described in
subsections (b) and (c) if the lessee otherwise meet
all applicable criteria.
``(7) Changes in farming operations.--
``(A) In general.--In the administration of this
section through section 1001F, the Secretary may not
approve any change in a farming operation that
otherwise will increase the number of persons to which
the limitations under this section are applied unless
the Secretary determines that the change is bona fide
and substantive.
``(B) Family members.--The addition of a family
member to a farming operation under the criteria set
out in section 1001A shall be considered a bona fide
and substantive change in the farming operation.
``(8) Death of owner.--
``(A) In general.--If any ownership interest in
land or a commodity is transferred as the result of the
death of a program participant, the new owner of the
land or commodity may, if the person is otherwise
eligible to participate in the applicable program,
succeed to the contract of the prior owner and receive
payments subject to this section without regard to the
amount of payments received by the new owner.
``(B) Limitations on prior owner.--Payments made
under this paragraph shall not exceed the amount to
which the previous owner was entitled to receive under
the terms of the contract at the time of the death of
the prior owner.''.
(c) Repeal of 3-Entity Rule.--Section 1001A of the Food Security
Act of 1985 (7 U.S.C. 1308-1) is amended--
(1) in the section heading, by striking ``prevention of
creation of entities to qualify as separate persons'' and
inserting ``notification of interests''; and
(2) by striking subsection (a) and inserting the following:
``(a) Notification of Interests.--To facilitate administration of
section 1001 and this section, each person or legal entity receiving
payments described in subsections (b) and (c) of section 1001 as a
separate person or legal entity shall separately provide to the
Secretary, at such times and in such manner as prescribed by the
Secretary--
``(1) the name and social security number of each
individual, or the name and taxpayer identification number of
each legal entity, that holds or acquires an ownership interest
in the separate person or legal entity; and
``(2) the name and taxpayer identification number of each
legal entity in which the person or legal entity holds an
ownership interest.''.
(d) Amendment for Consistency.--Section 1001A of the Food Security
Act of 1985 (7 U.S.C. 1308-1) is amended by striking subsection (b) and
inserting the following:
``(b) Actively Engaged.--
``(1) In general.--To be eligible to receive a payment
described in subsection (b) or (c) of section 1001, a person or
legal entity shall be actively engaged in farming with respect
to a farming operation as provided in this subsection or
subsection (c).
``(2) Classes actively engaged.--Except as provided in
subsections (c) and (d)--
``(A) a person (including a person participating in
a farming operation as a partner in a general
partnership, a participant in a joint venture, a
grantor of a revocable trust, or a participant in a
similar entity, as determined by the Secretary) shall
be considered to be actively engaged in farming with
respect to a farming operation if--
``(i) the person makes a significant
contribution (based on the total value of the
farming operation) to the farming operation
of--
``(I) capital, equipment, or land;
and
``(II) personal labor or active
personal management;
``(ii) the person's share of the profits or
losses from the farming operation is
commensurate with the contributions of the
person to the farming operation; and
``(iii) the contributions of the person are
at risk;
``(B) a legal entity that is a corporation, joint
stock company, association, limited partnership,
charitable organization, or other similar entity
determined by the Secretary (including any such legal
entity participating in the farming operation as a
partner in a general partnership, a participant in a
joint venture, a grantor of a revocable trust, or as a
participant in a similar legal entity as determined by
the Secretary) shall be considered as actively engaged
in farming with respect to a farming operation if--
``(i) the legal entity separately makes a
significant contribution (based on the total
value of the farming operation) of capital,
equipment, or land;
``(ii) the stockholders or members
collectively make a significant contribution of
personal labor or active personal management to
the operation; and
``(iii) the standards provided in clauses
(ii) and (iii) of subparagraph (A), as applied
to the legal entity, are met by the legal
entity;
``(C) if a legal entity that is a general
partnership, joint venture, or similar entity, as
determined by the Secretary, separately makes a
significant contribution (based on the total value of
the farming operation involved) of capital, equipment,
or land, and the standards provided in clauses (ii) and
(iii) of subparagraph (A), as applied to the legal
entity, are met by the legal entity, the partners or
members making a significant contribution of personal
labor or active personal management shall be considered
to be actively engaged in farming with respect to the
farming operation involved; and
``(D) in making determinations under this
subsection regarding equipment and personal labor, the
Secretary shall take into consideration the equipment
and personal labor normally and customarily provided by
farm operators in the area involved to produce program
crops.
``(c) Special Classes Actively Engaged.--
``(1) Landowner.--A person or legal entity that is a
landowner contributing the owned land to a farming operation
shall be considered to be actively engaged in farming with
respect to the farming operation if--
``(A) the landowner receives rent or income for the
use of the land based on the production on the land or
the operating results of the operation; and
``(B) the person or legal entity meets the
standards provided in clauses (ii) and (iii) of
subsection (b)(2)(A).
``(2) Adult family member.--If a majority of the
participants in a farming operation are family members, an
adult family member shall be considered to be actively engaged
in farming with respect to the farming operation if the
person--
``(A) makes a significant contribution, based on
the total value of the farming operation, of active
personal management or personal labor; and
``(B) with respect to such contribution, meets the
standards provided in clauses (ii) and (iii) of
subsection (b)(2)(A).
``(3) Sharecropper.--A sharecropper who makes a significant
contribution of personal labor to a farming operation shall be
considered to be actively engaged in farming with respect to
the farming operation if the contribution meets the standards
provided in clauses (ii) and (iii) of subsection (b)(2)(A).
``(4) Growers of hybrid seed.--In determining whether a
person or legal entity growing hybrid seed under contract shall
be considered to be actively engaged in farming, the Secretary
shall not take into consideration the existence of a hybrid
seed contract.
``(5) Custom farming services.--
``(A) In general.--A person or legal entity
receiving custom farming services shall be considered
separately eligible for payment limitation purposes if
the person or legal entity is actively engaged in
farming based on subsection (b)(2) or paragraphs (1)
through (4) of this subsection.
``(B) Prohibition.--No other rules with respect to
custom farming shall apply.
``(6) Spouse.--If 1 spouse (or estate of a deceased spouse)
is determined to be actively engaged, the other spouse shall be
determined to have met the requirements of subsection
(b)(2)(A)(i)(II).
``(d) Classes Not Actively Engaged.--
``(1) Cash rent landlord.--A landlord contributing land to
a farming operation shall not be considered to be actively
engaged in farming with respect to the farming operation if the
landlord receives cash rent, or a crop share guaranteed as to
the amount of the commodity to be paid in rent, for the use of
the land.
``(2) Other persons and legal entities.--Any other person
or legal entity that the Secretary determines does not meet the
standards described in subsections (b)(2) and (c) shall not be
considered to be actively engaged in farming with respect to a
farming operation.''.
(e) Denial of Program Benefits.--Section 1001B of the Food Security
Act of 1985 (7 U.S.C. 1308-2) is amended to read as follows:
``SEC. 1001B. DENIAL OF PROGRAM BENEFITS.
``(a) 2-Year Denial of Program Benefits.--A person or legal entity
shall be ineligible to receive payments specified in subsections (b)
and (c) of section 1001 for the crop year, and the succeeding crop
year, in which the Secretary determines that the person or legal
entity--
``(1) failed to comply with section 1001A(b) and adopted or
participated in adopting a scheme or device to evade the
application of section 1001, 1001A, or 1001C; or
``(2) intentionally concealed the interest of the person or
legal entity in any farm or legal entity engaged in farming.
``(b) Extended Ineligibility.--If the Secretary determines that a
person or legal entity, for the benefit of the person or legal entity
or the benefit of any other person or legal entity, has knowingly
engaged in, or aided in the creation of a fraudulent document,
presented false information that was material and relevant to the
administration of sections 1001 through 1001F, or committed other
equally serious actions (as identified in regulations issued by the
Secretary), the Secretary may for a period not to exceed 5 crop years
deny the issuance of payments to the person or legal entity.
``(c) Pro Rata Denial.--
``(1) In general.--Payments otherwise owed to a person or
legal entity described in subsections (a) or (b) shall be
denied in a pro rata manner based on the ownership interest of
the person or legal entity in a farm.
``(2) Cash rent tenant.--Payments otherwise payable to the
person or legal entity described in subsection (a) or (b) who
is a cash rent tenant on a farm owned or under the control of
the person or legal entity shall be denied.
``(d) Joint and Several Liability.--Any member of any legal entity
(including partnerships and joint ventures) determined to have
knowingly participated in a scheme or device to evade, or that has the
purpose of evading, sections 1001, 1001A, or 1001C shall be jointly and
severally liable for any amounts that are payable to the Secretary as
the result of the scheme or device (including amounts necessary to
recover those amounts).
``(e) Release.--The Secretary may partially or fully release from
liability any person or legal entity who cooperates with the Secretary
in enforcing sections 1001, 1001A, and 1001C, and this section.''.
(f) Conforming Amendments.--
(1) Section 1009(e) of the Food Security Act of 1985 (7
U.S.C. 1308a(e)) is amended in the second sentence by striking
``of $50,000''.
(2) Section 609(b)(1) of the Emergency Livestock Feed
Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by
inserting ``(before the amendment made by section 1703(a) of
the Food and Energy Security Act of 2007)'' after ``1985''.
(3) Section 524(b)(3) of the Federal Crop Insurance Act (7
U.S.C. 1524(b)(3)) is amended by inserting ``(before the
amendment made by section 1703(a) of the Food and Energy
Security Act of 2007)'' after ``1308(5)))''.
(4) Section 196(i) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333(i)) is amended in
paragraphs (1)(A) and (5) by inserting ``(before the amendment
made by section 1703(a) of the Food and Energy Security Act of
2007)'' after ``1308)'' each place it appears.
(5) Section 10204(c)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by
inserting ``(before the amendment made by section 1703(a) of
the Food and Energy Security Act of 2007)'' after ``1308)''.
(6) Section 1271(c)(3)(A) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A))
is amended by inserting ``(before the amendment made by section
1703(a) of the Food and Energy Security Act of 2007)'' after
``1308)''.
(7) Section 291(2) of the Trade Act of 1974 (19 U.S.C.
2401(2)) is amended by inserting ``(before the amendment made
by section 1703(a) of the Food and Energy Security Act of
2007)'' before the period at the end.
(g) Transition.--Section 1001, 1001A, and 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in effect on
the day before the date of the enactment of this Act, shall continue to
apply with respect to the 2007 crop of any covered commodity or
peanuts.
SEC. 1704. ADJUSTED GROSS INCOME LIMITATION.
(a) Extension of Adjusted Gross Income Limitation.--Section
1001D(e) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(e)) is
amended by striking ``2007'' and inserting ``2012''.
(b) Allocation of Income.--Section 1001D(a) of the Food Security
Act of 1985 (7 U.S.C. 1308-3a(a)) is amended by adding at the end the
following:
``(3) Allocation of income.--On the request of any
individual filing a joint tax return, the Secretary shall
provide for the allocation of adjusted gross income among the
individuals filing the return based on a certified statement
provided by a certified public accountant or attorney
specifying the manner in which the income would have been
declared and reported if the individuals had filed 2 separate
returns, if the Secretary determines that the calculation is
consistent with the information supporting the filed joint
return.''.
(c) Modification of Limitation.--Section 1001D of the Food Security
Act of 1985 (7 U.S.C. 1308-3a) is amended by striking subsection (b)
and inserting the following:
``(b) Limitation.--
``(1) Commodity and conservation programs.--
``(A) Commodity programs.--
``(i) 2009 crop year.--Notwithstanding any
other provision of law, an individual or entity
shall not be eligible to receive any benefit
described in paragraph (2)(A) during the 2009
crop year if the average adjusted gross income
of the individual or entity exceeds $1,000,000,
unless not less than 66.66 percent of the
average adjusted gross income of the individual
or entity is derived from farming, ranching, or
forestry operations, as determined by the
Secretary.
``(ii) 2010 and subsequent crop years.--
Notwithstanding any other provision of law, an
individual or entity shall not be eligible to
receive any benefit described in paragraph
(2)(A) during any of the 2010 and subsequent
crop years if the average adjusted gross income
of the individual or entity exceeds $750,000,
unless not less than 66.66 percent of the
average adjusted gross income of the individual
or entity is derived from farming, ranching, or
forestry operations, as determined by the
Secretary.
``(B) Conservation programs.--Notwithstanding any
other provision of law, an individual or entity shall
not be eligible to receive any benefit described in
paragraph (2)(B) during a fiscal year if the average
adjusted gross income of the individual or entity
exceeds $2,500,000, unless not less than 75 percent of
the average adjusted gross income of the individual or
entity is derived from farming, ranching, or forestry
operations, as determined by the Secretary.
``(2) Covered benefits.--
``(A) In general.--Paragraph (1)(A) apply with
respect to the following:
``(i) A direct payment or counter-cyclical
payment under part I or III of subtitle A of
title I of the Food and Energy Security Act of
2007.
``(ii) A marketing loan gain or loan
deficiency payment under part II or III of
subtitle A of title I of the Food and Energy
Security Act of 2007.
``(iii) An average crop revenue payment
under subtitle B of title I of Food and Energy
Security Act of 2007.
``(B) Conservation programs.--Paragraph (1)(B)
applies with respect to a payment under any program
under--
``(i) title XII of this Act;
``(ii) title II of the Farm Security and
Rural Investment Act of 2002 (Public Law 107-
171; 116 Stat. 223); or
``(iii) title II of the Food and Energy
Security Act of 2007.
``(3) Income derived from farming, ranching or forestry
operations.--In determining what portion of the average
adjusted gross income of an individual or entity is derived
from farming, ranching, or forestry operations, the Secretary
shall include income derived from--
``(A) the production of crops, livestock, or
unfinished raw forestry products;
``(B) the sale, including the sale of easements and
development rights, of farm, ranch, or forestry land or
water or hunting rights;
``(C) the sale of equipment to conduct farm, ranch,
or forestry operations;
``(D) the rental or lease of land used for farming,
ranching, or forestry operations, including water or
hunting rights;
``(E) the provision of production inputs and
services to farmers, ranchers, and foresters;
``(F) the processing (including packing), storing
(including shedding), and transporting of farm, ranch,
and forestry commodities;
``(G) the sale of land that has been used for
agriculture; and
``(H) payments or other income attributable to
benefits received under any program authorized under
title I or II of the Food and Energy Security Act of
2007.''.
(d) Transition.--Section 1001D of the Food Security Act of 1985 (7
U.S.C. 1308-3a), as in effect on the day before the date of the
enactment of this Act, shall continue to apply with respect to the 2007
and 2008 crops of any covered commodity or peanuts.
SEC. 1705. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR CERTAIN
PRODUCERS.
(a) Incentive Payments Required.--Subject to subsection (b), the
Secretary shall use funds made available under subsection (g) to
provide quality incentive payments for the production of oilseeds with
specialized traits that enhance human health, as determined by the
Secretary.
(b) Covered Oilseeds.--The Secretary shall make payments under this
section only for the production of an oilseed variety that has, as
determined by the Secretary--
(1) been demonstrated to improve the health profile of the
oilseed for use in human consumption by--
(A) reducing or eliminating the need to partially
hydrogenate the oil derived from the oilseed for use in
human consumption; or
(B) adopting new technology traits; and
(2) 1 or more impediments to commercialization.
(c) Request for Proposals.--
(1) Issuance.--If funds are made available to carry out
this section for a crop year, the Secretary shall issue a
request for proposals for payments under this section.
(2) Multiyear proposals.--An entity may submit a multiyear
proposal for payments under this section.
(3) Content of proposals.--A proposal for payments under
this section shall include a description of--
(A) each oilseed variety described in subsection
(b) and the value of the oilseed variety as a matter of
public policy;
(B) a range for the amount of total per bushel or
hundredweight premiums to be paid to producers;
(C) a per bushel or hundredweight amount of
incentive payments requested for each year under this
section that does not exceed \1/3\ of the total premium
offered for any year;
(D) the period of time, not to exceed 4 years,
during which incentive payments are to be provided to
producers; and
(E) the targeted total quantity of production and
estimated acres needed to produce the targeted quantity
for each year under this section.
(d) Contracts for Production.--
(1) In general.--The Secretary shall approve successful
proposals submitted under subsection (c) on a timely basis so
as to allow production contracts to be entered into with
producers in advance of the spring planting season for the 2009
crop year.
(2) Timing of payments.--The Secretary shall make payments
to producers under this section after the Secretary receives
documentation that the premium required under a contract has
been made to covered producers.
(e) Administration.--If funding provided for a crop year is not
fully allocated under the initial request for proposals under
subsection (c), the Secretary shall issue additional requests for
proposals for subsequent crop years under this section.
(f) Proprietary Information.--The Secretary shall protect
proprietary information provided to the Secretary for the purpose of
administering this section.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $400,000,000 for the period of
fiscal years 2008 through 2012.
SEC. 1706. HARD WHITE WHEAT DEVELOPMENT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible hard white wheat seed.--The term ``eligible
hard white wheat seed'' means hard white wheat seed that, as
determined by the Secretary, is--
(A) certified;
(B) of a variety that is suitable for the State in
which the seed will be planted;
(C) rated at least superior with respect to
quality; and
(D) specifically approved under a seed
establishment program established by the State
Department of Agriculture and the State Wheat
Commission of the 1 or more States in which the seed
will be planted.
(2) Program.--The term ``program'' means the hard white
wheat development program established under subsection (b)(1).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, in consultation with the State Departments of
Agriculture and the State Wheat Commissions of the States in
regions in which hard white wheat is produced, as determined by
the Secretary.
(b) Establishment.--
(1) In general.--The Secretary shall establish a hard white
wheat development program in accordance with paragraph (2) to
promote the establishment of hard white wheat as a viable
market class of wheat in the United States by encouraging
production of at least 240,000,000 bushels of hard white wheat
by 2012.
(2) Payments.--
(A) In general.--Subject to subparagraphs (B) and
(C) and subsection (c), the Secretary shall make
available incentive payments to producers of each of
the 2008 through 2012 crops of hard white wheat.
(B) Acreage limitation.--The Secretary shall carry
out subparagraph (A) subject to a regional limitation
determined by the Secretary on the number of acres for
which payments may be received that takes into account
planting history and potential planting, but does not
exceed a total of 2,900,000 acres or the equivalent
volume of production based on a yield of 50 bushels per
acre.
(C) Payment limitations.--Payments to producers on
a farm described in subparagraph (A) shall be--
(i) in an amount that is not less than
$0.20 per bushel; and
(ii) in an amount that is not less than
$2.00 per acre for planting eligible hard white
wheat seed.
(c) Funding.--The Secretary shall make available $35,000,000 of
funds of the Commodity Credit Corporation during the period of crop
years 2008 through 2012 to provide incentive payments to producers of
hard white wheat under this section.
SEC. 1707. DURUM WHEAT QUALITY PROGRAM.
(a) In General.--Subject to the availability of funds under
subsection (c), the Secretary shall provide compensation to producers
of durum wheat in an amount not to exceed 50 percent of the actual cost
of fungicides applied to a crop of durum wheat of the producers to
control Fusarium head blight (wheat scab) on acres certified to have
been planted to Durum wheat in a crop year.
(b) Insufficient Funds.--If the total amount of funds appropriated
for a fiscal year under subsection (c) are insufficient to fulfill all
eligible requests for compensation under this section, the Secretary
shall prorate the compensation payments in a manner determined by the
Secretary to be equitable.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2008 through 2012.
SEC. 1708. STORAGE FACILITY LOANS.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary shall establish a storage facility loan
program to provide funds for producers of grains, oilseeds, pulse
crops, hay, renewable biomass, and other storable commodities (other
than sugar), as determined by the Secretary, to construct or upgrade
storage and handling facilities for the commodities.
(b) Eligible Producers.--A storage facility loan under this section
shall be made available to any producer described in subsection (a)
that, as determined by the Secretary--
(1) has a satisfactory credit history;
(2) has a need for increased storage capacity; and
(3) demonstrates an ability to repay the loan.
(c) Term of Loans.--A storage facility loan under this section
shall have a maximum term of 12 years.
(d) Loan Amount.--The maximum principal amount of a storage
facility loan under this section shall be $500,000.
(e) Loan Disbursements.--The Secretary shall provide for partial
disbursements of loan principal, as determined to be appropriate and
subject to acceptable documentation, to facilitate the purchase and
construction of eligible facilities.
(f) Loan Security.--Approval of a storage facility loan under this
section shall--
(1) for loan amounts of less than $150,000, not require a
lien on the real estate parcel on which the storage facility is
located;
(2) for loan amounts equal to or more than $150,000, not
require a severance agreement from the holder of any prior lien
on the real estate parcel on which the storage facility is
located, if the borrower--
(A) agrees to increase the down payment on the
storage facility loan by an amount determined
appropriate by the Secretary; or
(B) provides other security acceptable to the
Secretary; and
(3) allow a borrower, upon the approval of the Secretary,
to define a subparcel of real estate as security for the
storage facility loan if the subparcel is--
(A) of adequate size and value to adequately secure
the loan; and
(B) not subject to any other liens or mortgages
that are superior to the lien interest of the Commodity
Credit Corporation.
SEC. 1709. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.
Section 164 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7284) is amended by striking ``and title I of the
Farm Security and Rural Investment Act of 2002'' each place it appears
and inserting ``title I of the Farm Security and Rural Investment Act
of 2002, and title I of the Food and Energy Security Act of 2007''.
SEC. 1710. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING
LOANS.
Section 166 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7286) is amended in subsections (a) and (c)(1) by
striking ``and subtitle B and C of title I of the Farm Security and
Rural Investment Act of 2002'' each place it appears and inserting
``title I of the Farm Security and Rural Investment Act of 2002, and
title I of the Food and Energy Security Act of 2007''.
SEC. 1711. ASSIGNMENT OF PAYMENTS.
(a) In General.--The provisions of section 8(g) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating
to assignment of payments, shall apply to payments made under the
authority of subtitles A through E and this subtitle.
(b) Notice.--The producer making the assignment, or the assignee,
shall provide the Secretary with notice, in such manner as the
Secretary may require, of any assignment made under this section.
SEC. 1712. COTTON CLASSIFICATION SERVICES.
Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is amended
to read as follows:
``SEC. 3A. COTTON CLASSIFICATION SERVICES.
``(a) In General.--The Secretary of Agriculture (referred to in
this section as the `Secretary') shall--
``(1) make cotton classification services available to
producers of cotton; and
``(2) provide for the collection of classification fees
from participating producers or agents that voluntarily agree
to collect and remit the fees on behalf of producers.
``(b) Use of Fees.--Classification fees collected under subsection
(a)(2) and the proceeds from the sales of samples submitted under this
section shall, to the maximum extent practicable, be used to pay the
cost of the services provided under this section, including
administrative and supervisory costs.
``(c) Consultation.--
``(1) In general.--In establishing the amount of fees under
this section, the Secretary shall consult with representatives
of the United States cotton industry.
``(2) Exemption.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to consultations with
representatives of the United States cotton industry under this
section.
``(d) Crediting of Fees.--Any fees collected under this section and
under section 3d, late payment penalties, the proceeds from the sales
of samples, and interest earned from the investment of such funds
shall--
``(1) be credited to the current appropriation account that
incurs the cost of services provided under this section and
section 3d; and
``(2) remain available without fiscal year limitation to
pay the expenses of the Secretary in providing those services.
``(e) Investment of Funds.--Funds described in subsection (d) may
be invested--
``(1) by the Secretary in insured or fully collateralized,
interest-bearing accounts; or
``(2) at the discretion of the Secretary, by the Secretary
of the Treasury in United States Government debt instruments.
``(f) Lease Agreements.--Notwithstanding any other provision of
law, the Secretary may enter into long-term lease agreements that
exceed 5 years or may take title to property (including through
purchase agreements) for the purpose of obtaining offices to be used
for the classification of cotton in accordance with this Act, if the
Secretary determines that action would best effectuate the purposes of
this Act.
``(g) Authorization of Appropriations.--To the extent that
financing is not available from fees and the proceeds from the sales of
samples, there are authorized to be appropriated such sums as are
necessary to carry out this section.''.
SEC. 1713. DESIGNATION OF STATES FOR COTTON RESEARCH AND PROMOTION.
Section 17(f) of the Cotton Research and Promotion Act (7 U.S.C.
2116(f)) is amended--
(1) by striking ``(f) The term'' and inserting the
following:
``(f) Cotton-Producing State.--
``(1) In general.--The term'';
(2) by striking ``more, and the term'' and all that follows
through the end of the subsection and inserting the following:
``more.
``(2) Inclusions.--The term `cotton-producing State'
includes--
``(A) any combination of States described in
paragraph (1); and
``(B) effective beginning with the 2008 crop of
cotton, the States of Kansas, Virginia, and Florida.''.
SEC. 1714. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.
Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) is
amended--
(1) by striking subsection (d); and
(2) by redesignating subsections (e) through (g) as
subsections (d) through (f), respectively.
SEC. 1715. STATE, COUNTY, AND AREA COMMITTEES.
Section 8(b)(5)(B)(ii) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is amended--
(1) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively, and indenting appropriately;
(2) in the matter preceding item (aa) (as redesignated by
paragraph (1)), by striking ``A committee established'' and
inserting the following:
``(I) In general.--Except as
provided in subclause (II), a committee
established''; and
(3) by adding at the end the following:
``(II) Combination or consolidation
of areas.--A committee established by
combining or consolidating 2 or more
county or area committees shall consist
of not fewer than 3 nor more than 11
members that--
``(aa) are fairly
representative of the
agricultural producers within
the area covered by the county,
area, or local committee; and
``(bb) are elected by the
agricultural producers that
participate or cooperate in
programs administered within
the area under the jurisdiction
of the county, area, or local
committee.
``(III) Representation of socially
disadvantaged farmers and ranchers.--
The Secretary shall ensure, to the
extent practicable, that representation
of socially disadvantaged farmers and
ranchers is maintained on combined or
consolidated committees.
``(IV) Eligibility for
membership.--Notwithstanding any other
producer eligibility requirements for
service on county or area committees,
if a county or area is consolidated or
combined, a producer shall be eligible
to serve only as a member of the county
or area committee that the producer
elects to administer the farm records
of the producer.''.
SEC. 1716. PROHIBITION ON CHARGING CERTAIN FEES.
Public Law 108-470 (7 U.S.C. 7416a) is amended--
(1) in subsection (a), by striking ``may'' and inserting
``shall''; and
(2) by adding at the end the following:
``(c) Prohibition on Charging Certain Fees.--The Secretary may not
charge any fees or related costs for the collection of commodity
assessments pursuant to this Act.''.
SEC. 1717. SIGNATURE AUTHORITY.
In carrying out this title and title II and amendments made by
those titles, if the Secretary approves a document containing
signatures of program applicants, the Secretary shall not subsequently
determine the document is inadequate or invalid because of the lack of
authority of any applicant signing the document on behalf of the
applicant or any other individual, entity, general partnership, or
joint venture, or the documents relied upon were determined inadequate
or invalid, unless the applicant knowingly and willfully falsified the
evidence of signature authority or a signature.
SEC. 1718. MODERNIZATION OF FARM SERVICE AGENCY.
The Secretary shall modernize the Farm Service Agency information
technology and communication systems to ensure timely and efficient
program delivery at national, State, and County offices.
SEC. 1719. GEOSPATIAL SYSTEMS.
(a) In General.--The Secretary shall ensure that all agencies of
the Department of Agriculture consolidate the geospatial systems of the
agencies into a single enterprise system that ensures that geospatial
data is shareable, portable, and standardized.
(b) Requirements.--In carrying out subsection (a), the Secretary
shall--
(1) identify common datasets;
(2) give responsibility for managing each identified
dataset to the agency best suited for collecting and
maintaining that data, as determined by the Secretary; and
(3) make every effort to minimize the duplication of
efforts.
(c) Availability of Data.--The Secretary shall ensure, to the
maximum extent practicable, that data is readily available to all
agencies beginning not later than 2 years after the date of enactment
of this Act.
SEC. 1720. LEASING OFFICE SPACE.
The Secretary may use the funds, facilities, and authorities of the
Commodity Credit Corporation to lease space for use by agencies of the
Department of Agriculture in cases in which office space would be
jointly occupied by the agencies.
SEC. 1721. REPEALS.
(a) Commission on Application of Payment Limitations.--Section 1605
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7993)
is repealed.
(b) Renewed Availability of Market Loss Assistance and Certain
Emergency Assistance to Persons That Failed To Receive Assistance Under
Earlier Authorities.--Section 1617 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8000) is repealed.
Subtitle F--Specialty Crop Programs
SEC. 1801. DEFINITIONS.
In this subtitle:
(1) Specialty crop.--The term ``specialty crop'' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108-465).
(2) State.--The term ``State'' means each of the several
States of the United States.
(3) State department of agriculture.--The term ``State
department of agriculture'' means the agency, commission, or
department of a State government responsible for protecting and
promoting agriculture in the State.
PART I--MARKETING, INFORMATION, AND EDUCATION
SEC. 1811. FRUIT AND VEGETABLE MARKET NEWS ALLOCATION.
(a) In General.--The Secretary, acting through the Administrator of
the Agricultural Marketing Service, shall carry out market news
activities to provide timely price information of United States fruits
and vegetables in the United States.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $9,000,000 for each of fiscal
years 2008 through 2012, to remain available until expended.
SEC. 1812. FARMERS' MARKET PROMOTION PROGRAM.
Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7
U.S.C. 3005) is amended--
(1) in subsection (a), by inserting ``and to promote direct
producer-to-consumer marketing'' before the period at the end;
(2) in subsection (b)(1)(B), by striking ``infrastructure''
and inserting ``marketing opportunities'';
(3) in subsection (c)(1), by inserting ``or a producer
network or association'' after ``cooperative''; and
(4) by striking subsection (e) and inserting the following:
``(e) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out this section--
``(1) $5,000,000 for each of fiscal years 2008 through
2011; and
``(2) $10,000,000 for fiscal year 2012.''.
SEC. 1813. FOOD SAFETY INITIATIVES.
(a) Initiative Authorized.--The Secretary may carry out a food
safety education program to educate the public and persons in the fresh
produce industry about--
(1) scientifically proven practices for reducing microbial
pathogens on fresh produce; and
(2) methods of reducing the threat of cross-contamination
of fresh produce through unsanitary handling practices.
(b) Cooperation.--The Secretary may carry out the education program
in cooperation with public and private partners.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $1,000,000.
SEC. 1814. CENSUS OF SPECIALTY CROPS.
(a) Establishment.--Not later than September 30, 2008, and each 5
years thereafter, the Secretary shall conduct a census of specialty
crops to assist in the regularly development and dissemination of
information relative to specialty crops.
(b) Relation to Other Census.--The Secretary may include the census
of specialty crops in the census on agriculture.
PART II--ORGANIC PRODUCTION
SEC. 1821. ORGANIC DATA COLLECTION AND PRICE REPORTING.
Section 2104 of the Organic Foods Production Act of 1990 (7 U.S.C.
6503) is amended by adding at the end the following:
``(e) Data Collection and Price Reporting.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use $5,000,000 for
the period of fiscal years 2008 through 2012--
``(1) to collect data relating to organic agriculture;
``(2) to identify and publish organic production and market
data initiatives and surveys;
``(3) to expand, collect, and publish organic census data
analyses;
``(4) to fund comprehensive reporting of prices relating to
organically-produced agricultural products;
``(5) to conduct analysis relating to organic production,
handling, distribution, retail, and trend studies;
``(6) to study and perform periodic updates on the effects
of organic standards on consumer behavior; and
``(7) to conduct analyses for organic agriculture using the
national crop table.''.
SEC. 1822. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM ASSESSMENTS.
Section 501(e) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7401(e)) is amended by striking paragraph (1) and
inserting the following:
``(1) In general.--Notwithstanding any provision of a
commodity promotion law, a person that produces and markets
organic products shall be exempt from the payment of an
assessment under a commodity promotion law with respect to that
portion of agricultural commodities that the person--
``(A) produces on a certified organic farm (as
defined in section 2103 of the Organic Foods Production
Act of 1990 (7 U.S.C. 6502); and
``(B) produces or markets as organically produced
(as so defined).''.
SEC. 1823. NATIONAL ORGANIC CERTIFICATION COST SHARE PROGRAM.
Section 10606 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 6523) is amended to read as follows:
``SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.
``(a) Definitions.--In this section:
``(1) Program.--The term `program' means the national
certification cost-share program established under subsection
(b).
``(2) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Agricultural Marketing
Service.
``(b) Establishment.--The Secretary shall use amounts made
available under subsection (f) to establish a national organic
certification cost-share program under which the Secretary shall make
payments to States to assist producers and handlers of agricultural
products in obtaining certification under the national organic
production program established under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501 et seq.).
``(c) Federal Share.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall pay under this section not more than 75 percent of the
costs incurred by a producer or handler in obtaining
certification under the national organic production program, as
certified to and approved by the Secretary.
``(2) Maximum amount.--The maximum amount of a payment made
to a producer or handler under this section shall be $750.
``(d) Recordkeeping Requirements.--
``(1) In general.--The Secretary shall--
``(A) keep accurate, up-to-date records of requests
and disbursements from the program; and
``(B) require accurate and consistent recordkeeping
from each State and entity that receives program
payments.
``(2) Federal requirements.--Not later than 30 days after
the last day on which a State may request funding under the
program, the Secretary shall--
``(A) determine the number of States requesting
funding and the amount of each request; and
``(B) distribute the funding to the States.
``(3) State requirements.--An annual funding request from a
State shall include data from the program during the preceding
year, including--
``(A) a description of--
``(i) the entities that requested
reimbursement;
``(ii) the amount of each reimbursement
request; and
``(iii) any discrepancies between the
amount requested and the amount provided;
``(B) data to support increases in requests
expected in the coming year, including information from
certifiers or other data showing growth projections;
and
``(C) an explanation of any case in which an annual
request is lower than the request of the preceding
year.
``(e) Reporting.--Not later than March 1 of each year, the
Secretary shall submit to Congress a report that describes the
expenditures for each State under the program during the previous
fiscal year, including the number of producers and handlers served by
the program in the previous fiscal year.
``(f) Funding.--
``(1) In general.--Not later than 30 days after the date of
enactment of the Food and Energy Security Act of 2007, out of
any funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the Secretary of
Agriculture to carry out this section $22,000,000, to remain
available until expended.
``(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1), without
further appropriation.''.
SEC. 1824. NATIONAL ORGANIC PROGRAM.
Section 2123 of the Organic Foods Production Act of 1990 (7 U.S.C.
6522) is amended--
(1) by striking ``There are'' and inserting the following:
``(a) In General.--There are''; and
(2) by adding at the end the following:
``(b) National Organic Program.--Notwithstanding any other
provision of law, in order to carry out the activities of the
Agricultural Marketing Service under the national organic program
established under this title, there are authorized to be appropriated--
``(1) $5,000,000 for fiscal year 2008;
``(2) $6,500,000 for fiscal year 2009;
``(3) $8,000,000 for fiscal year 2010;
``(4) $9,500,000 for fiscal year 2011; and
``(5) $11,000,000 for fiscal year 2012.''.
PART III--INTERNATIONAL TRADE
SEC. 1831. FOREIGN MARKET ACCESS STUDY AND STRATEGY PLAN.
(a) Definition of Uruguay Round Agreements.--In this section, the
term ``Uruguay Round Agreements'' includes any agreement described in
section 101(d) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)).
(b) Study.--The Comptroller General of the United States shall
study--
(1) the extent to which United States specialty crops have
or have not benefitted from any reductions of foreign trade
barriers, as provided for in the Uruguay Round Agreements; and
(2) the reasons why United States specialty crops have or
have not benefitted from such trade-barrier reductions.
(c) Strategy Plan.--The Secretary shall prepare a foreign market
access strategy plan based on the study in subsection (b), to increase
exports of specialty crops, including an assessment of the foreign
trade barriers that are incompatible with the Uruguay Round Agreements
and a strategy for removing those barriers.
(d) Report.--Not later than 18 months after the date of enactment
of this Act--
(1) the Comptroller General shall submit to Congress a
report that contains the results of the study; and
(2) the Secretary shall submit to Congress the strategy
plan.
SEC. 1832. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
Section 3205 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 5680) is amended by striking subsection (d) and inserting the
following:
``(d) Petition.--A participant in the program may petition the
Secretary for an extension of a project carried out under this section
that exceeds, or will exceed, applicable time restrictions.
``(e) Funding.--
``(1) In general.--The Secretary shall make available to
carry out the program under this section--
``(A) $6,800,000 of funds of, or an equal value of
commodities owned by, the Commodity Credit Corporation
for each of fiscal years 2008 through 2011; and
``(B) $2,000,000 of funds of, or an equal value of
commodities owned by, the Commodity Credit Corporation
for fiscal year 2012 and each subsequent fiscal year.
``(2) Carryover of unobligated funds.--In a case in which
the total amount of funds or commodities made available under
paragraph (1) for a fiscal year is not obligated in that fiscal
year, the Secretary shall make available in the subsequent
fiscal year an amount equal to--
``(A) the amount made available for the fiscal year
under paragraph (1); plus
``(B) the amount not obligated in the previous
fiscal year.''
SEC. 1833. CONSULTATIONS ON SANITARY AND PHYTOSANITARY RESTRICTIONS FOR
FRUITS AND VEGETABLES.
To the maximum extent practicable, the Secretary and the United
States Trade Representative shall consult with interested persons, and
conduct annual briefings, on sanitary and phytosanitary trade issues,
including--
(1) the development of a strategic risk management
framework; and
(2) as appropriate, implementation of peer review for risk
analysis.
PART IV--SPECIALTY CROPS COMPETITIVENESS
SEC. 1841. SPECIALTY CROP BLOCK GRANTS.
(a) Extension of Program.--Section 101(a) of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is
amended by striking ``2009'' and inserting ``2012''.
(b) Eligibility.--Section 101 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is
amended by striking subsection (e) and inserting the following:
``(e) Plan Requirements.--
``(1) In general.--The State plan shall identify the lead
agency charged with the responsibility for carrying out the
plan and indicate how the grant funds will be used to enhance
the competitiveness of specialty crops.
``(2) Representation of certain individuals.--To the
maximum extent practicable and appropriate, the State plan
shall be developed taking into consideration the opinions and
expertise of beginning farmers or ranchers (as defined in
section 343(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a)) and socially disadvantaged farmers or
ranchers (as defined in section 355(e) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2003(e))) who produce
specialty crops.''.
(c) Audit and Plan Requirements.--Section 101 of the Specialty
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-
465) is amended by striking subsection (h) and inserting the following:
``(h) Audit and Plan Requirements.--
``(1) In general.--For each year that a State receives a
grant under this section, the State shall conduct an audit of
the expenditures of grant funds by the State.
``(2) Submission of audit and description.--Not later than
30 days after the date of completion of an audit under
paragraph (1), the State shall submit to the Secretary of
Agriculture--
``(A) a copy of the audit;
``(B) a description of the ways in which the State
is complying with the requirement under subsection (e);
and
``(C) such additional information as the Secretary
may request to ensure, to the maximum extent
practicable, that the State is complying with that
requirement.''.
(d) Availability of Funds.--Section 101 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is
amended by striking subsection (i) and inserting the following:
``(i) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary of Agriculture shall make grants under this section,
using--
``(1) $60,000,000 for fiscal year 2008;
``(2) $65,000,000 for fiscal year 2009;
``(3) $70,000,000 for fiscal year 2010;
``(4) $75,000,000 for fiscal year 2011; and
``(5) $0 for fiscal year 2012.''.
(e) Conforming Amendments.--Section 101 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is
amended--
(1) in subsection (a), by striking ``Subject to the
appropriation of funds to carry out this section'' and
inserting ``Using the funds made available under subsection
(i)'';
(2) in subsection (b), by striking ``appropriated pursuant
to the authorization of appropriations in'' and inserting
``made available under'';
(3) by striking subsection (c) and inserting the following:
``(c) Minimum Grant Amount.--Notwithstanding subsection (b), each
State shall receive a grant under this section for each fiscal year in
an amount that is at least \1/2\ of 1 percent of the total amount of
funding made available to carry out this section for the fiscal
year.'';
(4) by redesignating subsection (i) as subsection (j); and
(5) by inserting after subsection (h) the following:
``(i) Reallocation.--The Secretary may reallocate to other States
any amounts made available under this section that are not obligated or
expended by a date determined by the Secretary.''.
(f) Definition of Specialty Crop.--Section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is
amended by striking paragraph (1) and inserting the following:
``(1) Specialty crop.--The term `specialty crop' means
fruits, vegetables, tree nuts, dried fruits, nursery crops,
floriculture, and horticulture, including turfgrass sod and
herbal crops.''.
(g) Definition of State.--Section 3(2) of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is
amended by striking ``and the Commonwealth of Puerto Rico'' and
inserting ``the Commonwealth of Puerto Rico, Guam, American Samoa, the
United States Virgin Islands, and the Commonwealth of the Northern
Mariana Islands''.
SEC. 1842. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.
Title II of the Specialty Crops Competitiveness Act of 2004 (Public
Law 108-465; 118 Stat. 3884) is amended by adding at the end the
following:
``SEC. 204. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.
``(a) In General.--The Secretary of Agriculture may make grants
under this section to an eligible entity described in subsection (b)--
``(1) to improve the cost-effective movement of specialty
crops to local, regional, national, and international markets;
and
``(2) to address regional intermodal transportation
deficiencies that adversely affect the movement of specialty
crops to markets inside or outside the United States.
``(b) Eligible Entities.--Grants may be made under this section
to--
``(1) a State or local government;
``(2) a grower cooperative;
``(3) a State or regional producer or shipper organization;
``(4) a nonprofit trucking association and their research
entities;
``(5) a combination of the entities described in paragraphs
(1) through (4); or
``(6) other entities, as determined by the Secretary.
``(c) Matching Funds.--As a condition of the receipt of a grant
under this section, the recipient of a grant under this section shall
contribute an amount of non-Federal funds toward the project for which
the grant is provided that is at least equal to the amount of grant
funds received by the recipient under this section.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 1843. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.
Title II of the Specialty Crops Competitiveness Act of 2004 (Public
Law 108-465; 118 Stat. 3884) (as amended by section 1842) is amended by
adding at the end the following:
``SEC. 205. HEALTHY FOOD ENTERPRISE DEVELOPMENT CENTER.
``(a) Definitions.--In this section:
``(1) Center.--The term `Center' means the healthy food
enterprise development center established under subsection (b).
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a nonprofit organization;
``(B) a cooperative;
``(C) a business;
``(D) an agricultural producer;
``(E) an academic institution;
``(F) an individual; and
``(G) such other entities as the Secretary may
designate.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(4) Underserved community.--The term `underserved
community' means a community (including an urban or rural
community and an Indian tribal community) that, as determined
by the Secretary, has--
``(A) limited access to affordable, healthy foods,
including fresh fruits and vegetables;
``(B) a high incidence of a diet-related disease
(including obesity) as compared to the national
average;
``(C) a high rate of hunger or food insecurity; or
``(D) severe or persistent poverty.
``(b) Center.--The Secretary, acting through the Agricultural
Marketing Service, shall offer to enter into a contract with a
nonprofit organization to establish and support a healthy food
enterprise development center to increase access to healthy, affordable
foods, such as fresh fruit and vegetables, particularly for school-aged
children and individuals in low-income communities.
``(c) Activities.--
``(1) Purpose.--The purpose of the Center is to increase
access to healthy affordable foods, including locally produced
agricultural products, to underserved communities.
``(2) Technical assistance and information.--The Center
shall collect, develop, and provide technical assistance and
information to small and mid-sized agricultural producers, food
wholesalers and retailers, schools, and other individuals and
entities regarding best practices and the availability of
assistance for aggregating, storing, processing, and marketing
locally produced agricultural products and increasing the
availability of the products in underserved communities.
``(d) Authority To Subgrant.--The Center may provide subgrants to
eligible entities to carry out feasibility studies to establish
businesses to carry out the purposes of this section.
``(e) Priority.--In providing technical assistance and grants under
subsections (c)(2) and (d), the Center shall give priority to
applications that have components that will--
``(1) benefit underserved communities; and
``(2) develop market opportunities for small and mid-sized
farm and ranch operations.
``(f) Report.--For each fiscal year for which the nonprofit
organization described in subsection (b) receives funds, the
organization shall submit to the Secretary a report describing the
activities carried out in the previous fiscal year, including--
``(1) a description of technical assistance provided;
``(2) the total number and a description of the subgrants
provided under subsection (d);
``(3) a complete listing of cases in which the activities
of the Center have resulted in increased access to healthy,
affordable foods, such as fresh fruit and vegetables,
particularly for school-aged children and individuals in low-
income communities; and
``(4) a determination of whether the activities identified
in paragraph (3) are sustained in the years following the
initial provision of technical assistance and subgrants under
this section.
``(g) Competitive Award Process.--The Secretary shall use a
competitive process to award funds to establish the Center.
``(h) Funding.--Out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to the
Secretary to carry out this section--
``(1) $1,000,000 for fiscal year 2009; and
``(2) $2,000,000 for each of fiscal years 2010 through
2012.''.
PART V--MISCELLANEOUS
SEC. 1851. CLEAN PLANT NETWORK.
(a) In General.--The Secretary shall establish a program to be
known as the ``National Clean Plant Network'' (referred to in this
section as the ``Program'').
(b) Requirements.--Under the Program, the Secretary shall establish
a network of clean plant centers for diagnostic and pathogen
elimination services to--
(1) produce clean propagative plant material; and
(2) maintain blocks of pathogen-tested plant material in
sites located throughout the United States.
(c) Availability of Clean Plant Source Material.--Clean plant
source material may be made available to--
(1) a State for a certified plant program of the State; and
(2) private nurseries and producers.
(d) Consultation and Collaboration.--In carrying out the Program,
the Secretary shall--
(1) consult with State departments of agriculture and land
grant universities; and
(2) to the extent practicable and with input from the
appropriate State officials and industry representatives, use
existing Federal or State facilities to serve as clean plant
centers.
(e) Funding.--Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out the Program $4,000,000 for each of
fiscal years 2008 through 2012.
SEC. 1852. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary shall make payments to producers of the 2007
crop of asparagus for market loss resulting from imports during the
2004 through 2007 crop years.
(b) Payment Rate.--The payment rate for a payment under this
section shall be based on the reduction in revenue received by
asparagus producers associated with imports during the 2004 through
2007 crop years.
(c) Payment Quantity.--The payment quantity for asparagus for which
the producers on a farm are eligible for payments under this section
shall be equal to the average quantity of the 2003 crop of asparagus
produced by producers on the farm.
(d) Funding.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make available $15,000,000 of the funds of the Commodity
Credit Corporation to carry out a program to provide market
loss payments to producers of asparagus under this section.
(2) Allocation.--Of the amount made available under
paragraph (1), the Secretary shall use--
(A) $7,500,000 to make payments to producers of
asparagus for the fresh market; and
(B) $7,500,000 to make payments to producers of
asparagus for the processed or frozen market.
SEC. 1853. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION.
(a) Regions and Members.--Section 1925(b)(2) of the Mushroom
Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C.
6104(b)(2)) is amended--
(1) in subparagraph (B), by striking ``4 regions'' and
inserting ``3 regions'';
(2) in subparagraph (D), by striking ``35,000,000 pounds''
and inserting ``50,000,000 pounds''; and
(3) by striking subparagraph (E), and inserting the
following:
``(E) Additional members.--In addition to the
members appointed pursuant to paragraph (1), and
subject to the 9-member limitation on members on the
Council provided in that paragraph, the Secretary shall
appoint additional members to the Council from a region
that attains additional pounds of production of
mushrooms as follows:
``(i) If the annual production of the
region is greater than 110,000,000 pounds, but
not more than 180,000,000 pounds, the region
shall be represented by 1 additional member.
``(ii) If the annual production of the
region is greater than 180,000,000 pounds, but
not more than 260,000,000 pounds, the region
shall be represented by 2 additional members.
``(iii) If the annual production of the
region is greater than 260,000,000 pounds, the
region shall be represented by 3 additional
members.''.
(b) Powers and Duties of Council.--Section 1925(c) of the Mushroom
Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C.
6104(c)) is amended--
(1) by redesignating paragraphs (6), (7), and (8) as
paragraphs (7), (8), and (9), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) to develop food safety programs, including good
agricultural practices and good handling practices or related
activities for mushrooms;''.
SEC. 1854. NATIONAL HONEY BOARD.
Section 7(c) of the Honey Research, Promotion, and Consumer
Information Act (7 U.S.C. 4606(c)) is amended by adding at the end the
following:
``(12) Referendum requirement.--
``(A) In general.--Notwithstanding any other
provision of law, subject to subparagraph (B), the
order providing for the establishment and operation of
the Honey Board in effect on the date of enactment of
this paragraph shall continue in force, and the
Secretary shall not schedule or conduct any referendum
on the continuation or termination of the order, until
the Secretary first conducts, at the earliest
practicable date, concurrent referenda among all
eligible producers, importers, packers, and handlers of
honey for the purpose of ascertaining whether eligible
producers, importers, packers, and handlers of honey
approve of 1 or more orders to establish successor
marketing boards for honey.
``(B) Requirements.--In conducting concurrent
referenda under subparagraph (A), the Secretary shall
ensure that--
``(i) a referendum of United States honey
producers for the establishment of a marketing
board solely for United States honey producers
is included in the process; and
``(ii) the rights and interests of honey
producers, importers, packers, and handlers of
honey are protected in the transition to any
new marketing board.''.
SEC. 1855. IDENTIFICATION OF HONEY.
Section 203(h) of the Agricultural Marketing Act of 1946 (7 U.S.C.
1622(h)) is amended--
(1) by designating the first through sixth sentences as
paragraphs (1), (2)(A), (2)(B), (3), (4), and (5),
respectively; and
(2) by adding at the end the following:
``(6) Identification of honey.--The use of a label or
advertising material on, or in conjunction with, packaged honey
that bears any official certificate of quality, grade mark or
statement, continuous inspection mark or statement, sampling
mark or statement, or any combination of the certificates,
marks, or statements of the Department of Agriculture shall be
considered a deceptive practice that is prohibited under this
Act unless there appears legibly and permanently in close
proximity to the certificate, mark, or statement, and in at
least a comparable size, the 1 or more names of the 1 or more
countries of origin of the lot or container of honey, preceded
by `Product of' or other words of similar meaning.''.
SEC. 1856. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR GRADES AND
STANDARDS AND OTHER PURPOSES.
(a) In General.--The Secretary shall initiate procedures under the
Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, to
determine whether it would be appropriate to establish a Federal
marketing order for Hass avocados relating to grades and standards and
for other purposes under that Act.
(b) Expedited Procedures.--
(1) Proposal for an order.--An organization of domestic
avocado producers in existence on the date of enactment of this
Act may request the issuance of, and submit to the Secretary a
proposal for, an order described in subsection (a).
(2) Publication of proposal.--Not later than 60 days after
the date on which the Secretary receives a proposed order under
paragraph (1), the Secretary shall initiate procedures
described in subsection (a) to determine whether the proposed
order should proceed.
(c) Effective Date.--Any order issued under this section shall
become effective not later than 15 months after the date on which the
Secretary initiates procedures under the Agricultural Adjustment Act (7
U.S.C. 601 et seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937.
Subtitle G--Risk Management
SEC. 1901. DEFINITION OF ORGANIC CROP.
Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b))
is amended--
(1) by redesignating paragraphs (7) and (8) as paragraphs
(8) and (9), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) Organic crop.--The term `organic crop' means an
agricultural commodity that is organically produced consistent
with section 2103 of the Organic Foods Production Act of 1990
(7 U.S.C. 6502).''.
SEC. 1902. GENERAL POWERS.
(a) In General.--Section 506 of the Federal Crop Insurance Act (7
U.S.C. 1506) is amended--
(1) in the first sentence of subsection (d), by striking
``The Corporation'' and inserting ``Subject to section
508(j)(2)(A), the Corporation''; and
(2) by striking subsection (n).
(b) Conforming Amendments.--
(1) Section 506 of the Federal Crop Insurance Act (7 U.S.C.
1506) is amended by redesignating subsections (o), (p), and (q)
as subsections (n), (o), and (p), respectively.
(2) Section 521 of the Federal Crop Insurance Act (7 U.S.C.
1521) is amended by striking the last sentence.
SEC. 1903. REDUCTION IN LOSS RATIO.
(a) Projected Loss Ratio.--Subsection (n)(2) of section 506 of the
Federal Crop Insurance Act (7 U.S.C. 1506) (as redesignated by section
1902(b)(1)) is amended--
(1) in the paragraph heading, by striking ``as of october
1, 1998'';
(2) by striking ``, on and after October 1, 1998,''; and
(3) by striking ``1.075'' and inserting ``1.0''.
(b) Premiums Required.--Section 508(d)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking ``not
greater than'' and all that follows and inserting ``not greater than--
``(A) 1.1 through September 30, 1998;
``(B) 1.075 for the period beginning October 1,
1998, and ending on the date of enactment of the Food
and Energy Security Act of 2007; and
``(C) 1.0 on and after the date of enactment of
that Act.''.
SEC. 1904. CONTROLLED BUSINESS INSURANCE.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)
is amended by adding at the end the following:
``(9) Commissions.--
``(A) Definition of immediate family.--In this
paragraph, the term `immediate family' means a person's
father, mother, stepfather, stepmother, brother,
sister, stepbrother, stepsister, son, daughter,
stepson, stepdaughter, grandparent, grandson,
granddaughter, father-in-law, mother-in-law, brother-
in-law, sister-in-law, son-in-law, daughter-in-law, the
spouse of the foregoing, and the person's spouse.
``(B) Prohibition.--No person may receive a
commission or share of a commission for any policy or
plan of insurance offered under this Act in which the
person has a substantial beneficial interest or in
which a member of the person's immediate family has a
substantial beneficial interest if, in a calendar year,
the aggregate of the commissions exceeds 30 percent of
the aggregate of all commissions received by the person
for any policy or plan of insurance offered under this
Act.
``(C) Reporting.--On the completion of the
reinsurance year, any person that received a commission
or share of a commission for any policy or plan of
insurance offered under this Act in the prior calendar
year shall certify to applicable approved insurance
providers that the person received the commissions in
compliance with this paragraph.
``(D) Sanctions.--The requirements and sanctions
prescribed in section 515(h) shall apply to the
prosecution of a violation of this paragraph.
``(E) Applicability.--
``(i) In general.--Sanctions for violations
under this paragraph shall only apply to the
person directly responsible for the
certification required under subparagraph (C)
or the failure to comply with the requirements
of this paragraph.
``(ii) Prohibition.--No sanctions shall
apply with respect to the policy or plans of
insurance upon which commissions are received,
including the reinsurance for those policies or
plans.''.
SEC. 1905. ADMINISTRATIVE FEE.
Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)(5)) is amended--
(1) in subparagraph (A), by striking ``$100'' and inserting
``$200''; and
(2) in subparagraph (B)--
(A) by striking ``Payment on behalf of producers''
and inserting ``Payment of catastrophic risk protection
fee on behalf of producers'';
(B) in clause (i)--
(i) by striking ``or other payment''; and
(ii) by striking ``with catastrophic risk
protection or additional coverage'' and
inserting ``through the payment of catastrophic
risk protection administrative fees'';
(C) by striking clauses (ii) and (vi);
(D) by redesignating clauses (iii), (iv), and (v)
as clauses (ii), (iii), and (iv), respectively;
(E) in clause (iii) (as so redesignated), by
striking ``A policy or plan of insurance'' and
inserting ``Catastrophic risk protection coverage'';
and
(F) in clause (iv) (as so redesignated)--
(i) by striking ``or other arrangement
under this subparagraph''; and
(ii) by striking ``additional''.
SEC. 1906. TIME FOR PAYMENT.
Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is
amended--
(1) in subsection (d), by adding at the end the following:
``(4) Time for payment.--Effective beginning with the 2012
reinsurance year, a producer that obtains a policy or plan of
insurance under this title shall submit the required premium
not later than September 30 of the year for which the plan or
policy of insurance was obtained.''; and
(2) in subsection (k)(4), by adding at the end the
following:
``(D) Time for reimbursement.--Effective beginning
with the 2012 reinsurance year, the Corporation shall
reimburse approved insurance providers and agents for
the allowable administrative and operating costs of the
providers and agents as soon as practicable after
October 1 (but not later than October 31) of the
reinsurance year for which reimbursements are
earned.''.
SEC. 1907. SURCHARGE PROHIBITION.
Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d))
(as amended by section 1906(1)) is amended by adding at the end the
following:
``(5) Surcharge prohibition.--
``(A) In general.--Except as provided in
subparagraph (B), the Corporation may not require
producers to pay a premium surcharge for using
scientifically-sound sustainable and organic farming
practices and systems.
``(B) Exception.--
``(i) In general.--A surcharge may be
required for individual organic crops on the
basis of significant, consistent, and systemic
increased risk factors (including loss history)
demonstrated by published cropping system
research (as applied to crop types and regions)
and other relevant sources of information.
``(ii) Consultation.--The Corporation shall
evaluate the reliability of information
described in clause (i) in consultation with
independent experts in the field.''.
SEC. 1908. PREMIUM REDUCTION PLAN.
Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) is
amended by striking paragraph (3) and inserting the following:
``(3) Discount study.--
``(A) In general.--The Secretary shall commission
an entity independent of the crop insurance industry
(with expertise that includes traditional crop
insurance) to study the feasibility of permitting
approved insurance providers to provide discounts to
producers purchasing crop insurance coverage without
undermining the viability of the Federal crop insurance
program.
``(B) Components.--The study should include--
``(i) an evaluation of the operation of a
premium reduction plan that examines--
``(I) the clarity, efficiency, and
effectiveness of the statutory language
and related regulations;
``(II) whether the regulations
frustrated the goal of offering
producers upfront, predictable, and
reliable premium discount payments; and
``(III) whether the regulations
provided for reasonable, cost-effective
oversight by the Corporation of premium
discounts offered by approved insurance
providers, including--
``(aa) whether the savings
were generated from verifiable
cost efficiencies adequate to
offset the cost of discounts
paid; and
``(bb) whether appropriate
control was exercised to
prevent approved insurance
providers from preferentially
offering the discount to
producers of certain
agricultural commodities, in
certain regions, or in specific
size categories;
``(ii) examination of the impact on
producers, the crop insurance industry, and
profitability from offering discounted crop
insurance to producers;
``(iii) examination of implications for
industry concentration from offering discounted
crop insurance to producers;
``(iv) an examination of the desirability
and feasibility of allowing other forms of
price competition in the Federal crop insurance
program;
``(v) a review of the history of
commissions paid by crop insurance providers;
and
``(vi) recommendations on--
``(I) potential changes to this
title that would address the
deficiencies in past efforts to provide
discounted crop insurance to producers,
``(II) whether approved insurance
providers should be allowed to draw on
both administrative and operating
reimbursement and underwriting gains to
provide discounted crop insurance to
producers; and
``(III) any other action that could
increase competition in the crop
insurance industry that will benefit
producers but not undermine the
viability of the Federal crop insurance
program.
``(C) Request for proposals.--In developing the
request for proposals for the study, the Secretary
shall consult with parties in the crop insurance
industry (including producers and approved insurance
providers and agents, including providers and agents
with experience selling discount crop insurance
products).
``(D) Review of study.--The independent entity
selected by Secretary under subparagraph (A) shall seek
comments from interested stakeholders before finalizing
the report of the entity.
``(E) Report.--Not later than 18 months after the
date of enactment of the Food and Energy Security Act
of 2007, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the results and
recommendations of the study.''.
SEC. 1909. ENTERPRISE AND WHOLE FARM UNITS.
Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) is
amended by adding at the end the following:
``(6) Enterprise and whole farm units.--
``(A) In general.--The Corporation may carry out a
pilot program under which the Corporation pays a
portion of the premiums for plans or policies of
insurance for which the insurable unit is defined on a
whole farm or enterprise unit basis that is higher than
would otherwise be paid in accordance with paragraph
(2) for policyholders that convert from a plan or
policy of insurance for which the insurable unit is
defined on optional or basic unit basis.
``(B) Eligibility.--To be eligible to participate
in a pilot program established under this paragraph, a
policyholder shall--
``(i) have purchased additional coverage
for the 2005 crop on an optional or basic unit
basis for at least 90 percent of the acreage to
be covered by enterprise or whole farm unit
policy for the current crop; and
``(ii) purchase the enterprise or whole
farm unit policy at not less than the highest
coverage level that was purchased for the
acreage for the 2005 crop.
``(C) Amount.--
``(i) In general.--The amount of the
premium per acre paid by the Corporation to a
policyholder for a policy with an enterprise
and whole farm unit under this paragraph shall
be, the maximum extent practicable, equal to
the average dollar amount of subsidy per acre
paid by the Corporation under paragraph (2) for
a basic or optional unit.
``(ii) Limitation.--The amount of the
premium paid by the Corporation under this
paragraph may not exceed the total premium for
the enterprise or whole farm unit policy.
``(D) Conversion of pilot to a permanent program.--
Not earlier than 180 days after the date of enactment
of this paragraph, the Corporation may convert the
pilot program described in this paragraph to a
permanent program if the Corporation has--
``(i) carried out the pilot program;
``(ii) analyzed the results of the pilot
program; and
``(iii) submitted to Congress a report
describing the results of the analysis.''.
SEC. 1910. DENIAL OF CLAIMS.
Section 508(j)(2)(A) of the Federal Crop Insurance Act (7 U.S.C.
1508(j)(2)(A)) is amended by inserting ``on behalf of the Corporation''
after ``approved provider''.
SEC. 1911. MEASUREMENT OF FARM-STORED COMMODITIES.
Section 508(j) of the Federal Crop Insurance Act (7 U.S.C. 1508(j))
is amended by adding at the end the following:
``(5) Measurement of farm-stored commodities.--Beginning
with the 2009 crop year, for the purpose of determining the
amount of any insured production loss sustained by a producer
and the amount of any indemnity to be paid under a plan of
insurance--
``(A) a producer may elect, at the expense of the
producer, to have the Farm Service Agency measure the
quantity of the commodity; and
``(B) the results of the measurement shall be used
as the evidence of the quantity of the commodity that
was produced.''.
SEC. 1912. REIMBURSEMENT RATE.
Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)(4)) (as amended by section 1906(2)) is amended--
(1) in subparagraph (A), by striking ``Except as provided
in subparagraph (B)'' and inserting ``Except as otherwise
provided in this paragraph''; and
(2) by adding at the end the following:
``(E) Reimbursement rate reduction.--For each of
the 2009 and subsequent reinsurance years, the
reimbursement rates for administrative and operating
costs shall be 2 percentage points below the rates in
effect as of the date of enactment of the Food and
Energy Security Act of 2007 for all crop insurance
policies used to define loss ratio, except that the
reduction shall not apply in a reinsurance year to the
total premium written in a State in which the State
loss ratio is greater than 1.2.
``(F) Reimbursement rate for area policies and
plans of insurance.--Notwithstanding subparagraphs (A)
through (E), for each of the 2009 and subsequent
reinsurance years, the reimbursement rate for area
policies and plans of insurance shall be 17 percent of
the premium used to define loss ratio for that
reinsurance year.''.
SEC. 1913. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k))
is amended by adding at the end the following:
``(8) Renegotiation of standard reinsurance agreement.--
``(A) In general.--Notwithstanding section 536 of
the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 1506 note; Public Law 105-
185) and section 148 of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1506 note; Public Law
106-224), the Corporation may renegotiate the financial
terms and conditions of each Standard Reinsurance
Agreement--
``(i) following the reinsurance year ending
June 30, 2012;
``(ii) once during each period of 5
reinsurance years thereafter; and
``(iii) subject to subparagraph (B), in any
case in which the approved insurance providers,
as a whole, experience unexpected adverse
circumstances, as determined by the Secretary.
``(B) Notification requirement.--If the Corporation
renegotiates a Standard Reinsurance Agreement under
subparagraph (A)(iii), the Corporation shall notify the
Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate of the
renegotiation.
``(C) Consultation.--The approved insurance
providers may confer with each other and collectively
with the Corporation during any renegotiation under
subparagraph (A).''.
SEC. 1914. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR UNDERWRITING
GAINS.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k))
(as amended by section 1912) is amended by adding at the end the
following:
``(9) Due date for payment of underwriting gains.--
Effective beginning with the 2011 reinsurance year, the
Corporation shall make payments for underwriting gains under
this title on--
``(A) for the 2011 reinsurance year, October 1,
2012; and
``(B) for each reinsurance year thereafter, October
1 of the following calendar year.''.
SEC. 1915. ACCESS TO DATA MINING INFORMATION.
(a) In General.--Section 515(j)(2) of the Federal Crop Insurance
Act (7 U.S.C. 1515(j)(2)) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(A) In general.--The Secretary''; and
(2) by adding at the end the following:
``(B) Access to data mining information.--
``(i) In general.--The Secretary shall
establish a fee-for-access program under which
approved insurance providers pay to the
Secretary a user fee in exchange for access to
the data mining system established under
subparagraph (A) for the purpose of assisting
in fraud and abuse detection.
``(ii) Prohibition.--
``(I) In general.--Except as
provided in subclause (II), the
Corporation shall not impose a
requirement on approved insurance
providers to access the data mining
system established under subparagraph
(A).
``(II) Access without fee.--If the
Corporation requires approved insurance
providers to access the data mining
system established under subparagraph
(A), including for quality assurance
purposes under the Standard Reinsurance
Agreement access will be provided
without charge to the extent necessary
to fulfill the requirements.
``(iii) Access limitation.--In establishing
the program under clause (i), the Secretary
shall ensure that an approved insurance
provider has access only to information
relating to the policies or plans of insurance
for which the approved insurance provider
provides insurance coverage, including any
information relating to--
``(I) information of agents and
adjusters relating to policies for
which the approved insurance provider
provides coverage;
``(II) the other policies or plans
of an insured that are insured through
another approved insurance providers;
and
``(III) the policies or plans of an
insured for prior crop insurance
years.''.
(b) Insurance Fund.--Section 516 of the Federal Crop Insurance Act
(7 U.S.C. 1516) is amended--
(1) in subsection (b), by adding at the end the following:
``(3) Data mining system.--The Corporation shall use
amounts deposited in the insurance fund established under
subsection (c) from fees collected under section 515(j)(2)(B)
to administer and carry out improvements to the data mining
system under that section.''; and
(2) in subsection (c)(1)--
(A) by striking ``and civil'' and inserting
``civil''; and
(B) by inserting ``and fees collected under section
515(j)(2)(B)(i),'' after ``section 515(h),''.
SEC. 1916. PRODUCER ELIGIBILITY.
Section 520(2) of the Federal Crop Insurance Act (7 U.S.C. 1520(2))
is amended by inserting ``or is a person who raises livestock owned by
other persons (that is not covered by insurance under this title by
another person)'' after ``sharecropper''.
SEC. 1917. CONTRACTS FOR ADDITIONAL CROP POLICIES.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522) is
amended--
(1) by redesignating paragraph (10) as paragraph (14); and
(2) by inserting after paragraph (9) the following:
``(10) Energy crop insurance policy.--
``(A) Definition of dedicated energy crop.--In this
subsection, the term `dedicated energy crop' means an
annual or perennial crop that--
``(i) is grown expressly for the purpose of
producing a feedstock for renewable biofuel,
renewable electricity, or bio-based products;
and
``(ii) is not typically used for food,
feed, or fiber.
``(B) Authority.--The Corporation shall offer to
enter into 1 or more contracts with qualified entities
to carry out research and development regarding a
policy to insure dedicated energy crops.
``(C) Research and development.--Research and
development described in subparagraph (B) shall
evaluate the effectiveness of risk management tools for
the production of dedicated energy crops, including
policies and plans of insurance that--
``(i) are based on market prices and
yields;
``(ii) to the extent that insufficient data
exist to develop a policy based on market
prices and yields, evaluate the policies and
plans of insurance based on the use of weather
or rainfall indices to protect the interests of
crop producers; and
``(iii) provide protection for production
or revenue losses, or both.
``(11) Aquaculture insurance policy.--
``(A) Definition of aquaculture.--In this
subsection:
``(i) In general.--The term `aquaculture'
means the propagation and rearing of aquatic
species in controlled or selected environments,
including shellfish cultivation on grants or
leased bottom and ocean ranching.
``(ii) Exclusion.--The term `aquaculture'
does not include the private ocean ranching of
Pacific salmon for profit in any State in which
private ocean ranching of Pacific salmon is
prohibited by any law (including regulations).
``(B) Authority.--The Corporation shall offer to
enter into 1 or more contracts with qualified entities
to carry out research and development regarding a
policy to insure aquaculture operations.
``(C) Research and development.--Research and
development described in subparagraph (B) shall
evaluate the effectiveness of risk management tools for
the production of fish and other seafood in aquaculture
operations, including policies and plans of insurance
that--
``(i) are based on market prices and
yields;
``(ii) to the extent that insufficient data
exist to develop a policy based on market
prices and yields, evaluate how best to
incorporate insuring of aquaculture operations
into existing policies covering adjusted gross
revenue; and
``(iii) provide protection for production
or revenue losses, or both.
``(12) Organic crop production coverage improvements.--
``(A) In general.--Not later than 180 days after
the date of enactment of this paragraph, the
Corporation shall offer to enter into 1 or more
contracts with qualified entities for the development
of improvements in Federal crop insurance policies
covering organic crops.
``(B) Price election.--
``(i) In general.--The contracts under
subparagraph (A) shall include the development
of procedures (including any associated changes
in policy terms or materials required for
implementation of the procedures) to offer
producers of organic crops a price election
that would reflect the actual retail or
wholesale prices, as appropriate, received by
producers for organic crops, as established
using data collected and maintained by the
Agricultural Marketing Service.
``(ii) Deadline.--The development of the
procedures required under clause (i) shall be
completed not later than the date necessary to
allow the Corporation to offer the price
election--
``(I) beginning in the 2009
reinsurance year for organic crops with
adequate data available; and
``(II) subsequently for additional
organic crops as data collection for
those organic crops is sufficient, as
determined by the Corporation.
``(13) Skiprow cropping practices.--
``(A) In general.--The Corporation shall offer to
enter into a contract with a qualified entity to carry
out research into needed modifications of policies to
insure corn and sorghum produced in the Central Great
Plains (as determined by the Agricultural Research
Service) through use of skiprow cropping practices.
``(B) Research.--Research described in subparagraph
(A) shall--
``(i) review existing research on skiprow
cropping practices and actual production
history of producers using skiprow cropping
practices; and
``(ii) evaluate the effectiveness of risk
management tools for producers using skiprow
cropping practices, including--
``(I) the appropriateness of rules
in existence as of the date of
enactment of this paragraph relating to
the determination of acreage planted in
skiprow patterns; and
``(II) whether policies for crops
produced through skiprow cropping
practices reflect actual production
capabilities.''.
SEC. 1918. RESEARCH AND DEVELOPMENT.
(a) Reimbursement Authorized.--Section 522(b) of the Federal Crop
Insurance Act (7 U.S.C. 1522(b)) is amended by striking paragraph (1)
and inserting the following:
``(1) Research and development reimbursement.--The
Corporation shall provide a payment to reimburse an applicant
for research and development costs directly related to a policy
that--
``(A) is submitted to, and approved by, the Board
pursuant to a FCIC reimbursement grant under paragraph
(7); or
``(B) is--
``(i) submitted to the Board and approved
by the Board under section 508(h) for
reinsurance; and
``(ii) if applicable, offered for sale to
producers.''.
(b) FCIC Reimbursement Grants.--Section 522(b) of the Federal Crop
Insurance Act (7 U.S.C. 1522(b)) is amended by adding at the end the
following:
``(7) FCIC reimbursement grants.--
``(A) Grants authorized.--The Corporation shall
provide FCIC reimbursement grants to persons (referred
to in this paragraph as `submitters') proposing to
prepare for submission to the Board crop insurance
policies and provisions under subparagraphs (A) and (B)
of section 508(h)(1), that apply and are approved for
the FCIC reimbursement grants under this paragraph.
``(B) Submission of application.--
``(i) In general.--The Board shall receive
and consider applications for FCIC
reimbursement grants at least once each year.
``(ii) Requirements.--An application to
receive a FCIC reimbursement grant from the
Corporation shall consist of such materials as
the Board may require, including--
``(I) a concept paper that
describes the proposal in sufficient
detail for the Board to determine
whether the proposal satisfies the
requirements of subparagraph (C); and
``(II) a description of--
``(aa) the need for the
product, including an
assessment of marketability and
expected demand among affected
producers;
``(bb) support from
producers, producer
organizations, lenders, or
other interested parties; and
``(cc) the impact the
product would have on producers
and on the crop insurance
delivery system; and
``(III) a statement that no
products are offered by the private
sector that provide the same benefits
and risk management services as the
proposal;
``(IV) a summary of data sources
available that demonstrate that the
product can reasonably be developed and
properly rated; and
``(V) an identification of the
risks the proposed product will cover
and an explanation of how the
identified risks are insurable under
this title.
``(C) Approval conditions.--
``(i) In general.--A majority vote of the
Board shall be required to approve an
application for a FCIC reimbursement grant.
``(ii) Required findings.--The Board shall
approve the application if the Board finds
that--
``(I) the proposal contained in the
application--
``(aa) provides coverage to
a crop or region not
traditionally served by the
Federal crop insurance program;
``(bb) provides crop
insurance coverage in a
significantly improved form;
``(cc) addresses a
recognized flaw or problem in
the Federal crop insurance
program or an existing product;
``(dd) introduces a
significant new concept or
innovation to the Federal crop
insurance program; or
``(ee) provides coverage or
benefits not available from the
private sector;
``(II) the submitter demonstrates
the necessary qualifications to
complete the project successfully in a
timely manner with high quality;
``(III) the proposal is in the
interests of producers and can
reasonably be expected to be
actuarially appropriate and function as
intended;
``(IV) the Board determines that
the Corporation has sufficient
available funding to award the FCIC
reimbursement grant; and
``(V) the proposed budget and
timetable are reasonable.
``(D) Participation.--
``(i) In general.--In reviewing proposals
under this paragraph, the Board may use the
services of persons that the Board determines
appropriate to carry out expert review in
accordance with section 508(h).
``(ii) Confidentiality.--All proposals
submitted under this paragraph shall be treated
as confidential in accordance with section
508(h)(4).
``(E) Entering into agreement.--Upon approval of an
application, the Board shall offer to enter into an
agreement with the submitter for the development of a
formal submission that meets the requirements for a
complete submission established by the Board under
section 508(h).
``(F) Feasibility studies.--
``(i) In general.--In appropriate cases,
the Corporation may structure the FCIC
reimbursement grant to require, as an initial
step within the overall process, the submitter
to complete a feasibility study, and report the
results of the study to the Corporation, prior
to proceeding with further development.
``(ii) Monitoring.--The Corporation may
require such other reports as the Corporation
determines necessary to monitor the development
efforts.
``(G) Rates.--Payment for work performed by the
submitter under this paragraph shall be based on rates
determined by the Corporation for products--
``(i) submitted under section 508(h); or
``(ii) contracted by the Corporation under
subsection (c).
``(H) Termination.--
``(i) In general.--The Corporation or the
submitter may terminate any FCIC reimbursement
grant at any time for just cause.
``(ii) Reimbursement.--If the Corporation
or the submitter terminates the FCIC
reimbursement grant before final approval of
the product covered by the grant, the submitter
shall be entitled to--
``(I) reimbursement of all eligible
costs incurred to that point; or
``(II) in the case of a fixed rate
agreement, payment of an appropriate
percentage, as determined by the
Corporation.
``(iii) Denial.--If the submitter
terminates development without just cause, the
Corporation may deny reimbursement or recover
any reimbursement already made.
``(I) Consideration of products.--The Board shall
consider any product developed under this paragraph and
submitted to the Board under the rules the Board has
established for products submitted under section
508(h).''.
(c) Conforming Amendment.--Section 523(b)(10) of the Federal Crop
Insurance Act (7 U.S.C. 1523(b)(10)) is amended by striking ``(other
than research and development costs covered by section 522)''.
SEC. 1919. FUNDING FROM INSURANCE FUND.
Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 1522(e))
is amended--
(1) in paragraph (1), by striking ``$10,000,000'' and all
that follows through the end of the paragraph and inserting
``$7,500,000 for fiscal year 2008 and each subsequent fiscal
year'';
(2) in paragraph (2)(A), by striking ``$20,000,000 for''
and all that follows through ``year 2004'' and inserting
``$12,500,000 for fiscal year 2008''; and
(3) in paragraph (3), by striking ``the Corporation may
use'' and all that follows through the end of the paragraph and
inserting ``the Corporation may use--
``(A) not more than $5,000,000 for each fiscal year
to improve program integrity, including by--
``(i) increasing compliance-related
training;
``(ii) improving analysis tools and
technology regarding compliance;
``(iii) use of information technology, as
determined by the Corporation;
``(iv) identifying and using innovative
compliance strategies; and
``(B) any excess amounts to carry out other
activities authorized under this section.''.
SEC. 1920. CAMELINA PILOT PROGRAM.
(a) In General.--Section 523 of the Federal Crop Insurance Act (7
U.S.C. 1523) is amended by adding at the end the following:
``(f) Camelina Pilot Program.--
``(1) In general.--Beginning with the 2008 crop year, the
Corporation shall establish a pilot program under which
producers or processors of camelina may propose for approval by
the Board policies or plans of insurance for camelina, in
accordance with section 508(h).
``(2) Determination by board.--The Board shall approve a
policy or plan of insurance proposed under paragraph (1) if, as
determined by the Board, the policy or plan of insurance--
``(A) protects the interests of producers;
``(B) is actuarially sound; and
``(C) meets the requirements of this title.''.
(b) Noninsured Crop Assistance Program.--Section 196(a)(2) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333(a)(2)) is amended by adding at the end the following:
``(D) Camelina.--
``(i) In general.--For each of crop years
2008 through 2011, the Secretary shall consider
camelina to be an eligible crop for purposes of
the noninsured crop disaster assistance program
under this section.
``(ii) Limitation.--Producers that are
eligible to purchase camelina crop insurance,
including camelina crop insurance under a pilot
program, shall not be eligible for assistance
under this section.''.
SEC. 1921. SESAME INSURANCE PILOT PROGRAM.
Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is
amended by adding at the end the following:
``(g) Sesame Insurance Pilot Program.--
``(1) In General.--The Secretary of Agriculture shall
establish and carry out a pilot program under which a producer
of non-dehiscent sesame under contract may elect to obtain
multi-peril crop insurance, as determined by the Secretary.
``(2) Terms and Conditions.--The multi-peril crop insurance
offered under the sesame insurance pilot program shall--
``(A) be offered through reinsurance arrangements
with private insurance companies;
``(B) be actuarially sound; and
``(C) require the payment of premiums and
administrative fees by a producer obtaining the
insurance.
``(3) Location.--The sesame insurance pilot program shall
be carried out only in the State of Texas.
``(4) Relation to Prohibition on Research and Development
by Corporation-Section 522(e)(4) of the Federal Crop Insurance
Act (7 U.S.C. 1522(e)(4)) shall apply with respect to the
sesame insurance pilot program.
``(5) Duration.--The Secretary shall commence the sesame
insurance pilot program as soon as practicable after the date
of the enactment of this Act and continue the program through
the 2012 crop year.''
SEC. 1922. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS OR RANCHERS.
Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 1524(a))
is amended--
(1) in paragraph (1), by striking ``paragraph (4)'' and
inserting ``paragraph (5)'';
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
``(4) Requirements.--In carrying out the programs
established under paragraphs (2) and (3), the Secretary shall
place special emphasis on risk management strategies,
education, and outreach specifically targeted at--
``(A) beginning farmers or ranchers;
``(B) immigrant farmers or ranchers that are
attempting to become established producers in the
United States;
``(C) socially disadvantaged farmers or ranchers;
``(D) farmers or ranchers that--
``(i) are preparing to retire; and
``(ii) are using transition strategies to
help new farmers or ranchers get started; and
``(E) new or established farmers or ranchers that
are converting production and marketing systems to
pursue new markets.''.
SEC. 1923. AGRICULTURAL MANAGEMENT ASSISTANCE.
Section 524(b)(4) of the Federal Crop Insurance Act (7 U.S.C.
1524(b)(4)) is amended by adding at end the following:
``(C) Cost-sharing.--The Secretary may provide
matching funds to any State described in paragraph (1)
that appropriates a portion of the budget of the State
to provide financial assistance for producer-paid
premiums for crop insurance policies reinsured by the
Corporation.''.
SEC. 1924. CROP INSURANCE MEDIATION.
Section 275 of the Department of Agriculture Reorganization Act of
1994 (7 U.S.C. 6995) is amended--
(1) by striking ``If an officer'' and inserting the
following:
``(a) In General.--If an officer'';
(2) by striking ``With respect to'' and inserting the
following:
``(b) Farm Service Agency.--With respect to'';
(3) by striking ``If a mediation''; and inserting the
following:
``(c) Mediation.--If a mediation''; and
(4) in subsection (c) (as so designated)--
(A) by striking ``participant shall be offered''
and inserting ``participant shall--
``(1) be offered''; and
(B) by striking the period at the end and inserting
the following: ``; and
``(2) to the maximum extent practicable, be allowed to use
both informal agency review and mediation to resolve disputes
under that title.''.
SEC. 1925. DROUGHT COVERAGE FOR AQUACULTURE UNDER NONINSURED CROP
ASSISTANCE PROGRAM.
Section 196(c)(2) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7333(c)(2)) is amended--
(1) by striking ``On making'' and inserting the following:
``(A) In general.--On making''; and
(2) by adding at the end the following:
``(B) Aquaculture producers.--On making a
determination described in subsection (a)(3) for
aquaculture producers, the Secretary shall provide
assistance under this section to aquaculture producers
from all losses related to drought.''.
SEC. 1926. INCREASE IN SERVICE FEES FOR NONINSURED CROP ASSISTANCE
PROGRAM.
Section 196(k)(1) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7333(k)(1)) is amended--
(1) in subparagraph (A), by striking ``$100'' and inserting
``$200''; and
(2) in subparagraph (B)--
(A) by striking ``$300'' and inserting ``$600'';
and
(B) by striking ``$900'' and inserting ``$1,500''.
SEC. 1927. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.
Section 9001(d) of the U.S. Troop Readiness, Veterans' Care,
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
(Public Law 110-28; 121 Stat. 211) is amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
``(8) Sweet potatoes.--
``(A) Data.--In the case of sweet potatoes, any
data obtained under a pilot program carried out by the
Risk Management Agency shall not be considered for the
purpose of determining the quantity of production under
the crop disaster assistance program established under
this section.
``(B) Extension of deadline.--If this paragraph is
not implemented before the sign-up deadline for the
crop disaster assistance program established under this
section, the Secretary shall extend the deadline for
producers of sweet potatoes to permit sign-up for the
program in accordance with this paragraph.''.
SEC. 1928. PERENNIAL CROP REPORT.
Not later than 180 days after the date of enactment of this Act,
the Secretary shall submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report containing details about activities and
administrative options of the Federal Crop Insurance Corporation and
Risk Management Agency that address issues relating to--
(1) declining yields on the actual production histories of
producers; and
(2) declining and variable yields for perennial crops,
including pecans.
SEC. 1929. MALTING BARLEY.
Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m))
is amended by adding at the end the following:
``(5) Special provisions for malting barley.--The
Corporation shall promulgate special provisions under this
subsection specific to malting barley, taking into
consideration any changes in quality factors, as required by
applicable market conditions.''.
SEC. 1930. DEFINITION OF BASIC UNIT.
The Secretary shall not modify the definition of ``basic unit'' in
accordance with the proposed regulations entitled ``Common Crop
Insurance Regulations'' (72 Fed. Reg. 28895; relating to common crop
insurance regulations) or any successor regulation.
TITLE II--CONSERVATION
Subtitle A--Definitions
SEC. 2001. DEFINITIONS.
Section 1201(a) of the Food Security Act of 1985 (16 U.S.C.
3801(a)) is amended--
(1) by redesignating paragraphs (2) through (11), (12),
(13) through (15), and (16), (17), and (18) as paragraphs (3)
through (12), (14), (16) through (18), and (20), (22), and
(23), respectively;
(2) by inserting after paragraph (1) the following:
``(2) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has, to the maximum extent practicable, the
meaning given the term in section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a)), except that
the Secretary may include in the definition of the term--
``(A) a fair and reasonable test of net worth; and
``(B) such other criteria as the Secretary
determines to be appropriate.'';
(3) by inserting after paragraph (12) (as redesignated by
paragraph (1)) the following:
``(13) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).''.
(4) by inserting after paragraph (14) (as redesignated by
paragraph (1)) the following:
``(15) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land, as
determined by the Secretary, that--
``(A) has existing tree cover or is suitable for
growing trees; and
``(B) is owned by any nonindustrial private
individual, group, association, corporation, Indian
tribe, or other private legal entity that has
definitive decisionmaking authority over the land.'';
(5) by inserting after paragraph (18) (as redesignated by
paragraph (1)) the following:
``(19) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 355(e) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)).''; and
(6) by inserting after paragraph (20) (as redesignated by
paragraph (1)) the following:
``(21) Technical assistance.--
``(A) In general.--The term `technical assistance'
means technical expertise, information, and tools
necessary for the conservation of natural resources on
land active in agricultural, forestry, or related uses.
``(B) Inclusions.--The term `technical assistance'
includes--
``(i) technical services provided directly
to farmers, ranchers, and other eligible
entities, such as conservation planning,
technical consultation, and assistance with
design and implementation of conservation
practices; and
``(ii) technical infrastructure, including
activities, processes, tools, and agency
functions needed to support delivery of
technical services, such as technical
standards, resource inventories, training,
data, technology, monitoring, and effects
analyses.''.
Subtitle B--Highly Erodible Land Conservation
SEC. 2101. REVIEW OF GOOD FAITH DETERMINATIONS; EXEMPTIONS.
Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) is
amended by striking subsection (f) and inserting the following:
``(f) Graduated Penalties.--
``(1) Ineligibility.--No person shall become ineligible
under section 1211 for program loans, payments, and benefits as
a result of the failure of the person to actively apply a
conservation plan, if the Secretary determines that the person
has acted in good faith and without an intent to violate this
subtitle.
``(2) Eligible reviewers.--A determination of the
Secretary, or a designee of the Secretary, under paragraph (1)
shall be reviewed by the applicable--
``(A) State Executive Director, with the technical
concurrence of the State Conservationist; or
``(B) district director, with the technical
concurrence of the area conservationist.
``(3) Period for implementation.--A person who meets the
requirements of paragraph (1) shall be allowed a reasonable
period of time, as determined by the Secretary, but not to
exceed 1 year, during which to implement the measures and
practices necessary to be considered to be actively applying
the conservation plan of the person.
``(4) Penalties.--
``(A) Application.--This paragraph applies if the
Secretary determines that--
``(i) a person who has failed to comply
with section 1211 with respect to highly
erodible cropland, and has acted in good faith
and without an intent to violate section 1211;
or
``(ii) the violation--
``(I) is technical and minor in
nature; and
``(II) has a minimal effect on the
erosion control purposes of the
conservation plan applicable to the
land on which the violation has
occurred.
``(B) Reduction.--If this paragraph applies under
subparagraph (A), the Secretary shall, in lieu of
applying the ineligibility provisions of section 1211,
reduce program benefits described in section 1211 that
the producer would otherwise be eligible to receive in
a crop year by an amount commensurate with the
seriousness of the violation, as determined by the
Secretary.
``(5) Subsequent crop years.--Any person whose benefits are
reduced for any crop year under this subsection shall continue
to be eligible for all of the benefits described in section
1211 for any subsequent crop year if, prior to the beginning of
the subsequent crop year, the Secretary determines that the
person is actively applying a conservation plan according to
the schedule specified in the plan.''.
Subtitle C--Wetland Conservation
SEC. 2201. REVIEW OF GOOD FAITH DETERMINATIONS.
Section 1222(h) of the Food Security Act of 1985 (16 U.S.C.
3822(h)) is amended--
(1) by redesignating paragraph (2) as paragraph (3);
(2) by inserting after paragraph (1) the following:
``(2) Eligible reviewers.--A determination of the
Secretary, or a designee of the Secretary, under paragraph (1)
shall be reviewed by the applicable--
``(A) State Executive Director, with the technical
concurrence of the State Conservationist; or
``(B) district director, with the technical
concurrence of the area conservationist.''; and
(3) in paragraph (3) (as redesignated by paragraph (1)), by
inserting ``be'' before ``actively''.
Subtitle D--Agricultural Resources Conservation Program
CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT
Subchapter A--Comprehensive Conservation Enhancement Program
SEC. 2301. REAUTHORIZATION AND EXPANSION OF PROGRAMS COVERED.
(a) In General.--Section 1230 of the Food Security Act of 1985 (16
U.S.C. 3830) is amended to read as follows:
``SEC. 1230. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.
``(a) Establishment.--
``(1) In general.--During the 1996 through 2012 fiscal
years, the Secretary shall establish a comprehensive
conservation enhancement program (referred to in this section
as `CCEP') to be implemented through contracts and the
acquisition of easements to assist owners and operators of
farms, ranches, and nonindustrial private forestland to
conserve and enhance soil, water, and related natural
resources, including grazing land, wetland, and wildlife
habitat.
``(2) Means.--The Secretary shall carry out the CCEP by--
``(A) providing for the long-term protection of
environmentally-sensitive land; and
``(B) providing technical and financial assistance
to farmers, ranchers, and nonindustrial private forest
landowners--
``(i) to improve the management and
operation of the farms, ranches, and private
nonindustrial forest land; and
``(ii) to reconcile productivity and
profitability with protection and enhancement
of the environment;
``(C) reducing administrative burdens and
streamlining application and planning procedures to
encourage producer participation; and
``(D) providing opportunities to leverage Federal
conservation investments through innovative
partnerships with governmental agencies, education
institutions, producer groups, and other
nongovernmental organizations.
``(3) Programs.--The CCEP shall consist of--
``(A) the conservation reserve program established
under subchapter B;
``(B) the wetlands reserve program established
under subchapter C; and
``(C) the healthy forests reserve program
established under subchapter D.
``(b) Contracts and Enrollments.--
``(1) In general.--In carrying out the CCEP, the Secretary
shall enter into contracts with owners and operators and
acquire interests in land through easements from owners, as
provided in this chapter.
``(2) Prior enrollments.--Acreage enrolled in the
conservation reserve program, wetlands reserve program, or
healthy forests reserve program prior to the date of enactment
of the Food and Energy Security Act of 2007 shall be considered
to be placed into the CCEP.
``(c) Administration.--
``(1) Limitations.--
``(A) In general.--The Secretary shall not enroll
more than 25 percent of the cropland in any county in
the programs administered under subchapters B and C of
this chapter.
``(B) Easements.--Within the limit described in
subparagraph (A), not more than 10 percent of the land
described in that subparagraph may be subject to an
easement acquired under subchapter C of this chapter.
``(C) Exclusion.--Subparagraphs (A) and (B) shall
not apply to acres enrolled in the special conservation
reserve enhancement program described in section
1234(f)(3).
``(D) Exceptions.--The Secretary may exceed the
limitation in subparagraph (A) if the Secretary
determines that--
``(i)(I) the action would not adversely
affect the local economy of a county; and
``(II) operators in the county are having
difficulties complying with conservation plans
implemented under section 1212;
``(ii)(I) the acreage to be enrolled could
not be used for an agricultural purpose or is
precluded from planting as a result of a State
or local law, order, or regulation prohibiting
water use for agricultural production; and
``(II) enrollment in the program would
benefit the acreage enrolled or land adjacent
to the acreage enrolled; or
``(iii) with respect to cropland in
counties in the State of Washington that exceed
the limitation described in subparagraph (A) as
of the date of enrollment in the program--
``(I) the acreage to be enrolled is
considered to be essential by Federal
or State plans for a sustainable
wildlife habitat; and
``(II) enrollment in the program
would assist the producer in meeting
environmental goals in the Federal or
State plans.''.
``(E) Shelterbelts and windbreaks.--The limitations
established under this paragraph shall not apply to
cropland that is subject to an easement under chapter 1
or 3 that is used for the establishment of shelterbelts
and windbreaks.
``(F) Enrollment.--The Secretary shall enroll
acreage described in subparagraph (D)(ii) not later
than 180 days after the date of a request by a
landowner to enroll the acreage.
``(G) Payments.--Rental payments for acreage
described in subparagraph (D)(ii) shall be based on the
cash rent market value prior to the application of a
State or local law, order, or regulation prohibiting
water use for agricultural production.
``(2) Tenant protection.--Except for a person who is a
tenant on land that is subject to a conservation reserve
contract that has been extended by the Secretary, the Secretary
shall provide adequate safeguards to protect the interests of
tenants and sharecroppers, including provisions for sharing, on
a fair and equitable basis, in payments under the programs
established under this subtitle and subtitles B and C.
``(3) Provision of technical assistance by other sources.--
``(A) In general.--In the preparation and
application of a conservation compliance plan under
subtitle B or similar plan required as a condition for
assistance from the Department of Agriculture, the
Secretary shall permit persons to secure technical
assistance from approved sources, as determined by the
Secretary, other than the Natural Resources
Conservation Service.
``(B) Rejection.--If the Secretary rejects a
technical determination made by a source described in
subparagraph (A), the basis of the determination of the
Secretary shall be supported by documented evidence.
``(4) Regulations.--Not later than 90 days after the date
of enactment of the Food and Energy Security Act of 2007, the
Secretary shall promulgate regulations to implement the
conservation reserve and wetlands reserve programs established
under this chapter.''.
(b) Conforming Amendments.--
(1) Section 1243 of the Food Security Act of 1985 (16
U.S.C. 3843) is repealed.
(2) Section 1222(g) of the Food Security Act of 1985 (16
U.S.C. 3822(g)) is amended by striking ``1243'' and inserting
``1230(c)''.
(3) Section 1231(k)(3)(C)(i) of the Food Security Act of
1985 (16 U.S.C. 3831(k)(3)(C)(i)) is amended by striking
``1243(b)'' and inserting ``1230(c)(1)''.
Subchapter B--Conservation Reserve
SEC. 2311. CONSERVATION RESERVE PROGRAM.
(a) In General.--Section 1231(a) of the Food Security Act of 1985
(16 U.S.C. 3831(a)) is amended--
(1) by striking ``2007'' and inserting ``2012''; and
(2) by striking ``and wildlife'' and inserting ``wildlife,
and pollinator habitat''.
(b) Eligible Land.--Section 1231(b) of the Food Security Act of
1985 (16 U.S.C. 3831(b)) is amended--
(1) in paragraph (1)(B), by striking the period at the end
and inserting a semicolon;
(2) in paragraph (4)--
(A) in subparagraph (C), by striking ``; or'' and
inserting a semicolon;
(B) in subparagraph (D), by striking ``and'' at the
end and inserting ``or''; and
(C) in subparagraph (E), by inserting ``in the case
of alfalfa or other forage crops,'' before
``enrollment'';
(3) in paragraph (5), by striking the period at the end and
inserting a semicolon; and
(4) by adding at the end the following:
``(6) marginal pasture land or hay land that is otherwise
ineligible, if the land--
``(A) is to be devoted to native vegetation
appropriate to the ecological site; and
``(B) would contribute to the restoration of a
long-leaf pine forest or other declining forest
ecosystem, as defined by the Secretary; or
``(7) land that is enrolled in the flooded farmland program
established under section 1235B.''.
(c) Enrollment.--Section 1231(d) of the Food Security Act of 1985
(16 U.S.C. 3831(d)) is amended by striking ``up to'' and all that
follows through ``2007'' and inserting ``up to 39,200,000 acres in the
conservation reserve at any 1 time during the 2008 through 2012''.
(d) Conservation Priority Areas.--Section 1231(f)(1) of the Food
Security Act of 1985 (16 U.S.C. 3831(f)(1)) is amended--
(1) by striking ``(Pennsylvania, Maryland, and Virginia)'';
and
(2) by inserting ``the Prairie Pothole Region, the Grand
Lake St. Mary's Watershed, the Eastern Snake Plain Aquifer,''
after ``Sound Region,''.
(e) Pilot Program for Enrollment of Wetland and Buffer Acreage in
Conservation Reserve.--Section 1231 of the Food Security Act of 1985
(16 U.S.C. 3831) is amended by striking subsection (h) and inserting
the following:
``(h) Pilot Program for Enrollment of Wetland, Shallow Water Areas,
and Buffer Acreage in Conservation Reserve.--
``(1) Program.--
``(A) In general.--During the 2008 through 2012
calendar years, the Secretary shall carry out a program
in each State under which the Secretary shall enroll
eligible acreage described in paragraph (2).
``(B) Participation among states.--The Secretary
shall ensure, to the maximum extent practicable, that
owners and operators in each State have an equitable
opportunity to participate in the pilot program
established under this subsection.
``(2) Eligible acreage.--
``(A) In general.--Subject to subparagraphs (B)
through (E), an owner or operator may enroll in the
conservation reserve under this subsection--
``(i)(I) a wetland (including a converted
wetland described in section 1222(b)(1)(A))
that had a cropping history during at least 3
of the immediately preceding 10 crop years;
``(II) a shallow water area that was
devoted to a commercial pond-raised aquaculture
operation any year during the period of
calendar years 2002 through 2007; or
``(III) an agriculture drainage water
treatment that receives flow from a row crop
agriculture drainage system and is designed to
provide nitrogen removal in addition to other
wetland functions; and
``(ii) buffer acreage that--
``(I) is contiguous to a wetland or
shallow water area described in clause
(i);
``(II) is used to protect the
wetland or shallow water area described
in clause (i); and
``(III) is of such width as the
Secretary determines is necessary to
protect the wetland or shallow water
area described in clause (i) or to
enhance the wildlife benefits,
including through restriction of
bottomland hardwood habitat, taking
into consideration and accommodating
the farming practices (including the
straightening of boundaries to
accommodate machinery) used with
respect to the cropland that surrounds
the wetland or shallow water area.
``(B) Exclusions.--Except for a shallow water area
described in paragraph (2)(A)(i), an owner or operator
may not enroll in the conservation reserve under this
subsection--
``(i) any wetland, or land on a floodplain,
that is, or is adjacent to, a perennial
riverine system wetland identified on the final
national wetland inventory map of the Secretary
of the Interior; or
``(ii) in the case of an area that is not
covered by the final national inventory map,
any wetland, or land on a floodplain, that is
adjacent to a perennial stream identified on a
1-24,000 scale map of the United States
Geological Survey.
``(C) Program limitations.--
``(i) In general.--The Secretary may enroll
in the conservation reserve under this
subsection not more than--
``(I) 100,000 acres in any 1 State
referred to in paragraph (1); and
``(II) not more than a total of
1,000,000 acres.
``(ii) Relationship to program maximum.--
Subject to clause (iii), for the purposes of
subsection (d), any acreage enrolled in the
conservation reserve under this subsection
shall be considered acres maintained in the
conservation reserve.
``(iii) Relationship to other enrolled
acreage.--Acreage enrolled under this
subsection shall not affect for any fiscal year
the quantity of--
``(I) acreage enrolled to establish
conservation buffers as part of the
program announced on March 24, 1998 (63
Fed. Reg. 14109); or
``(II) acreage enrolled into the
conservation reserve enhancement
program announced on May 27, 1998 (63
Fed. Reg. 28965).
``(iv) Review; potential increase in
enrollment acreage.--Not later than 3 years
after the date of enactment of the Food and
Energy Security Act of 2007, the Secretary
shall--
``(I) conduct a review of the
program under this subsection with
respect to each State that has enrolled
land in the program; and
``(II) notwithstanding clause
(i)(I), increase the number of acres
that may be enrolled by a State under
clause (i)(I) to not more than 150,000
acres, as determined by the Secretary.
``(D) Owner or operator limitations.--
``(i) Wetland.--
``(I) In general.--Except for a
shallow water area described in
paragraph (2)(A)(i), the maximum size
of any wetland described in
subparagraph (A)(i) of an owner or
operator enrolled in the conservation
reserve under this subsection shall be
40 contiguous acres.
``(II) Coverage.--All acres
described in subclause (I) (including
acres that are ineligible for payment)
shall be covered by the conservation
contract.
``(ii) Buffer acreage.--The maximum size of
any buffer acreage described in subparagraph
(A)(ii) of an owner or operator enrolled in the
conservation reserve under this subsection
shall be determined by the Secretary in
consultation with the State Technical
Committee.
``(iii) Tracts.--Except for a shallow water
area described in paragraph (2)(A)(i) and
buffer acreage, the maximum size of any
eligible acreage described in subparagraph (A)
in a tract (as determined by the Secretary) of
an owner or operator enrolled in the
conservation reserve under this subsection
shall be 40 acres.
``(3) Duties of owners and operators.--Under a contract
entered into under this subsection, during the term of the
contract, an owner or operator of a farm or ranch shall agree--
``(A) to restore the hydrology of the wetland
within the eligible acreage to the maximum extent
practicable, as determined by the Secretary;
``(B) to establish vegetative cover (which may
include emerging vegetation in water and bottomland
hardwoods, cypress, and other appropriate tree species
in shallow water areas) on the eligible acreage, as
determined by the Secretary;
``(C) to a general prohibition of commercial use of
the enrolled land; and
``(D) to carry out other duties described in
section 1232.
``(4) Duties of the secretary.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), in return for a contract
entered into by an owner or operator under this
subsection, the Secretary shall make payments based on
rental rates for cropland and provide assistance to the
owner or operator in accordance with sections 1233 and
1234.
``(B) Continuous signup.--The Secretary shall use
continuous signup under section 1234(c)(2)(B) to
determine the acceptability of contract offers and the
amount of rental payments under this subsection.
``(C) Incentives.--The amounts payable to owners
and operators in the form of rental payments under
contracts entered into under this subsection shall
reflect incentives that are provided to owners and
operators to enroll filterstrips in the conservation
reserve under section 1234.''.
(f) Balance of Natural Resource Purposes.--Section 1231(j) of the
Food Security Act of 1985 (16 U.S.C. 3831(j)) is amended by striking
``and wildlife'' and inserting ``wildlife, and pollinator''.
(g) Duties of Participants.--Section 1232(a) of the Food Security
Act of 1985 (16 U.S.C. 3832(a)) is amended--
(1) in paragraph (4)--
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(B) by inserting before subparagraph (B) (as so
redesignated) the following:
``(A) approved vegetative cover shall encourage the
planting of native species and restoration of
biodiversity;'';
(2) by redesignating paragraphs (5) through (10) as
paragraphs (6) through (11), respectively; and
(3) by inserting after paragraph (4) the following:
``(5) to undertake active management on the land as needed
throughout the term of the contract to implement the
conservation plan;''.
(h) Managed Harvesting and Grazing.--Section 1232(a)(7) of the Food
Security Act of 1985 (16 U.S.C. 3832(a)(7)) is amended--
(1) in the matter preceding subparagraph (A), by inserting
``and brood rearing'' after ``habitat during nesting''; and
(2) in subparagraph (A), by striking ``biomass)'' and
inserting ``biomass and prescribed grazing for the control of
invasive species), if such activity is permitted and consistent
with the conservation plan described in subsection
(b)(1)(A))''.
(i) Conservation Plans.--Section 1232(b)(1)(A) of the Food Security
Act of 1985 (16 U.S.C. 3832(b)(1)(A)) is amended by striking
``contract; and'' and inserting the following: ``contract that are--
``(i) compatible with the conservation and
improvement of soil, water, and wildlife and
wildlife habitat;
``(ii) clearly described and apply
throughout the duration of the contract;
``(iii) actively managed by the owner or
operator that entered into the contract; and
``(iv) consistent with local active
management conservation measures and practices,
as determined by the Secretary; and''.
(j) Acceptance of Contract Offers.--Section 1234(c) of the Food
Security Act of 1985 (16 U.S.C. 3834(c)) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) Acceptance of contract offers.--
``(A) Evaluation of offers.--In determining the
acceptability of contract offers, the Secretary may
take into consideration the extent to which enrollment
of the land that is the subject of the contract offer
would improve soil resources, water quality,
pollinator, fish, or wildlife habitat, or provide other
environmental benefits.
``(B) Local preference.--In determining the
acceptability of contract offers for new enrollments
if, as determined by the Secretary, the land would
provide at least equivalent conservation benefits to
land under competing offers, the Secretary shall, to
the maximum extent practicable, accept an offer from an
owner or operator that is a resident of the county in
which the land is located or of a contiguous county.'';
and
(2) by adding at the end the following:
``(5) Rental rates.--
``(A) Annual estimates.--Not later than 1 year
after the date of enactment of this paragraph, the
Secretary (acting through the National Agricultural
Statistics Service) shall conduct an annual survey of
per acre estimates of county average market dryland and
irrigated cash rental rates for cropland and
pastureland in all counties or equivalent subdivisions
within each State that have 20,000 acres or more of
cropland and pastureland.
``(B) Public availability of estimates.--The
estimates derived from the annual survey conducted
under subparagraph (A) shall be maintained on a website
of the Department of Agriculture for use by the general
public.''.
(k) Early Termination by Owner or Operator.--Section 1235(e)(1) of
the Food Security Act of 1985 (16 U.S.C. 3835(e)(1)) is amended by
striking subparagraph (A) and inserting the following:
``(A) In general.--The Secretary shall allow a
participant to terminate a conservation reserve
contract at any time if, as determined by the
Secretary--
``(i) the participant entered into a
contract under this subchapter before January
1, 1995, and the contract has been in effect
for at least 5 years; or
``(ii) in the case of a participant who is
disabled (as defined in section 72(m)(7) of the
Internal Revenue Code of 1986) or retired from
farming or ranching, the participant has
endured financial hardship as a result of the
taxation of rental payments received.''.
SEC. 2312. FLOODED FARMLAND PROGRAM.
Subchapter B of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831a et seq.) is amended by adding at
the end the following:
``SEC. 1235B. FLOODED FARMLAND PROGRAM.
``(a) Definitions.--In this section:
``(1) Closed basin lake or pothole.--The term `closed basin
lake or pothole' means a naturally occurring lake, pond,
pothole, or group of potholes within a tract that--
``(A) covered, on average, at least 5 acres in
surface area during the preceding 3 crop years, as
determined by the Secretary; and
``(B) has no natural outlet.
``(2) Tract.--The term `tract' has the meaning given the
term by the Secretary.
``(b) Program.--
``(1) In general.--Notwithstanding any other provision of
law (including regulations), as part of the conservation
reserve program established under this subchapter, the
Secretary shall offer to enter into contracts under which the
Secretary shall permit the enrollment in the conservation
reserve of eligible cropland and grazing land that has been
flooded by the natural overflow of a closed basin lake or
pothole located within the Prairie Pothole Region of the
northern Great Plains priority area (as determined by the
Secretary, by regulation).
``(2) Extensions.--The Secretary may offer to extend a
contract entered into under paragraph (1) if the Secretary
determines that conditions persist that make cropland or
grazing land covered by the contract and eligible for entry
into the program under this section.
``(c) Continuous Signup.--The Secretary shall offer the program
under this section through continuous signup under this subchapter.
``(d) Eligibility.--
``(1) In general.--To be eligible to enter into a contract
under subsection (b), the owner shall own land that, as
determined by the Secretary--
``(A) during the 3 crop years preceding entry into
the contract, was rendered incapable of use for the
production of an agricultural commodity or for grazing
purposes; and
``(B) prior to the natural overflow of a closed
basin lake or pothole caused by a period of
precipitation in excess of historical patterns, had
been consistently used for the production of crops or
as grazing land.
``(2) Inclusions.--Land described in paragraph (1) shall
include--
``(A) land that has been flooded as the result of
the natural overflow of a closed basin lake or pothole;
``(B) land that has been rendered inaccessible due
to flooding as the result of the natural overflow of a
closed basin lake or pothole; and
``(C) a reasonable quantity of additional land
adjoining the flooded land that would enhance the
conservation or wildlife value of the tract, as
determined by the Secretary.
``(3) Administration.--The Secretary may establish--
``(A) reasonable minimum acreage levels for
individual parcels of land that may be included in a
contract entered into under this section; and
``(B) the location and area of adjoining flooded
land that may be included in a contract entered into
under this section.
``(e) Payments.--
``(1) In general.--Subject to paragraph (2), the rate of an
annual rental payment under this section, as determined by the
Secretary--
``(A) shall be based on the rental rate under this
subchapter for cropland, and an appropriate rental rate
for pastureland; and
``(B) may be reduced by up to 25 percent, based on
the ratio of upland associated with the enrollment of
the flooded land.
``(2) Exclusions.--During the term of a contract entered
into under this section, an owner shall not be eligible to
participate in or receive benefits for land that is included in
the contract under--
``(A) the Federal crop insurance program
established under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.);
``(B) the noninsured crop assistance program
established under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333); or
``(C) any Federal agricultural crop disaster
assistance program.
``(f) Relationship to Agricultural Commodity Programs.--
``(1) In general.--Subject to paragraph (2), the Secretary,
by regulation, shall provide for the preservation of cropland
base, allotment history, and payment yields applicable to land
that was rendered incapable of use for the production of an
agricultural commodity or for grazing purposes as the result of
the natural overflow of a closed basin lake or pothole.
``(2) Termination of contract.--On termination of a
contract under this section, the Secretary shall adjust the
cropland base, allotment history, and payment yields for land
covered by the contract to ensure equitable treatment of the
land relative to program payment yields of comparable land in
the county that was not flooded as a result of the natural
overflow of a closed basin lake or pothole and was capable of
remaining in agricultural production.
``(g) Use of Land.--An owner that has entered into a contract with
the Secretary under this section shall take such actions as are
necessary to avoid degrading any wildlife habitat on land covered by
the contract that has naturally developed as a result of the natural
overflow of a closed basin lake or pothole.''.
SEC. 2313. WILDLIFE HABITAT PROGRAM.
Subchapter B of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831a et seq.) (as amended by section
2312) is amended by adding at the end the following:
``SEC. 1235C. WILDLIFE HABITAT PROGRAM.
``(a) In General.--As part of the conservation reserve program
established under this subchapter, the Secretary shall carry out a
program to provide to owners and operators who have entered into
contracts under this subchapter and established softwood pine stands,
for each of fiscal years 2008 through 2012, assistance to carry out, on
the acreage of the owner or operator enrolled in the program under this
subchapter, activities that improve the condition of the enrolled land
for the benefit of wildlife.
``(b) Scope of Program.--In carrying out the program under this
section, the Secretary shall determine--
``(1) the amount and rate of payments (including incentive
payments and cost-sharing payments) to be made to owners and
operators who participate in the program to ensure the
participation of those owners and operators;
``(2) the areas in each of the States in which owners and
operators referred to in subsection (a) are located that should
be given priority under the program, based on the need in those
areas for changes in the condition of land to benefit wildlife;
and
``(3) the management strategies and practices (including
thinning, burning, seeding, establishing wildlife food plots,
and such other practices that have benefits for wildlife as are
approved by the Secretary) that may be carried out by owners
and operators under the program.
``(c) Agreements.--
``(1) In general.--An owner or operator described in
subsection (a) that seeks to receive assistance under this
section shall enter into an agreement with the Secretary that--
``(A) describes the management strategies and
practices referred to in subsection (b)(3) that will be
carried out by the owner or operator under the
agreement;
``(B) describes measures to be taken by the owner
or operator to ensure active but flexible management of
acreage covered by the agreement;
``(C) requires the owner or operator to submit to
periodic monitoring and evaluation by wildlife or
forestry agencies of the State in which land covered by
the agreement is located; and
``(D) contains such other terms or conditions as
the Secretary may require.
``(2) Term; inclusion in contract.--An agreement entered
into under this section shall have a term of not more than 5
years.
``(d) Partnerships.--In carrying out this section, the Secretary
may establish or identify and, as appropriate, require owners and
operators participating in the program under this section to work
cooperatively with, partnerships among the Secretary and State, local,
and nongovernmental organizations.
``(e) Technical Assistance and Cost Sharing.--The Secretary may
provide to owners and operators participating in the program under this
section, and members of partnerships described in subsection (d)--
``(1) technical assistance for use in carrying out an
activity covered by an agreement described in subsection (c);
and
``(2) a payment for use in covering a percentage of the
costs of carrying out each such activity that does not exceed
the applicable amount and rate determined by the Secretary
under subsection (b)(1).
``(f) Termination of Program.--The program under this section shall
terminate on September 30, 2011.''.
Subchapter C--Wetlands Reserve Program
SEC. 2321. WETLANDS RESERVE PROGRAM.
Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is
amended--
(1) by striking subsection (b) and inserting the following:
``(b) Enrollment Conditions.--
``(1) Annual enrollment.--To the maximum extent
practicable, the Secretary shall enroll 250,000 acres in each
fiscal year, with no enrollments beginning in fiscal year 2013.
``(2) Methods of enrollment.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall enroll acreage
into the wetlands reserve program through the use of--
``(i) permanent easements;
``(ii) 30-year easements;
``(iii) restoration cost-share agreements;
or
``(iv) any combination of the options
described in clauses (i) through (iii).
``(B) Acreage owned by indian tribes.--In the case
of acreage owned by an Indian tribe, the Secretary
shall enroll acreage into the wetlands reserve program
through the use of--
``(i) a 30-year contract (the value of
which shall be equivalent to the value of a 30-
year easement);
``(ii) restoration cost-share agreements;
or
``(iii) any combination of the options
described in clauses (i) and (ii).'';
(2) in subsection (c), by striking ``2007 calendar'' and
inserting ``2012 fiscal''; and
(3) in subsection (d)--
(A) in paragraph (2), by striking ``or'' at the
end; and
(B) by striking paragraph (3) and inserting the
following:
``(3) a riparian area; or
``(4) a riparian area and an adjacent area that links the
riparian area to other parcels of wetland that are protected by
wetlands reserve agreements or some other device or
circumstance that achieves the same purpose as a wetlands
reserve agreement.''.
SEC. 2322. EASEMENTS AND AGREEMENTS.
(a) Terms of Easement.--Section 1237A(b)(2)(B) of the Food Security
Act of 1985 (16 U.S.C. 3837a(b)(2)(B)) is amended--
(1) in clause (i), by striking ``or'' at the end;
(2) in clause (ii), by striking ``; and'' and inserting ``;
or''; and
(3) by adding at the end the following:
``(iii) to meet habitat needs of specific
wildlife species; and''.
(b) Compensation.--Section 1237A(f) of the Food Security Act of
1985 (16 U.S.C. 3837a(f)) is amended--
(1) in the first sentence--
(A) by striking ``Compensation'' and inserting the
following:
``(1) In general.--Compensation''; and
(B) by striking ``agreed to'' and all that follows
through ``encumbered by the easement'' and inserting
``determined under paragraph (4)'';
(2) in the second sentence, by striking ``Lands'' and
inserting the following:
``(2) Bids.--Land'';
(3) by striking the third sentence and inserting the
following:
``(3) Payments.--Compensation may be provided in not less
than 1 and not more than 30 annual payments of equal or unequal
size, as agreed to by the owner and the Secretary.''; and
(4) by adding at the end the following:
``(4) Compensation.--Effective on the date of enactment of
this paragraph, the Secretary shall pay the lowest amount of
compensation for a conservation easement, as determined by a
comparison of subparagraphs (A), (B), and (C):
``(A) The amount necessary to encourage the
enrollment of parcels of land that are of importance in
achieving the purposes of the program, as determined by
the State Conservationist, with advice from the State
technical committee, based on 1 of the following:
``(i) The net present value of 30 years of
annual rental payments based on the county
simple average soil rental rates developed
under subchapter B.
``(ii) An area-wide market analysis or
survey.
``(iii) An amount not less than the value
of the agricultural or otherwise undeveloped
raw land based on the Uniform Standards of
Professional Appraisal Practice.
``(B) The amount corresponding to a geographical
area value limitation, as determined by the State
Conservationist, with advice from the State technical
committee.
``(C) The amount contained in the offer made by the
landowner.''.
(c) Wetlands Reserve Enhancement Program.--Section 1237A of the
Food Security Act of 1985 (16 U.S.C. 3837a) is amended by adding at the
end the following:
``(h) Wetlands Reserve Enhancement Program.--
``(1) In general.--The Secretary may enter into 1 or more
agreements with a State (including a political subdivision or
agency of a State), nongovernmental organization, or Indian
tribe to carry out a special wetlands reserve enhancement
program that the Secretary determines would advance the
purposes of this subchapter.
``(2) Reserved rights.--Under the wetlands reserve
enhancement program, the Secretary may use unique wetlands
reserve agreements that may include certain compatible uses as
reserved rights in the warranty easement deed restriction, if
using those agreements is determined by the Secretary to be--
``(A) consistent with the long-term wetland
protection and enhancement goals for which the easement
was established; and
``(B) in accordance with a conservation plan.''.
(d) Report.--
(1) In general.--Not later than January 1, 2010, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that evaluates
the implications of the long-term nature of conservation
easements granted under section 1237A of the Food Security Act
of 1985 (16 U.S.C. 3837a) on resources of the Department of
Agriculture.
(2) Inclusions.--The report shall include--
(A) data relating to the number and location of
conservation easements granted under that section that
the Secretary holds or has a significant role in
monitoring or managing;
(B) an assessment of the extent to which the
oversight of the conservation easement agreements
impacts the availability of resources, including
technical assistance;
(C) an assessment of the uses and value of
agreements with partner organizations; and
(D) any other relevant information relating to
costs or other effects that would be helpful to the
Committees.
SEC. 2323. PAYMENTS.
Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C.
3837d(c)) is amended--
(1) in paragraph (1)--
(A) by striking ``The total'' and inserting
``Subject to section 1244(i), the total'';
(B) by striking ``easement payments'' and inserting
``payments'';
(C) by striking ``person'' and inserting
``individual''; and
(D) by inserting ``or under 30-year contracts or
restoration agreements'' before the period at the end;
and
(2) in paragraph (3)--
(A) by striking ``Easement payments'' and inserting
``Payments''; and
(B) by striking ``the Food, Agriculture,
Conservation, and Trade Act of 1990, or the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)'' and
inserting ``the Federal Agriculture Improvement and
Reform Act of 1996 (Public Law 104-127; 110 Stat. 888),
or the Farm Security and Rural Investment Act of 2002
(Public Law 107-171; 116 Stat. 134)''.
Subchapter D--Healthy Forests Reserve Program
SEC. 2331. HEALTHY FORESTS RESERVE PROGRAM.
(a) In General.--Chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended by adding at
the end the following:
``Subchapter D--Healthy Forests Reserve Program
``SEC. 1237M. ESTABLISHMENT OF HEALTHY FORESTS RESERVE PROGRAM.
``(a) Establishment.--The Secretary shall establish the healthy
forests reserve program for the purpose of restoring and enhancing
forest ecosystems--
``(1) to promote the recovery of threatened and endangered
species;
``(2) to improve biodiversity; and
``(3) to enhance carbon sequestration.
``(b) Coordination.--The Secretary shall carry out the healthy
forests reserve program in coordination with the Secretary of the
Interior and the Secretary of Commerce.
``SEC. 1237N. ELIGIBILITY AND ENROLLMENT OF LANDS IN PROGRAM.
``(a) In General.--The Secretary, in coordination with the
Secretary of the Interior and the Secretary of Commerce, shall describe
and define forest ecosystems that are eligible for enrollment in the
healthy forests reserve program.
``(b) Eligibility.--To be eligible for enrollment in the healthy
forests reserve program, land shall be--
``(1) private land the enrollment of which will restore,
enhance, or otherwise measurably increase the likelihood of
recovery of a species listed as endangered or threatened under
section 4 of the Endangered Species Act of 1973 (16 U.S.C.
1533); and
``(2) private land the enrollment of which will restore,
enhance, or otherwise measurably improve the well-being of
species that--
``(A) are not listed as endangered or threatened
under section 4 of the Endangered Species Act of 1973
(16 U.S.C. 1533); but
``(B) are candidates for such listing, State-listed
species, or special concern species.
``(c) Other Considerations.--In enrolling land that satisfies the
criteria under subsection (b), the Secretary shall give additional
consideration to land the enrollment of which will--
``(1) improve biological diversity; and
``(2) increase carbon sequestration.
``(d) Enrollment by Willing Owners.--The Secretary shall enroll
land in the healthy forests reserve program only with the consent of
the owner of the land.
``(e) Methods of Enrollment.--
``(1) In general.--Land may be enrolled in the healthy
forests reserve program in accordance with--
``(A) a 10-year cost-share agreement;
``(B) a 30-year easement; or
``(C) a permanent easement.
``(2) Proportion.--The extent to which each enrollment
method is used shall be based on the approximate proportion of
owner interest expressed in that method in comparison to the
other methods.
``(3) Acreage owned by indian tribes.--In the case of
acreage owned by an Indian tribe, the Secretary may enroll
acreage into the healthy forests reserve program through the
use of--
``(A) a 30-year contract (the value of which shall
be equivalent to the value of a 30-year easement);
``(B) a 10-year cost-share agreement; or
``(C) any combination of the options described in
subparagraphs (A) and (B).
``(f) Enrollment Priority.--
``(1) Species.--The Secretary shall give priority to the
enrollment of land that provides the greatest conservation
benefit to--
``(A) primarily, species listed as endangered or
threatened under section 4 of the Endangered Species
Act of 1973 (16 U.S.C. 1533); and
``(B) secondarily, species that--
``(i) are not listed as endangered or
threatened under section 4 of the Endangered
Species Act of 1973 (16 U.S.C. 1533); but
``(ii) are candidates for such listing,
State-listed species, or special concern
species.
``(2) Cost-effectiveness.--The Secretary shall also
consider the cost-effectiveness of each agreement or easement,
and associated restoration plans, so as to maximize the
environmental benefits per dollar expended.
``SEC. 1237O. RESTORATION PLANS.
``(a) In General.--Land enrolled in the healthy forests reserve
program shall be subject to a restoration plan, to be developed jointly
by the landowner and the Secretary, in coordination with the Secretary
of Interior.
``(b) Practices.--The restoration plan shall require such
restoration practices as are necessary to restore and enhance habitat
for--
``(1) species listed as endangered or threatened under
section 4 of the Endangered Species Act of 1973 (16 U.S.C.
1533); and
``(2) animal or plant species before the species reach
threatened or endangered status, such as candidate, State-
listed species, and special concern species.
``SEC. 1237P. FINANCIAL ASSISTANCE.
``(a) Permanent Easements.--In the case of land enrolled in the
healthy forests reserve program using a permanent easement, the
Secretary shall pay to the owner of the land an amount equal to not
less than 75 percent, nor more than 100 percent, of (as determined by
the Secretary)--
``(1) the fair market value of the enrolled land during the
period the land is subject to the easement, less the fair
market value of the land encumbered by the easement; and
``(2) the actual costs of the approved conservation
practices or the average cost of approved practices carried out
on the land during the period in which the land is subject to
the easement.
``(b) 30-Year Easement or Contract.--In the case of land enrolled
in the healthy forests reserve program using a 30-year easement or
contract, the Secretary shall pay the owner of the land an amount equal
to not more than (as determined by the Secretary)--
``(1) 75 percent of the fair market value of the land, less
the fair market value of the land encumbered by the easement or
contract; and
``(2) 75 percent of the actual costs of the approved
conservation practices or 75 percent of the average cost of
approved practices.
``(c) 10-Year Agreement.--In the case of land enrolled in the
healthy forests reserve program using a 10-year cost-share agreement,
the Secretary shall pay the owner of the land an amount equal to not
more than (as determined by the Secretary)--
``(1) 50 percent of the actual costs of the approved
conservation practices; or
``(2) 50 percent of the average cost of approved practices.
``(d) Acceptance of Contributions.--The Secretary may accept and
use contributions of non-Federal funds to make payments under this
section.
``SEC. 1237Q. TECHNICAL ASSISTANCE.
``(a) In General.--The Secretary shall provide landowners with
technical assistance to assist the owners in complying with the terms
of plans (as included in agreements or easements) under the healthy
forests reserve program.
``(b) Technical Service Providers.--The Secretary may request the
services of, and enter into cooperative agreements with, individuals or
entities certified as technical service providers under section 1242,
to assist the Secretary in providing technical assistance necessary to
develop and implement the healthy forests reserve program.
``SEC. 1237R. PROTECTIONS AND MEASURES.
``(a) Protections.--In the case of a landowner that enrolls land in
the program and whose conservation activities result in a net
conservation benefit for listed, candidate, or other species, the
Secretary shall make available to the landowner safe harbor or similar
assurances and protection under--
``(1) section 7(b)(4) of the Endangered Species Act of 1973
(16 U.S.C. 1536(b)(4)); or
``(2) section 10(a)(1) of that Act (16 U.S.C. 1539(a)(1)).
``(b) Measures.--If protection under subsection (a) requires the
taking of measures that are in addition to the measures covered by the
applicable restoration plan agreed to under section 1237O, the cost of
the additional measures, as well as the cost of any permit, shall be
considered part of the restoration plan for purposes of financial
assistance under section 1237P.
``SEC. 1237S. INVOLVEMENT BY OTHER AGENCIES AND ORGANIZATIONS.
``In carrying out this subchapter, the Secretary may consult with--
``(1) nonindustrial private forest landowners;
``(2) other Federal agencies;
``(3) State fish and wildlife agencies;
``(4) State forestry agencies;
``(5) State environmental quality agencies;
``(6) other State conservation agencies; and
``(7) nonprofit conservation organizations.
``SEC. 1237T. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
subchapter such sums as are necessary for each of fiscal years 2008
through 2012.''.
(b) Conforming Amendments.--The Healthy Forests Restoration Act of
2003 (16 U.S.C. 6501 et seq.) is amended--
(1) by striking title V (16 U.S.C. 6571 et seq.); and
(2) by redesignating title VI and section 601 (16 U.S.C.
6591) as title V and section 501, respectively.
CHAPTER 2--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM
Subchapter A--General Provisions
SEC. 2341. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830 et seq.) is amended by adding at the end the following:
``CHAPTER 6--COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM
``Subchapter A--Comprehensive Stewardship Incentives Program
``SEC. 1240T. COMPREHENSIVE STEWARDSHIP INCENTIVES PROGRAM.
``(a) Establishment.--
``(1) In general.--The Secretary shall establish a
comprehensive stewardship incentives program (referred to in
this chapter as `CSIP') to--
``(A) promote coordinated efforts within
conservation programs in this chapter to address
resources of concern, as identified at the local level;
``(B) encourage the adoption of conservation
practices, activities and management measures; and
``(C) promote agricultural production and
environmental quality as compatible goals.
``(2) Means.--The Secretary shall carry out CSIP by--
``(A) identifying resources of concern at a local
level as described in subsection (b)(4);
``(B) entering into contracts with owners and
operators of agricultural and nonindustrial private
forest land to--
``(i) address natural resource concerns;
``(ii) meet regulatory requirements; or
``(iii) achieve and maintain new
conservation practices, activities and
management measures; and
``(C) providing technical assistance.
``(3) Programs.--CSIP shall consist of--
``(A) the conservation stewardship program; and
``(B) the environmental quality incentives program.
``(4) Definition of resource of concern.--In this chapter,
the term `resource of concern' means--
``(A) a specific resource concern on agricultural
or nonindustrial private forest land that--
``(i) is identified by the Secretary in
accordance with subsection (b)(4);
``(ii) represents a significant
conservation concern in the State to which
agricultural activities are contributing; and
``(iii) is likely to be addressed
successfully through the implementation of
conservation practices, activities, and
management measures by owners and operators of
agricultural and nonindustrial private forest
land; or
``(B) a specific resource concern on agricultural
or nonindustrial private forest land that is the
subject of mandatory environmental requirements that
apply to a producer under Federal, State, or local law.
``(b) Administration.--
``(1) In general.--In carrying out CSIP, the Secretary
shall ensure that the conservation programs under this chapter
are managed in a coordinated manner.
``(2) Plans.--The Secretary shall, to the maximum extent
practicable, avoid duplication in the conservation plans
required under this chapter and comparable conservation and
regulatory programs, including a permit acquired under an
approved water or air quality regulatory program.
``(3) Tenant protection.--The Secretary shall provide
adequate safeguards to protect the interests of tenants and
sharecroppers, including provision for sharing, on a fair and
equitable basis, in payments under the programs established
under this chapter.
``(4) Identification of resources of concern.--
``(A) In general.--The Secretary shall ensure that
resources of concern are identified at the State level
in consultation with the State Technical Committee.
``(B) Limitation.--The Secretary shall identify not
more than 5 resources of concern in a particular
watershed or other appropriate region or area within a
State.
``(5) Regulations.--Not later than 180 days after the date
of enactment of the Food and Energy Security Act of 2007 the
Secretary shall issue regulations to implement the programs
established under this chapter.
``Subchapter B--Conservation Stewardship Program
``SEC. 1240U. PURPOSES.
``The purpose of the conservation stewardship program is to promote
agricultural production and environmental quality as compatible goals,
and to optimize environmental benefits, by assisting producers--
``(1) in promoting conservation and improving resources of
concern (including soil, water, and energy conservation, soil,
water, and air quality, biodiversity, fish, wildlife and
pollinator habitat, and related resources of concern, as
defined by the Secretary) by providing flexible assistance to
install, improve, and maintain conservation systems, practices,
activities, and management measures on agricultural land
(including cropland, grazing land, and wetland) while
sustaining production of food and fiber;
``(2) in making beneficial, cost-effective changes to
conservation systems, practices, activities, and management
measures carried out on agricultural and forest land relating
to--
``(A) cropping systems;
``(B) grazing management systems;
``(C) nutrient management associated with livestock
and crops;
``(D) forest management;
``(E) fuels management;
``(F) integrated pest management;
``(G) irrigation management;
``(H) invasive species management;
``(I) energy conservation; or
``(J) other management-intensive issues;
``(3) in complying with Federal, State, tribal, and local
requirements concerning--
``(A) soil, water, and air quality;
``(B) fish, wildlife, and pollinator habitat; and
``(C) surface water and groundwater conservation;
``(4) in avoiding, to the maximum extent practicable, the
need for resource and regulatory programs by protecting
resources of concern and meeting environmental quality criteria
established by Federal, State, tribal, and local agencies; and
``(5) by encouraging, consolidating, and streamlining
conservation planning and regulatory compliance processes to
reduce administrative burdens on producers and the cost of
achieving environmental goals.
``SEC. 1240V. DEFINITIONS.
``In this chapter:
``(1) Comprehensive conservation plan.--The term
`comprehensive conservation plan' means a plan produced by
following the planning process outlined in the applicable
National Planning Procedures Handbook of the Department of
Agriculture with regard to all applicable resources of concern.
``(2) Contract offer.--The term `contract offer' means an
application submitted by a producer that seeks to address 1 or
more resources of concern with the assistance of the program.
``(3) Enhancement payment.--The term `enhancement payment'
means a payment described in section 1240X(d).
``(4) Eligible land.--The term `eligible land' means land
described in section 1240X(b).
``(5) Livestock.--The term `livestock' means dairy cattle,
beef cattle, laying hens, broilers, turkeys, swine, sheep,
goats, ducks, ratites, shellfish, alpacas, bison, catfish,
managed pollinators, and such other animals and fish as are
determined by the Secretary.
``(6) Management intensity.--The term `management
intensity' means the degree, scope, and comprehensiveness of
conservation systems, practices, activities, or management
measures adopted by a producer to improve and sustain the
condition of a resource of concern.
``(7) Payment.--The term `payment' means financial
assistance provided to a producer under the program to
compensate the producers for incurred costs associated with
planning, materials, installation, labor, management,
maintenance, technical assistance, and training, the value of
risk, and income forgone by the producer, as applicable,
including--
``(A) enhancement payments;
``(B) CSP supplemental payments; and
``(C) other payments provided under this chapter.
``(8) Practice.--
``(A) In general.--The term `practice' means 1 or
more measures that improve or sustain a resource of
concern.
``(B) Inclusions.--The term `practice' includes--
``(i) structural measures, vegetative
measures, and land management measures, as
determined by the Secretary; and
``(ii) planning activities needed to
improve or sustain a resource of concern,
including implementation of--
``(I) a comprehensive conservation
plan; and
``(II) a comprehensive nutrient
management plan.
``(9) Producer.--The term `producer' means an individual
who is an owner, operator, landlord, tenant, or sharecropper
that--
``(A) derives income from, and controls, the
production or management of an agricultural commodity,
livestock, or nonindustrial forest land regardless of
ownership;
``(B) shares in the risk of producing any crop or
livestock; and
``(C)(i) is entitled to share in the crop or
livestock available for marketing from a farm (or would
have shared had the crop or livestock been produced);
or
``(ii) is a custom feeder or contract grower.
``(10) Program.--The term `program' means the conservation
stewardship program established under this chapter.
``(11) Resource-conserving crop.--The term `resource-
conserving crop' means--
``(A) a perennial grass;
``(B) a legume grown for use as forage, seed for
planting, or green manure;
``(C) a legume-grass mixture;
``(D) a small grain grown in combination with a
grass or legume, whether interseeded or planted in
succession;
``(E) a winter annual oilseed crop that provides
soil protection; and
``(F) such other plantings as the Secretary
determines to be appropriate for a particular area.
``(12) Resource-conserving crop rotation.--The term
`resource-conserving crop rotation' means a crop rotation
that--
``(A) includes at least 1 resource-conserving crop;
``(B) reduces erosion;
``(C) improves soil fertility and tilth;
``(D) interrupts pest cycles; and
``(E) in applicable areas, reduces depletion of
soil moisture (or otherwise reduces the need for
irrigation).
``(13) Resource-specific indices.--The term `resource-
specific indices' means indices developed by the Secretary that
measure or estimate the expected level of resource and
environmental outcomes of the conservation systems, practices,
activities, and management measures employed by a producer to
address a resource of concern on an agricultural operation.
``(14) Stewardship contract.--The term `stewardship
contract' means a contract entered into under the conservation
stewardship program to carry out the programs and activities
described in this chapter.
``(15) Stewardship threshold.--The term `stewardship
threshold' means the level of natural resource conservation and
environmental management required, as determined by the
Secretary--
``(A) to maintain, conserve, and improve the
quality or quantity of a resource of concern reflecting
at a minimum, the resource management system quality
criteria described in the handbooks of the Natural
Resource Conservation Service, if available and
appropriate; or
``(B) in the case of a resource of concern that is
the subject of a Federal, State, or local regulatory
requirement, to meet the higher of--
``(i) the standards that are established by
the requirement for the resource of concern; or
``(ii) standards reflecting the resource
management system quality criteria described in
the handbooks of the Natural Resource
Conservation Service, if available and
appropriate.
``SEC. 1240W. ESTABLISHMENT OF PROGRAM.
``The Secretary shall establish and, for each of fiscal years 2008
through 2012, carry out a conservation stewardship program to assist
producers in improving environmental quality by addressing resources of
concern in a comprehensive manner through--
``(1) the addition of conservation systems, practices,
activities, and management measures; and
``(2) the active management, maintenance, and improvement
of existing, and adoption of new, conservation systems,
practices, activities, and management measures.
``SEC. 1240X. ELIGIBILITY.
``(a) Eligible Producers.--
``(1) General program eligibility.--To be eligible to
participate in the conservation stewardship program, a producer
shall--
``(A) submit to the Secretary for approval a
contract offer to participate in the program;
``(B) agree to receive technical services, either
directly from the Secretary or, at the option of the
producer, from an approved third party under section
1242(b)(3);
``(C) enter into a contract with the Secretary, as
described in subsection (c); and
``(D) demonstrate to the satisfaction of the
Secretary that the producer--
``(i) is addressing resources of concern
relating to both soil and water to at least the
stewardship threshold; and
``(ii) is adequately addressing other
resources of concern applicable to the
agricultural operation, as determined by the
Secretary.
``(b) Eligible Land.--
``(1) In general.--Except as provided in paragraph (2),
private agricultural land that is eligible for enrollment in
the program includes--
``(A) cropland (including vineyards and orchards);
``(B) pasture land;
``(C) rangeland;
``(D) other agricultural land used for the
production of livestock;
``(E) land used for agroforestry;
``(F) land used for aquaculture;
``(G) riparian areas adjacent to otherwise eligible
land;
``(H) land under the jurisdiction of an Indian
tribe (as determined by the Secretary);
``(I) public land, if failure to enroll the land in
the program would defeat the purposes of the program on
private land that is an integral part of the operation
enrolled or offered to be enrolled in the program by
the producer;
``(J) State and school owned land that is under the
effective control of a producer; and
``(K) other agricultural land (including cropped
woodland and marshes) that the Secretary determines is
vulnerable to serious threats to resources of concern.
``(2) Exclusions.--
``(A) Land enrolled in other conservation
programs.--The following land is not eligible for
enrollment in the program:
``(i) Land enrolled in the conservation
reserve program under subchapter B of chapter
1.
``(ii) Land enrolled in the wetlands
reserve program established under subchapter C
of chapter 1.
``(B) Conversion to cropland.--With regard to the
program, land used for crop production after May 13,
2002, that had not been planted, considered to be
planted, or devoted to crop production for at least 4
of the 6 years preceding that date (except for land
enrolled in the conservation reserve program or that
has been maintained using long-term crop rotation
practices, as determined by the Secretary) shall not be
the basis for any payment under the program.
``(3) Economic uses.--The Secretary shall not restrict
economic uses of land covered by a program contract (including
buffers and other partial field conservation practices) that
comply with the agreement and comprehensive conservation plan,
or other applicable law.
``(c) Contract Requirements and Provisions.--
``(1) In general.--After a determination by the Secretary
that a producer is eligible to participate in the program, and
on acceptance of the contract offer of the producer, the
Secretary shall enter into a contract with the producer to
enroll the land to be covered by the contract.
``(2) Agricultural operations.--All acres of all
agricultural operations, whether or not contiguous, that are
under the effective control of a producer within a particular
watershed or region (or in a contiguous watershed or region) of
a State and constitute a cohesive management unit, as
determined by the Secretary, at the time the producer enters
into a stewardship contract shall be covered by the stewardship
contract, other than land the producer has enrolled in the
conservation reserve program or the wetlands reserve program.
``(3) Resources of concern.--Each stewardship contract
shall, at a minimum, meet or exceed the stewardship threshold
for at least 1 additional resource of concern by the end of the
stewardship contract through--
``(A) the installation and adoption of additional
conservation systems, practices, activities, or
management measures; and
``(B) the active management and improvement of
conservation systems, practices, activities, and
management measures in place at the operation of the
producer at the time the contract offer is accepted by
the Secretary.
``(4) Terms.--A contract entered into under paragraph (1)
shall--
``(A) describe the land covered by the contract;
``(B) describe the practices or technical services
from an approved third party, to be implemented on
eligible land of the producer;
``(C) state the amount of payments (determined in
accordance with subsection (f)) the Secretary agrees to
make to the producer each year of the contract;
``(D) describe existing conservation systems,
practices, activities, and management measures the
producer agrees to maintain, manage, and improve during
the term of the stewardship contract in order to meet
and exceed the appropriate stewardship threshold for
the resources of concern;
``(E) describe the additional conservation systems,
practices, activities, and management measures the
producer agrees to plan, install, maintain, and manage
during the term of the stewardship contract in order to
meet and exceed the appropriate stewardship threshold
for the appropriate resource or resources of concern;
``(F) if applicable, describe the on-farm
conservation research, demonstration, training, or
pilot project activities the producer agrees to
undertake during the term of the contract;
``(G) if applicable, describe the on-farm
monitoring and evaluation activities the producer
agrees to undertake during the term of the contract
relating to--
``(i) a comprehensive conservation plan; or
``(ii) conservation systems, practices,
activities, and management measures; and
``(H) include such other provisions as the
Secretary determines are necessary to ensure that the
purposes of the program are achieved.
``(5) On-farm research, demonstration, training, or pilot
projects.--The Secretary may approve a stewardship contract
that includes--
``(A) on-farm conservation research, demonstration,
and training activities; and
``(B) pilot projects for evaluation of new
technologies or innovative conservation practices.
``(6) Duration.--A contract under this chapter shall have a
term of 5 years.
``(7) Evaluation of contract offers.--In evaluating
contract offers made by producers to enter into contracts under
the program, the Secretary shall--
``(A) prioritize applications based on--
``(i) the level of conservation treatment
on all resources of concern at the time of
application, based on the initial scores
received by the producer on applicable
resource-specific indices;
``(ii) the degree to which the proposed
conservation treatment effectively increases
the level of performance on applicable
resource-specific indices or the level of
management intensity with which the producer
addresses the designated resources of concern;
``(iii) the extent to which all resources
of concern will exceed the stewardship
threshold level by the end of the contract
period;
``(iv) the extent to which resources of
concern in addition to resources of concern
will be addressed to meet and exceed the
stewardship threshold level by the end of the
contract period;
``(v) the extent to which the producer
proposes to address the goals and objectives of
State, regional, and national fish and wildlife
conservation plans and initiatives;
``(vi) whether the proposed conservation
treatment reflects the multiple natural
resource and environmental benefits of
conservation-based farming systems, including
resource-conserving crop rotations, advanced
integrated pest management, and managed
rotational grazing; and
``(vii) whether the application includes
land transitioning out of the conservation
reserve program, on the condition that the land
is maintained in a grass-based system and would
help meet habitat needs for fish and wildlife;
``(B) evaluate the extent to which the anticipated
environmental benefits from the contract would be
provided in the most cost-effective manner, relative to
other similarly beneficial contract offers;
``(C) reward higher levels of environmental
performance and management intensity;
``(D) develop criteria for use in evaluating
applications that will ensure that national, State, and
local conservation priorities are effectively
addressed;
``(E) evaluate the extent to which the
environmental benefits expected to result from the
contract complement other conservation efforts in the
watershed or region; and
``(F) provide opportunities to agricultural
producers that have not previously participated in
Federal conservation programs, including beginning
farmers and ranchers and socially disadvantaged farmers
and ranchers.
``(8) Termination of contracts.--
``(A) In general.--
``(i) Voluntary termination.--The producer
may terminate a contract entered into with the
Secretary under this chapter if the Secretary
determines that the termination is in the
public interest.
``(ii) Involuntary termination.--The
Secretary may terminate a contract under this
chapter if the Secretary determines that the
producer violated the contract.
``(B) Repayment.--If a contract is terminated, the
Secretary may--
``(i) allow the producer to retain payments
already received under the contract if--
``(I) the producer has complied
with the terms and conditions of the
contract; and
``(II) the Secretary determines
that allowing the producer to retain
the payments is consistent with the
purposes of the program;
``(ii) require repayment, in whole or in
part, of payments already received; and
``(iii) assess liquidated damages, if doing
so is consistent with the purposes of the
program.
``(C) Transfer or change of interest in land
subject to a contract.--
``(i) In general.--Except as provided in
clause (ii), the transfer, or change in the
interest, of a producer in land subject to a
contract under this chapter shall result in the
termination of the contract.
``(ii) Transfer of duties and rights.--
Clause (i) shall not apply if--
``(I) within a reasonable period of
time (as determined by the Secretary)
after the date of the transfer or
change in the interest in land, the
transferee of the land provides written
notice to the Secretary that all duties
and rights under the contract have been
transferred to, and assumed by, the
transferee; and
``(II) the transferee meets the
eligibility requirements of this
subchapter.
``(9) Modification.--
``(A) In general.--The Secretary may allow a
producer to modify a contract before the expiration of
the contract if the Secretary determines that failure
to modify the contract would significantly interfere
with achieving the purposes of the program.
``(B) Participation in other programs.--If
appropriate payment reductions and other adjustments
(as determined by the Secretary) are made to the
contract of a producer, the producer may remove land
enrolled in the conservation stewardship program for
enrollment in the conservation reserve program,
wetlands reserve program, or other conservation
programs, as determined by the Secretary.
``(C) Changes in size of operation.--The Secretary
shall allow a producer to modify a stewardship contract
before the expiration of the stewardship contract if
the agricultural operation of the producer has reduced
or enlarged in size to reflect the new acreage total.
``(D) New acreage.--With respect to acreage added
to the agricultural operation of a producer after
entering into a stewardship contract, a producer may
elect to not add the acreage to the stewardship
contract during the term of the current stewardship
contract, except that such additional acreage shall be
included in any contract renewal.
``(E) Changes in production.--The Secretary shall
allow a producer to modify a stewardship contract
before the expiration of the stewardship contract if--
``(i) the producer has a change in
production that requires a change to scheduled
conservation practices and activities; and
``(ii) the Secretary determines that--
``(I) all relevant conservation
standards will be maintained or
improved; and
``(II) there is no increase in
total payment under the stewardship
contract.
``(10) Effect of noncompliance due to circumstances beyond
the control of producer.--The Secretary shall include in each
contract a provision to ensure that a producer shall not be
considered in violation of the contract for failure to comply
with the contract due to circumstances beyond the control of
the producer, including a disaster or related weather, pest,
disease, or other similar condition, as determined by the
Secretary.
``(11) Coordination with organic certification.--
``(A) In general.--Not later than 180 days after
the date of enactment of this chapter, the Secretary
shall establish a transparent and producer-friendly
means by which producers may coordinate and
simultaneously certify eligibility under--
``(i) a stewardship contract; and
``(ii) the national organic production
program established under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.).
``(B) Programmatic considerations.--The Secretary
shall identify and implement programmatic
considerations, including conservation systems,
practices, activities, and management measures,
technical assistance, evaluation of contract offers,
enhancement payments, on-farm research, demonstration,
training, and pilot projects, and data management,
through which to maximize the purposes of the program
by enrolling producers who are certified under the
national organic production program established under
the Organic Foods Production Act of 1990 (7 U.S.C. 6501
et seq.).
``(12) Renewal.--At the end of a stewardship contract of a
producer, the Secretary shall allow the producer to renew the
stewardship contract for an additional 5-year period if the
producer--
``(A) demonstrates compliance with the terms of the
existing contract, including a demonstration that the
producer has complied with the schedule for the
implementation of additional conservation systems,
practices, activities, and management measures included
in the stewardship contract and is addressing the
designated resources of concern to a level that meets
and exceeds the stewardship threshold; and
``(B) agrees to implement and maintain such
additional conservation practices and activities as the
Secretary determines to be necessary and feasible to
achieve higher levels of performance on applicable
resource-specific indices or higher levels of
management intensity with which the producer addresses
the resources of concern.
``(d) Enhancement Payments.--
``(1) Lower payments.--In evaluating applications and
making payments under this chapter, the Secretary shall not
assign a higher priority to any application because the
applicant is willing to accept a lower payment than the
applicant would otherwise be entitled to receive.
``(2) Evaluation of contract offers.--Nothing in this
subsection relieves the Secretary of the obligation, in
evaluating applications for payments, to evaluate and
prioritize the applications in accordance with subsection
(e)(4)), including the requirement for contracts to be cost-
effective.
``(3) Lowest-cost alternatives.--In determining the
eligibility of a conservation system, practice, activity, or
management measure for a payment under this subsection, the
Secretary shall require, to the maximum extent practicable,
that the lowest-cost alternatives be used to achieve the
purposes of the contract, as determined by the Secretary.
``(4) Method of payment.--Payments under this subsection
shall be made in such amounts and in accordance with such time
schedule as is agreed on and specified in the contract.
``(5) Activities qualifying for payments.--
``(A) In general.--To receive an enhancement
payment under this subsection, a producer shall agree--
``(i) to implement additional conservation
systems, practices, activities, and management
measures and maintain, manage, and improve
existing conservation systems, practices,
activities, and management measures in order to
maintain and improve the level of performance
of the producer, as determined by applicable
resource-specific indices, or the level of
management intensity of the producer with
respect to resources of concern in order to
meet and exceed the stewardship threshold for
resources of concern; and
``(ii) to maintain, and make available to
the Secretary at such times as the Secretary
may request, appropriate records demonstrating
the effective and timely implementation of the
stewardship contract.
``(B) Compensation.--Subject to subparagraph (C),
the Secretary shall provide an enhancement payment to a
producer to compensate the producer for--
``(i) ongoing implementation, active
management, and maintenance of conservation
systems, practices, activities, and management
measures in place on the operation of the
producer at the time the contract offer of the
producer is accepted; and
``(ii) installation and adoption of
additional conservation systems, practices,
activities, and management measures or
improvements to conservation systems,
practices, activities, and management measures
in place on the operation of the producer at
the time the contract offer is accepted.
``(C) Adjustments.--A payment under subparagraph
(B) shall be adjusted to reflect--
``(i) management intensity; or
``(ii) resource-specific indices, in a case
in which those indices have been developed and
implemented.
``(D) On-farm research, demonstration, training,
and pilot project payments.--The Secretary shall
provide an additional enhancement payment to a producer
who opts to participate as part of the stewardship
contract in an on-farm conservation research,
demonstration, training or pilot project certified by
the Secretary to compensate the producer for the cost
of participation.
``(E) Restriction on structural practices.--For
purposes of the conservation stewardship program,
structural practices shall be eligible for payment only
if the structural practices are integrated with and
essential to support site-specific management
activities that are part of an implemented management
system designed to address 1 or more resources of
concern.
``(6) Exclusions.--An enhancement payment to a producer
under this subsection shall not be provided for the design,
construction, or maintenance of animal waste storage or
treatment facilities or associated waste transport or transfer
devices for animal feeding operations.
``(7) Timing of payments.--
``(A) In general.--The Secretary shall make
enhancement payments as soon as practicable after
October 1 of each fiscal year.
``(B) Additional systems, practices, activities,
and management measures.--The Secretary shall make
enhancement payments to compensate producers for
installation and adoption of additional conservation
systems, practices, activities, and management measures
or improvements to existing conservation systems,
practices, activities, and management measures at the
time at which the systems, practices, activities, and
measures or improvements are installed and adopted.
``(8) Research, demonstration, training, and pilot project
payment limitations.--An enhancement payment for research,
demonstration, training and pilot projects may not exceed
$25,000 for each 5-year term of the stewardship contract
(excluding funding arrangements with federally recognized
Indian tribes or Alaska Native Corporations).
``(e) CSP Supplemental Payments.--
``(1) In general.--The Secretary shall provide additional
payments to producers that, in participating in the
conservation stewardship program, agree to adopt resource-
conserving crop rotations to achieve optimal crop rotations as
appropriate for the land of the producers.
``(2) Optimal crop rotations.--The Secretary shall
determine whether a resource-conserving crop rotation is an
optimal crop rotation eligible for additional payments under
paragraph (1), based on whether the resource-conserving crop
rotation is designed to optimize natural resource conservation
and production benefits, including--
``(A) increased efficiencies in pesticide,
fertilizer, and energy use; and
``(B) improved disease management.
``(3) Eligibility.--To be eligible to receive a payment
described in paragraph (1), a producer shall agree to adopt and
maintain optimal resource-conserving crop rotations for the
term of the contract.
``(4) Rate.--The Secretary shall provide payments under
this subsection at a rate that encourages producers to adopt
optimal resource-conserving crop rotations.
``(f) Limitation on Payments.--Subject to section 1244(i), an
individual or entity may not receive, directly or indirectly, payments
under this subchapter that, in the aggregate, exceed $240,000 for all
contracts entered into under the conservation stewardship program
during any 6-year period.
``(g) Duties of Producers.--In order to receive assistance under
this chapter, a producer shall--
``(1) implement the terms of the contract approved by the
Secretary;
``(2) not conduct any practices on the covered land that
would defeat the purposes of the program;
``(3) on the violation of a term or condition of the
contract at any time the producer has control of the land--
``(A) if the Secretary determines that the
violation warrants termination of the contract--
``(i) forfeit all rights to receive
payments under the contract; and
``(ii) refund to the Secretary all or a
portion of the payments received by the owner
or operator under the contract, including any
interest on the payments or liquidated damages,
as determined by the Secretary;
``(B) if the Secretary determines that the
violation does not warrant termination of the contract,
refund to the Secretary, or accept adjustments to, the
payments provided to the owner or operator, as the
Secretary determines to be appropriate; or
``(C) comply with a combination of the remedies
authorized by subparagraphs (A) and (B), as the
Secretary determines to be appropriate;
``(4) on the transfer of the right and interest of the
producer in land subject to the contract (unless the transferee
of the right and interest agrees with the Secretary to assume
all obligations of the contract) refund any cost-share
payments, incentive payments, and stewardship payments received
under the program, as determined by the Secretary;
``(5) supply information as required by the Secretary to
determine compliance with the contract and requirements of the
program; and
``(6) comply with such additional provisions as the
Secretary determines are necessary to carry out the contract.
``(h) Duties of Secretary.--
``(1) In general.--To achieve the conservation and
environmental goals of a contract under this chapter, to the
extent appropriate, the Secretary shall--
``(A) provide to a producer information and
training to aid in implementation of the conservation
systems, practices, activities, and management measures
covered by the contract;
``(B) develop agreements with governmental
agencies, nonprofit organizations, and private entities
to facilitate the provision of technical and
administrative assistance and services;
``(C) make the program available to eligible
producers on a continuous enrollment basis;
``(D) when identifying biodiversity or fish and
wildlife as a resource of concern for a particular
watershed or other appropriate region or area within a
State, ensure that the identification--
``(i) is specific with respect to
particular species or habitat; and
``(ii) would further the goals and
objectives of State, regional, and national
fish and wildlife conservation plans and
initiatives;
``(E) provide technical assistance and payments for
each of fiscal years 2008 through 2012;
``(F) maintain contract and payment data relating
to the conservation stewardship program in a manner
that provides detailed and segmented data and allows
for quantification of the amount of payments made to
producers for--
``(i) the installation and adoption of
additional conservation systems, practices,
activities, or management measures;
``(ii) participating in research,
demonstration, training, and pilot projects;
``(iii) the development, monitoring, and
evaluation of comprehensive conservation plans;
and
``(iv) the maintenance and active
management of conservation systems, practices,
activities, and management measures, and the
improvement of conservation practices, in place
on the operation of the producer on the date on
which the contract offer is accepted by the
Secretary;
``(G) develop resource-specific indices for
purposes of determining eligibility and payments; and
``(H) establish and publicize design protocols and
application procedures for individual producer and
collaborative on-farm research, demonstration,
training, and pilot projects.
``(2) Specialty crop producers.--The Secretary shall ensure
that outreach and technical assistance are available and
program specifications are appropriate to enable specialty crop
producers to participate in the conservation stewardship
program.
``(3) Additional requirements.--For the period beginning on
the date of enactment of this chapter and ending on September
30, 2017, with respect to eligible land of producers
participating in the program, the Secretary shall--
``(A) to the maximum extent practicable, enroll an
additional 13,273,000 acres for each fiscal year, but
not to exceed 79,638,000 acres;
``(B) implement the program nationwide to make the
program available to producers meeting the eligibility
requirements in each county;
``(C) to the maximum extent practicable, manage the
program to achieve a national average annual cost per
acre of $19, which shall include the costs of all
financial assistance, technical assistance, and any
other expenses associated with enrollment or
participation in the program of those acres; and
``(D) establish a minimum contract value, to ensure
equity for small acreage farms, including specialty
crop and organic producers.
``(i) Acre Allocation.--
``(1) Initial allocations to states.--In making allocations
of acres to States to enroll in the conservation stewardship
program, to the maximum extent practicable, the Secretary shall
allocate to each State a number of acres equal to the
proportion that--
``(A) the number of acres of eligible land in the
State; bears to
``(B) the number of acres of eligible land in all
States.
``(2) Minimum acre allocation.--Of the acres allocated for
each fiscal year, no State shall have allocated fewer than the
lesser of--
``(A) 20,000 acres; or
``(B) 2.2 percent of the number of acres of
eligible land in the State.
``(3) Reallocation to states.--For any fiscal year, acres
not obligated under this subsection by a date determined by the
Secretary through rulemaking shall be reallocated to each State
that--
``(A) has obligated 100 percent of the initial
allocation of the State; and
``(B) requests additional acres.
``SEC. 1240Y. REGULATIONS.
``Not later than 180 days after the date of enactment of this
chapter, the Secretary shall promulgate such regulations as are
necessary to carry out the program, including regulations that--
``(1) provide for adequate safeguards to protect the
interests of tenants and sharecroppers, including provision for
sharing payments, on a fair and equitable basis;
``(2) prescribe such other rules as the Secretary
determines to be necessary to ensure a fair and reasonable
application of the program; and
``(3) to the maximum extent practicable, eliminate
duplication of planning activities under the program and
comparable conservation programs.''.
Subchapter B--Environmental Quality Incentives Program
SEC. 2351. PURPOSES.
Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is
amended--
(1) in the matter preceding paragraph (1), by inserting ``,
forest management,'' after ``agricultural production'';
(2) in paragraph (3)--
(A) by inserting ``, forest land,'' after ``grazing
land''; and
(B) by inserting ``pollinators,'' after
``wetland),''; and
(3) in paragraph (4)--
(A) by inserting ``fuels management, forest
management,'' after ``grazing management,''; and
(B) by inserting ``and forested'' after
``agricultural''.
SEC. 2352. DEFINITIONS.
(a) Eligible Land.--Section 1240A(2) of the Food Security Act of
1985 (16 U.S.C. 3839aa-1(2)) is amended--
(1) in subparagraph (A), by striking ``commodities or
livestock'' and inserting ``commodities, livestock, or forest-
related products''; and
(2) in subparagraph (B)--
(A) by striking clause (v) and inserting the
following:
``(v) nonindustrial private forest land;'';
(B) by redesignating clause (vi) as clause (vii);
and
(C) by inserting after clause (v) the following:
``(vi) land used for pond-raised
aquaculture production; and''.
(b) Land Management Practice.--Section 1240A(3) of the Food
Security Act of 1985 (16 U.S.C. 3839aa-1(3)) is amended--
(1) by striking ``The term'' and inserting the following:
``(A) In general.--The term'';
(2) by inserting ``fuels management, forest management,''
after ``grazing management''; and
(3) by adding at the end the following:
``(B) Forest management.--For purposes of
subparagraph (A), forest management practices may
include activities that the Secretary determines are
necessary--
``(i) to improve water, soil, or air
quality;
``(ii) to restore forest biodiversity;
``(iii) to control invasive species;
``(iv) to improve wildlife habitat; or
``(v) to achieve conservation priorities
identified in an applicable forest resource
assessment and plan.''.
(c) Practice.--Section 1240A(5) of the Food Security Act of 1985
(16 U.S.C. 3839aa-1(5)) is amended by inserting ``conservation planning
practices,'' after ``land management practices,''.
(d) Custom Feeding Business.--Section 1240A of the Food Security
Act of 1985 (16 U.S.C. 3839aa-1) is amended--
(1) by redesignating paragraph (6) as paragraph (7); and
(2) by inserting after paragraph (5) the following:
``(6) Producer.--The term `producer' includes a custom
feeding business and a contract grower or finisher.''.
(e) Structural Practice.--Paragraph (7)(A) of section 1240A of the
Food Security Act of 1985 (16 U.S.C. 3839aa-1) (as redesignated by
subsection (d)(1)) is amended by inserting ``firebreak, fuelbreak,''
after ``constructed wetland,''.
SEC. 2353. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.
(a) Establishment.--Section 1240B(a) of the Food Security Act of
1985 (16 U.S.C. 3839aa-2(a)) is amended--
(1) in paragraph (1), by striking ``2010'' and inserting
``2012''; and
(2) in paragraph (2)(B), by inserting ``conservation plan
or'' after ``develops a''.
(b) Practices and Term.--Section 1240B(b) of the Food Security Act
of 1985 (16 U.S.C. 3839aa-2(b)) is amended--
(1) in paragraph (1), by inserting ``conservation planning
practices,'' after ``land management practices,''; and
(2) in paragraph (2)(B), by striking ``10'' and inserting
``5''.
(c) Establishment and Administration.--Section 1240B of the Food
Security Act of 1985 (16 U.S.C. 3839aa-2) is amended--
(1) by striking subsection (c);
(2) in subsection (d)--
(A) in paragraph (2), by striking subparagraph (A)
and inserting the following:
``(A) Socially disadvantaged farmers or ranchers
and beginning farmers or ranchers.--
``(i) In general.--In the case of a
producer that is a socially disadvantaged
farmer or rancher or a beginning farmer or
rancher, the Secretary may increase the amount
that would otherwise be provided to the
producer under paragraph (1) to--
``(I) not more than 90 percent; and
``(II) not less than 15 percent
above the otherwise applicable rate.
``(ii) Advance payments.--Not more than 30
percent of the amount determined under clause
(i) may be provided in advance for the purpose
of purchasing materials or contracting.'';
(B) by striking paragraph (3) and inserting the
following:
``(3) Other payments.--A producer shall not be eligible for
cost-share payments for practices on eligible land under the
program if the producer receives cost-share payments or other
benefits for the same practice on the same land under another
program.''; and
(C) by adding at the end the following:
``(4) Guaranteed loan eligibility.--Notwithstanding section
333(1) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983(1)), with respect to the cost of a loan, a producer
with an application that meets the standards for a cost-share
payment under this subsection but that is not approved by the
Secretary shall receive priority consideration for a guaranteed
loan under section 304 of that Act (7 U.S.C. 1924).'';
(3) in subsection (e), by striking paragraph (2) and
inserting the following:
``(2) Special rule.--In determining the amount and rate of
incentive payments, the Secretary may accord great significance
to a practice that promotes residue, nutrient, air quality,
pest, or predator deterrence, including practices to deter
predator species protected under the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.), gray wolves, grizzly bears, and
black bears.'';
(4) in subsection (g), by striking ``2007'' and inserting
``2012'';
(5) by redesignating subsections (d) through (h) as
subsections (c) through (g), respectively; and
(6) by adding at the end the following:
``(h) Water Conservation or Irrigation Efficiency Practice.--
``(1) In general.--The Secretary may provide technical
assistance, cost-share payments, and incentive payments to a
producer for a water conservation or irrigation practice.
``(2) Priority.--In providing assistance and payments to
producers for a water conservation or irrigation practice, the
Secretary may give priority to applications in which--
``(A) there is an improvement in surface flows or a
reduction in the use of groundwater in the agricultural
operation of the producer, consistent with the law of
the State in which the operation of the producer is
located; or
``(B) the producer agrees not to use any associated
water savings to bring new land, other than incidental
land needed for efficient operations, under irrigated
production, unless the producer is participating in a
watershed-wide project that will effectively conserve
water, as determined by the Secretary.
``(i) Air Quality Improvement Practice.--
``(1) In general.--The Secretary shall provide technical
and financial assistance to a producer to promote air quality
improvements and address air quality concerns associated with
agriculture.
``(2) Priority.--In providing assistance for improvements
in air quality, the Secretary shall give priority to
applications that--
``(A) are located in areas--
``(i) that are nonattainment areas with
respect to ambient air quality standards; or
``(ii) in which there is air quality
degradation recognized by a State or local
agency or by the Secretary (in consultation
with the State Technical Committee) to which
agricultural emissions significantly
contribute;
``(B) are the most cost-effective in addressing air
quality concerns; and
``(C)(i) reduce emissions and air pollutant
precursors from agricultural operations, including
through making improvements in mobile or stationary
equipment (including engines);
``(ii) would assist producers in meeting Federal,
State, or local regulatory requirements relating to air
quality;
``(iii) are part of a group of producers
implementing eligible conservation activities in a
coordinated manner to promote air quality; or
``(iv) reflect innovative approaches and
technologies.''.
(d) Eligibility Requirement.--Section 1240B of the Food Security
Act of 1985 (16 U.S.C. 3839aa-2) (as amended by subsection (c)) is
amended by adding at the end the following:
``(i) Eligibility Requirement.--A producer shall not be eligible to
receive any payment under this section unless the producer is a farmer
or rancher that, as determined by the Secretary, derives or expects to
derive at least $15,000 in gross sales from farming, ranching, or
forestry operations (not including payments under the conservation
reserve program established under subchapter B of chapter 1 of subtitle
D), as determined by the Secretary.''.
SEC. 2354. EVALUATION OF OFFERS AND PAYMENTS.
Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3)
is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) improve conservation practices or systems in place on
the operation at the time the contract offer is accepted or to
complete a conservation system; and''.
SEC. 2355. DUTIES OF PRODUCERS.
Section 1240D(2) of the Food Security Act of 1985 (16 U.S.C.
3839aa-4(2)) is amended by striking ``farm or ranch'' and inserting
``farm, ranch, or forest land''.
SEC. 2356. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
Section 1240E(a) of the Food Security Act of 1985 (16 U.S.C.
3839aa-5(a)) is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
or an entity described in section 1244(e) acting on behalf of
producers,'' after ``producer'';
(2) in paragraph (2), by striking ``and'' after the
semicolon at the end;
(3) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(4) in the case of forest land, is consistent with a
forest management plan that is approved by the Secretary, which
may include--
``(A) a forest stewardship plan described in
section 5 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103a);
``(B) another practice plan approved by the State
forester; or
``(C) another plan determined appropriate by the
Secretary.''.
SEC. 2357. LIMITATION ON PAYMENTS.
Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7)
is amended--
(1) by striking ``An individual'' and inserting ``(a) In
General.--Subject to section 1244(i), an individual''; and
(2) by adding at the end the following:
``(b) Producer Organizations.--In the case of an entity described
in section 1244(e), the limitation established under this section shall
apply to each participating producer and not to the entity described in
section 1244(e).''.
SEC. 2358. CONSERVATION INNOVATION GRANTS.
Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8)
is amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--The Secretary may pay the cost of competitive
grants that leverage Federal investment in environmental enhancement
and protection through the program by--
``(1) stimulating the development of innovative
technologies; and
``(2) transferring those technologies to agricultural and
nonindustrial private forest land in production.''; and
(2) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2)(A) implement innovative conservation technologies,
such as market systems for pollution reduction and practices
for the storing of carbon in the soil;
``(B) provide a mechanism for transferring those
technologies to agricultural and nonindustrial private forest
land in production; and
``(C) increase environmental and resource conservation
benefits through specialty crop production; and''.
SEC. 2359. GROUND AND SURFACE WATER CONSERVATION.
Section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9)
is amended by striking subsection (c) and inserting the following:
``(c) Funding.--
``(1) Availability of funds.--Of the funds of the Commodity
Credit Corporation, in addition to amounts made available under
section 1241(a) to carry out this chapter, the Secretary shall
use--
``(A) $65,000,000 for each of fiscal years 2008
through 2012; and
``(B) $60,000,000 for each fiscal year thereafter.
``(2) Funding for certain states.--Of the funds made
available under paragraph (1), the Secretary shall--
``(A) provide to each State that received funds
under this title during the period of fiscal years 2002
through 2007, the greater of--
``(i) the simple average of amounts
allocated to producers in the State under this
section for the period of fiscal years 2002
through 2007; or
``(ii) the amount allocated to producers in
the State under this section in fiscal year
2007; and
``(B) in the case of each State the boundaries of
which encompass a multistate aquifer from which
documented groundwater withdrawals exceed
16,000,000,000 gallons per day, provide an amount not
less than the greater of--
``(i) $3,000,000; or
``(ii) the amount provided under
subparagraph (A).
``(3) Eastern snake plain aquifer pilot.--
``(A) In general.--Of the funds made available
under paragraph (1), the Secretary shall reserve not
less than $2,000,000, to remain available until
expended, for regional water conservation activities in
the Eastern Snake Aquifer region.
``(B) Approval.--The Secretary may approve regional
water conservation activities under this paragraph that
address, in whole or in part, water quality issues.''.
SEC. 2360. ORGANIC CONVERSION.
The Food Security Act of 1985 is amended by inserting after section
1240I (16 U.S.C. 3839aa-9) the following:
``SEC. 1240J. ORGANIC CONVERSION.
``(a) Definitions.--In this section:
``(1) National organic program.--The term `national organic
program' means the national organic program established under
the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et.
seq.).
``(2) Organic system plan.--The term `organic system plan'
means an organic plan approved under the national organic
program.
``(b) Establishment.--Under the environmental quality incentives
program established under this chapter, not later than 180 days after
the date of enactment of this section, the Secretary shall establish a
program under which the Secretary shall provide cost-share and
incentive payments to producers to promote conservation practices and
activities for production systems undergoing conversion on some or all
of the operations of the producer to organic production in accordance
with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).
``(c) Organic Conversion Cost-Share and Incentive Payments.--The
Secretary shall provide organic conversion cost-share and incentive
payments to producers that--
``(1) are converting to organic production systems,
including producers with existing certified organic production
for conversion to organic production of land and livestock not
previously certified organic; and
``(2) enter into contracts with the Secretary for eligible
practices and activities described in subsection (d).
``(d) Eligible Practices and Activities.--Producers may use funds
made available under subsection (c) for--
``(1) practices and activities during conversion to
certified organic production that--
``(A) are required by, or consistent with, an
approved organic system plan; and
``(B) protect resources of concern, as identified
by the Secretary;
``(2) technical services, including the costs of developing
an approved organic system plan; and
``(3) such other measures as the Secretary determines to be
appropriate and consistent with an approved organic system
plan.
``(e) Eligible Producers.--To be eligible to receive cost-share and
incentive payments under this section, a producer shall agree--
``(1) to develop and carry out conservation and
environmental activities that--
``(A) are required by, or consistent with, an
approved organic system plan; and
``(B) protect resources of concern, as identified
by the Secretary;
``(2) to receive technical and educational assistance from
the Secretary or from an organization, institute, or consultant
with a cooperative agreement with the Secretary relating to--
``(A) the development of an organic system plan and
the implementation of conservation practices and
activities that are part of an organic system plan; or
``(B) other aspects of an organic system plan,
including marketing, credit, business, and risk
management plans; and
``(3) to submit annual verification by a certifying entity
accredited by the Secretary to determine the compliance of the
producer with organic certification requirements.
``(f) Term.--Notwithstanding section 1240B(b)(2)(A), a contract
under this section shall have a term of--
``(1) not less than 3 years; and
``(2) not more than 4 years.
``(g) Limitations on Payments.--As part of the payment limitation
described in section 1240G, an individual or entity may not receive,
directly or indirectly, cost-share or incentive payments under this
section--
``(1) for a period of more than 4 years; or
``(2) that, in the aggregate and exclusive of technical
assistance, exceed--
``(A) $20,000 per year; or
``(B) a total amount of $80,000.
``(h) Termination of Contracts.--The Secretary may cancel or
otherwise nullify a contract entered into under this section if the
Secretary determines the producers are not pursuing organic
certification.''.
SEC. 2361. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.
The Food Security Act of 1985 is amended by inserting after section
1240J (as added by section 2360) the following:
``SEC. 1240K. CHESAPEAKE BAY WATERSHED CONSERVATION PROGRAM.
``(a) Definition of Chesapeake Bay Watershed.--In this section, the
term `Chesapeake Bay watershed' includes all tributaries, backwaters,
and side channels (including watersheds) draining into the Chesapeake
Bay.
``(b) Establishment.--The Secretary shall use the authorities
granted under the environmental quality incentives program established
under this chapter to address natural resource concerns relating to
agricultural and nonindustrial private forest land in the Chesapeake
Bay watershed.
``(c) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use $165,000,000 to carry out this section for the
period of fiscal years 2008 through 2012.''.
CHAPTER 3--FARMLAND PROTECTION
Subchapter A--Farmland Protection Program
SEC. 2371. FARMLAND PROTECTION PROGRAM.
(a) Definitions.--Section 1238H of the Food Security Act of 1985
(16 U.S.C. 3838h) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any agency of any State or local government
or an Indian tribe (including a farmland protection
board or land resource council established under State
law); or
``(B) any organization that--
``(i) is organized for, and at all times
since the formation of the organization has
been operated principally for, 1 or more of the
conservation purposes specified in clause (i),
(ii), (iii), or (iv) of section 170(h)(4)(A) of
the Internal Revenue Code of 1986;
``(ii) is an organization described in
section 501(c)(3) of that Code that is exempt
from taxation under section 501(a) of that
Code; and
``(iii) is--
``(I) described in paragraph (1) or
(2) of section 509(a) of that Code; or
``(II) described in section
509(a)(3), and is controlled by an
organization described in section
509(a)(2), of that Code.''; and
(2) in paragraph (2)--
(A) in subparagraph (A), by striking clauses (i)
and (ii) and inserting the following:
``(i) has prime, unique, or other
productive soil;
``(ii) contains historical or
archaeological resources; or
``(iii) furthers a State or local policy
consistent with the purposes of the program.'';
and
(B) in subparagraph (B)--
(i) in clause (iv), by striking ``and'' at
the end;
(ii) by striking clause (v) and inserting
the following:
``(v) forest land that--
``(I) contributes to the economic
viability of an agricultural operation;
or
``(II) serves as a buffer to
protect an agricultural operation from
development; and
``(vi) land that is incidental to land
described in clauses (i) through (v), if the
incidental land is determined by the Secretary
to be necessary for the efficient
administration of a conservation easement.''.
(b) Farmland Protection.--Section 1238I of the Food Security Act of
1985 (16 U.S.C. 3838i) is amended--
(1) in subsection (a), by striking ``purchase conservation
easements'' and all the follows through the end of the
subsection and inserting ``enter into cooperative agreements
with eligible entities for the eligible entities to purchase
permanent conservation easements or other interests in eligible
land for the purpose of protecting the agricultural use and
related conservation values of the land by limiting
incompatible nonagricultural uses of the land.'';
(2) by redesignating subsections (b) and (c) as subsections
(e) and (f), respectively;
(3) by inserting after subsection (a) the following:
``(b) Terms and Conditions for Cooperative Agreements.--
``(1) In general.--The Secretary shall establish the terms
and conditions of any cooperative agreement entered into under
this subchapter under which the eligible entity shall use funds
provided by the Secretary.
``(2) Minimum requirements.--A cooperative agreement shall,
at a minimum--
``(A) specify the qualifications of the eligible
entity to carry out the responsibilities of the
eligible entity under the program, including
acquisition and management policies and procedures that
ensure the long-term integrity of the conservation
easement protections;
``(B) subject to subparagraph (C), identify a
specific project or a range of projects funded under
the agreement;
``(C) allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified
at the time of substitution;
``(D) specify the manner in which the eligible
entity will evaluate and report the use of funds to the
Secretary;
``(E) allow the eligible entity flexibility to use
the terms and conditions of the eligible entity for
conservation easements and other purchases of interests
in land, except that--
``(i) subject to clause (ii), each easement
shall include a limitation on the total
quantity of impervious surface of not more
than--
``(I) 20 percent of the first 10
acres;
``(II) 5 percent of the next 90
acres; and
``(III) 1 percent of any additional
acres; and
``(ii) the Secretary may waive a limitation
under clause (i) after a determination by the
Secretary that the eligible entity has in place
a requirement that provides substantially-
similar protection consistent with agricultural
activities regarding the impervious surfaces to
be allowed for any conservation easement or
other interest in land purchases using funds
provided under the program;
``(F) require appraisals of acquired interests in
eligible land that comply with, at the option of the
eligible entity--
``(i) the Uniform Standards of Professional
Appraisal Practice; or
``(ii) any other industry-approved
standard, as determined by the Secretary; and
``(G) allow as part of the share of the eligible
entity of the cost to purchase a conservation easement
or other interest in eligible land described in
subsection (a), that an eligible entity may include a
charitable donation or qualified conservation
contribution (as defined by section 170(h) of the
Internal Revenue Code of 1986), from the private
landowner from which the conservation easement will be
purchased.
``(c) Cost Sharing.--
``(1) In general.--Subject to paragraphs (2) and (3), the
Secretary may provide a share of the purchase price of a
conservation easement or other interest in land acquired by an
eligible entity under the program.
``(2) Maximum amount of fair market value.--The Secretary
shall not pay more than 50 percent of the appraised fair market
value of the acquisition under this subsection.
``(3) Minimum share by eligible entity.--The eligible
entity shall be required to provide a share of the cost under
this subsection in an amount that is not less than the lesser
of--
``(A) \1/2\ of the purchase price of the
acquisition;
``(B) if the landowner has made a donation of 25
percent or less of the appraised fair market value of
the acquisition, an amount that, when combined with the
donation, equals the amount of the payment by the
Secretary; or
``(C) if the landowner has made a donation of more
than 25 percent of the appraised fair market value of
the acquisition, \1/3\ of the purchase price of the
acquisition.
``(d) Protection of Federal Investment.--
``(1) In general.--The Secretary shall ensure that the
terms of an easement acquired by the eligible entity provides
protection for the Federal investment through an executory
limitation by the Federal Government.
``(2) Relationship to federal acquisition of real
property.--The inclusion of a Federal executory limitation
described in paragraph (1) shall--
``(A) not be considered the Federal acquisition of
real property; and
``(B) not trigger any Federal appraisal or other
real property requirements, including the Federal
standards and procedures for land acquisition.''; and
(4) in subsection (f) (as redesignated by paragraph (2)),
by striking ``Cost Sharing.--'' and all that follows through
``Bidding down.--'' and inserting ``Bidding Down.--''.
Subchapter B--Grassland Reserve Program
SEC. 2381. GRASSLAND RESERVE PROGRAM.
Subchapter C of chapter 2 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3838n et seq.) is amended to read as
follows:
``Subchapter C--Grassland Reserve Program
``SEC. 1238N. DEFINITIONS.
``In this subchapter:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any agency of any State or local government
or an Indian tribe (including a farmland protection
board or land resource council established under State
law); or
``(B) any organization that--
``(i) is organized for, and at all times
since the formation of the organization has
been operated principally for, 1 or more of the
conservation purposes specified in clause (i),
(ii), (iii), or (iv) of section 170(h)(4)(A) of
the Internal Revenue Code of 1986;
``(ii) is an organization described in
section 501(c)(3) of that Code that is exempt
from taxation under section 501(a) of that
Code; and
``(iii) is--
``(I) described in paragraph (1) or
(2) of section 509(a) of that Code; or
``(II) described in section
509(a)(3), and is controlled by an
organization described in section
509(a)(2), of that Code.
``(2) Eligible land.--The term `eligible land' means
private land that--
``(A) is grassland, rangeland, land that contains
forbs, or shrub land (including improved rangeland and
pastureland) for which grazing is the predominant use;
``(B) is located in an area that has been
historically dominated by grassland, forbs, or shrub
land, and the land potentially could provide habitat
for animal or plant populations of significant
ecological value if the land--
``(i) is retained in the current use of the
land;
``(ii) is restored to a natural condition;
``(iii) contains historical or
archeological resources;
``(iv) would further the goals and
objectives of State, regional, and national
fish, and wildlife conservation plans and
initiatives; or
``(v) is incidental to land described in
clauses (i) through (iv), if the incidental
land is determined by the Secretary to be
necessary for the efficient administration of
an agreement or conservation easement.
``(3) Permanent conservation easement.--The term `permanent
conservation easement' means a conservation easement that is--
``(A) a permanent easement; or
``(B) in a State that imposes a maximum duration
for easements, an easement for the maximum duration
allowed under State law.
``SEC. 1238O. GRASSLAND RESERVE PROGRAM.
``(a) Establishment.--The Secretary shall establish and carry out a
grassland reserve program through which the Secretary shall provide
payments and technical assistance to landowners to assist in restoring
and conserving eligible land described in section 1238N(2).
``(b) Enrollment of Land.--
``(1) In general.--The Secretary may enroll eligible land
in the program through--
``(A) an easement or contract described in
paragraph (2); or
``(B) a cooperative agreement with an eligible
entity.
``(2) Options.--Eligible land enrolled in the program shall
be subject to--
``(A) a 30-year contract;
``(B) a 30-year conservation easement; or
``(C) a permanent conservation easement.
``(3) Enrollment of conservation reserve acreage.--
``(A) In general.--Eligible land enrolled in the
conservation reserve program established under
subchapter B of chapter 1 may be enrolled into
permanent conservation easements under this subchapter
if--
``(i) the Secretary determines that the
eligible land--
``(I) is of high ecological value;
and
``(II) would be under significant
threat of conversion to other uses if
the conservation reserve program
contract were terminated; and
``(ii) the landowner agrees to the
enrollment.
``(B) Maximum enrollment.--The number of acres of
conservation reserve program land enrolled under this
paragraph in a calendar year shall not exceed the
number of acres that could be funded by 10 percent of
the total amount of funds available for this section
for a fiscal year.
``(C) Prohibition on duplicate payments.--Eligible
land enrolled in the program shall no longer be
eligible for payments under the conservation reserve
program.
``(c) Restoration Agreements.--The Secretary may enter into a
restoration agreement with a landowner, as determined appropriate by
the Secretary.
``(d) Conservation Easement Title.--The title holder of a
conservation easement obtained under this subchapter may be--
``(1) the Secretary; or
``(2) an eligible entity.
``SEC. 1238P. DUTIES.
``(a) Duties of Landowners.--
``(1) In general.--To become eligible to enroll eligible
land through the grant of a conservation easement, the
landowner shall--
``(A) create and record an appropriate deed
restriction in accordance with applicable State law;
``(B) provide proof of clear title to the
underlying fee interest in the eligible land that is
subject of the conservation easement;
``(C) provide a written statement of consent to the
easement signed by persons holding a security interest
or any vested interest in the land;
``(D) grant the conservation easement to the
Secretary or an eligible entity; and
``(E) comply with the terms of the conservation
easement and any associated restoration agreement.
``(2) Restoration agreement.--If a restoration agreement is
required by the Secretary, the landowner shall develop and
implement a restoration plan.
``(b) Duties of Secretary.--
``(1) Evaluation of offers.--
``(A) In general.--The Secretary shall establish
criteria to evaluate and rank applications for
easements and contracts under this subchapter.
``(B) Considerations.--In establishing the
criteria, the Secretary shall emphasize support for--
``(i) grazing operations;
``(ii) plant and animal biodiversity;
``(iii) grassland, land that contains
forbs, and shrubland under the greatest threat
of conversion; and
``(iv) other considerations, as determined
by the Secretary.
``(C) Priority.--In evaluating offers under this
subchapter, the Secretary may give priority to
applications that--
``(i) include a cash contribution from the
eligible entity submitting the application; or
``(ii) leverage resources from other
sources.
``(2) Compensation.--
``(A) In general.--
``(i) Easements and contracts.--In return
for the granting of an easement, the Secretary
shall provide to the landowner an amount that
is equal to--
``(I) in the case of a permanent
easement, the fair market value of the
land less the grazing value of the land
encumbered by the easement; and
``(II) in the case of a 30-year
easement or 30-year contract, 30
percent of the fair market value of the
land less the grazing value of the land
for the period during which the land is
encumbered by the easement.
``(ii) Restoration agreements.--In making
cost-share payments for restoration agreements,
the Secretary shall make payments to the
landowner--
``(I) in the case of a permanent
easement, in an amount that is not less
than 90, but not more than 100, percent
of the eligible costs; and
``(II) in the case of a 30-year
easement or 30-year contract, in an
amount that is not less than 50, but
not more than 75, percent of the
eligible costs.
``(B) Delivery of payments.--
``(i) Payment schedule.--Except as
otherwise provided in this subchapter, payments
may be provided pursuant to an easement,
contract, or other agreement, in not more than
30 annual payments, and in an equal or unequal
amounts, as agreed to by the Secretary and the
landowner.
``(ii) Payments to others.--If an owner
that is entitled to a payment under this
subchapter dies, becomes incompetent, is
otherwise unable to receive the payment, or is
succeeded by another person who renders or
completes the required performance, the
Secretary shall make the payment, in accordance
with regulations promulgated by the Secretary
and without regard to any other provision of
law, in such manner as the Secretary determines
is fair and reasonable after considering all
the circumstances.
``(3) Technical assistance.--If a restoration agreement is
required by the Secretary, the Secretary shall provide
technical assistance to comply with the terms and conditions of
the restoration agreement.
``SEC. 1238Q. TERMS AND CONDITIONS.
``(a) Terms and Conditions of Easement or Contracts.--An easement
or contract under this subchapter shall--
``(1) permit--
``(A) common grazing practices, including
maintenance and necessary cultural practices, on the
land in a manner that is consistent with maintaining
the viability of grassland, forb, and shrub species
appropriate to that locality;
``(B) haying, mowing, or harvesting for seed
production, subject to appropriate restrictions during
the nesting season for birds in the local area that are
in significant decline or are conserved in accordance
with Federal or State law, as determined by the State
Conservationist; and
``(C) fire presuppression, rehabilitation, and
construction of fire breaks and fences (including
placement of the posts necessary for fences);
``(2) prohibit--
``(A) the production of crops (other than hay),
fruit trees, vineyards, or any other agricultural
commodity that is inconsistent with maintaining grazing
land; and
``(B) except as permitted under a restoration plan,
the conduct of any other activity that would be
inconsistent with maintaining grazing land covered by
the easement or agreement; and
``(3) include such additional provisions as the Secretary
determines are appropriate to carry out or facilitate the
administration of this subchapter.
``(b) Terms and Conditions of Cooperative Agreements.--
``(1) In general.--The Secretary shall establish the terms
and conditions of any cooperative agreement entered into under
this subchapter under which the eligible entity shall use funds
provided by the Secretary.
``(2) Minimum requirements.--A cooperative agreement shall,
at a minimum--
``(A) specify the qualification of the eligible
entity to carry out the responsibilities of the
eligible entity under the program, including
acquisition, monitoring, enforcement, and management
policies and procedures that ensure the long-term
integrity of the conservation easement protections;
``(B) subject to subparagraph (C), identify a
specific project or a range of projects funded under
the agreement;
``(C) allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified
at the time of substitution;
``(D) specify the manner in which the eligible
entity will evaluate and report the use of funds to the
Secretary;
``(E) allow the eligible entity flexibility to
develop and use terms and conditions for conservation
easements and other purchases of interest in eligible
land, if the Secretary finds the terms and conditions
consistent with the purposes of the program and
adequate to achieve and permit effective enforcement of
the conservation purposes of the conservation easements
or other interests;
``(F) require appraisals of acquired interests in
eligible land that comply with a method approved by
industry;
``(G) if applicable, allow as part of the share of
the eligible entity of the cost to purchase a
conservation easement or other interest in eligible
land described in section 1238O(b), that an eligible
entity may include a charitable donation or qualified
conservation contribution (as defined by section 170(h)
of the Internal Revenue Code of 1986), from the private
landowner for which the conservation easement will be
purchased; and
``(H) provide for a schedule of payments to an
eligible entity, as agreed to by the Secretary and the
eligible entity, over a term of not to exceed 30 years.
``(3) Protection of federal investment.--
``(A) In general.--The Secretary shall ensure that
the terms of an easement acquired by the eligible
entity provides protection for the Federal investment
through an executory limitation by the Federal
government.
``(B) Relationship to federal acquisition of real
property.--The inclusion of an executory limitation
described in subparagraph (A) shall--
``(i) not be considered the Federal
acquisition of real property; and
``(ii) not trigger any Federal appraisal or
other real property requirements, including the
Federal standards and procedures for land
acquisition.
``(C) Terms of restoration agreement.--A
restoration agreement shall contain--
``(i) a statement of the conservation
measures and practices that will be undertaken
in regard to the eligible land subject to the
conservation easement;
``(ii) restrictions on the use of the
eligible land subject to the conservation
easement; and
``(iii) a statement of the respective
duties of the Secretary, landowner, and
eligible entity, as appropriate.
``(c) Violation.--If a violation occurs of the terms or conditions
of a conservation easement, contract, cooperative agreement or
restoration agreement entered into under this section--
``(1) the conservation easement, contract, cooperative
agreement, or restoration agreement shall remain in force; and
``(2) the Secretary may require the owner or entity to
refund all or part of any payments received by the owner under
this subchapter, with interest on the payments as determined
appropriate by the Secretary.''.
CHAPTER 4--OTHER CONSERVATION PROGRAMS
SEC. 2391. CONSERVATION SECURITY PROGRAM.
Subchapter A of chapter 2 of subtitle D of title XII of the Food
Security Act of 1985 is amended by adding after section 1238C (16
U.S.C. 3838c) the following:
``SEC. 1238D. PERIOD OF EFFECTIVENESS.
``(a) In General.--This subchapter, and the terms and conditions of
the conservation security program, shall continue to apply to
conservation security contracts entered into as of the date before the
date of enactment of this section.
``(b) Payments.--The Secretary shall make payments under this
subchapter with respect to conservation security contracts described in
subsection (a) during the term of the contracts.
``(c) Prohibition on New Contracts.--A conservation security
contract may not be entered into or renewed under this subchapter as of
the date of enactment of this section.
``(d) Limitation.--A contract described in subsection (a) may not
be administered under the regulations issued under section 1240Y.''.
SEC. 2392. CONSERVATION OF PRIVATE GRAZING LAND.
Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C.
3839bb(e)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 2393. REAUTHORIZATION OF WILDLIFE HABITAT INCENTIVE PROGRAM.
Section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb-1)
is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking ``Cost-
Share'';
(B) in paragraph (1), by inserting ``and
incentive'' after ``cost-share''; and
(C) in paragraph (2)(B), by striking ``15 percent''
and inserting ``25 percent''; and
(2) by adding at the end the following:
``(d) Fish and Wildlife Conservation Plans and Initiatives.--In
carrying out this section, the Secretary shall give priority to
projects that would further the goals and objectives of State,
regional, and national fish and wildlife conservation plans and
initiatives.
``(e) Duration of Program.--Using funds made available under
section 1241(a)(7), the Secretary shall carry out the program during
each of fiscal years 2008 through 2012.''.
SEC. 2394. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
Section 1240O of the Food Security Act of 1985 (16 U.S.C. 3839bb-2)
is amended by striking subsection (b) and inserting the following:
``(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for each of fiscal
years 2008 through 2012.''.
SEC. 2395. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
CONTROL.
Section 1240P of the Food Security Act of 1985 (16 U.S.C. 3839bb-3)
is amended to read as follows:
``SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
CONTROL.
``(a) In General.--The Secretary, in consultation with the Great
Lakes Commission created by Article IV of the Great Lakes Basin Compact
(82 Stat. 415) and in cooperation with the Administrator of the
Environmental Protection Agency and the Secretary of the Army, may
carry out the Great Lakes basin program for soil erosion and sediment
control (referred to in this section as the `program') to assist in
implementing the recommendations of the Great Lakes Regional
Collaboration Strategy to Restore and Protect the Great Lakes.
``(b) Assistance.--In carrying out the program, the Secretary may--
``(1) provide project demonstration grants, provide
technical assistance, and carry out information and educational
programs to improve water quality in the Great Lakes basin by
reducing soil erosion and improving sediment control; and
``(2) establish a priority for projects and activities
that--
``(A) directly reduce soil erosion or improve
sediment control;
``(B) reduce soil loss in degraded rural
watersheds; or
``(C) improve hydrological conditions in urban
watersheds.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2008 through 2012.''.
SEC. 2396. FARM VIABILITY PROGRAM.
Section 1238J(b) of the Food Security Act of 1985 (16 U.S.C.
3838j(b)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 2397. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.
Chapter 5 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3839bb et seq.) is amended by adding at the end the
following:
``SEC. 1240Q. DISCOVERY WATERSHED DEMONSTRATION PROGRAM.
``(a) Establishment.--The Secretary shall establish and carry out a
demonstration program in not less than 30 small watersheds in States of
the Upper Mississippi River basin to identify and promote the most
cost-effective and efficient approaches to reducing the loss of
nutrients to surface waters.
``(b) Purpose.--The demonstration program shall demonstrate in
small watersheds performance-based and market-based approaches--
``(1) to reduce the loss of nutrients to surface waters
from agricultural land; and
``(2) to monitor the cost-effectiveness of management
practices designed to reduce the loss of nutrients to surface
waters from agricultural land.
``(c) Partnerships.--In carrying out this section, the Secretary
may establish or identify, as appropriate, partnerships to select the
watersheds and to encourage cooperative effort among the Secretary and
State, local, and nongovernmental organizations.
``(d) Selection of Small Watersheds.--In selecting small watersheds
for participation in the program, the Secretary shall consider the
extent to which--
``(1) reducing nutrient losses to surface water in the
small watershed would be likely to result in measurable
improvements in water quality in the small watershed;
``(2) a demonstration project would use innovative
approaches to attract a high level of producer participation in
the small watershed to ensure success;
``(3) a demonstration project could be implemented through
a third party, including a producer organization, farmer
cooperative, conservation district, water utility, agency of
State or local government, conservation organization, or other
organization with appropriate expertise;
``(4) a demonstration project would leverage funding from
State, local, and private sources;
``(5) a demonstration project would demonstrate market-
based approaches to nutrient losses to surface waters;
``(6) baseline data related to water quality and
agricultural practices and contributions from nonagricultural
sources as relevant in the small watershed has been collected
or could be readily collected; and
``(7) water quality monitoring infrastructure is in place
or could reasonably be put in place in the small watershed.
``(e) Use of Funds.--
``(1) In general.--Funding provided for the program under
subsection (f) shall be used in not less than 30 small
watersheds--
``(A) to provide technical assistance;
``(B) to provide and assess financial incentives to
agricultural producers implementing conservation
practices that reduce nutrient losses to surface
waters;
``(C) to monitor the performance and costs of
alternative nutrient management techniques, including
soil tests, stalk tests, cover crops, soil amendments,
buffers, and tillage practices; and
``(D) to share the cost of data collection,
monitoring, and analysis.
``(2) Prohibition.--None of the funds made available to
carry out the program for each fiscal year may be used for
administrative expenses.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
SEC. 2398. EMERGENCY LANDSCAPE RESTORATION PROGRAM.
(a) In General.--Chapter 5 of subtitle D of the Food Security Act
of 1985 (16 U.S.C. 3839bb et seq.) (as amended by section 2386) is
amended by adding at the end the following:
``SEC. 1240R. EMERGENCY LANDSCAPE RESTORATION PROGRAM.
``(a) Definition of Eligible Recipient.--In this section, the term
`eligible recipient' means--
``(1) an organization that is eligible for technical
assistance and cost-share payments under this section and
assists working agricultural land and nonindustrial private
forest land, including--
``(A) a community-based association; and
``(B) a city, county, or regional government,
including a watershed council and a conservation
district; and
``(2) an individual who is eligible for technical
assistance and cost-share payments under this section,
including--
``(A) a producer;
``(B) a rancher;
``(C) an operator;
``(D) a nonindustrial private forest landowner; and
``(E) a landlord on working agricultural land.
``(b) Purpose.--The purpose of the emergency landscape restoration
program is to rehabilitate watersheds, nonindustrial private forest
land, and working agricultural land adversely affected by natural
catastrophic events, by--
``(1) providing a source of assistance for restoration of
the land back to a productive state;
``(2) preventing further impairment of land and water,
including prevention through the purchase of floodplain
easements; and
``(3) providing further protection of natural resources.
``(c) Establishment.--The Secretary, acting through the Natural
Resources Conservation Service, shall carry out an emergency landscape
restoration program under which technical assistance and cost-share
payments are made available to eligible recipients to carry out
remedial activities to restore landscapes damaged by--
``(1) fire;
``(2) drought;
``(3) flood;
``(4) hurricane force or excessive winds;
``(5) ice storms or blizzards; or
``(6) other resource-impacting natural events, as
determined by the Secretary.
``(d) Prioritization.--The Secretary shall provide the highest
priority for those activities that protect human health and safety.
``(e) Technical Assistance and Cost-Share Payments.--
``(1) In general.--The Secretary shall provide technical
assistance and cost-share payments in amounts of up to 75
percent of the cost of remedial activities described in
paragraph (2) to rehabilitate watersheds, nonindustrial private
forest land, and working agricultural land.
``(2) Remedial activities.--Remedial activities that are
eligible for technical assistance and cost-share payments under
this section include--
``(A) removal of debris from streams, agricultural
land, and nonindustrial forest land, including--
``(i) the restoration of natural hydrology;
and
``(ii) the removal of barriers for aquatic
species;;
``(B) restoration of destabilized streambanks;
``(C) establishment of cover on critically eroding
land;
``(D) restoration of fences;
``(E) construction of conservation structures;
``(F) provision of water for livestock in drought
situations;
``(G) rehabilitation of farm or ranch land;
``(H) restoration of damaged nonindustrial private
forest land, including--
``(i) the removal of damaged standing trees
and downed timber; and
``(ii) site preparation, tree planting,
direct seeding, and firebreaks;
``(I) the carrying out of emergency water
conservation measures;
``(J) restoration of wildlife habitat and
corridors;
``(K) livestock carcass removal and disposal; and
``(L) such other remedial activities as are
determined by the Secretary.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section such sums as
are necessary for each of fiscal years 2008 through 2012, to remain
available until expended.
``(g) Temporary Administration of Emergency Landscape Restoration
Program.--
``(1) In general.--During the period beginning on the date
of enactment of this section and ending on the termination date
described in paragraph (2), to ensure that technical
assistance, cost-share payments, and other payments continue to
be administered in an orderly manner until the date on which
final regulations are promulgated to implement the emergency
landscape restoration program, the Secretary shall, to the
extent the terms and conditions of the programs described in
clauses (i) and (ii) of subparagraph (A) are consistent with
the emergency landscape restoration program, continue to--
``(A) provide technical assistance, cost-share
payments, and other payments under the terms and
conditions of--
``(i) the emergency conservation program
established under title IV of the Agricultural
Credit Act of 1978 (16 U.S.C. 2201 et seq.);
and
``(ii) the emergency watershed protection
program established under section 403 of the
Agricultural Credit Act of 1978 (16 U.S.C.
2203); and
``(B) use for those purposes--
``(i) any funds made available under those
programs; and
``(ii) as the Secretary determines to be
necessary, any funds made available to carry
out the emergency landscape restoration
program.
``(2) Termination of authority.--The authority of the
Secretary to carry out paragraph (1) shall terminate on the
effective date of final regulations to implement the emergency
landscape restoration program.''.
(b) Conforming Amendments.--
(1) Effective on the effective date of final regulations to
implement the emergency landscape restoration program under
section 1240R of the Food Security Act of 1985 (as added by
subsection (a)), title IV of the Agricultural Credit Act of
1978 (16 U.S.C. 2201 et seq.) is repealed.
(2) Section 1211(a)(3)(C) of the Food Security Act of 1985
(16 U.S.C. 3811(a)(3)(C)) is amended by inserting ``section
1240R or'' after ``a payment under''.
(3) Section 1221(b)(3)(C) of the Food Security Act of 1985
(16 U.S.C. 3821(b)(3)(C)) is amended by inserting ``section
1240R or'' after ``A payment under''.
SEC. 2399. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
Chapter 5 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3839bb et seq.) (as amended by section 2387(a)) is
amended by adding at the end the following:
``SEC. 1240S. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
``(a) In General.--The Secretary shall establish a voluntary public
access program under which States and tribal governments may apply for
grants to encourage owners and operators of privately-held farm, ranch,
and forest land to voluntarily make that land available for access by
the public for wildlife-dependent recreation, including hunting or
fishing under programs administered by the States and tribal
governments.
``(b) Applications.--In submitting applications for a grant under
the program, a State or tribal government shall describe--
``(1) the benefits that the State or tribal government
intends to achieve by encouraging public access to private farm
and ranch land for--
``(A) hunting and fishing; and
``(B) to the maximum extent practicable, other
recreational purposes; and
``(2) the methods that will be used to achieve those
benefits.
``(c) Priority.--In approving applications and awarding grants
under the program, the Secretary shall give priority to States and
tribal governments that propose--
``(1) to maximize participation by offering a program the
terms of which are likely to meet with widespread acceptance
among landowners;
``(2) to ensure that land enrolled under the State or
tribal government program has appropriate wildlife habitat;
``(3) to strengthen wildlife habitat improvement efforts on
land enrolled in a special conservation reserve enhancement
program described in section 1234(f)(3) by providing incentives
to increase public hunting and other recreational access on
that land;
``(4) to use additional Federal, State, tribal government,
or private resources in carrying out the program; and
``(5) to make available to the public the location of land
enrolled.
``(d) Relationship to Other Laws.--Nothing in this section preempts
a State or tribal government law (including any State or tribal
government liability law).
``(e) Regulations.--The Secretary shall promulgate such regulations
as are necessary to carry out this section.''.
Subtitle E--Funding and Administration
SEC. 2401. FUNDING AND ADMINISTRATION.
Section 1241(a) of the Food Security Act of 1985 (16 U.S.C.
3841(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``2007'' and inserting ``2012''; and
(2) by striking paragraphs (3) through (7) and inserting
the following:
``(3) The conservation security program under subchapter A
of chapter 2, using $2,317,000,000 to administer contracts
entered into as of the day before the date of enactment of the
Food and Energy Security Act of 2007, to remain available until
expended.
``(4) The conservation stewardship program under subchapter
B of chapter 6.
``(5) The farmland protection program under subchapter B of
chapter 2, using, to the maximum extent practicable,
$97,000,000 for each of fiscal years 2008 through 2012.
``(6) The grassland reserve program under subchapter C of
chapter 2, using, to the maximum extent practicable,
$240,000,000 for the period of fiscal years 2008 through 2012.
``(7) The environmental quality incentives program under
chapter 4, using, to the maximum extent practicable--
``(A) $1,270,000,000 for each of fiscal years 2008
and 2009; and
``(B) $1,300,000,000 for each of fiscal years 2010
through 2012.
``(8) The wildlife habitat incentives program under section
1240N, using, to the maximum extent practicable, $85,000,000
for each of fiscal years 2008 through 2012.
``(9) The voluntary public access program under section
1240S, using, to the maximum extent practicable, $20,000,000 in
each of fiscal years 2008 through 2012.''.
SEC. 2402. REGIONAL EQUITY.
Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
amended by striking subsection (d) and inserting the following:
``(d) Regional Equity.--
``(1) In general.--Before April 1 of each fiscal year, the
Secretary shall give priority for funding under the
conservation programs under subtitle D and the agricultural
management assistance program under section 524(b) of the
Federal Crop Insurance Act (7 U.S.C. 1524(b)) (excluding the
conservation reserve program under subchapter B of chapter 1
and the wetlands reserve program under subchapter C of chapter
1) to approved applications in any State that has not received,
for the fiscal year, an aggregate amount of at least
$15,000,000 for those conservation programs.
``(e) Specific Funding Allocations.--In determining the specific
funding allocations for each State under paragraph (1), the Secretary
shall consider the respective demand for each program in each State.
``(f) Allocations Review and Update.--
``(1) Review.--Not later than January 1, 2012, the
Secretary shall conduct a review of conservation program
allocation formulas to determine the sufficiency of the
formulas in accounting for State-level economic factors, level
of agricultural infrastructure, or related factors that affect
conservation program costs.
``(2) Update.--The Secretary shall improve conservation
program allocation formulas as necessary to ensure that the
formulas adequately reflect the costs of carrying out the
conservation programs.''.
SEC. 2403. CONSERVATION ACCESS.
Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) (as
amended by section 2402) is amended by adding at the end the following:
``(g) Conservation Access.--
``(1) Assistance to eligible farmers or ranchers.--
``(A) Definition of eligible farmer or rancher.--In
this paragraph, the term `eligible farmer or rancher'
means a farmer or rancher that, as determined by the
Secretary--
``(i) derives or expects to derive at least
$15,000 in gross sales from agriculture (not
including payments under the conservation
reserve program established under subchapter B
of chapter 1 of subtitle D); and
``(ii) is--
``(I) a beginning farmer or rancher
(as defined in section 343 of the
Consolidated Farm and Rural Development
Act (7 U.S.C. 1991)), except that in
determining whether the farmer or
rancher qualifies as a beginning farmer
or rancher, the Secretary may--
``(aa) employ a fair and
reasonable test of net worth;
and
``(bb) use such other
criteria as the Secretary
determines to be appropriate;
or
``(II) a socially disadvantaged
farmer or rancher (as defined in
section 355(e) of the Consolidated Farm
and Rural Development Act (7 U.S.C.
2003(e)).
``(B) Assistance.--In the case of each program
described in subsection (a), except as provided in
paragraph (2), for each fiscal year in which funding is
made available for the program, 10 percent of the funds
available for the fiscal year shall be used by the
Secretary to assist eligible farmers or ranchers.
``(2) Acreage programs.--In the case of the conservation
reserve and wetlands reserve programs, 10 percent of the
acreage authorized to be enrolled in any fiscal year shall be
used to assist eligible farmers or ranchers.
``(3) Repooling.--In any fiscal year, amounts not obligated
under this subsection by a date determined by the Secretary
shall be available for payments and technical assistance to all
persons eligible for payments or technical assistance in that
fiscal year under the program for which the amounts were
originally made available under this title.
``(4) Conservation innovation grants.--Funding under
paragraph (1) for conservation innovation grants under section
1240H may, in addition to purposes described in subsection (b)
of that section, be used for--
``(A) technology transfer;
``(B) farmer-to-farmer workshops; and
``(C) demonstrations of innovative conservation
practices.
``(5) Technical assistance.--The Secretary shall offer, to
the maximum extent practicable, higher levels of technical
assistance to beginning farmers or ranchers and socially
disadvantaged farmers or ranchers than are otherwise made
available to producers participating in programs under this
title.
``(6) Cooperative agreements.--The Secretary may develop
and implement cooperative agreements with entities (including
government agencies, extension entities, nongovernmental and
community-based organizations, and educational institutions)
with expertise in addressing the needs of beginning farmers or
ranchers and socially disadvantaged farmers or ranchers to
provide technical assistance, comprehensive conservation
planning education, and sustainable agriculture training.''.
SEC. 2404. DELIVERY OF TECHNICAL ASSISTANCE.
Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is
amended to read as follows:
``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.
``(a) Definition of Eligible Participant.--In this section, the
term `eligible participant' means--
``(1) an agricultural producer;
``(2) an eligible entity;
``(3) an eligible landowner; and
``(4) an interested organization.
``(b) Purpose.--The purpose of technical assistance authorized by
this title is to provide eligible participants with consistent,
science-based, site-specific practices designed to achieve conservation
objectives on land active in agricultural, forestry, or related uses.
``(c) Provision of Technical Assistance.--The Secretary shall
provide technical assistance under this title to an eligible
participant--
``(1) directly;
``(2) through a contract or agreement with a third-party
provider; or
``(3) at the option of the eligible participant, through a
payment, as determined by the Secretary, to the eligible
participant for an approved third-party provider, if available.
``(d) Certification of Third-Party Providers.--
``(1) In general.--The Secretary shall continue to carry
out the technical service provider program established under
regulations promulgated under subsection (b)(1) (as in
existence on the day before the date of enactment of this
subsection).
``(2) Purpose.--The purpose of the technical service
provider program shall be to increase the availability and
range of technical expertise available to farmers, ranchers,
and eligible landowners to plan and implement conservation
measures.
``(3) Expertise.--In promulgating regulations to carry out
this subsection, the Secretary shall--
``(A) ensure that persons with expertise in the
technical aspects of conservation planning, watershed
planning, and environmental engineering (including
commercial entities, nonprofit entities, State or local
governments or agencies, and other Federal agencies)
are eligible to become approved providers of the
technical assistance; and
``(B) to the maximum extent practicable--
``(i) provide national criteria for the
certification of technical service providers;
and
``(ii) approve any unique certification
standards established at the State level.
``(4) System administration.--
``(A) Funding.--Effective for fiscal year 2008 and
each subsequent fiscal year, funds of the Commodity
Credit Corporation that are made available to carry out
each of the programs specified in section 1241 shall be
available for the provision of technical assistance
from third-party providers under this section.
``(B) Contract term.--A contract under this section
shall have a term that--
``(i) at a minimum, is equal to the
period--
``(I) beginning on the date on
which the contract is entered into; and
``(II) ending on the date that is 1
year after the date on which all
activities in the contract have been
completed;
``(ii) does not exceed 3 years; and
``(iii) can be renewed, as determined by
the Secretary.
``(C) Review of certification requirements.--Not
later than 1 year after the date of enactment of this
subsection, the Secretary shall--
``(i) review certification requirements for
third-party providers; and
``(ii) make any adjustments considered
necessary by the Secretary to improve
participation.
``(D) Eligible activities.--The Secretary may
include in activities eligible for payment to a third-
party provider--
``(i) education and outreach to eligible
participants; and
``(ii) administrative services necessary to
support conservation program implementation.
``(5) Payment amounts.--The Secretary shall establish fair
and reasonable amounts of payments for technical services
provided by third-party providers.
``(e) Availability of Technical Services.--
``(1) Availability.--
``(A) In general.--In carrying out the programs
under this title and the agricultural management
assistance program under section 524 of the Federal
Crop Insurance Act (7 U.S.C. 1524), the Secretary shall
make technical services available to all eligible
participants who are installing an eligible practice.
``(B) Technical service contracts.--In any case in
which financial assistance is not requested or is not
provided under subparagraph (A), the Secretary may
enter into a technical service contract with the
applicable eligible participant for the purposes of
assisting in the planning, design, or installation of
an eligible practice.
``(2) Review of conservation practice standards.--
``(A) In general.--The Secretary shall--
``(i) review conservation practice
standards, including engineering design
specifications, in effect on the date of
enactment of this subsection;
``(ii) ensure, to the maximum extent
practicable, the completeness and relevance of
the standards to local agricultural, forestry,
and natural resource needs, including specialty
crops, native and managed pollinators,
bioenergy crop production, forestry, and such
other needs as are determined by the Secretary;
and
``(iii) ensure that the standards provide
for the optimal balance between meeting site-
specific conservation needs and minimizing
risks of design failure and associated costs of
construction and installation.
``(B) Consultation.--In conducting the assessment
under subparagraph (A), the Secretary shall consult
with eligible participants, crop consultants,
cooperative extension and land grant universities,
nongovernmental organizations, and other qualified
entities.
``(C) Expedited revision of standards.--If the
Secretary determines under subparagraph (A) that
revisions to the conservation practice standards,
including engineering design specifications, are
necessary, the Secretary shall establish an
administrative process for expediting the revisions.
``(3) Addressing concerns of speciality crop, organic, and
precision agriculture producers.--
``(A) In general.--The Secretary shall--
``(i) to the maximum extent practicable,
fully incorporate specialty crop production,
organic crop production, and precision
agriculture into the conservation practice
standards; and
``(ii) provide for the appropriate range of
conservation practices and resource mitigation
measures available to producers involved with
organic or specialty crop production or
precision agriculture.
``(B) Availability of adequate technical
assistance.--
``(i) In general.--The Secretary shall
ensure that adequate technical assistance is
available for the implementation of
conservation practices by producers involved
with organic or specialty crop production or
precision agriculture through Federal
conservation programs.
``(ii) Requirements.--In carrying out
clause (i), the Secretary shall develop--
``(I) programs that meet specific
needs of producers involved with
organic or specialty crop production or
precision agriculture through
cooperative agreements with other
agencies and nongovernmental
organizations; and
``(II) program specifications that
allow for innovative approaches to
engage local resources in providing
technical assistance for planning and
implementation of conservation
practices.''.
SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.
(a) Streamlined Application Process.--Section 1244 of the Food
Security Act of 1985 (16 U.S.C. 3844) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Streamlined Application Process.--
``(1) In general.--In carrying out each conservation
program under this title, the Secretary shall ensure that the
application process used by producers and landowners is
streamlined to minimize complexity and eliminate redundancy.
``(2) Review and streamlining.--
``(A) Review.--The Secretary shall carry out a
review of the application forms and processes for each
conservation program covered by this subsection.
``(B) Streamlining.--On completion of the review
the Secretary shall revise application forms and
processes, as necessary, to ensure that--
``(i) all required application information
is essential for the efficient, effective, and
accountable implementation of conservation
programs;
``(ii) conservation program applicants are
not required to provide information that is
readily available to the Secretary through
existing information systems of the Department
of Agriculture;
``(iii) information provided by the
applicant is managed and delivered efficiently
for use in all stages of the application
process, or for multiple applications; and
``(iv) information technology is used
effectively to minimize data and information
input requirements.
``(3) Implementation and notification.--Not later than 1
year after the date of enactment of the Food and Energy
Security Act of 2007, the Secretary shall submit to Congress a
written notification of completion of the requirements of this
subsection.''.
(b) Administration.--Section 1244 of the Food Security Act of 1985
(16 U.S.C. 3844) (as amended by subsection (a)) is amended by adding at
the end the following:
``(d) Cooperation Regarding Protection.--In the case of a landowner
who enrolls land in a conservation program authorized under this title
that results in a net conservation benefit for a listed, candidate, or
other species, the Secretary shall cooperate at the request of the
landowner with the Secretary of the Interior and the Secretary of
Commerce, as appropriate, to make available to the landowner safe
harbor or similar assurances and protections under sections 7(b)(4) and
10(a), as applicable, of the Endangered Species Act of 1973 (16 U.S.C.
1536(b)(4), 1539(a)).
``(e) Eligibility of Producer Organizations.--
``(1) In general.--In carrying out a conservation program
administered by the Secretary, the Secretary shall accept
applications from, and shall provide cost-share and incentive
payments and other assistance to, producers who elect to apply
through an organization that represents producers and of which
producers make up a majority of the governing body, if the
Secretary determines that--
``(A) the full objective of the proposed activity,
practice, or plan cannot be realized without the
participation of all or substantially all of the
producers in the affected area; and
``(B) the benefits achieved through the proposed
activity, practice, or plan are likely to be greater
and to be delivered more cost-effectively if provided
through a single organization with related conservation
expertise and management experience.
``(2) Limitation.--Any applicable payment limitation shall
apply to each participating producer and not to the
organization described in paragraph (1).
``(f) Partnerships and Cooperation.--
``(1) In general.--In carrying out each program under
subtitle D (excluding the wetlands reserve program and the
conservation reserve program), the Secretary, acting through
the State Conservationist, shall designate special projects to
enhance conservation outcomes by working with multiple
producers to address conservation issues, if recommended by the
State Conservationist, in consultation with the State technical
committee.
``(2) Guidelines.--The Secretary shall establish guidelines
to be used by States in the designation of special projects
under paragraph (1).
``(3) Purposes.--The purposes of special projects carried
out under this subsection shall be to achieve local, statewide,
or regional conservation objectives by--
``(A) encouraging producers to cooperate in the
installation and maintenance of conservation practices
that affect multiple agricultural operations;
``(B) encouraging producers to cooperate in meeting
applicable Federal, State, and local regulatory
requirements regarding natural resources and the
environment;
``(C) encouraging producers to share information
and technical and financial resources;
``(D) facilitating cumulative conservation benefits
in geographic areas; and
``(E) promoting the development and demonstration
of innovative conservation methods.
``(4) Eligible partners.--State and local government
entities (including irrigation and water districts and canal
companies), Indian tribes, farmer cooperatives, institutions of
higher education, nongovernmental organizations, and producer
associations shall be eligible to apply under this subsection.
``(5) Special project application.--To apply for
designation as a special project, partners shall submit an
application to the Secretary that includes--
``(A) a description of the geographic area, the
current conditions, the conservation objectives to be
achieved through the special project, and the expected
level of participation by agricultural and
nonindustrial private forest landowners;
``(B) a description of the partners collaborating
to achieve the project objectives and the roles,
responsibilities, and capabilities of the partners;
``(C) a description of the program resources from 1
or more programs under subtitle D that are requested
from the Secretary, in relevant units, and the non-
Federal resources that will be leveraged by the Federal
contribution;
``(D) a description of the plan for monitoring,
evaluating, and reporting on any progress made towards
achieving the purposes of the special project; and
``(E) such other information as described in
guidelines established by the Secretary under paragraph
(2).
``(6) Duties of the secretary.--
``(A) In general.--The Secretary shall enter into
multiyear agreements with partners to facilitate the
delivery of conservation program resources in a manner
to achieve the purposes described in paragraph (3).
``(B) Project selection.--
``(i) In general.--The Secretary shall
conduct a competitive process to select
projects funded under this subsection.
``(ii) Factors considered.--In conducting
the process described in clause (i), the
Secretary shall make public the factors to be
considered in evaluating applications.
``(iii) Priority.--The Secretary may give
priority to applications based on--
``(I) the highest percentage of
producers involved, and the inclusion
of the highest percentage of working
agricultural land in the area;
``(II) the highest percentage of
on-the-ground conservation to be
implemented;
``(III) non-Federal resources to be
leveraged;
``(IV) innovation in conservation
methods and delivery, including
outcome-based performance measures and
methods; and
``(V) other factors, as determined
by the Secretary.
``(C) Technical and financial assistance.--The
Secretary and partners shall provide appropriate
technical and financial assistance to producers
participating in a special project in an amount
determined by the Secretary to be necessary to achieve
the purposes described in paragraph (3).
``(D) Administration.--
``(i) In general.--The Secretary shall
ensure that resources made available under this
subsection are delivered in accordance with
applicable program rules relating to basic
program functions, including rules governing
appeals, payment limitations, and conservation
compliance.
``(ii) Flexibility.--The Secretary may
adjust elements of the programs under this
title, as requested by the State
Conservationist, to better reflect unique local
circumstances and purposes, if the Secretary
determines that such adjustments are necessary
to achieve the purposes of this subsection.
``(iii) Additional requirements.--The
Secretary may establish additional requirements
beyond applicable program rules in order to
effectively implement this subsection.
``(7) Special rules applicable to regional water
enhancement projects.--
``(A) Definitions.--In this paragraph:
``(i) Eligible partner.--The term `eligible
partner' means--
``(I) an eligible partner
identified in paragraph (4); and
``(II) a water or wastewater agency
of a State.
``(ii) Eligible project.--
``(I) In general.--The term
`eligible project' means a project that
is specifically targeted to improve
water quality or quantity in an area.
``(II) Inclusions.--The term
`eligible project' includes a project
that involves--
``(aa) resource condition
assessment and modeling;
``(bb) water quality, water
quantity, or water conservation
plan development;
``(cc) management system
and environmental monitoring
and evaluation;
``(dd) cost-share
restoration or enhancement;
``(ee) incentive payments
for land management practices;
``(ff) easement purchases;
``(gg) conservation
contracts with landowners;
``(hh) improved irrigation
systems;
``(ii) water banking and
other forms of water
transactions;
``(jj) groundwater
recharge;
``(kk) stormwater capture;
and
``(ll) other water-related
activities that the Secretary
determines will help to achieve
the water quality or water
quantity benefits identified in
the agreement in subparagraph
(E).
``(B) Regional water enhancement procedures.--With
respect to proposals for eligible projects by eligible
partners, the Secretary shall establish specific
procedures (to be known collectively as `regional water
enhancement procedures') in accordance with this
paragraph.
``(C) Means.--Regional water enhancement activities
in a particular region shall be carried out through a
combination of--
``(i) multiyear agreements between the
Secretary and eligible partners;
``(ii) other regional water enhancement
activities carried out by the Secretary; and
``(iii) regional water enhancement
activities carried out by eligible partners
through other means.
``(D) Multiyear agreements with eligible
partners.--
``(i) Solicitation of proposals.--Not later
than 90 days after the date of enactment of
this subsection, the Secretary shall invite
prospective eligible partners to submit
proposals for regional water enhancement
projects.
``(ii) Elements of proposals.--To be
eligible for consideration for participation in
the program, a proposal submitted by an
eligible partner shall include--
``(I) identification of the exact
geographic area for which the
partnership is proposed, which may be
based on--
``(aa) a watershed (or
portion of a watershed);
``(bb) an irrigation,
water, or drainage district;
``(cc) the service area of
an irrigation water delivery
entity; or
``(dd) some other
geographic area with
characteristics that make the
area suitable for landscape-
wide program implementation;
``(II) identification of the water
quality or water quantity issues that
are of concern in the area;
``(III) a method for determining a
baseline assessment of water quality,
water quantity, and other related
resource conditions in the region;
``(IV) a detailed description of
the proposed water quality or water
quantity improvement activities to be
undertaken in the area, including an
estimated timeline and program
resources for every activity; and
``(V) a description of the
performance measures to be used to
gauge the effectiveness of the water
quality or water quantity improvement
activities.
``(iii) Selection of proposals.--The
Secretary shall award multiyear agreements
competitively, with priority given, as
determined by the Secretary, to selecting
proposals that--
``(I) have the highest likelihood
of improving the water quality or
quantity issues of concern for the
area;
``(II) involve multiple
stakeholders and will ensure the
highest level of participation by
producers and landowners in the area
through performance incentives to
encourage adoption of specific
practices in specific locations;
``(III) will result in the
inclusion of the highest percentage of
working agricultural land in the area;
``(IV) will result in the highest
percentage of on-the-ground activities
as compared to administrative costs;
``(V) will provide the greatest
contribution to sustaining or enhancing
agricultural or silvicultural
production in the area; and
``(VI) include performance measures
that will allow post-activity
conditions to be satisfactorily
measured to gauge overall
effectiveness.
``(iv) Identification of water quality and
water quantity priority areas.--
``(I) In general.--Subject to
subclause (II), the Secretary shall
identify areas in which protecting or
improving water quality or water
quantity is a priority.
``(II) Mandatory inclusions.--The
Secretary shall include in any
identification of areas under subclause
(I)--
``(aa) the Chesapeake Bay;
``(bb) the Upper
Mississippi River basin;
``(cc) the greater
Everglades ecosystem;
``(dd) the Klamath River
basin;
``(ee) the Sacramento/San
Joaquin River watershed;
``(ff) the Mobile River
basin;
``(gg) the Puget Sound;
``(hh) the Ogallala
Aquifer;
``(ii) the Illinois River
watershed (located in the
States of Arkansas and
Oklahoma);
``(jj) the Champlain Basin
watershed;
``(kk) the Platte River
watershed;
``(ll) the Republican River
watershed;
``(mm) the Chattahoochee
River watershed; and
``(nn) the Rio Grande
watershed.
``(E) Agreements.--Not later than 30 days after the
date on which the Secretary awards an agreement under
subparagraph (D), the Secretary shall enter into an
agreement with the eligible partner that, at a minimum,
contains--
``(i) a description of the respective
duties and responsibilities of the Secretary
and the eligible partner in carrying out the
activities in the area; and
``(ii) the criteria that the Secretary will
use to evaluate the overall effectiveness of
the regional water enhancement activities
funded by the multiyear agreement in improving
the water quality or quantity conditions of the
region relative to the performance measures in
the proposal.
``(F) Contracts with other parties.--An agreement
awarded under subparagraph (D) may provide for the use
of third-party providers (including other eligible
partners) to undertake specific regional water
enhancement activities in a region on a contractual
basis with the Secretary or the eligible partner.
``(G) Consultation with other agencies.--With
respect to areas in which a Federal or State agency is,
or will be, undertaking other water quality or
quantity-related activities, the Secretary and the
eligible partner may consult with the Federal or State
agency in order to--
``(i) coordinate activities;
``(ii) avoid duplication; and
``(iii) ensure that water quality or
quantity improvements attributable to the other
activities are taken into account in the
evaluation of the Secretary under subparagraph
(E)(ii).
``(H) Relationship to other programs.--The
Secretary shall ensure that, to the extent that
producers and landowners are individually participating
in other programs under subtitle D in a region in which
a regional water enhancement project is in effect, any
improvements to water quality or water quantity
attributable to the individual participation are
included in the evaluation criteria developed under
subparagraph (E)(ii).
``(I) Consistency with state law.--Any water
quality or water quantity improvement activity
undertaken under this paragraph shall be consistent
with State water laws.
``(8) Duration.--
``(A) In general.--Multiyear agreements under this
subsection shall be for a period not to exceed 5 years.
``(B) Early termination.--The Secretary may
terminate a multiyear agreement before the end of the
agreement if the Secretary determines that performance
measures are not being met.
``(9) Funding.--
``(A) Set aside.--
``(i) In general.--Of the funds provided
for each of fiscal years 2008 through 2012 to
carry out the conservation programs in subtitle
D (excluding the conservation reserve program,
the conservation security program, the
conservation stewardship program, and the
wetlands reserve program), the Secretary shall
reserve 10 percent of the funds allocated to
each State for use for activities under this
subsection.
``(ii) Conservation stewardship program.--
Of the acres allocated for the conservation
stewardship program for each of fiscal years
2008 through 2012, the Secretary shall reserve
10 percent of acres allocated to each State for
use for activities under this subsection.
``(B) Use of resources.--Of the funds reserved and
acres allocated to each State under this subsection in
each fiscal year, the Secretary shall--
``(i) allocate not less than 75 percent to
be used by the State Conservationist to carry
out special projects under this subsection
(including regional water enhancement
projects); and
``(ii) use not more than 25 percent for
multistate projects authorized under this
subsection.
``(C) Partners.--Overhead or administrative costs
of partners may not be covered by funds provided
through this subsection.
``(D) Unused funding.--Any funds made available,
and any acres reserved, for a fiscal year under
subparagraph (A) that are not obligated or enrolled by
April 1 of the fiscal year may be used to carry out
other activities under conservation programs under
subtitle D during the fiscal year in which the funding
becomes available.
``(g) Accuracy of Payments.--Immediately after the date of
enactment of this subsection, the Secretary shall implement policies
and procedures to ensure proper payment of farm program benefits to
producers participating in conservation easement programs and correct
other management deficiencies identified in Report No. 50099-11-SF
issued by the Department of Agriculture Office of Inspector General in
August 2007.
``(h) Compliance and Performance.--For each conservation program
under this title, the Secretary shall develop procedures--
``(1) to monitor compliance with program requirements by
landowners and eligible entities;
``(2) to measure program performance;
``(3) to demonstrate whether the long-term conservation
benefits of the program are being achieved; and
``(4) to coordinate activities described in this subsection
with the national conservation program authorized under section
5 of the Soil and Water Resources Conservation Act of 1977 (16
U.S.C. 2004).
``(i) Direct Attribution of Payments.--In implementing payment
limitations for any program under this title, the Secretary shall issue
such regulations as are necessary to ensure that the total amount of
payments are attributed to an individual by taking into account the
direct and indirect ownership interests of the individual in an entity
that is eligible to receive the payments.''.
(c) Conforming Amendments.--Section 1234 of the Food Security Act
of 1985 (16 U.S.C. 3834) is amended--
(1) in subsection (d)(3)(B), by striking ``(f)(4)'' and
inserting ``(f)(3)''; and
(2) in subsection (f)--
(A) in paragraph (1)--
(i) by striking ``The total'' and inserting
``Subject to section 1244(i), the total''; and
(ii) by striking ``a person'' and inserting
``an individual'';
(B) by striking paragraph (2); and
(C) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively.
SEC. 2406. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES MARKETS.
Subtitle E of the Food Security Act of 1985 (16 U.S.C. 3841 et
seq.) is amended by adding at the end the following:
``SEC. 1245. CONSERVATION PROGRAMS IN ENVIRONMENTAL SERVICES MARKETS.
``(a) Framework.--
``(1) In general.--The Secretary shall establish a
framework to facilitate the participation of farmers, ranchers,
and forest landowners in emerging environmental services
markets.
``(2) Process.--In carrying out paragraph (1), the
Secretary shall use a collaborative process that includes
representatives of--
``(A) farm, ranch, and forestry interests;
``(B) financial institutions involved in
environmental services trading;
``(C) institutions of higher education with
relevant expertise or experience;
``(D) nongovernmental organizations with relevant
expertise or experience;
``(E) government agencies of relevant jurisdiction,
including--
``(i) the Department of Commerce;
``(ii) the Department of Energy;
``(iii) the Department of the Interior;
``(iv) the Department of Transportation;
``(v) the Environmental Protection Agency;
and
``(vi) the Corps of Engineers; and
``(F) other appropriate interests, as determined by
the Secretary.
``(3) Requirements.--
``(A) Definition of standard.--In this paragraph,
the term `standard' means a technical guideline that
outlines accepted, science-based methods to quantify
the environmental services benefits from agricultural
and forest conservation and land management practices,
as determined by the Secretary.
``(B) Framework requirements.--In establishing the
framework under paragraph (1), the Secretary shall--
``(i) establish uniform standards;
``(ii) design accounting procedures to
quantify environmental services benefits that
would assist farmers, ranchers, and forest
landowners in using the uniform standards to
establish certifications, as defined in
emerging environmental services markets;
``(iii) establish--
``(I) a protocol to report
environmental services benefits; and
``(II) a registry to report and
maintain the benefits for future use in
emerging environmental services
markets; and
``(iv) establish a process to verify that a
farmer, rancher, or forest landowner that
reports and maintains an environmental services
benefit in the registry described in clause
(iii)(II) has implemented the reported
conservation or land management activity.
``(C) Third-party service providers.--In developing
the process described in subparagraph (B)(iv), the
Secretary shall consider the role of third-party
service providers.
``(4) Coordination.--The Secretary shall coordinate and
leverage activities in existence on the date of enactment of
this section in agriculture and forestry relating to emerging
environmental services markets.
``(5) Priority.--In establishing the framework under this
subsection, the Secretary shall give priority to providing
assistance to farmers, ranchers, and forest landowners
participating in carbon markets.
``(b) Authority To Delegate.--The Secretary may delegate any
responsibility under this section to a relevant agency or office, as
determined by the Secretary.
``(c) Reports to Congress.--
``(1) Status of collaborative process.--Not later than 90
days after the date of enactment of this section, the Secretary
shall provide to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate information on the status of the
collaborative process under subsection (a)(2).
``(2) Interim report.--Not later than 180 days after the
date of enactment of this section, the Secretary shall submit
to the committees of Congress described in paragraph (1) an
interim report that--
``(A) describes the adequacy of existing research
and methods to quantify environmental services
benefits;
``(B) proposes methods--
``(i) to establish technical guidelines,
accounting procedures, and reporting protocols;
and
``(ii) to structure the registry; and
``(C) includes recommendations for actions to
remove barriers for farmers, ranchers, and forest
landowners to participation, reporting, registration,
and verification relating to environmental services
markets.
``(3) Final report.--Not later than 18 months after the
date of enactment of this section, the Secretary shall submit
to the committees of Congress described in paragraph (1) a
report that describes--
``(A) the progress of the Secretary in meeting the
requirements described in subsection (a)(3)(B);
``(B) the rates of participation of farmers,
ranchers, and forest landowners in emerging
environmental services markets; and
``(C) any recommendations of the Secretary relating
to reauthorization of this section.
``(d) Funding.--There are authorized to be appropriated to the
Secretary to carry out this section such sums as are necessary for each
of fiscal years 2008 through 2012.''.
Subtitle F--State Technical Committees
SEC. 2501. STATE TECHNICAL COMMITTEES.
(a) Standards.--Section 1261 of the Food Security Act of 1985 (16
U.S.C. 3861(c)) is amended by striking subsection (b) and inserting the
following:
``(b) Standards.--Not later than 180 days after the date of
enactment of the Food and Energy Security Act of 2007, the Secretary
shall develop--
``(1) standard operating procedures to standardize the
operations of State technical committees; and
``(2) standards to be used by the State technical
committees in the development of technical guidelines under
section 1262(b) for the implementation of the conservation
provisions of this title.''.
(b) Composition.--Section 1261(c) of the Food Security Act of 1985
(16 U.S.C. 3861(c)) is amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(1) the Natural Resources Conservation Service;
``(2) the Farm Service Agency;'';
(2) by striking paragraph (5) and inserting the following:
``(5) Rural Development agencies;'';
(3) in paragraph (11), by striking ``and'' at the end;
(4) in paragraph (12), by striking the period at the end
and inserting ``; and''; and
(5) by adding at the end the following:
``(13) nonindustrial private forest land owners.''.
(c) FACA Requirements.--Section 1262(e) of the Food Security Act of
1985 (16 U.S.C. 3862(e)) is amended--
(1) by striking ``The committees'' and inserting the
following:
``(1) In general.--The committees''; and
(2) by adding at the end the following:
``(2) Local working groups.--For purposes of the Federal
Advisory Committee Act (5 U.S.C. App.), any local working group
established under this subtitle shall be considered to be a
subcommittee of the applicable State technical committee.''.
Subtitle G--Other Authorities
SEC. 2601. AGRICULTURAL MANAGEMENT ASSISTANCE.
Section 524(b) of the Federal Crop Insurance Act (7 U.S.C. 1524(b))
is amended--
(1) in paragraph (1), by inserting ``Idaho'' after
``Delaware''; and
(2) in paragraph (4)(B), by striking ``2007'' each place it
appears and inserting ``2012''.
SEC. 2602. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.
The Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6901 et seq.) is amended by adding at the end the following:
``SEC. 307. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.
``(a) Establishment.--
``(1) In general.--Notwithstanding any other provision of
law relating to Federal grants, cooperative agreements, or
contracts, there is established in the Department the
agriculture conservation experienced services program (referred
to in this section as the `ACE program').
``(2) Authorization.--Under the ACE program, the Secretary
may offer to enter into agreements with nonprofit private
agencies and organizations eligible to receive grants for the
applicable fiscal year under title V of the Older Americans Act
of 1965 (42 U.S.C. 3056 et seq.) to use the talents of
individuals who are age 55 or older, to provide conservation
technical assistance in support of the administration of
conservation-related programs and authorities administered by
the Secretary.
``(3) Funding.--Agreements described in paragraph (2) may
be carried out using funds made available to carry out--
``(A) the environmental quality incentives program
of the comprehensive stewardship incentives program
established under subchapter A of chapter 6 of subtitle
D of title XII of the Food Security Act of 1985;
``(B) the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590a et seq.); or
``(C) title V of the Older Americans Act of 1965
(42 U.S.C. 3056).
``(b) Determination.--Prior to entering into an agreement described
in subsection (a)(2), the Secretary shall determine that the agreement
would not--
``(1) result in the displacement of individuals employed by
the Department, including partial displacement through
reduction of nonovertime hours, wages, or employment benefits;
``(2) result in the use of an individual covered by this
section for a job or function in a case in which a Federal
employee is in a layoff status from the same or a
substantially-equivalent job or function with the Department;
or
``(3) affect existing contracts for services.
``(c) Technical Assistance.--The Secretary may make available to
individuals providing technical assistance under an agreement
authorized by this section appropriate conservation technical tools,
including the use of agency vehicles necessary to carry out technical
assistance in support of the conservation-related programs affected by
the ACE program.''.
SEC. 2603. TECHNICAL ASSISTANCE.
(a) Soil Conservation and Domestic Allotment Act.--
(1) Prevention of soil erosion.--
(A) In general.--The first section of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590a) is amended--
(i) by striking ``That it'' and inserting
the following:
``SECTION 1. PURPOSE.
``It''; and
(ii) in the matter preceding paragraph (1),
by striking ``and thereby to preserve natural
resources,'' and inserting ``to preserve soil,
water, and related resources, promote soil and
water quality,''.
(B) Policies and purposes.--Section 7(a)(1) of the
Soil Conservation and Domestic Allotment Act (16 U.S.C.
590g(a)(1)) is amended by striking ``fertility'' and
inserting ``and water quality and related resources''.
(2) Definitions.--Section 10 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590j) is amended to read as
follows:
``SEC. 10. DEFINITIONS.
``In this Act:
``(1) Agricultural commodity.--The term `agricultural
commodity' means--
``(A) an agricultural commodity; and
``(B) any regional or market classification, type,
or grade of an agricultural commodity.
``(2) Technical assistance.--
``(A) In general.--The term `technical assistance'
means technical expertise, information, and tools
necessary for the conservation of natural resources on
land active in agricultural, forestry, or related uses.
``(B) Inclusions.--The term `technical assistance'
includes--
``(i) technical services provided directly
to farmers, ranchers, and other eligible
entities, such as conservation planning,
technical consultation, and assistance with
design and implementation of conservation
practices; and
``(ii) technical infrastructure, including
activities, processes, tools, and agency
functions needed to support delivery of
technical services, such as technical
standards, resource inventories, training,
data, technology, monitoring, and effects
analyses.''.
(b) Soil and Water Resources Conservation Act of 1977.--
(1) Congressional findings.--Section 2 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is
amended--
(A) in paragraph (2), by striking ``base, of the''
and inserting ``base of the''; and
(B) in paragraph (3), by striking ``(3)'' and all
that follows through ``Since individual'' and inserting
the following:
``(3) Appraisal and inventory of resources, assessment and
inventory of conservation needs, evaluation of the effects of
conservation practices, and analyses of alternative
conservation programs are basic to effective soil, water, and
related natural resource conservation.
``(4) Since individual''.
(2) Continuing appraisal of soil, water, and related
resources.--Section 5 of the Soil and Water Resources
Conservation Act of 1977 (16 U.S.C. 2004) is amended--
(A) in subsection (a)--
(i) in paragraph (5), by striking ``and''
at the end;
(ii) in paragraph (6), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(7) data on conservation plans, conservation practices
planned or implemented, environmental outcomes, economic costs,
and related matters under conservation programs administered by
the Secretary.'';
(B) by redesignating subsection (d) as subsection
(e);
(C) by inserting after subsection (c) the
following:
``(d) Evaluation of Appraisal.--In conducting the appraisal
described in subsection (a), the Secretary shall concurrently solicit
and evaluate recommendations for improving the appraisal, including the
content, scope, process, participation in, and other elements of the
appraisal, as determined by the Secretary.''; and
(D) in subsection (e) (as redesignated by
subparagraph (B)), by striking ``December 31, 1979''
and all that follows through ``December 31, 2005'' and
inserting ``December 31, 2010, December 31, 2015,
December 31, 2020, and December 31, 2025''.
(3) Soil and water conservation program.--Section 6 of the
Soil and Water Resources Conservation Act of 1977 (16 U.S.C.
2005) is amended--
(A) by redesignating subsection (b) as subsection
(d);
(B) by inserting after subsection (a) the
following:
``(b) Evaluation of Existing Conservation Programs.--In evaluating
existing conservation programs, the Secretary shall emphasize
demonstration, innovation, and monitoring of specific program
components in order to encourage further development and adoption of
practices and performance-based standards.
``(c) Improvement to Program.--In developing a national soil and
water conservation program under subsection (a), the Secretary shall
solicit and evaluate recommendations for improving the program,
including the content, scope, process, participation in, and other
elements of the program, as determined by the Secretary.''; and
(C) in subsection (d) (as redesignated by
subparagraph (A)), by striking ``December 31, 1979''
and all that follows through ``December 31, 2007'' and
inserting ``December 31, 2011, December 31, 2016,
December 31, 2021, and December 31, 2026''.
(4) Reports to congress.--Section 7 of the Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2006) is amended
to read as follows:
``SEC. 7. REPORTS TO CONGRESS.
``(a) Appraisal.--Not later than the date on which Congress
convenes in 2011, 2016, 2021, and 2026, the President shall transmit to
the Speaker of the House of Representatives and the President of the
Senate the appraisal developed under section 5 and completed prior to
the end of the previous year.
``(b) Program and Statement of Policy.--Not later than the date on
which Congress convenes in 2012, 2017, 2022, and 2027, the President
shall transmit to the Speaker of the House of Representatives and the
President of the Senate--
``(1) the initial program or updated program developed
under section 6 and completed prior to the end of the previous
year;
``(2) a detailed statement of policy regarding soil and
water conservation activities of the Department of Agriculture;
and
``(3) a special evaluation of the status, conditions, and
trends of soil quality on cropland in the United States that
addresses the challenges and opportunities for reducing soil
erosion to tolerance levels.
``(c) Improvements to Appraisal and Program.--Not later than the
date on which Congress convenes in 2012, the Secretary shall submit to
the Speaker of the House of Representatives and the President of the
Senate a report describing the plans of the Department of Agriculture
for improving the resource appraisal and national conservation program
required under this Act, based on the recommendations received under
sections 5(d) and 6(c).''.
(5) Termination of program.--Section 10 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is
amended by striking ``2008'' and inserting ``2028''.
SEC. 2604. SMALL WATERSHED REHABILITATION PROGRAM.
Section 14 of the Watershed Protection and Flood Prevention Act (16
U.S.C. 1012) is amended by striking subsection (h) and inserting the
following:
``(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 2605. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
(a) Locally Led Planning Process.--Section 1528 of the Agriculture
and Food Act of 1981 (16 U.S.C. 3451) is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``planning process'' and inserting ``locally
led planning process'';
(2) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (8), respectively, and moving those paragraphs so as to
appear in numerical order;
(3) in paragraph (8) (as so redesignated)--
(A) by striking ``(8) Planning process'' and
inserting ``(8) Locally led planning process''; and
(B) by striking ``council'' and inserting ``locally
led council''.
(b) Authorized Technical Assistance.--Section 1528(13) of the
Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is amended by
striking subparagraphs (C) and (D) and inserting the following:
``(C) providing assistance for the implementation
of area plans and projects; and
``(D) providing services that involve the resources
of Department of Agriculture programs in a local
community, as defined in the locally led planning
process.''.
(c) Improved Provision of Technical Assistance.--Section 1531 of
the Agriculture and Food Act of 1981 (16 U.S.C. 3454) is amended--
(1) by redesignating paragraphs (1) through (4) as clauses
(i) through (iv), respectively, and indenting appropriately;
(2) by striking ``In carrying'' and inserting the
following:
``(1) In general.--In carrying''; and
(3) by adding at the end the following:
``(b) Coordinator.--
``(1) In general.--To improve the provision of technical
assistance to councils under this subtitle, the Secretary shall
designate for each council an individual to be the coordinator
for the council.
``(2) Responsibility.--A coordinator for a council shall be
directly responsible for the provision of technical assistance
to the council.''.
(d) Program Evaluation.--Section 1534 of the Agriculture and Food
Act of 1981 (16 U.S.C. 3457) is repealed.
SEC. 2606. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.
(a) Advisory Functions.--Section 353 of the Federal Agriculture
Improvement and Reform Act of 1996 (16 U.S.C. 5802) is amended--
(1) in subsection (b)(3), by striking ``agencies'' and
inserting ``agencies, individuals,''; and
(2) by adding at the end the following:
``(d) Advisory Functions.--Notwithstanding the requirements of the
Federal Advisory Committee Act (5 U.S.C. App.), the Foundation may
provide advice and recommendations to the Secretary.''.
(b) Gifts, Devises, and Bequests of Personal Property.--Section 354
of the Federal Agriculture Improvement and Reform Act of 1996 (16
U.S.C. 5803) is amended by adding at the end the following:
``(h) Gifts, Devises, and Bequests of Personal Property.--
``(1) In general.--Prior to the appointment and initial
meeting of the members of the Board and after the initial
meeting of the Board, the Secretary may, on behalf of the
Foundation--
``(A) accept, receive, and hold nonmonetary gifts,
devises, or bequests of personal property; and
``(B) accept and receive monetary gifts, devises,
or bequests.
``(2) Held in trust.--Gifts, devises, or bequests of
monetary and nonmonetary personal property shall--
``(A) be held in trust for the Foundation; and
``(B) shall not be--
``(i) considered gifts to the United
States; or
``(ii) used for the benefit of the United
States.
``(3) Treasury account.--The Secretary shall deposit
monetary gifts, devises, and bequests to the Foundation in a
special interest-bearing account in the Treasury of the United
States.
``(4) Initial gifts, devises, and bequests.--
``(A) In general.--The Secretary may use initial
gifts, devises, or bequests received prior to the first
meeting of the Board for any necessary expenses and
activities related to the first meeting of the Board.
``(B) Transfer.--Except with respect to any amounts
expended under subparagraph (A), the Secretary shall,
at the first meeting of the Board, transfer to the
Foundation all gifts, devises, or bequests received
prior to the first meeting of the Board.''.
(c) Officers and Employees.--Section 355(b)(1) of the Federal
Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 5804(b)(1))
is amended--
(1) by striking ``Foundation--'' and all that follows
through ``shall not,'' in subparagraph (A) and inserting
``Foundation shall not'';
(2) by striking ``employee; and'' and inserting
``employee.''; and
(3) by striking subparagraph (B).
(d) Contracts and Agreements.--Section 356 of the Federal
Agriculture Improvement Reform Act of 1996 (16 U.S.C. 5805) is
amended--
(1) in subsection (c)(7), by striking ``State or local''
and inserting ``Federal, State, or local''; and
(2) in subsection (d)(2)--
(A) by striking ``A gift'' and inserting the
following:
``(A) In general.--A gift''; and
(B) by adding at the end the following:
``(B) Tax status.--A gift, devise, or bequest to
the Foundation shall be treated as a gift, devise, or
bequest to an organization exempt from taxation under
section 501(c)(3) of the Internal Revenue Code of
1986.''.
(e) Administrative Services and Support.--Section 356 of the
Federal Agriculture Improvement Reform Act of 1996 (16 U.S.C. 5806) is
amended by striking ``1996 through 1998'' and inserting ``2008 through
2012.''.
SEC. 2607. DESERT TERMINAL LAKES.
Section 2507 of the Farm Security and Rural Investment Act of 2002
(43 U.S.C. 2211 note; Public Law 107-171) is amended--
(1) in subsection (a), by striking ``, as soon as
practicable after the date of enactment of this Act,'' and
inserting the following: ``and paragraph (1) of section 207(a)
of Public Law 108-7 (117 Stat. 146), notwithstanding paragraph
(3) of that section, on the date of enactment of the Food and
Energy Security Act of 2007,''; and
(2) by striking subsection (b) and inserting the following:
``(b) Permitted Uses.--In any case in which there are willing
sellers, the funds described in subsection (a) may be used--
``(1) to lease water; or
``(2) to purchase land, water appurtenant to the land, and
related interests in the Walker River Basin in accordance with
section 208(a)(1)(A) of the Energy and Water Development
Appropriations Act, 2006 (Public Law 109-103, 119 Stat.
2268).''.
SEC. 2607A. DESERT TERMINAL LAKES.
Section 2507 of the Farm Security and Rural Investment Act of 2002
(43 U.S.C. 2211 note; Public Law 107-171) is amended--
(1) in subsection (a), by striking ``, as soon as
practicable after the date of enactment of this Act,'' and
inserting the following: ``and paragraph (1) of section 207(a)
of Public Law 108-7 (117 Stat. 146), notwithstanding paragraph
(3) of that section, on the date of enactment of the Food and
Energy Security Act of 2007,''; and
(2) by striking subsection (b) and inserting the following:
``(b) Permitted Uses.--In any case in which there are willing
sellers, the funds described in subsection (a) may be used--
``(1) to lease water; or
``(2) to purchase land, water appurtenant to the land, and
related interests in the Walker River Basin in accordance with
section 208(a)(1)(A) of the Energy and Water Development
Appropriations Act, 2006 (Public Law 109-103, 119 Stat.
2268).''.
SEC. 2608. CROP INSURANCE INELIGIBILITY RELATING TO CROP PRODUCTION ON
NATIVE SOD.
(a) Federal Crop Insurance.--Section 508 of the Federal Crop
Insurance Act (7 U.S.C. 1508) is amended by adding at the end the
following:
``(o) Crop Insurance Ineligibility Relating to Crop Production on
Native Sod.--
``(1) Definition of native sod.--In this subsection, the
term `native sod' means land--
``(A) on which the plant cover is composed
principally of native grasses, grasslike plants, forbs,
or shrubs suitable for grazing and browsing; and
``(B) that has never been used for production of an
agricultural commodity.
``(2) Ineligibility.--
``(A) In general.--Except as provided in
subparagraph (B), native sod acreage on which an
agricultural commodity is planted for which a policy or
plan of insurance is available under this title shall
be ineligible for benefits under this Act.
``(B) De minimis acreage exemption.--The Secretary
shall exempt areas of 5 acres or less from subparagraph
(A).''.
(b) Noninsured Crop Disaster Assistance.--Section 196(a) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333(a)) is amended by adding at the end the following:
``(4) Program ineligibility relating to crop production on
native sod.--
``(A) Definition of native sod.--In this paragraph,
the term `native sod' means land--
``(i) on which the plant cover is composed
principally of native grasses, grasslike
plants, forbs, or shrubs suitable for grazing
and browsing; and
``(ii) that has never been used for
production of an agricultural commodity.
``(B) Ineligibility.--Except as provided in
subparagraph (C), native sod acreage on which an
agricultural commodity is planted for which a policy or
plan of Federal crop insurance is available shall be
ineligible for benefits under this section.
``(C) De minimis acreage exemption.--The Secretary
shall exempt areas of 5 acres or less from subparagraph
(B).''.
(c) Cropland Report.--
(1) Baseline.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the cropland acreage in each
county and State, and the change in cropland acreage from the
preceding year in each county and State, beginning with
calendar year 1995 and including that information for the most
recent year for which that information is available.
(2) Annual updates.--Not later than January 1, 2008, and
each January 1 thereafter through January 1, 2012, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes--
(A) the cropland acreage in each county and State
as of the date of submission of the report; and
(B) the change in cropland acreage from the
preceding year in each county and State.
SEC. 2609. HIGH PLAINS WATER STUDY.
Notwithstanding any other provision of this Act, no person shall
become ineligible for any program benefits under this Act or an
amendment made by this Act solely as a result of participating in a 1-
time study of recharge potential for the Ogallala Aquifer in the High
Plains of the State of Texas.
SEC. 2610. PAYMENT OF EXPENSES.
Section 17(d) of the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. 136o(d)) is amended--
(1) by striking ``The Administrator'' and inserting the
following:
``(1) In general.--The Administrator''; and
(2) by adding at the end the following:
``(2) Department of state expenses.--Any expenses incurred
by an employee of the Environmental Protection Agency who
participates in any international technical, economic, or
policy review board, committee, or other official body that is
meeting in relation to an international treaty shall be paid by
the Department of State.''.
SEC. 2611. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL ACTIVITIES
UPSTREAM OF IMPERIAL DAM.
(a) In General.--Section 202(a) of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding at the
end the following:
``(7) Basin states program.--
``(A) In general.--A Basin States Program that the
Secretary, acting through the Bureau of Reclamation,
shall implement to carry out salinity control
activities in the Colorado River Basin using funds made
available under section 205(f).
``(B) Assistance.--The Secretary, in consultation
with the Colorado River Basin Salinity Control Advisory
Council, shall carry out this paragraph using funds
described in subparagraph (A) directly or by providing
grants, grant commitments, or advance funds to Federal
or non-Federal entities under such terms and conditions
as the Secretary may require.
``(C) Activities.--Funds described in subparagraph
(A) shall be used to carry out, as determined by the
Secretary--
``(i) cost-effective measures and
associated works to reduce salinity from saline
springs, leaking wells, irrigation sources,
industrial sources, erosion of public and
private land, or other sources;
``(ii) operation and maintenance of
salinity control features constructed under the
Colorado River Basin salinity control program;
and
``(iii) studies, planning, and
administration of salinity control activities.
``(D) Report.--
``(i) In general.--Not later than 30 days
before implementing the program established
under this paragraph, the Secretary shall
submit to the appropriate committees of
Congress a planning report that describes the
proposed implementation of the program.
``(ii) Implementation.--The Secretary may
not expend funds to implement the program
established under this paragraph before the
expiration of the 30-day period beginning on
the date on which the Secretary submits the
report, or any revision to the report, under
clause (i).''.
(b) Conforming Amendments.--
(1) Section 202 of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1592) is amended--
(A) in subsection (a), in the matter preceding
paragraph (1), by striking ``program'' and inserting
``programs''; and
(B) in subsection (b)(4)--
(i) by striking ``program'' and inserting
``programs''; and
(ii) by striking ``and (6)'' and inserting
``(6), and (7)''.
(2) Section 205 of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1595) is amended by striking subsection
(f) and inserting the following:
``(f) Upfront Cost Share.--
``(1) In general.--Effective beginning on the date of
enactment of this paragraph, subject to paragraph (3), the cost
share obligations required by this section shall be met through
an upfront cost share from the Basin Funds, in the same
proportions as the cost allocations required under subsection
(a), as provided in paragraph (2).
``(2) Basin states program.--The Secretary shall expend the
required cost share funds described in paragraph (1) through
the Basin States Program for salinity control activities
established under section 202(a)(7).
``(3) Existing salinity control activities.--The cost share
contribution required by this section shall continue to be met
through repayment in a manner consistent with this section for
all salinity control activities for which repayment was
commenced prior to the date of enactment of this paragraph.''.
SEC. 2612. TECHNICAL CORRECTIONS TO THE FEDERAL INSECTICIDE, FUNGICIDE,
AND RODENTICIDE ACT.
(a) Pesticide Registration Service Fees.--Section 33 of the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136w-8) is
amended--
(1) in subsection (b)(7)--
(A) in subparagraph (D)--
(i) by striking clause (i) and inserting
the following:
``(i) In general.--The Administrator may
exempt from, or waive a portion of, the
registration service fee for an application for
minor uses for a pesticide.''; and
(ii) in clause (ii), by inserting ``or
exemption'' after ``waiver''; and
(B) in subparagraph (E)--
(i) in the paragraph heading, by striking
``Waiver'' and inserting ``Exemption'';
(ii) by striking ``waive the registration
service fee for an application'' and inserting
``exempt an application from the registration
service fee''; and
(iii) in clause (ii), by striking
``waiver'' and inserting ``exemption''; and
(2) in subsection (m)(2), by striking ``2008'' each place
it appears and inserting ``2012''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on October 1, 2007.
TITLE III--TRADE
Subtitle A--Food for Peace Act
SEC. 3001. SHORT TITLE.
(a) In General.--Section 1 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 note; 104 Stat. 3633) is
amended by striking ``Agricultural Trade Development and Assistance Act
of 1954'' and inserting ``Food for Peace Act''.
(b) Conforming Amendments.--
(1) In general.--Each provision of law described in
paragraph (2) is amended--
(A) by striking ``Agricultural Trade Development
and Assistance Act of 1954'' each place it appears and
inserting ``Food for Peace Act''; and
(B) in each section heading, by striking
``agricultural trade development and assistance act of
1954'' each place it appears and inserting ``food for
peace act''.
(2) Provisions of law.--The provisions of law referred to
in paragraph (1) are the following:
(A) The Agriculture and Food Act of 1981 (Public
Law 97-98; 95 Stat. 1213).
(B) The Agricultural Act of 1949 (7 U.S.C. 1421 et
seq.).
(C) Section 9(a) of the Military Construction
Codification Act (7 U.S.C. 1704c).
(D) Section 201 of the Africa: Seeds of Hope Act of
1998 (7 U.S.C. 1721 note; Public Law 105-385).
(E) The Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f-1 et seq.).
(F) The Food for Progress Act of 1985 (7 U.S.C.
1736o).
(G) Section 3107 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 1736o-1).
(H) Sections 605B and 606C of the Act of August 28,
1954 (commonly known as the ``Agricultural Act of
1954'') (7 U.S.C. 1765b, 1766b).
(I) Section 206 of the Agricultural Act of 1956 (7
U.S.C. 1856).
(J) The Agricultural Competitiveness and Trade Act
of 1988 (7 U.S.C. 5201 et seq.).
(K) The Agricultural Trade Act of 1978 (7 U.S.C.
5601 et seq.).
(L) The Export-Import Bank Act of 1945 (12 U.S.C.
635 et seq.).
(M) Section 301 of title 13, United States Code.
(N) Section 8 of the Endangered Species Act of 1973
(16 U.S.C. 1537).
(O) Section 604 of the Enterprise for the Americas
Act of 1992 (22 U.S.C. 2077).
(P) Section 5 of the International Health Research
Act of 1960 (22 U.S.C. 2103).
(Q) The Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.).
(R) The Horn of Africa Recovery and Food Security
Act (22 U.S.C. 2151 note; Public Law 102-274).
(S) Section 105 of the Mutual Educational and
Cultural Exchange Act of 1961 (22 U.S.C. 2455).
(T) Section 35 of the Foreign Military Sales Act
(22 U.S.C. 2775).
(U) The Support for East European Democracy (SEED)
Act of 1989 (22 U.S.C. 5401 et seq.).
(V) Section 1707 of the Cuban Democracy Act of 1992
(22 U.S.C. 6006).
(W) The Cuban Liberty and Democratic Solidarity
(LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.).
(X) Section 902 of the Trade Sanctions Reform and
Export Enhancement Act of 2000 (22 U.S.C. 7201).
(Y) Chapter 553 of title 46, United State Code.
(Z) Section 4 of the Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98c).
(AA) The Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101-624; 104 Stat. 3359).
(BB) Section 738 of the Agriculture, Rural
Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2001 (Public Law 106-387;
114 Stat 1549A-34).
(c) References.--Any reference in any Federal, State, tribal, or
local law (including regulations) to the ``Agricultural Trade
Development and Assistance Act of 1954'' shall be considered to be a
reference to the ``Food for Peace Act''.
SEC. 3002. UNITED STATES POLICY.
Section 2 of the Food for Peace Act (7 U.S.C. 1691) is amended--
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively.
SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.
Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b)) is
amended by striking ``(b)'' and all that follows through paragraph (1)
and inserting the following:
``(b) Sense of Congress.--It is the sense of Congress that--
``(1) in negotiations with other countries at the Food Aid
Convention, the World Trade Organization, the United Nations
Food and Agriculture Organization, and other appropriate
venues, the President shall--
``(A) seek commitments of higher levels of food aid
by donors in order to meet the legitimate needs of
developing countries;
``(B) ensure, to the maximum extent practicable,
that humanitarian nongovernmental organizations,
recipient country governments, charitable bodies, and
international organizations shall continue--
``(i) to be eligible to receive resources
based on assessments of need conducted by those
organizations and entities; and
``(ii) to implement food aid programs in
agreements with donor countries; and
``(C) ensure, to the maximum extent practicable,
that options for providing food aid for emergency and
nonemergency, or chronic, needs shall not be subject to
limitation, including in-kind commodities, provision of
funds for commodity procurement, and monetization of
commodities, on the condition that the provision of
those commodities or funds--
``(i) is based on assessments of need and
intended to benefit the food security of or
otherwise assist recipients, and
``(ii) is provided in a manner that avoids
disincentives to local agricultural production
and marketing and with minimal potential for
disruption of commercial markets; and''.
SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.
(a) Title I of the Food for Peace Act (7 U.S.C. 1701 et seq.) is
amended in the title heading, by striking ``TRADE AND DEVELOPMENT
ASSISTANCE'' and inserting ``ECONOMIC ASSISTANCE AND FOOD SECURITY''.
(b) Section 101 of the Food for Peace Act (7 U.S.C. 1701) is
amended in the section heading, by striking ``trade and development
assistance'' and inserting ``economic assistance and food security''.
SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE
ENTITIES.
Section 102 of the Food for Peace Act (7 U.S.C. 1702) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively; and
(2) by striking subsection (c).
SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.
Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c)) is
amended--
(1) in the matter preceding paragraph (1), by inserting ``,
through agreements with recipient governments, private
voluntary organizations, and cooperatives,'' after ``developing
country'';
(2) in paragraph (2)--
(A) in subparagraph (C), by striking ``and'' at the
end;
(B) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(E) the improvement of the trade capacity of the
recipient country.'';
(3) by striking paragraphs (1), (3), (4), (5), and (6); and
(4) by redesignating paragraphs (2), (7), (8), and (9) as
paragraphs (1), (2), (3), and (4), respectively.
SEC. 3007. GENERAL AUTHORITY.
Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) address famine and respond to emergency food needs
arising from man-made and natural disasters;'';
(2) in paragraph (5), by inserting ``food security and
support'' after ``promote''; and
(3) by striking paragraph (6) and inserting the following:
``(6) protect livelihoods, provide safety nets for food
insecure populations, and encourage participation in
educational, training, and other productive activities.''.
SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.
Section 202 of the Food for Peace Act (7 U.S.C. 1722) is amended--
(1) in subsection (b)(2), by striking ``may not deny a
request for funds'' and inserting ``may not use as a sole
rationale for denying a request for funds'';
(2) in subsection (e)(1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``Of the funds made
available in'' and inserting ``Of the total
amount of funds made available from all sources
for''; and
(ii) by striking ``not less than 5 percent
nor more than 10 percent'' and inserting ``not
less than 7.5 percent'';
(B) in subparagraph (A), by striking ``and'' at the
end;
(C) by striking subparagraph (B) and inserting the
following:
``(B) meeting specific administrative, management,
personnel, programmatic, and operational activities,
and internal transportation and distribution costs for
carrying out new and existing programs in foreign
countries under this title; and''
(D) by adding at the end the following:
``(C) improving and implementing methodologies for
food aid programs, including needs assessments,
monitoring, and evaluation.''; and
(3) by striking subsection (h) and inserting the following:
``(h) Food Aid Quality.--
``(1) In general.--The Administrator shall use funds made
available for fiscal year 2008 and subsequent fiscal years to
carry out this title--
``(A) to assess the types and quality of
agricultural commodities and products donated for food
aid;
``(B) to adjust products and formulations as
necessary to cost-effectively meet nutrient needs of
target populations; and
``(C) to pretest prototypes.
``(2) Administration.--The Administrator--
``(A) shall carry out this subsection in
consultation with and through an independent entity
with proven impartial expertise in food aid commodity
quality enhancements;
``(B) may enter into contracts to obtain the
services of such an entity; and
``(C) shall consult with the Food Aid Consultative
Group on how to carry out this subsection.
``(3) Reports.--The Administrator shall submit to the
Committees on Agriculture and Foreign Affairs of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate--
``(A) a report that describes the activities of the
Administrator in carrying out paragraph (1) for fiscal
year 2008; and
``(B) an annual report that describes the progress
of the Administrator in addressing food aid quality
issues.''.
SEC. 3009. MICROENTERPRISE ACTIVITIES.
Section 203(d)(2) of the Food for Peace Act (7 U.S.C.1723(d)(2)) is
amended by inserting ``, including activities involving microenterprise
and village banking,'' after ``other developmental activities''.
SEC. 3010. LEVELS OF ASSISTANCE.
Section 204(a)(1) of the Food for Peace Act (7 U.S.C. 1724(a)(1))
is amended by striking ``2007'' and inserting ``2012''.
SEC. 3011. FOOD AID CONSULTATIVE GROUP.
Section 205 of the Food for Peace Act (7 U.S.C. 1725) is amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period and
inserting ``; and''; and
(C) by inserting at the end the following:
``(7) representatives from the maritime transportation
sector involved in transporting agricultural commodities
overseas for programs under this Act.'';
(2) in subsection (d)--
(A) by striking ``In preparing'' and inserting the
following:
``(1) In general.--In preparing'';
(B) by striking ``The Administrator'' and inserting
the following:
``(2) Biannual consultation.--The Administrator''; and
(C) by adding at the end the following:
``(3) Consultation for draft regulations.--In addition to
the meetings required under paragraph (2), the Administrator
shall consult and meet with the Group--
``(A) before issuing the draft regulations to carry
out the program described in section 209; and
``(B) during the public comment period relating to
those draft regulations.''; and
(3) in subsection (f), by striking ``2007'' and inserting
``2012''.
SEC. 3012. ADMINISTRATION.
Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is amended--
(1) in subsection (a)(3), by striking ``must be met for the
approval of such proposal'' and inserting ``should be
considered for a proposal in a future fiscal year'';
(2) in subsection (c), by striking paragraph (3);
(3) by striking subsection (d) and inserting the following:
``(d) Timely Provision of Commodities.--The Administrator, in
consultation with the Secretary, shall develop procedures that ensure
expedited processing of commodity call forwards in order to provide
commodities overseas in a timely manner and to the extent feasible,
according to planned delivery schedules.'';
(4) in subsection (e)(2), by striking ``December 1'' and
inserting ``June 1''; and
(5) by adding at the end the following:
``(f) Program Oversight.--
``(1) In general.--Funds made available to carry out this
title may be used to pay the expenses of the United States
Agency for International Development associated with program
monitoring, evaluation, assessments, food aid data collection,
and food aid information management and commodity reporting
systems.
``(2) Contract authority.--
``(A) In general.--Subject to subparagraphs (B) and
(C) and notwithstanding any other provision of law, in
carrying out administrative and management activities
related to the implementation of programs under this
title, the Administrator may contract with 1 or more
individuals for personal service to be performed in
recipient countries or neighboring countries.
``(B) Prohibition.--Individuals contracting with
the Administrator under subparagraph (A) shall not be
considered to be employees of the United States
Government for the purpose of any law administered by
the Office of Personnel Management.
``(C) Personal service.--Subparagraph (A) does not
limit the ability of the Administrator to contract with
individuals for personal service under section 202(a).
``(g) Indirect Support Costs to the World Food Program of the
United Nations.--
``(1) In general.--Notwithstanding any other provision of
law, in providing assistance under this title, the
Administrator may make contributions to the World Food Program
of the United Nations to the extent that the contributions are
made in accordance with the rules and regulations of that
program for indirect cost rates.
``(2) Report.--The Administrator shall submit the
Committees on Agriculture and Foreign Affairs of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate an annual report on the level of the
contribution and the reasons for the level.
``(h) Indirect Support Costs to Cooperating Sponsors.--
Notwithstanding any other provision of law, the Administrator may pay
to a private voluntary organization or cooperative indirect costs
associated with any funds received or generated for programs, costs, or
activities under this title, on the condition that the indirect costs
are consistent with Office of Management and Budget cost principles.
``(i) Project Reporting.--
``(1) In general.--In submitting project reports to the
Administrator, a private voluntary organization or cooperative
shall provide a copy of the report in such form as is necessary
for the report to be displayed for public use on the website of
the United States Agency for International Development.
``(2) Confidential information.--An organization or
cooperative described in paragraph (1) may omit any
confidential information from the copy of the report submitted
for public display under that paragraph.''.
SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED
FOODS.
Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is
amended--
(1) by striking ``$3,000,000'' and inserting
``$8,000,000''; and
(2) by striking ``2007'' and inserting ``2012''.
SEC. 3014. PILOT PROGRAM FOR LOCAL PURCHASE.
Chapter 1 of part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) is amended by adding at the end the following:
``SEC. 136. PILOT PROGRAM FOR LOCAL PURCHASE OF ELIGIBLE COMMODITIES.
``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Agency for International Development.
``(2) Eligible commodity.--The term `eligible commodity'
means an agricultural commodity, or the product of an
agricultural commodity, that is produced in--
``(A) the recipient country;
``(B) a low-income, developing country near the
recipient country; or
``(C) Africa.
``(3) Eligible organization.--The term `eligible
organization' means--
``(A) an organization that is--
``(i) described in section 202(d) of the
Food for Peace Act; and
``(ii) subject to guidelines promulgated to
carry out this section, including United States
audit requirements that are applicable to non-
governmental organizations; or
``(B) an intergovernmental organization, if the
organization agrees to be subject to all requirements
of this section, including any regulations promulgated
or guidelines issued by the Administrator to carry out
this section.
``(4) Pilot program.--The term `pilot program' means the
pilot program established under subsection (b).
``(b) Establishment.--The Administrator shall establish a field-
based pilot program for local and regional purchases of eligible
commodities in accordance with this section.
``(c) Purposes.--Eligible commodities under the pilot program shall
be used solely--
``(1) to address severe food shortages caused by sudden
events, including--
``(A) earthquakes, floods, and other unforeseen
crises; or
``(B) human-made crises, such as conflicts;
``(2) to prevent or anticipate increasing food scarcity as
the result of slow-onset events, such as drought, crop
failures, pests, economic shocks, and diseases that result in
an erosion of the capacity of communities and vulnerable
populations to meet food needs;
``(3) to address recovery, resettlement, and reconstruction
following 1 or more disasters or emergencies described in
paragraph (1) or (2); and
``(4) to protect and improve livelihoods and food security,
provide safety nets for food insecure or undernourished
populations, and encourage participation in education and other
productive activities.
``(d) Procurement.--Eligible commodities under the pilot program
shall for emergency situations be procured through the most effective 1
or more approaches or methodologies that are likely to expedite the
provision of food aid to affected populations.
``(e) Review of Prior Local Cash Purchase Experience.--
``(1) In general.--Not later than 30 days after the date of
enactment of this section, the Administrator shall initiate the
process to commission an external review of local cash purchase
projects conducted before the date of enactment of this section
by other donor countries, private voluntary organizations, and
the World Food Program of the United Nations.
``(2) Use of review.--The Administrator shall use the
results of the review to develop--
``(A) proposed guidelines under subsection (j); and
``(B) requests for applications under subsection
(f).
``(3) Report.--Not later than 270 days after the date of
enactment of this section, the Administrator shall submit to
the Committees on Agriculture and Foreign Affairs of the House
of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report containing the results of
the review.
``(f) Grants to Eligible Organizations.--
``(1) In general.--After the promulgation of final
guidelines under subsection (j), the Administrator may seek
applications from and provide grants to eligible organizations
to carry out the pilot program.
``(2) Completion requirement.--As a condition of receiving
a grant under the pilot program, an eligible organization shall
agree--
``(A) to complete all projects funded through the
grant not later than September 30, 2011; and
``(B) to provide information about the results of
the project in accordance with subsection (i).
``(3) Other requirements.--Other requirements for
submission of proposals for consideration under this title
shall apply to the submission of an application for a grant
under this section.
``(g) Project Diversity.--In selecting projects to fund under the
pilot program, the Administrator shall select a diversity of projects,
including--
``(1) at least 1 project for each of the situations
described in subsection (c);
``(2) at least 1 project carried out jointly with a project
funded through grassroots efforts by agricultural producers
through eligible United States organizations;
``(3) projects in both food surplus and food deficit
regions, using regional procurement for food deficit regions;
and
``(4) projects in diverse geographical regions, with most,
but not all, projects located in Africa.
``(h) Information Required in Applications.--In submitting an
application under this section, an eligible organization shall--
``(1) request funding for up to 3 years; and
``(2) include in the application--
``(A) a description of the target population
through a needs assessment and sufficient information
to demonstrate that the situation is a situation
described in subsection (c);
``(B) an assurance that the local or regional
procurement--
``(i) is likely to expedite the provision
of food aid to the affected population; and
``(ii) would meet the requirements of
subsection (d);
``(C) a description of--
``(i) the quantities and types of eligible
commodities that would be procured;
``(ii) the rationale for selecting those
eligible commodities; and
``(iii) how the eligible commodities could
be procured and delivered in a timely manner;
``(D) an analysis of the potential impact of the
purchase of eligible commodities on the production,
pricing, and marketing of the same and similar
agricultural commodities in the country and localities
in which the purchase will take place;
``(E) a description of food quality and safety
assurance measures; and
``(F) a monitoring and evaluation plan that ensures
collection of sufficient data--
``(i) to determine the full cost of
procurement, delivery, and administration;
``(ii) to report on the agricultural
production, marketing, and price impact of the
local or regional purchases, including the
impact on low-income consumers; and
``(iii) to provide sufficient information
to support the completion of the report
described in subsection (i).
``(i) Independent Evaluation and Report.--
``(1) In general.--The Administrator shall--
``(A) arrange for an independent evaluation of the
pilot program; and
``(B) provide access to all records and reports for
the completion of the evaluation.
``(2) Report.--Not later than 4 years after the date of
enactment of this section, the Administrator shall submit to
the Committees on Agriculture and Foreign Affairs of the House
of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that--
``(A) includes the analysis and findings of the
independent evaluation;
``(B) assesses whether the requirements of this
section have been met;
``(C) describes for each of the relevant markets in
which the commodities were purchased--
``(i) prevailing and historic supply,
demand, and price movements;
``(ii) impact on producer and consumer
prices;
``(iii) government market interferences and
other donor activities that may have affected
the supply and demand in the area in which the
local or regional purchase took place; and
``(iv) the quantities and types of eligible
commodities procured in each market, the time
frame for procurement, and the complete costs
of the procurement (including procurement,
storage, handling, transportation, and
administrative costs);
``(D) assesses the impact of different
methodologies and approaches on local and regional
agricultural producers (including large and small
producers), markets, low-income consumers, and program
recipients;
``(E) assesses the time elapsed from initiation of
the procurement process to delivery;
``(F) compares different methodologies used in
terms of--
``(i) the benefits to local agriculture;
``(ii) the impact on markets and consumers;
``(iii) the time for procurement and
delivery;
``(iv) quality and safety assurances; and
``(v) implementation costs; and
``(G) to the extent adequate information is
available, includes a comparison of the different
methodologies used by other donors to make local and
regional purchases, including purchases conducted
through the World Food Program of the United Nations.
``(j) Guidelines.--Prior to approving projects or the procurement
of eligible commodities under this section, not later than 1 year after
the date of enactment of this section, the Administrator shall issue
guidelines to carry out this section.
``(k) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
$25,000,000 for each of the fiscal years 2009 through 2012 to
carry out this section.
``(2) Availability.--Any amounts appropriated pursuant to
paragraph (1) shall remain available until expended.''.
SEC. 3015. GENERAL AUTHORITIES AND REQUIREMENTS.
(a) In General.--Section 401 of the Food for Peace Act (7 U.S.C.
1731) is amended--
(1) by striking subsection (a);
(2) redesignating subsections (b) and (c) as subsections
(a) and (b), respectively; and
(3) in subsection (b) (as so redesignated), by striking
``(b)(1)'' and inserting ``(a)(1)''.
(b) Conforming Amendments.--
(1) Section 406(a) of the Food for Peace Act (7 U.S.C.
1736(a)) is amended by striking ``(that have been determined to
be available under section 401(a))''.
(2) Subsection (e)(1) of the Food for Progress Act of 1985
(7 U.S.C. 1736o(e)(1)) is amended by striking ``determined to
be available under section 401 of the Food for Peace Act''.
SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.
Section 406(b)(2) of the Food for Peace Act (7 U.S.C. 1736(b)(2))
is amended by inserting ``, including the costs of carrying out section
415'' before the semicolon.
SEC. 3017. ADMINISTRATIVE PROVISIONS.
Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is amended--
(1) in subsection (c)(4)--
(A) by striking ``2007'' and inserting ``2012'';
(B) by striking ``$2,000,000'' and inserting
``$4,000,000''; and
(C) by adding at the end the following:
``(5) Nonemergency or multiyear agreements.--Annual
resource requests for ongoing nonemergency or multiyear
agreements under title II shall be finalized not later than
October 1 of the fiscal year in which the agricultural
commodities will be shipped under the agreement.''; and
(2) in subsection (f)--
(A) in paragraph (2)--
(i) in subparagraph (B), by inserting ``,
and the amount of funds, tonnage levels, and
types of activities for nonemergency programs
under title II'' before the semicolon;
(ii) in subparagraph (C), by inserting ``,
and a general description of the projects and
activities implemented'' before the semicolon;
and
(iii) in subparagraph (D), by striking
``achieving food security'' and inserting
``reducing food insecurity''; and
(B) in paragraph (3)--
(i) by striking ``shall submit'' and
inserting the following: ``shall--
``(A) submit'';
(ii) by striking ``January 15'' and
inserting ``April 1''; and
(iii) by striking ``of the Senate''. and
inserting the following: ``of the Senate; and
``(B) make the reports available to the public by
electronic and other means.''.
SEC. 3018. EXPIRATION DATE.
Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended
by striking ``2007'' and inserting ``2012''.
SEC. 3019. AUTHORIZATION OF APPROPRIATIONS.
Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended
by striking subsection (b) and inserting the following:
``(b) Minimum Level of Nonemergency Food Assistance.--For each of
fiscal years 2008 through 2012, of the amounts made available to carry
out emergency and nonemergency food assistance programs under title II,
not less than $600,000,000 for each of those fiscal years shall be
obligated and expended for nonemergency food assistance programs under
title II.''.
SEC. 3020. MICRONUTRIENT FORTIFICATION PROGRAMS.
Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``Not later than
September 30, 2003, the Administrator, in consultation
with the Secretary'' and inserting ``Not later than
September 30, 2008, the Secretary, in consultation with
the Administrator''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by adding ``and''
after the semicolon at the end; and
(ii) by striking subparagraphs (B) and (C)
and inserting the following:
``(B) assess and apply technologies and systems to
improve and ensure the quality, shelf life,
bioavailability, and safety of fortified food aid
agricultural commodities, and products of those
agricultural commodities, that are provided to
developing countries, using recommendations included in
the report entitled `Micronutrient Compliance Review of
Fortified Public Law 480 Commodities', published in
October 2001, with implementation by an independent
entity with proven impartial experience and expertise
in food aid commodity quality enhancements.'';
(2) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively; and
(3) in subsection (c) (as redesignated by paragraph (2), by
striking ``2007'' and inserting ``2012''.
SEC. 3021. GERMPLASM CONSERVATION.
Title IV of the Food for Peace Act (7 U.S.C. 1731 et seq.) is
amended by adding at the end the following:
``SEC. 417. GERMPLASM CONSERVATION.
``(a) Contribution.--The Administrator of the United States Agency
for International Development shall contribute funds to endow the
Global Crop Diversity Trust (referred to in this section as the
`Trust') to assist in the conservation of genetic diversity in food
crops through the collection and storage of the germplasm of food crops
in a manner that provides for--
``(1) the maintenance and storage of seed collections;
``(2) the documentation and cataloguing of the genetics and
characteristics of conserved seeds to ensure efficient
reference for researchers, plant breeders, and the public;
``(3) building the capacity of seed collection in
developing countries;
``(4) making information regarding crop genetic data
publicly available for researchers, plant breeders, and the
public (including through the provision of an accessible
Internet website);
``(5) the operation and maintenance of a back-up facility
in which are stored duplicate samples of seeds, in the case of
natural or man-made disasters; and
``(6) oversight designed to ensure international
coordination of those actions and efficient, public
accessibility to that diversity through a cost-effective
system.
``(b) United States Contribution Limit.--The aggregate
contributions of funds of the Federal Government provided to the Trust
shall not exceed 25 percent of the total of the funds contributed to
the Trust from all sources.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $60,000,000 for the period of
fiscal years 2008 through 2012.''.
SEC. 3022. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.
Section 501 of the Food for Peace Act (7 U.S.C. 1737) is amended by
striking ``2007'' each place it appears and inserting ``2012''.
Subtitle B--Agricultural Trade Act of 1978 and Related Statutes
SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.
(a) Repeal of Supplier Credit Guarantee Program and Intermediate
Export Credit Guarantee Program.--Section 202 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``The Commodity''
and inserting ``Subject to paragraph (2), the
Commodity''; and
(B) by striking paragraphs (2) and (3) and
inserting the following:
``(2) Tenure.--Beginning with the 2012 fiscal year, credit
terms described in paragraph (1) may not exceed a 180-day
period.'';
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) through (l) as
subsections (b) through (j), respectively; and
(4) by adding at the end the following:
``(k) Administration.--
``(1) Definition of long term.--In this subsection, the
term `long term' means a period of 10 or more years.
``(2) Guarantees.--In administering the export credit
guarantees authorized under this section, the Secretary shall--
``(A) maximize the export sales of agricultural
commodities;
``(B) maximize the export credit guarantees that
are made available and used during the course of a
fiscal year;
``(C) develop an approach to risk evaluation that
facilitates accurate country risk designations and
timely adjustments to the designations (on an ongoing
basis) in response to material changes in country risk
conditions, with ongoing opportunity for input and
evaluation from the private sector;
``(D) adjust risk-based guarantees as necessary to
ensure program effectiveness and United States
competitiveness; and
``(E) work with industry to ensure that risk-based
fees associated with the guarantees cover, but do not
exceed, the operating costs and losses over the long
term.''.
(b) Conforming Amendments.--The Agricultural Trade Act of 1978 is
amended--
(1) in section 202 (7 U.S.C. 5622)--
(A) in subsection (b)(4) (as redesignated by
subsection (a)(3)), by striking ``, consistent with the
provisions of subsection (c)'';
(B) in subsection (d) (as redesignated by
subsection (a)(3))--
(i) by striking ``(1)'' and all that
follows through ``The Commodity'' and inserting
``The Commodity''; and
(ii) by striking paragraph (2); and
(C) in subsection (g)(2) (as redesignated by
subsection (a)(3)), by striking ``subsections (a) and
(b)'' and inserting ``subsection (a)''; and
(2) in section 211, by striking subsection (b) and
inserting the following:
``(b) Export Credit Guarantee Programs.--The Commodity Credit
Corporation shall make available for each of fiscal years 1996 through
2012 not less than $5,000,000,000 in credit guarantees under section
202(a).''.
SEC. 3102. MARKET ACCESS PROGRAM.
(a) Organic Commodities.--Section 203(a) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5623(a)) is amended by inserting after
``agricultural commodities'' the following: ``(including commodities
that are organically produced (as defined in section 2103 of the
Organic Foods Production Act of 1990 (7 U.S.C. 6502)))''.
(b) Funding.--Section 211(c)(1)(A) of the Agricultural Trade Act of
1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking ``, and
$200,000,000 for each of fiscal years 2006 and 2007'' and inserting
``$200,000,000 for each of fiscal years 2006 and 2007, $210,000,000 for
fiscal year 2008, $220,000,000 for fiscal year 2009, $230,000,000 for
fiscal year 2010, $240,000,000 for fiscal year 2011, and $200,000,000
for fiscal year 2012 and each subsequent fiscal year''.
SEC. 3103. EXPORT ENHANCEMENT PROGRAM.
(a) In General.--Section 301 of the Agricultural Trade Act of 1978
(7 U.S.C. 5651) is repealed.
(b) Conforming Amendments.--The Agricultural Trade Act of 1978 is
amended--
(1) in title III, by striking the title heading and
inserting the following:
``TITLE III--BARRIERS TO EXPORTS'';
(2) by redesignating section 302 as section 301;
(3) by striking section 303;
(4) in section 401 (7 U.S.C. 5661)--
(A) in subsection (a), by striking ``section 201,
202, or 301'' and inserting ``section 201 or 202''; and
(B) in subsection (b), by striking ``sections 201,
202, and 301'' and inserting ``sections 201 and 202'';
and
(5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking
``sections 201, 202, 203, and 301'' and inserting ``sections
201, 202, and 203''.
SEC. 3104. VOLUNTARY CERTIFICATION OF CHILD LABOR STATUS OF
AGRICULTURAL IMPORTS.
Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C. 5674)
is amended by adding at the end the following:
``(d) Reducing Child Labor and Forced Labor.--
``(1) Definitions.--In this subsection:
``(A) Child labor.--The term `child labor' means
the worst forms of child labor as defined in
International Labor Convention 182, the Convention
Concerning the Prohibition and Immediate Action for the
Elimination of the Worst Forms of Child Labor, done at
Geneva on June 17, 1999.
``(B) Forced labor.--The term `forced labor' means
all work or service--
``(i) that is exacted from any individual
under menace of any penalty for non-performance
of the work or service, and for which the
individual does not offer himself or herself
voluntarily, by coercion, debt bondage,
involuntary servitude (as those terms are
defined in section 103 of the Trafficking
Victims Protection Act of 2000 (22 U.S.C.
7102)); and
``(ii) by 1 or more individuals who, at the
time of production, were being subjected to a
severe form of trafficking in persons (as that
term is defined in that section).
``(2) Development of standard set of practices.--
``(A) In general.--The Secretary, in coordination
with the Secretary of Labor, shall develop a standard
set of practices for the production of agricultural
commodities that are imported, sold, or marketed in the
United States in order to reduce the likelihood that
the agricultural commodities are produced with the use
of forced labor or child labor.
``(B) Requirement.--The standard set of practices
shall be developed in accordance with the requirements
of the Trafficking Victims Protection Act of 2000 (22
U.S.C. 7101 et seq.).
``(3) Requirements.--Not later than 3 years after the date
of enactment of this subsection, the Secretary shall, with
respect to the standard set of practices developed under
paragraph (2), promulgate proposed regulations that shall, at a
minimum, establish a voluntary certification program to enforce
this subsection by--
``(A) requiring agricultural commodity traceability
and inspection at all stages of the supply chain;
``(B) allowing for multistakeholder participation
in the certification process;
``(C) providing for annual onsite inspection by a
certifying agent, who shall be certified in accordance
with the International Organization for Standardization
Guide 65, of each affected worksite and handling
operation;
``(D) incorporating a comprehensive conflict of
interest policy for certifying agents, in accordance
with section 2116(h) of the Organic Foods Production
Act of 1990 (7 U.S.C. 6515(h)); and
``(E) providing an anonymous grievance procedure
that--
``(i) is accessible by third parties to
allow for the identification of new or
continuing violations of the regulations; and
``(ii) provides protections for
whistleblowers.
``(4) Reporting requirement.--Not later than 180 days after
the date of enactment of this subsection, and annually
thereafter, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate, a report
on the development and implementation of the standard set of
practices under this subsection.''.
SEC. 3105. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C.
5723(a)) is amended by striking ``amount of $34,500,000 for each of
fiscal years 2002 through 2007'' and inserting ``amount of--
``(1) $39,500,000 for each of fiscal years 2008 and 2009;
``(2) $44,500,000 for fiscal year 2010; and
``(3) $34,500,000 for fiscal year 2011 and each subsequent
fiscal year.''.
SEC. 3106. FOOD FOR PROGRESS ACT OF 1985.
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended--
(1) by striking ``2007'' each place it appears and
inserting ``2012'';
(2) in subsection (b)(5)--
(A) by striking subparagraphs (A), (B), and (F);
(B) in subparagraph (D), by inserting ``and'' after
the semicolon;
(C) in subparagraph (E), by striking ``; and'' and
inserting a period; and
(D) by redesignating subparagraphs (C), (D), and
(E) as subparagraphs (A), (B), and (C), respectively;
and
(3) in subsection (f), by striking paragraph (3) and
inserting the following:
``(3) Funding limitations.--With respect to eligible
commodities made available under section 416(b) of the
Agricultural Act of 1949 (42 U.S.C. 1431(b)), unless authorized
in advance in appropriation Acts--
``(A) for each of fiscal years 2008 through 2010,
no funds of the Corporation in excess of $48,000,000
(exclusive of the cost of eligible commodities) may be
used to carry out this section; and
``(B) for fiscal year 2011 and each fiscal year
thereafter, no funds of the Corporation in excess of
$40,000,000 (exclusive of the cost of eligible
commodities) may be used to carry out this section.''.
SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD
NUTRITION PROGRAM.
Section 3107 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 1736o-1) is amended--
(1) in subsection (b), by inserting ``in the Department of
Agriculture'' after ``establish a program'';
(2) in subsections (c)(2)(B), (f)(1), (h), (i), and (l)(1)
by striking ``President'' each place it appears and inserting
``Secretary'';
(3) in subsection (d), by striking ``The President shall
designate 1 or more Federal agencies'' and inserting ``The
Secretary shall'';
(4) in paragraph (f)(2), by striking ``implementing
agency'' and inserting ``Secretary''; and
(5) in subsection (l)(2), by striking ``such sums'' and all
that follows through ``2007'' and inserting ``$300,000,000 for
each of fiscal years 2008 through 2012''.
Subtitle C--Miscellaneous
SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C.
1736f-1) is amended--
(1) in subsection (a), by striking ``a trust stock'' and
all that follows through the end of the subsection and
inserting the following: ``a trust of commodities, for use as
described in subsection (c), to consist of--
``(1) quantities equivalent to not more than 4,000,000
metric tons of commodities; or
``(2) any combination of funds and commodities equivalent
to not more than 4,000,000 metric tons of commodities.'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (B)--
(I) by striking ``replenish'' each
place it appears and inserting
``reimburse''; and
(II) by striking ``replenished''
and inserting ``reimbursed''; and
(ii) by striking subparagraph (D) and
inserting the following:
``(D) funds made available--
``(i) under paragraph (2)(B);
``(ii) as a result of an exchange of any
commodity held in the trust for an equivalent
amount of funds from--
``(I) the Agricultural Trade
Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.);
``(II) the McGovern-Dole
International Food for Education and
Child Nutrition Program established
under section 3107 of the Farm Security
and Rural Investment Act of 2002 (7
U.S.C. 1736o-1); or
``(III) the market, if the
Secretary determines that such a sale
of the commodity on the market will not
unduly disrupt domestic markets; and
``(iii) in the course of management of the
trust or to maximize the value of the trust, in
accordance with subsection (d)(3).''; and
(B) in paragraph (2)(B)--
(i) in the matter preceding clause (i), by
striking ``replenish'' and inserting
``reimburse'';
(ii) in clause (i)--
(I) by striking ``2007'' each place
it appears and inserting ``2012'';
(II) by striking ``(c)(2)'' and
inserting ``(c)(1)''; and
(III) by striking ``and'' at the
end;
(iii) in clause (ii), by striking the
period at the end and inserting ``; or''; and
(iv) by adding at the end the following:
``(iii) from funds accrued through the
management of the trust under subsection
(d).'';
(3) in subsection (c)--
(A) by striking paragraphs (1) and (2) and
inserting the following:
``(1) Releases for emergency assistance.--
``(A) Definition of emergency.--
``(i) In general.--In this paragraph, the
term `emergency' means an urgent situation--
``(I) in which there is clear
evidence that an event or series of
events described in clause (ii) has
occurred--
``(aa) that causes human
suffering or imminently
threatens human lives or
livelihoods; and
``(bb) for which a
government concerned has not
the means to remedy; or
``(II) created by a demonstrably
abnormal event or series of events that
produces dislocation in the lives of
residents of a country or region of a
country on an exceptional scale.
``(ii) Event or series of events.--An event
or series of events referred to in clause (i)
includes 1 or more of--
``(I) a sudden calamity, such as an
earthquake, flood, locust infestation,
or similar unforeseen disaster;
``(II) a human-made emergency
resulting in--
``(aa) a significant influx
of refugees;
``(bb) the internal
displacement of populations; or
``(cc) the suffering of
otherwise affected populations;
``(III) food scarcity conditions
caused by slow-onset events, such as
drought, crop failure, pest
infestation, and disease, that result
in an erosion of the ability of
communities and vulnerable populations
to meet food needs; and
``(IV) severe food access or
availability conditions resulting from
sudden economic shocks, market failure,
or economic collapse, that result in an
erosion of the ability of communities
and vulnerable populations to meet food
needs.
``(B) Releases.--
``(i) In general.--Any funds or commodities
held in the trust may be released to provide
assistance under title II of the Food for Peace
Act (7 U.S.C. 1721 et seq.)--
``(I) to meet emergency needs,
including during the period immediately
preceding the emergency;
``(II) to respond to an emergency;
or
``(III) for recovery and
rehabilitation after an emergency.
``(ii) Procedure.--Subject to subparagraph
(B), a release under clause (i) shall be
carried out in the same manner, and pursuant to
the same authority as provided in title II of
that Act.
``(C) Insufficiency of other funds.--The funds and
commodities held in the trust shall be made immediately
available on a determination by the Administrator that
funds available for emergency needs under title II of
that Act (7 U.S.C. 1721 et seq.) for a fiscal year are
insufficient to meet emergency needs during the fiscal
year.''; and
(B) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (d)--
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and
indenting the subparagraphs appropriately;
(B) by striking the subsection designation and
heading and all that follows through ``provide--'' and
inserting the following:
``(d) Management of Trust.--
``(1) In general.--The Secretary shall provide for the
management of eligible commodities and funds held in the trust
in a manner that is consistent with maximizing the value of the
trust, as determined by the Secretary.
``(2) Eligible commodities.--The Secretary shall provide--
'';
(C) in paragraph (2) (as redesignated by
subparagraph (B))--
(i) in subparagraph (B) (as redesignated by
subparagraph (A)), by striking ``and'' at the
end;
(ii) in subparagraph (C) (as redesignated
by subparagraph (A)), by striking the period at
the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) for the management of price risks associated
with commodities held or potentially held in the
trust.''; and
(D) by adding at the end the following:
``(3) Funds.--
``(A) Requirement.--The Secretary shall maximize
the value of funds held in the trust, to the maximum
extent practicable.
``(B) Releases on emergency.--If any commodity is
released from the trust in the case of an emergency
under subsection (c), the Secretary shall transfer to
the trust funds of the Commodity Credit Corporation in
an amount equal to, as determined by the Secretary, the
amount of storage charges that will be saved by
Commodity Credit Corporation due to the emergency
release.
``(C) Exchanges.--If any commodity held in the
trust is exchanged for funds under subsection
(b)(1)(D)(ii)--
``(i) the funds shall be held in the trust
until the date on which the funds are released
in the case of an emergency under subsection
(c); and
``(ii) the Secretary shall transfer to the
trust funds of the Commodity Credit Corporation
in an amount equal to, as determined by the
Secretary, the amount of storage charges that
will be saved by Commodity Credit Corporation
due to the exchange.
``(D) Investment.--The Secretary--
``(i) may invest funds held in the trust in
any short-term obligation of the United States
or any other low-risk short-term instrument or
security insured by the Federal Government in
which a regulated insurance company may invest
under the laws of the District of Columbia; and
``(ii) shall not invest any funds held in
the trust in real estate.'';
(5) in subsection (f)(2)(A), by striking ``replenish'' and
inserting ``reimburse''; and
(6) in subsection (h)--
(A) in paragraph (1), by striking ``replenish'' and
inserting ``reimburse''; and
(B) in each of paragraphs (1) and (2), by striking
``2007'' each place it appears and inserting ``2012''.
SEC. 3202. EMERGING MARKETS AND FACILITY GUARANTEE LOAN PROGRAM.
Section 1542 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended--
(1) in subsection (a), by striking ``2007'' and inserting
``2012'';
(2) in subsection (b)--
(A) in the first sentence, by redesignating
paragraphs (1) and (2) as subparagraphs (A) and (B),
respectively, and indenting appropriately;
(B) by striking ``A portion'' and inserting the
following:
``(1) In general.--A portion'';
(C) in the second sentence, by striking ``The
Commodity Credit Corporation'' and inserting the
following:
``(2) Priority.--The Commodity Credit Corporation''; and
(D) by adding at the end the following:
``(3) Construction waiver.--The Secretary may waive any
applicable requirements relating to the use of United States
goods in the construction of a proposed facility, if the
Secretary determines that--
``(A) goods from the United States are not
available; or
``(B) the use of goods from the United States is
not practicable.
``(4) Term of guarantee.--A facility payment guarantee
under this subsection shall be for a term that is not more than
the lesser of--
``(A) the term of the depreciation schedule of the
facility assisted; or
``(B) 20 years.''; and
(3) in subsection (d)(1)(A)(i) by striking ``2007'' and
inserting ``2012''.
SEC. 3203. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.
Section 1543A(d) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5679(d)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 3204. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE DISPUTES.
(a) In General.--The Secretary may provide monitoring, analytic
support, and other technical assistance to limited resource persons
that are involved in trading agricultural commodities, as determined by
the Secretary, to reduce trade barriers to the persons.
(b) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 3205. IMPORTATION OF LIVE DOGS.
(a) In General.--The Animal Welfare Act is amended by adding after
section 17 (7 U.S.C. 2147) the following:
``SEC. 18. IMPORTATION OF LIVE DOGS.
``(a) Definitions.--In this section:
``(1) Importer.--The term `importer' means any person who,
for purposes of resale, transports into the United States
puppies from a foreign country.
``(2) Resale.--The term `resale' includes any transfer of
ownership or control of an imported dog of less than 6 months
of age to another person, for more than de minimis
consideration.
``(b) Requirements.--
``(1) In general.--Except as provided in paragraph (2), no
person shall import a dog into the United States for purposes
of resale unless, as determined by the Secretary, the dog--
``(A) is in good health;
``(B) has received all necessary vaccinations; and
``(C) is at least 6 months of age, if imported for
resale.
``(2) Exception.--The Secretary, by regulation, shall
provide an exception to any requirement under paragraph (1) in
any case in which a dog is imported for--
``(A) research purposes; or
``(B) veterinary treatment.
``(c) Implementation and Regulations.--The Secretary, the Secretary
of Health and Human Services, the Secretary of Commerce, and the
Secretary of Homeland Security shall promulgate such regulations as the
Secretaries determine to be necessary to implement and enforce this
section.
``(d) Enforcement.--An importer that fails to comply with this
section shall--
``(1) be subject to penalties under section 19; and
``(2) provide for the care (including appropriate
veterinary care), forfeiture, and adoption of each applicable
dog, at the expense of the importer.''.
(b) Effective Date.--The amendment made by subsection (a) takes
effect on the date of enactment of this Act.
SEC. 3206. REPORT ON THE IMPORTATION OF HIGH PROTEIN FOOD INGREDIENTS.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary and the Secretary of Health and
Human Services (acting through the Commissioner of Food and Drugs), in
consultation with the heads of other appropriate Federal agencies,
shall jointly submit to Congress a report on imports of high protein
food ingredients (including gluten, casein, and milk protein
concentrate) into the United States during the 5-year period preceding
the date of enactment of this Act.
(b) Components.--The report required under subsection (a) shall
include--
(1) a description of--
(A) the quantity of each high protein food
ingredient imported into the United States; and
(B) the source of the high protein food ingredients
being imported;
(2) an accounting of the percentage of imports in each
category and subcategory of high protein food ingredients that
were inspected, including whether the inspections were--
(A) basic or visual inspections; or
(B) more intensive inspections or laboratory
analyses;
(3) an evaluation of--
(A) whether the laboratory tests conducted on high
protein food ingredients were able to detect
adulteration with other high nitrogen compounds, such
as melamine; and
(B) if some of the laboratory tests were sensitive
and others were not sensitive, the number and results
for each sensitivity; and
(4) a survey of whether high protein food ingredients were
imported for food uses or non-food uses, including an analysis
of--
(A) whether the food uses were animal or human food
uses; and
(B) whether any non-food or animal feed products
could have entered the human food supply, including an
analysis of any safeguards to prevent such products
from entering the human food supply.
(c) Availability.--As soon as practicable after the completion of
the report under subsection (a), the Secretary and the Secretary of
Health and Human Services shall make the report available to the
public.
SEC. 3207. QUALITY REQUIREMENTS FOR CLEMENTINES.
Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 608e-
1(a)), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, is amended in the matter preceding the first
proviso in the first sentence by inserting ``clementines,'' after
``nectarines,''.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food and Nutrition Program
PART I--RENAMING OF FOOD STAMP PROGRAM
SEC. 4001. RENAMING OF FOOD STAMP PROGRAM.
(a) Short Title.--The first section of the Food Stamp Act of 1977
(7 U.S.C. 2011 note; Public Law 88-525) is amended by striking ``Food
Stamp Act of 1977'' and inserting ``Food and Nutrition Act of 2007''.
(b) Program.--The Food and Nutrition Act of 2007 (7 U.S.C. 2011 et
seq.) (as amended by subsection (a)) is amended by striking ``food
stamp program'' each place it appears and inserting ``food and
nutrition program''.
PART II--IMPROVING PROGRAM BENEFITS
SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM INCOME.
Section 5(d) of the Food and Nutrition Act of 2007 (7 U.S.C.
2014(d)) is amended--
(1) by striking ``(d) Household'' and inserting ``(d)
Exclusions From Income.--Household'';
(2) by striking ``only (1) any'' and inserting ``only--
``(1) any'';
(3) by indenting each of paragraphs (2) through (18) so as
to align with the margin of paragraph (1) (as amended by
paragraph (1));
(4) by striking the comma at the end of each of paragraphs
(1) through (16) and inserting a semicolon;
(5) in paragraph (3)--
(A) by striking ``like (A) awarded'' and inserting
``like--
``(A) awarded'';
(B) by striking ``thereof, (B) to'' and inserting
``thereof;
``(B) to''; and
(C) by striking ``program, and (C) to'' and
inserting ``program; and
``(C) to'';
(6) in paragraph (11), by striking ``)), or (B) a'' and
inserting ``)); or
``(B) a'';
(7) in paragraph (17), by striking ``, and'' at the end and
inserting a semicolon;
(8) in paragraph (18), by striking the period at the end
and inserting ``; and''; and
(9) by adding at the end the following:
``(19) any additional payment under chapter 5 of title 37,
United States Code, or otherwise designated by the Secretary to
be appropriate for exclusion under this paragraph, that is
received by or from a member of the United States Armed Forces
deployed to a designated combat zone, if the additional pay--
``(A) is the result of deployment to or service in
a combat zone; and
``(B) was not received immediately prior to serving
in a combat zone.''.
SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME
AMERICANS.
Section 5(e)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.
2014(e)(1)) is amended--
(1) in subparagraph (A)(ii), by striking ``not less than
$134'' and all that follows through the end of the clause and
inserting the following: ``not less than--
``(I) for fiscal year 2008, $140,
$239, $197, and $123, respectively; and
``(II) for fiscal year 2009 and
each fiscal year thereafter, an amount
that is equal to the amount from the
previous fiscal year adjusted to the
nearest lower dollar increment to
reflect changes for the 12-month period
ending on the preceding June 30 in the
Consumer Price Index for All Urban
Consumers published by the Bureau of
Labor Statistics of the Department of
Labor, for items other than food.'';
(2) in subparagraph (B)(ii), by striking ``not less than
$269'' and all that follows through the end of the clause and
inserting the following: ``not less than--
``(I) for fiscal year 2008, $281;
and
``(II) for fiscal year 2009 and
each fiscal year thereafter, an amount
that is equal to the amount from the
previous fiscal year adjusted to the
nearest lower dollar increment to
reflect changes for the 12-month period
ending on the preceding June 30 in the
Consumer Price Index for All Urban
Consumers published by the Bureau of
Labor Statistics of the Department of
Labor, for items other than food.'';
and
(3) by adding at the end the following:
``(C) Requirement.--Each adjustment under
subparagraphs (A)(ii)(II) and (B)(ii)(II) shall be
based on the unrounded amount for the prior 12-month
period.''.
SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE EXPENSES.
Section 5(e)(3)(A) of the Food and Nutrition Act of 2007 (7 U.S.C.
2014(e)(3)(A)) is amended by striking ``, the maximum allowable level
of which shall be $200 per month for each dependent child under 2 years
of age and $175 per month for each other dependent,''.
SEC. 4104. ENCOURAGING RETIREMENT AND EDUCATION SAVINGS AMONG FOOD
STAMP RECIPIENTS.
(a) Allowable Financial Resources.--Section 5(g) of the Food and
Nutrition Act of 2007 (7 U.S.C. 2014(g)) is amended--
(1) by striking ``(g)(1) The Secretary'' and inserting the
following:
``(g) Allowable Financial Resources.--
``(1) Total amount.--
``(A) In general.--The Secretary'';
(2) in subparagraph (A) (as designated by paragraph (1))--
(A) by striking ``$2,000'' and inserting ``$3,500
(as adjusted in accordance with subparagraph (B))'';
and
(B) by striking ``$3,000'' and inserting ``$4,500
(as adjusted in accordance with subparagraph (B))'';
and
(3) by adding at the end the following:
``(B) Adjustment for inflation.--
``(i) In general.--Beginning on October 1,
2008, and each October 1 thereafter, the
amounts in subparagraph (A) shall be adjusted
and rounded down to the nearest $250 to reflect
changes for the 12-month period ending the
preceding June in the Consumer Price Index for
All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.
``(ii) Requirement.--Each adjustment under
clause (i) shall be based on the unrounded
amount for the prior 12-month period.''.
(b) Exclusion of Retirement Accounts From Allowable Financial
Resources.--
(1) In general.--Section 5(g)(2)(B)(v) of the Food and
Nutrition Act of 2007 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by
striking ``or retirement account (including an individual
account)'' and inserting ``account''.
(2) Mandatory and discretionary exclusions.--Section 5(g)
of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(g)) is
amended by adding at the end the following:
``(7) Exclusion of retirement accounts from allowable
financial resources.--
``(A) Mandatory exclusions.--The Secretary shall
exclude from financial resources under this subsection
the value of--
``(i) any funds in a plan, contract, or
account, described in sections 401(a), 403(a),
403(b), 408, 408A, 457(b), and 501(c)(18) of
the Internal Revenue Code of 1986 and the value
of funds in a Federal Thrift Savings Plan
account as provided in section 8439 of title 5,
United States Code; and
``(ii) any retirement program or account
included in any successor or similar provision
that may be enacted and determined to be exempt
from tax under the Internal Revenue Code of
1986.
``(B) Discretionary exclusions.--The Secretary may
exclude from financial resources under this subsection
the value of any other retirement plans, contracts, or
accounts (as determined by the Secretary).''.
(c) Exclusion of Education Accounts From Allowable Financial
Resources.--Section 5(g) of the Food and Nutrition Act of 2007 (7
U.S.C. 2014(g)) (as amended by subsection (b)) is amended by adding at
the end the following:
``(8) Exclusion of education accounts from allowable
financial resources.--
``(A) Mandatory exclusions.--The Secretary shall
exclude from financial resources under this subsection
the value of any funds in a qualified tuition program
described in section 529 of the Internal Revenue Code
of 1986 or in a Coverdell education savings account
under section 530 of that Code.
``(B) Discretionary exclusions.--The Secretary may
exclude from financial resources under this subsection
the value of any other education programs, contracts,
or accounts (as determined by the Secretary).''.
SEC. 4105. FACILITATING SIMPLIFIED REPORTING.
Section 6(c)(1)(A) of the Food and Nutrition Act of 2007 (7 U.S.C.
2015(c)(1)(A)) is amended--
(1) by striking ``reporting by'' and inserting
``reporting'';
(2) in clause (i), by inserting ``for periods shorter than
4 months by'' before ``migrant'';
(3) in clause (ii), by inserting ``for periods shorter than
4 months by'' before ``households''; and
(4) in clause (iii), by inserting ``for periods shorter
than 1 year by'' before ``households''.
SEC. 4106. ACCRUAL OF BENEFITS.
Section 7(i) of the Food and Nutrition Act of 2007 (7 U.S.C.
2016(i)) is amended by adding at the end the following:
``(12) Recovering electronic benefits.--
``(A) In general.--A State agency shall establish a
procedure for recovering electronic benefits from the
account of a household due to inactivity.
``(B) Benefit storage.--A State agency may store
recovered electronic benefits off-line in accordance
with subparagraph (D), if the household has not
accessed the account after 6 months.
``(C) Benefit expunging.--A State agency shall
expunge benefits that have not been accessed by a
household after a period of 12 months.
``(D) Notice.--A State agency shall--
``(i) send notice to a household the
benefits of which are stored under subparagraph
(B); and
``(ii) not later than 48 hours after
request by the household, make the stored
benefits available to the household.''.
SEC. 4107. ELIGIBILITY FOR UNEMPLOYED ADULTS.
(a) In General.--Section 6(o) of the Food and Nutrition Act of 2007
(7 U.S.C. 2015(o)) is amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A) by striking ``3 months'' and inserting ``6 months''; and
(2) in paragraph (5), by striking subparagraph (C).
(b) Effective Date.--The amendments made by subsection (a) take
effect on October 1, 2008.
SEC. 4108. TRANSITIONAL BENEFITS OPTION.
Section 11(s)(1) of the Food and Nutrition Act of 2007 (7 U.S.C.
2020(s)(1)) is amended--
(1) by striking ``benefits to a household''; and inserting
``benefits--
``(A) to a household'';
(2) by striking the period at the end and inserting ``;
or''; and
(3) by adding at the end the following:
``(B) at the option of the State, to a household
with children that ceases to receive cash assistance
under a State-funded public assistance program.''.
SEC. 4109. MINIMUM BENEFIT.
(a) In General.--Section 8(a) of the Food and Nutrition Act of 2007
(7 U.S.C. 2017(a)) is amended by striking ``$10 per month'' and
inserting ``10 percent of the thrifty food plan for a household
containing 1 member''.
(b) Effective Date.--The amendment made by subsection (a) takes
effect on October 1, 2008.
SEC. 4110. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD
ASSISTANCE PROGRAM.
(a) In General.--Section 27(a) of the Food and Nutrition Act of
2007 (7 U.S.C. 2036(a)) is amended--
(1) by striking ``(a) Purchase of Commodities'' and all
that follows through ``through 2007'' and inserting the
following:
``(a) Purchase of Commodities.--
``(1) In general.--Subject to paragraph (2), for fiscal
year 2008 and each fiscal year thereafter''; and
(2) by adding at the end the following:
``(2) Amounts.--In addition to the amounts made available
under paragraph (1), for fiscal year 2008 and each fiscal year
thereafter, from amounts made available to carry out this Act,
the Secretary shall use to carry out this subsection
$110,000,000.''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of enactment of this Act.
PART III--IMPROVING PROGRAM OPERATIONS
SEC. 4201. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.
Section 6(k) of the Food and Nutrition Act of 2007 (7 U.S.C.
2015(k)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(2) by striking ``No member'' and inserting the following:
``(1) In general.--No member''; and
(3) by adding at the end the following:
``(2) Procedures.--The Secretary shall issue consistent
procedures--
``(A) to define the terms `fleeing' and `actively
seeking' for purposes of this subsection; and
``(B) to ensure that State agencies use consistent
procedures that disqualify individuals whom law
enforcement authorities are actively seeking for the
purpose of holding criminal proceedings against the
individual.''.
SEC. 4202. ISSUANCE AND USE OF PROGRAM BENEFITS.
(a) In General.--Section 7 of the Food and Nutrition Act of 2007 (7
U.S.C. 2016) is amended--
(1) by striking the section designation and heading and all
that follows through ``subsection (j)) shall be'' and inserting
the following:
``SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.
``(a) In General.--Except as provided in subsection (i), EBT cards
shall be'';
(2) in subsection (b)--
(A) by striking ``(b) Coupons'' and inserting the
following:
``(b) Use.--
``(1) In general.--Benefits'';
(B) in paragraph (1) (as designated by subparagraph
(A)), by striking the second proviso; and
(C) by adding at the end the following:
``(2) Study.--As soon as practicable after the date of
enactment of this paragraph, the Comptroller General of the
United States shall conduct a study of the effects of the
Secretary issuing a rule requiring that benefits shall only be
used to purchase food that is included in the most recent
applicable thrifty food plan market basket.'';
(3) in subsection (c)--
(A) by striking ``(c) Coupons'' and inserting the
following:
``(c) Design.--
``(1) In general.--EBT cards'';
(B) in the first sentence, by striking ``and define
their denomination''; and
(C) by striking the second sentence and inserting
the following:
``(2) Prohibition.--The name of any public official shall
not appear on any EBT card.'';
(4) by striking subsection (d);
(5) in subsection (e)--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits''; and
(B) by striking ``coupon issuers'' each place it
appears and inserting ``benefit issuers'';
(6) in subsection (f)--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits'';
(B) by striking ``coupon issuer'' and inserting
``benefit issuers'';
(C) by striking ``section 11(e)(20)'' and inserting
``section 11(e)(19).''; and
(D) by striking ``and allotments'';
(7) by striking subsection (g) and inserting the following:
``(g) Alternative Benefit Delivery.--
``(1) In general.--If the Secretary determines, in
consultation with the Inspector General of the Department of
Agriculture, that it would improve the integrity of the food
and nutrition program, the Secretary shall require a State
agency to issue or deliver benefits using alternative methods.
``(2) No imposition of costs.--The cost of documents or
systems that may be required by this subsection may not be
imposed upon a retail food store participating in the food and
nutrition program.
``(3) Devaluation and termination of issuance of paper
coupons.--
``(A) Coupon issuance.--Effective on the date of
enactment of the Food and Energy Security Act of 2007,
no State shall issue any coupon, stamp, certificate, or
authorization card to a household that receives food
and nutrition benefits under this Act.
``(B) Ebt cards.--Effective beginning on the date
that is 1 year after the date of enactment of the Food
and Energy Security Act of 2007, only an EBT card
issued under subsection (i) shall be eligible for
exchange at any retail food store.
``(C) De-obligation of coupons.--Coupons not
redeemed during the 1-year period beginning on the date
of enactment of the Food and Energy Security Act of
2007 shall--
``(i) no longer be an obligation of the
Federal Government; and
``(ii) not be redeemable.'';
(8) in subsection (h)(1), by striking ``coupons'' and
inserting ``benefits'';
(9) in subsection (i), by adding at the end the following:
``(12) Interchange fees.--No interchange fees shall apply
to electronic benefit transfer transactions under this
subsection.'';
(10) in subsection (j)--
(A) in paragraph (2)(A)(ii), by striking
``printing, shipping, and redeeming coupons'' and
inserting ``issuing and redeeming benefits''; and
(B) in paragraph (5), by striking ``coupon'' and
inserting ``benefit'';
(11) in subsection (k)--
(A) by striking ``coupons in the form of'' each
place it appears and inserting ``program benefits in
the form of'';
(B) by striking ``a coupon issued in the form of''
each place it appears and inserting ``program benefits
in the form of''; and
(C) in subparagraph (A), by striking ``subsection
(i)(11)(A)'' and inserting ``subsection (h)(11)(A)'';
and
(12) by redesignating subsections (e) through (k) as
subsections (d) through (j), respectively.
(b) Conforming Amendments.--
(1) Section 3 of the Food and Nutrition Act of 2007 (7
U.S.C. 2012) is amended--
(A) in subsection (a), by striking ``coupons'' and
inserting ``benefits'';
(B) by striking subsection (b) and inserting the
following:
``(b) Benefit.--The term `benefit' means the value of food and
nutrition assistance provided to a household by means of--
``(1) an electronic benefit transfer under section 7(i); or
``(2) other means of providing assistance, as determined by
the Secretary.'';
(C) in subsection (c), in the first sentence, by
striking ``authorization cards'' and inserting
``benefits'';
(D) in subsection (d), by striking ``or access
device'' and all that follows through the end of the
subsection and inserting a period;
(E) in subsection (e)--
(i) by striking ``(e) `Coupon issuer'
means'' and inserting the following:
``(e) Benefit Issuer.--The term `benefit issuer' means''; and
(ii) by striking ``coupons'' and inserting
``benefits'';
(F) in subsection (g)(7), by striking ``subsection
(r)'' and inserting ``subsection (j)'';
(G) in subsection (i)(5)--
(i) in subparagraph (B), by striking
``subsection (r)'' and inserting ``subsection
(j)''; and
(ii) in subparagraph (D), by striking
``coupons'' and inserting ``benefits'';
(H) in subsection (j), by striking ``(as that term
is defined in subsection (p))'';
(I) in subsection (k)--
(i) in paragraph (1)(A), by striking
``subsection (u)(1)'' and inserting
``subsection (r)(1)'';
(ii) in paragraph (2), by striking
``subsections (g)(3), (4), (5), (7), (8), and
(9) of this section'' and inserting
``paragraphs (3), (4), (5), (7), (8), and (9)
of subsection (k)''; and
(iii) in paragraph (3), by striking
``subsection (g)(6) of this section'' and
inserting ``subsection (k)(6)'';
(J) in subsection (t), by inserting ``, including
point of sale devices,'' after ``other means of
access'';
(K) in subsection (u), by striking ``(as defined in
subsection (g))''; and
(L) by adding at the end the following:
``(v) EBT Card.--The term `EBT card' means an electronic benefit
transfer card issued under section 7(i).''; and
(M) by redesignating subsections (a) through (v) as
subsections (b), (d), (f), (g), (e), (h), (k), (l),
(n), (o), (p), (q), (s), (t), (u), (v), (c), (j), (m),
(a), (r), and (i), respectively, and moving so as to
appear in alphabetical order.
(2) Section 4(a) of the Food and Nutrition Act of 2007 (7
U.S.C. 2013(a)) is amended--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits''; and
(B) by striking ``Coupons issued'' and inserting
``benefits issued''.
(3) Section 5 of the Food and Nutrition Act of 2007 (7
U.S.C. 2014) is amended--
(A) in subsection (a), by striking ``section
3(i)(4)'' and inserting ``section 3(n)(4)'';
(B) in subsection (h)(3)(B), in the second
sentence, by striking ``section 7(i)'' and inserting
``section 7(h)''; and
(C) in subsection (i)(2)(E), by striking ``, as
defined in section 3(i) of this Act,''.
(4) Section 6 of the Food and Nutrition Act of 2007 (7
U.S.C. 2015) is amended--
(A) in subsection (b)(1)--
(i) in subparagraph (B), by striking
``coupons or authorization cards'' and
inserting ``program benefits''; and
(ii) by striking ``coupons'' each place it
appears and inserting ``benefits''; and
(B) in subsection (d)(4)(L), by striking ``section
11(e)(22)'' and inserting ``section 11(e)(19)''.
(5) Section 7(f) of the Food and Nutrition Act of 2007 (7
U.S.C. 2016(f)) is amended by striking ``including any losses''
and all that follows through ``section 11(e)(20),''.
(6) Section 8 of the Food and Nutrition Act of 2007 (7
U.S.C. 2017) is amended--
(A) in subsection (b), by striking ``, whether
through coupons, access devices, or otherwise''; and
(B) in subsections (e)(1) and (f), by striking
``section 3(i)(5)'' each place it appears and inserting
``section 3(n)(5)''.
(7) Section 9 of the Food and Nutrition Act of 2007 (7
U.S.C. 2018) is amended--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits'';
(B) in subsection (a)--
(i) in paragraph (1), by striking ``coupon
business'' and inserting ``benefit
transactions''; and
(ii) by striking paragraph (3) and
inserting the following:
``(3) Authorization periods.--The Secretary shall establish
specific time periods during which authorization to accept and
redeem benefits shall be valid under the food and nutrition
program.''; and
(C) in subsection (g), by striking ``section
3(g)(9)'' and inserting ``section 3(k)(9)''.
(8) Section 10 of the Food and Nutrition Act of 2007 (7
U.S.C. 2019) is amended--
(A) by striking the section designation and heading
and all that follows through ``Regulations'' and
inserting the following:
``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.
``Regulations'';
(B) by striking ``section 3(k)(4) of this Act'' and
inserting ``section 3(p)(4)'';
(C) by striking ``section 7(i)'' and inserting
``section 7(h)''; and
(D) by striking ``coupons'' each place it appears
and inserting ``benefits''.
(9) Section 11 of the Food and Nutrition Act of 2007 (7
U.S.C. 2020) is amended--
(A) in subsection (d)--
(i) by striking ``section 3(n)(1) of this
Act'' each place it appears and inserting
``section 3(t)(1)''; and
(ii) by striking ``section 3(n)(2) of this
Act'' each place it appears and inserting
``section 3(t)(2)'';
(B) in subsection (e)--
(i) in paragraph (8)(E), by striking
``paragraph (16) or (20)(B)'' and inserting
``paragraph (15) or (18)(B)'';
(ii) by striking paragraphs (15) and (19);
(iii) by redesignating paragraphs (16)
through (18) and (20) through (25) as
paragraphs (15) through (17) and (18) through
(23), respectively; and
(iv) in paragraph (17) (as so
redesignated), by striking ``(described in
section 3(n)(1) of this Act)'' and inserting
``described in section 3(t)(1)'';
(C) in subsection (h), by striking ``coupon or
coupons'' and inserting ``benefits'';
(D) by striking ``coupon'' each place it appears
and inserting ``benefit'';
(E) by striking ``coupons'' each place it appears
and inserting ``benefits'';
(F) in subsection (q), by striking ``section
11(e)(20)(B)'' and inserting ``subsection (e)(18)(B)''
(10) Section 13 of the Food and Nutrition Act of 2007 (7
U.S.C. 2022) is amended by striking ``coupons'' each place it
appears and inserting ``benefits''.
(11) Section 15 of the Food and Nutrition Act of 2007 (7
U.S.C. 2024) is amended--
(A) in subsection (a), by striking ``coupons'' and
inserting ``benefits'';
(B) in subsection (b)(1)--
(i) by striking ``coupons, authorization
cards, or access devices'' each place it
appears and inserting ``benefits'';
(ii) by striking ``coupons or authorization
cards'' and inserting ``benefits''; and
(iii) by striking ``access device'' each
place it appears and inserting ``benefit'';
(C) in subsection (c), by striking ``coupons'' each
place it appears and inserting ``benefits'';
(D) in subsection (d), by striking ``Coupons'' and
inserting ``Benefits'';
(E) by striking subsections (e) and (f);
(F) by redesignating subsections (g) and (h) as
subsections (e) and (f), respectively; and
(G) in subsection (e) (as so redesignated), by
striking ``coupon, authorization cards or access
devices'' and inserting ``benefits''.
(12) Section 16(a) of the Food and Nutrition Act of 2007 (7
U.S.C. 2025(a)) is amended by striking ``coupons'' each place
it appears and inserting ``benefits''.
(13) Section 17 of the Food and Nutrition Act of 2007 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``coupon''
and inserting ``benefit'';
(B) in subsection (b)(1)--
(i) in subparagraph (B)--
(I) in clause (iv)--
(aa) in subclause (I),
inserting ``or otherwise
providing benefits in a form
not restricted to the purchase
of food'' after ``of cash'';
(bb) in subclause
(III)(aa), by striking
``section 3(i)'' and inserting
``section 3(n)''; and
(cc) in subclause (VII), by
striking ``section 7(j)'' and
inserting ``section 7(i)''; and
(II) in clause (v)--
(aa) by striking
``countersigned food coupons or
similar''; and
(bb) by striking ``food
coupons'' and inserting ``EBT
cards''; and
(ii) in subparagraph (C)(i)(I), by striking
``coupons'' and inserting ``EBT cards'';
(C) in subsection (f), by striking ``section
7(g)(2)'' and inserting ``section 7(f)(2)''; and
(D) in subsection (j), by striking ``coupon'' and
inserting ``benefit''.
(14) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking
``section 3(o)(4)'' and inserting ``section 3(u)(4)''.
(15) Section 21 of the Food and Nutrition Act of 2007 (7
U.S.C. 2030) is amended--
(A) in subsection (b)(2)(G)(i), by striking ``and
(19)'' and inserting ``(and (17)'';
(B) in subsection (d)(3), by striking ``food
coupons'' and inserting ``EBT cards''; and
(C) by striking ``coupons'' each place it appears
and inserting ``EBT cards''.
(16) Section 22 of the Food and Nutrition Act of 2007 (7
U.S.C. 2031) is amended--
(A) by striking ``food coupons'' each place it
appears and inserting ``benefits'';
(B) by striking ``coupons'' each place it appears
and inserting ``benefits''; and
(C) in subsection (g)(1)(A), by striking ``coupon''
and inserting ``benefits''.
(17) Section 26(f)(3) of the Food and Nutrition Act of 2007
(7 U.S.C. 2035(f)(3)) is amended--
(A) in subparagraph (A), by striking ``subsections
(a) through (g)'' and inserting ``subsections (a)
through (f)''; and
(B) in subparagraph (E), by striking ``(16), (18),
(20), (24), and (25)'' and inserting ``(15), (17),
(18), (22), and (23)''.
(c) Conforming Cross-References.--
(1) In general.--
(A) Use of terms.--Each provision of law described
in subparagraph (B) is amended (as applicable)--
(i) by striking ``coupons'' each place it
appears and inserting ``benefits'';
(ii) by striking ``coupon'' each place it
appears and inserting ``benefit'';
(iii) by striking ``food coupons'' each
place it appears and inserting ``benefits'';
(iv) in each section heading, by striking
``food coupons'' each place it appears and
inserting ``benefits'';
(v) by striking ``food stamp coupon'' each
place it appears and inserting ``benefit''; and
(vi) by striking ``food stamps'' each place
it appears and inserting ``benefits''.
(B) Provisions of law.--The provisions of law
referred to in subparagraph (A) are the following:
(i) Section 2 of Public Law 103-205 (7
U.S.C. 2012 note; 107 Stat. 2418).
(ii) Section 1956(c)(7)(D) of title 18,
United States Code.
(iii) Titles II through XIX of the Social
Security Act (42 U.S.C. 401 et seq.).
(iv) Section 401(b)(3) of the Social
Security Amendments of 1972 (42 U.S.C. 1382e
note; Public Law 92-603).
(v) The Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et
seq.).
(vi) Section 802(d)(2)(A)(i)(II) of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8011(d)(2)(A)(i)(II)).
(2) Definition references.--
(A) Section 2 of Public Law 103-205 (7 U.S.C. 2012
note; 107 Stat. 2418) is amended by striking ``section
3(k)(1)'' and inserting ``section 3(p)(1)''.
(B) Section 205 of the Food Stamp Program
Improvements Act of 1994 (7 U.S.C. 2012 note; Public
Law 103-225) is amended by striking ``section 3(k) of
such Act (as amended by section 201)'' and inserting
``section 3(p) of that Act''.
(C) Section 115 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (21 U.S.C.
862a) is amended--
(i) by striking ``section 3(h)'' each place
it appears and inserting ``section 3(l)''; and
(ii) in subsection (e)(2), by striking
``section 3(m)'' and inserting ``section
3(s)''.
(D) Section 402(a) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1612(a)) is amended--
(i) in paragraph (2)(F)(ii), by striking
``section 3(r)'' and inserting ``section
3(j)''; and
(ii) in paragraph (3)(B), by striking
``section 3(h)'' and inserting ``section
3(l)''.
(E) Section 3803(c)(2)(C)(vii) of title 31, United
States Code, is amended by striking ``section 3(h)''
and inserting ``section 3(l)''.
(F) Section 303(d)(4) of the Social Security Act
(42 U.S.C. 503(d)(4)) is amended by striking ``section
3(n)(1)'' and inserting ``section 3(t)(1)''.
(G) Section 404 of the Social Security Act (42
U.S.C. 604) is amended by striking ``section 3(h)''
each place it appears and inserting ``section 3(l)''.
(H) Section 531 of the Social Security Act (42
U.S.C. 654) is amended by striking ``section 3(h)''
each place it appears and inserting ``section 3(l)''.
(I) Section 802(d)(2)(A)(i)(II) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
8011(d)(2)(A)(i)(II)) is amended by striking ``(as
defined in section 3(e) of such Act)''.
(d) References.--Any reference in any Federal, State, tribal, or
local law (including regulations) to a ``coupon'', ``authorization
card'', or other access device provided under the Food and Nutrition
Act of 2007 (7 U.S.C. 2011 et seq.) shall be considered to be a
reference to a ``benefit'' provided under that Act.
SEC. 4203. CLARIFICATION OF SPLIT ISSUANCE.
Section 7(h) of the Food and Nutrition Act of 2007 (7 U.S.C.
2016(h)) is amended by striking paragraph (2) and inserting the
following:
``(2) Requirements.--
``(A) In general.--Any procedure established under
paragraph (1) shall--
``(i) not reduce the allotment of any
household for any period; and
``(ii) ensure that no household experiences
an interval between issuances of more than 40
days.
``(B) Multiple issuances.--The procedure may
include issuing benefits to a household in more than 1
issuance only when a benefit correction is
necessary.''.
SEC. 4204. STATE OPTION FOR TELEPHONIC SIGNATURE.
Section 11(e)(2)(C) of the Food and Nutrition Act of 2007 (7 U.S.C.
2020(e)(2)(C)) is amended--
(1) by striking ``Nothing in this Act'' and inserting the
following:
``(C) Electronic and automated systems.--
``(i) In general.--Nothing in this Act'';
and
(2) by adding at the end the following:
``(ii) State option for telephonic
signature.--A State agency may establish a
system by which an applicant household may sign
an application through a recorded verbal assent
over the telephone.
``(iii) Requirements.--A system established
under clause (ii) shall--
``(I) record for future reference
the verbal assent of the household
member and the information to which
assent was given;
``(II) include effective safeguards
against impersonation, identity theft,
and invasions of privacy;
``(III) not deny or interfere with
the right of the household to apply in
writing;
``(IV) promptly provide to the
household member a written copy of the
completed application, with
instructions for a simple procedure for
correcting any errors or omissions;
``(V) comply with paragraph (1)(B);
``(VI) satisfy all requirements for
a signature on an application under
this Act and other laws applicable to
the food and nutrition program, with
the date on which the household member
provides verbal assent considered as
the date of application for all
purposes; and
``(VII) comply with such other
standards as the Secretary may
establish.''.
SEC. 4205. PRIVACY PROTECTIONS.
Section 11(e)(8) of the Food and Nutrition Act of 2007 (7 U.S.C.
2020(e)(8)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``limit'' and inserting
``prohibit''; and
(B) by striking ``to persons'' and all that follows
through ``State programs'';
(2) by redesignating subparagraphs (A) through (E) as
subparagraphs (B) through (F), respectively;
(3) by inserting before subparagraph (B) (as so
redesignated) the following:
``(A) the safeguards shall permit--
``(i) the disclosure of such information to
persons directly connected with the
administration or enforcement of the provisions
of this Act, regulations issued pursuant to
this Act, Federal assistance programs, or
federally-assisted State programs; and
``(ii) the subsequent use of the
information by persons described in clause (i)
only for such administration or enforcement;'';
and
(4) in subparagraph (F) (as so redesignated) by inserting
``or subsection (u)'' before the semicolon at the end.
SEC. 4206. STUDY ON COMPARABLE ACCESS TO FOOD AND NUTRITION ASSISTANCE
FOR PUERTO RICO.
(a) In General.--The Secretary shall carry out a study of the
feasibility and effects of including the Commonwealth of Puerto Rico in
the definition of the term ``State'' under section 3 of the Food and
Nutrition Act of 2007 (7 U.S.C. 2012), in lieu of providing block
grants under section 19 of that Act (7 U.S.C. 2028).
(b) Inclusions.--The study shall include--
(1) an assessment of the administrative, financial
management, and other changes that would be necessary for the
Commonwealth to establish a comparable food and nutrition
program, including compliance with appropriate program rules
under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et
seq,), such as--
(A) benefit levels under section 3(o) of that Act
(7 U.S.C. 3012(o));
(B) income eligibility standards under sections
5(c) and 6 of that Act (7 U.S.C. 2014(c), 2015); and
(C) deduction levels under section 5(e) of that Act
(7 U.S.C. 2014(e));
(2) an estimate of the impact on Federal and Commonwealth
benefit and administrative costs;
(3) an assessment of the impact of the program on low-
income Puerto Ricans, as compared to the program under section
19 of that Act (7 U.S.C. 2028);
(4) such other matters as the Secretary considers to be
appropriate.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes the
results of the study conducted under this section.
(d) Funding.--
(1) In general.--On October 1, 2008, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out this
section $1,000,000, to remain available until expended.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1), without
further appropriation.
SEC. 4207. CIVIL RIGHTS COMPLIANCE.
Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020) is
amended by striking subsection (c) and inserting the following:
``(c) Civil Rights Compliance.--
``(1) In general.--In the certification of applicant
households for the food and nutrition program, there shall be
no discrimination by reason of race, sex, religious creed,
national origin, or political affiliation.
``(2) Relation to other laws.--The administration of the
program by a State agency shall be consistent with the rights
of households under the following laws (including implementing
regulations):
``(A) The Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.).
``(B) Section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794).
``(C) The Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.).
``(D) Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.).''.
SEC. 4208. EMPLOYMENT, TRAINING, AND JOB RETENTION.
Section 6(d)(4) of the Food and Nutrition Act of 2007 (7 U.S.C.
2015(d)(4)) is amended--
(1) in subparagraph (B)--
(A) by redesignating clause (vii) as clause (viii);
and
(B) by inserting after clause (vi) the following:
``(vii) Programs intended to ensure job
retention by providing job retention services,
if the job retention services are provided for
a period of not more than 90 days after an
individual who received employment and training
services under this paragraph gains
employment.''; and
(2) in subparagraph (F), by adding at the end the
following:
``(iii) Any individual voluntarily electing
to participate in a program under this
paragraph shall not be subject to the
limitations described in clauses (i) and
(ii).''.
SEC. 4209. CODIFICATION OF ACCESS RULES.
Section 11(e)(1)) of the Food and Nutrition Act of 2007 (7 U.S.C.
2020(e)(1)) is amended--
(1) by striking ``shall (A) at'' and inserting ``shall--
``(A) at''; and
(2) by striking ``and (B) use'' and inserting ``and
``(B) comply with regulations of the Secretary
requiring the use of''.
SEC. 4210. EXPANDING THE USE OF EBT CARDS AT FARMERS' MARKETS.
(a) In General.--For each of fiscal years 2008 through 2010, the
Secretary shall make grants to pay 100 percent of the costs of eligible
entities approved by the Secretary to carry out projects to expand the
number of farmers' markets that accept EBT cards by--
(1) providing equipment and training necessary for farmers'
markets to accept EBT cards;
(2) educating and providing technical assistance to farmers
and farmers' market operators about the process and benefits of
accepting EBT cards; or
(3) other activities considered to be appropriate by the
Secretary.
(b) Limitation.--A grant under this section--
(1) may not be made for the ongoing cost of carrying out
any project; and
(2) shall only be provided to eligible entities that
demonstrate a plan to continue to provide EBT card access at 1
or more farmers' markets following the receipt of the grant.
(c) Eligible Entities.--To be eligible to receive a grant under
this section, an entity shall be--
(1) a State agency administering the food and nutrition
program established under the Food and Nutrition Act of 2007 (7
U.S.C. 2011 et seq.);
(2) a State agency or local government; or
(3) a private nonprofit entity that coordinates farmers'
markets in a State in cooperation with a State or local
government.
(d) Selection of Eligible Entities.--The Secretary--
(1) shall develop criteria to select eligible entities to
receive grants under this section; and
(2) may give preference to any eligible entity that
consists of a partnership between a government entity and a
nongovernmental entity.
(e) Mandatory Funding.--
(1) In general.--On October 1, 2007, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary of Agriculture to
carry out this section $5,000,000, to remain available until
expended.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1), without
further appropriation.
SEC. 4211. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.
Section 11 of the Food and Nutrition Act of 2007 (7 U.S.C. 2020) is
amended by striking subsection (a) and inserting the following:
``(a) State Responsibility.--
``(1) In general.--The State agency of each participating
State shall have responsibility for certifying applicant
households and issuing EBT cards.
``(2) Local administration.--The responsibility of the
agency of the State government shall not be affected by whether
the program is operated on a State-administered or county-
administered basis, as provided under section 3(t)(1).
``(3) Records.--
``(A) In general.--Each State agency shall keep
such records as may be necessary to determine whether
the program is being conducted in compliance with this
Act (including regulations issued under this Act).
``(B) Inspection and audit.--Records described in
subparagraph (A) shall--
``(i) be available for inspection and audit
at any reasonable time;
``(ii) subject to subsection (e)(8), be
available for review in any action filed by a
household to enforce any provision of this Act
(including regulations issued under this Act);
and
``(iii) be preserved for such period of not
less than 3 years as may be specified in
regulations.
``(4) Review of major changes in program design.--
``(A) In general.--The Secretary shall develop
standards for identifying major changes in the
operations of a State agency, including--
``(i) large or substantially-increased
numbers of low-income households that do not
live in reasonable proximity to an office
performing the major functions described in
subsection (e);
``(ii) substantial increases in reliance on
automated systems for the performance of
responsibilities previously performed by
personnel described in subsection (e)(6)(B);
``(iii) changes that potentially increase
the difficulty of reporting information under
subsection (e) or section 6(c); and
``(iv) changes that may disproportionately
increase the burdens on any of the types of
households described in subsection (e)(2)(A).
``(B) Notification.--If a State agency implements a
major change in operations, the State agency shall--
``(i) notify the Secretary; and
``(ii) collect such information as the
Secretary shall require to identify and correct
any adverse effects on program integrity or
access, including access by any of the types of
households described in subsection
(e)(2)(A).''.
SEC. 4212. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.
Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 2025) is
amended by striking subsection (g) and inserting the following:
``(g) Cost Sharing for Computerization.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the Secretary is authorized to pay to each State agency
the amount provided under subsection (a)(6) for the costs
incurred by the State agency in the planning, design,
development, or installation of 1 or more automatic data
processing and information retrieval systems that the Secretary
determines--
``(A) would assist in meeting the requirements of
this Act;
``(B) meet such conditions as the Secretary
prescribes;
``(C) are likely to provide more efficient and
effective administration of the food and nutrition
program;
``(D) would be compatible with other systems used
in the administration of State programs, including the
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.);
``(E) would be tested adequately before and after
implementation, including through pilot projects in
limited areas for major systems changes as determined
under rules promulgated by the Secretary, data from
which shall be thoroughly evaluated before the
Secretary approves the system to be implemented more
broadly; and
``(F) would be operated in accordance with an
adequate plan for--
``(i) continuous updating to reflect
changed policy and circumstances; and
``(ii) testing the effect of the system on
access for eligible households and on payment
accuracy.
``(2) Limitation.--The Secretary shall not make payments to
a State agency under paragraph (1) to the extent that the State
agency--
``(A) is reimbursed for the costs under any other
Federal program; or
``(B) uses the systems for purposes not connected
with the food and nutrition program.''.
SEC. 4213. NUTRITION EDUCATION.
(a) Authority To Provide Nutrition Education.--Section 4(a) of the
Food and Nutrition Act of 2007 (7 U.S.C. 2013(a)) is amended in the
first sentence by inserting ``and through an approved State plan,
nutrition education'' after ``an allotment''.
(b) Implementation.--Section 11 of the Food and Nutrition Act of
2007 (7 U.S.C. 2020(f) is amended by striking subsection (f) and
inserting the following:
``(f) Nutrition Education.--
``(1) In general.--State agencies may implement a nutrition
education program for individuals eligible for program benefits
that promotes healthy food choices consistent with the most
recent Dietary Guidelines for Americans published under section
301 of the National Nutrition Monitoring and Related Research
Act of 1990 (7 U.S.C. 5341).
``(2) Delivery of nutrition education.--State agencies may
deliver nutrition education directly to eligible persons or
through agreements with the Cooperative State Research,
Education, and Extension Service, including through the
expanded food and nutrition education under section 3(d) of the
Act of May 8, 1914 (7 U.S.C. 343(d)), and other State and
community health and nutrition providers and organizations.
``(3) Nutrition education state plans.--
``(A) In general.--A State agency that elects to
provide nutrition education under this subsection shall
submit a nutrition education State plan to the
Secretary for approval.
``(B) Requirements.--The plan shall--
``(i) identify the uses of the funding for
local projects; and
``(ii) conform to standards established by
the Secretary through regulations or guidance.
``(C) Reimbursement.--State costs for providing
nutrition education under this subsection shall be
reimbursed pursuant to section 16(a).
``(4) Notification.--To the maximum extent practicable,
State agencies shall notify applicants, participants, and
eligible program participants of the availability of nutrition
education under this subsection.''.
PART IV--IMPROVING PROGRAM INTEGRITY
SEC. 4301. MAJOR SYSTEMS FAILURES.
(a) In General.--Section 13(b) of the Food and Nutrition Act of
2007 (7 U.S.C. 2022(b)) is amended by adding at the end the following:
``(5) Over issuances caused by systemic state errors.--
``(A) In general.--If the Secretary determines that
a State agency over issued benefits to a substantial
number of households in a fiscal year as a result of a
major systemic error by the State agency, as determined
by the Secretary, the Secretary may prohibit the State
agency from collecting these over issuances from some
or all households.
``(B) Procedures.--
``(i) Information reporting by states.--
Every State agency shall provide to the
Secretary all information requested by the
Secretary concerning the issuance of benefits
to households by the State agency in the
applicable fiscal year.
``(ii) Final determination.--After
reviewing relevant information provided by a
State agency, the Secretary shall make a final
determination--
``(I) whether the State agency over
issued benefits to a substantial number
of households as a result of a systemic
error in the applicable fiscal year;
and
``(II) as to the amount of the over
issuance in the applicable fiscal year
for which the State agency is liable.
``(iii) Establishing a claim.--Upon
determining under clause (ii) that a State
agency has over issued benefits to households
due to a major systemic error determined under
subparagraph (A), the Secretary shall establish
a claim against the State agency equal to the
value of the over issuance caused by the
systemic error.
``(iv) Administrative and judicial
review.--Administrative and judicial review, as
provided in section 14, shall apply to the
final determinations by the Secretary under
clause (ii).
``(v) Remission to the secretary.--
``(I) Determination not appealed.--
If the determination of the Secretary
under clause (ii) is not appealed, the
State agency shall, as soon as
practicable, remit to the Secretary the
dollar amount specified in the claim
under clause (iii).
``(II) Determination appealed.--If
the determination of the Secretary
under clause (ii) is appealed, upon
completion of administrative and
judicial review under clause (iv), and
a finding of liability on the part of
the State, the appealing State agency
shall, as soon as practicable, remit to
the Secretary a dollar amount subject
to the finding of the administrative
and judicial review.
``(vi) Alternative method of collection.--
``(I) In general.--If a State
agency fails to make a payment under
clause (v) within a reasonable period
of time, as determined by the
Secretary, the Secretary may reduce any
amount due to the State agency under
any other provision of this Act by the
amount due.
``(II) Accrual of interest.--During
the period of time determined by the
Secretary to be reasonable under
subclause (I), interest in the amount
owed shall not accrue.
``(vii) Limitation.--Any liability amount
established under section 16(c)(1)(C) shall be
reduced by the amount of the claim established
under this subparagraph.''.
(b) Conforming Amendment.--Section 14(a)(6) of the Food and
Nutrition Act of 2007 (7 U.S.C. 2023(a)(6)) is amended by striking
``pursuant to section'' and inserting ``pursuant to section 13(b)(5)
and''.
SEC. 4302. PERFORMANCE STANDARDS FOR BIOMETRIC IDENTIFICATION
TECHNOLOGY.
Section 16 of the Food and Nutrition Act of 2007 (7 U.S.C. 2025) is
amended by adding at the end the following:
``(l) Performance Standards for Biometric Identification
Technology.--
``(1) Definition of biometric identification technology.--
In this subsection, the term `biometric identification
technology' means a technology that provides an automated
method to identify an individual based on physical
characteristics, such as fingerprints or retinal scans.
``(2) Administrative funds.--The Secretary may not pay a
State agency any amount for administrative costs for the
development, purchase, administration, or other costs
associated with the use of biometric identification technology
unless the State agency has, under such terms and conditions as
the Secretary considers appropriate--
``(A) provided to the Secretary an analysis of the
cost-effectiveness of the use of the proposed biometric
identification technology to detect fraud in carrying
out the food and nutrition program;
``(B) demonstrated to the Secretary that the
analysis is--
``(i) statistically valid; and
``(ii) based on appropriate and valid
assumptions for the households served by the
food and nutrition program;
``(C) demonstrated to the Secretary that--
``(i) the proposed biometric identification
technology is cost-effective in reducing fraud;
and
``(ii) there are no other technologies or
fraud-detection methods that are at least as
cost-effective in carrying out the purposes of
the proposed biometric identification system;
and
``(D) demonstrated to the Secretary that no
information produced by or used in the biometric
information technology system will be made available or
used for any purpose other than a purpose allowed under
section 11(e)(8).
``(3) Standards.--The Secretary shall establish uniform
standards for the evaluation of cost-effectiveness analyses
submitted to the Secretary under paragraph (2).''.
SEC. 4303. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES
AND WHOLESALE FOOD CONCERNS.
Section 12 of the Food and Nutrition Act of 2007 (7 U.S.C. 2021) is
amended--
(1) by striking the section designation and heading and all
that follows through the end of subsection (a) and inserting
the following:
``SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES
AND WHOLESALE FOOD CONCERNS.
``(a) Disqualification.--
``(1) In general.--An approved retail food store or
wholesale food concern that violates a provision of this Act or
a regulation under this Act may be--
``(A) disqualified for a specified period of time
from further participation in the food and nutrition
program; or
``(B) assessed a civil penalty of up to $100,000
for each violation.
``(2) Regulations.--Regulations promulgated under this Act
shall provide criteria for the finding of a violation of, the
suspension or disqualification of, and the assessment of a
civil penalty against, a retail food store or wholesale food
concern on the basis of evidence that may include facts
established through on-site investigations, inconsistent
redemption data, or evidence obtained through a transaction
report under an electronic benefit transfer system.'';
(2) in subsection (b)--
(A) by striking ``(b) Disqualification'' and
inserting the following:
``(b) Period of Disqualification.--Subject to subsection (c), a
disqualification'';
(B) in paragraph (1), by striking ``of no less than
six months nor more than five years'' and inserting
``not to exceed 5 years'';
(C) in paragraph (2), by striking ``of no less than
twelve months nor more than ten years'' and inserting
``not to exceed 10 years'';
(D) in paragraph (3)(B)--
(i) by inserting ``or a finding of the
unauthorized redemption, use, transfer,
acquisition, alteration, or possession of EBT
cards'' after ``concern'' the first place it
appears; and
(ii) by striking ``civil money penalties''
and inserting ``civil penalties''; and
(E) by striking ``civil money penalty'' each place
it appears and inserting ``civil penalty'';
(3) in subsection (c)--
(A) by striking ``(c) The action'' and inserting
the following:
``(c) Civil Penalty and Review of Disqualification and Penalty
Determinations.--
``(1) Civil penalty.--In addition to a disqualification
under this section, the Secretary may assess a civil penalty in
an amount not to exceed $100,000 for each violation.
``(2) Review.--The action''; and
(B) in paragraph (2) (as designated by subparagraph
(A)), by striking ``civil money penalty'' and inserting
``civil penalty'';
(4) in subsection (d)--
(A) by striking ``(d)'' and all that follows
through ``. The Secretary shall'' and inserting the
following:
``(d) Conditions of Authorization.--
``(1) In general.--As a condition of authorization to
accept and redeem benefits, the Secretary may require a retail
food store or wholesale food concern that, pursuant to
subsection (a), has been disqualified for more than 180 days,
or has been subjected to a civil penalty in lieu of a
disqualification period of more than 180 days, to furnish a
collateral bond or irrevocable letter of credit for a period of
not more than 5 years to cover the value of benefits that the
store or concern may in the future accept and redeem in
violation of this Act.
``(2) Collateral.--The Secretary also may require a retail
food store or wholesale food concern that has been sanctioned
for a violation and incurs a subsequent sanction regardless of
the length of the disqualification period to submit a
collateral bond or irrevocable letter of credit.
``(3) Bond requirements.--The Secretary shall'';
(B) by striking ``If the Secretary finds'' and
inserting the following
``(4) Forfeiture.--If the Secretary finds''; and
(C) by striking ``Such store or concern'' and
inserting the following:
``(5) Hearing.--A store or concern described in paragraph
(4)'';
(5) in subsection (e), by striking ``civil money penalty''
each place it appears and inserting ``civil penalty''; and
(6) by adding at the end the following:
``(h) Flagrant Violations.--
``(1) In general.--The Secretary, in consultation with the
Inspector General of the Department of Agriculture, shall
establish procedures under which the processing of program
benefit redemptions for a retail food store or wholesale food
concern may be immediately suspended pending administrative
action to disqualify the retail food store or wholesale food
concern.
``(2) Requirements.--Under the procedures described in
paragraph (1), if the Secretary, in consultation with the
Inspector General, determines that a retail food store or
wholesale food concern is engaged in flagrant violations of
this Act (including regulations promulgated under this Act),
unsettled program benefits that have been redeemed by the
retail food store or wholesale food concern--
``(A) may be suspended; and
``(B)(i) if the program disqualification is upheld,
may be subject to forfeiture pursuant to subsection
(g); or
``(ii) if the program disqualification is not
upheld, shall be released to the retail food store or
wholesale food concern.
``(3) No liability for interest.--The Secretary shall not
be liable for the value of any interest on funds suspended
under this subsection.''.
SEC. 4304. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.
(a) In General.--Section 16(h)(1)(A) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2025(h)(1)(A)) is amended in subparagraph (A), by
striking ``to remain available until expended'' and inserting ``to
remain available for 2 fiscal years''.
(b) Rescission of Funds.--Notwithstanding any other provision of
law, funds provided under section 16(h)(1)(A) of the Food and Nutrition
Act of 2007 (7 U.S.C. 2025(h)(1)(A)) for any fiscal year before the
fiscal year beginning October 1, 2007, shall be rescinded on the date
of enactment of this Act, unless obligated by a State agency before
that date.
SEC. 4305. ELIGIBILITY DISQUALIFICATION.
Section 6 of the Food and Nutrition Assistance Act of 2007 (7
U.S.C. 2015) is amended by adding at the end the following:
``(p) Disqualification for Obtaining Cash by Destroying Food and
Collecting Deposits.--Any person who has been found by a State or
Federal court or administrative agency or in a hearing under subsection
(b) to have intentionally obtained cash by purchasing products with
food and nutrition benefits that have containers that require return
deposits, discarding the product, and returning the container for the
deposit amount shall be ineligible for benefits under this Act for such
period of time as the Secretary shall prescribe by regulation.
``(q) Disqualification for Sale of Food Purchased With Food and
Nutrition Benefits.--Subject to any requirements established by the
Secretary, any person who has been found by a State or Federal court or
administrative agency or in a hearing under subsection (b) to have
intentionally sold any food that was purchased using food and nutrition
benefits shall be ineligible for benefits under this Act for such
period of time as the Secretary shall prescribe by regulation.''.
PART V--MISCELLANEOUS
SEC. 4401. DEFINITION OF STAPLE FOODS.
Subsection (r) of section 3 of the Food and Nutrition Act of 2007
(7 U.S.C. 2012) (as redesignated by section 4202(b)(1)(M)) is amended--
(1) by striking ``(r)(1) Except'' and inserting the
following:
``(r) Staple Foods.--
``(1) In general.--Except''; and
(2) by striking paragraph (2) and inserting the following:
``(2) Exceptions.--The term `staple foods' does not include
accessory food items, such as coffee, tea, cocoa, carbonate and
uncarbonated drinks, candy, condiments, and spices, or dietary
supplements.
``(3) Depth of stock.--The Secretary may issue regulations
to define depth of stock to ensure that stocks of staple foods
are available on a continuous basis.''.
SEC. 4402. ACCESSORY FOOD ITEMS.
Section 9(a) of the Food and Nutrition Act of 2007 (7 U.S.C.
2018(a)) is amended by adding at the end the following:
``(4) Accessory food items.--
``(A) In general.--Not later than 1 year after the
date of enactment of this paragraph, the Secretary
shall promulgate proposed regulations providing that a
dietary supplement shall not be considered an accessory
food item unless the dietary supplement--
``(i) contains folic acid or calcium in
accordance with sections 101.72 and 101.79 of
title 21, Code of Federal Regulations (as in
effect on the date of enactment of this
paragraph); and
``(ii) is a multivitamin-mineral supplement
that--
``(I) provides at least \2/3\ of
the essential vitamins and minerals at
100 percent of the daily value levels,
as determined by the Food and Drug
Administration; and
``(II) does not exceed the daily
upper limit for those nutrients for
which an established daily upper limit
has been determined by the Institute of
Medicine of the National Academy of
Sciences.
``(B) Final regulations.--Not later than 2 years
after the date of enactment of this paragraph, the
Secretary shall promulgate final regulations in
accordance with subparagraph (A).
``(C) Purchase of dietary supplements.--No dietary
supplements may be purchased using benefits under this
Act until the earlier of--
``(i) the date on which the Secretary
promulgates final regulations under
subparagraph (B); or
``(ii) the date on which the Secretary
certifies a voluntary system of labeling for
the ready and accurate identification of
eligible dietary supplements, as developed by
the Secretary in consultation with the dietary
supplement industry and dietary supplement
retailers.''.
SEC. 4403. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION PROMOTION IN
THE FOOD AND NUTRITION PROGRAM.
Section 17 of the Food and Nutrition Act of 2007 (7 U.S.C. 2026) is
amended by adding at the end the following:
``(k) Pilot Projects To Evaluate Health and Nutrition Promotion in
the Food and Nutrition Program.--
``(1) In general.--The Secretary shall carry out, under
such terms and conditions as the Secretary considers to be
appropriate, pilot projects to develop and test methods--
``(A) of using the food and nutrition program to
improve the dietary and health status of households
participating in the food and nutrition program; and
``(B) to reduce overweight, obesity (including
childhood obesity), and associated co-morbidities in
the United States.
``(2) Projects.--Pilot projects carried out under paragraph
(1) may include projects to determine whether healthier food
purchases by and healthier diets among households participating
in the food and nutrition program result from projects that--
``(A) increase the food and nutrition assistance
purchasing power of the participating households by
providing increased food and nutrition assistance
benefit allotments to the participating households;
``(B) increase access to farmers markets by
participating households through the electronic
redemption of food and nutrition assistance at the
farmers markets;
``(C) provide incentives to authorized food and
nutrition program vendors to increase the availability
of healthy foods to participating households;
``(D) subject authorized food and nutrition program
vendors to stricter vendor requirements with respect to
carrying and stocking healthy foods;
``(E) provide incentives at the point of purchase
to encourage participating households to purchase
fruits, vegetables, or other healthy foods; or
``(F) provide to participating households
integrated communication and education programs,
including the provision of funding for a portion of a
school based nutrition coordinator to implement a broad
nutrition action plan and parent nutrition education
programs in elementary schools, separately or in
combination with pilot projects carried out under
subparagraphs (A) through (E).
``(3) Duration.--A pilot project carried out under this
subsection shall have a term of not more than 5 years.
``(4) Evaluations and reports.--
``(A) Evaluations.--
``(i) Independent evaluation.--
``(I) In general.--The Secretary
shall provide for an independent
evaluation of each pilot project under
this subsection that measures the
impact of the pilot program on health
and nutrition as described in paragraph
(1).
``(II) Requirement.--The
independent evaluation under subclause
(I) shall use rigorous methodologies,
particularly random assignment or other
methods that are capable of producing
scientifically-valid information
regarding which activities are
effective.
``(ii) Costs.--The Secretary may use funds
provided to carry out this section to pay costs
associated with monitoring and evaluating each
pilot project.
``(B) Reports.--Not later than 90 days after the
last day of fiscal year 2008 and each fiscal year
thereafter until the completion of the last evaluation
under subparagraph (A), the Secretary shall submit to
the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
includes a description of--
``(i) the status of each pilot project;
``(ii) the results of the evaluation
completed during the previous fiscal year; and
``(iii) to the maximum extent practicable--
``(I) the impact of the pilot
project on appropriate health,
nutrition, and associated behavioral
outcomes among households participating
in the pilot project;
``(II) baseline information
relevant to the stated goals and
desired outcomes of the pilot project;
and
``(III) equivalent information
about similar or identical measures
among control or comparison groups that
did not participate in the pilot
project.
``(5) Funding.--
``(A) In general.--Out of any funds made available
under section 18, the Secretary shall use $50,000,000
to carry out this section, to remain available until
expended.
``(B) Use of funds.--Of funds made available under
subparagraph (A), the Secretary shall use not more than
$25,000,000 to carry out a pilot project described in
paragraph (2)(E).''.
SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND
INTERNATIONAL HUNGER FELLOWS.
(a) In General.--The Food and Nutrition Act of 2007 (7 U.S.C. 2011
et seq.) is amended by adding at the end the following:
``SEC. 28. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND
INTERNATIONAL HUNGER FELLOWS.
``(a) Short Title.--This section may be cited as the `Bill Emerson
National Hunger Fellows and Mickey Leland International Hunger Fellows
Program Act of 2007'.
``(b) Findings.--Congress finds that--
``(1) there is a critical need for compassionate
individuals who are committed to assisting people who suffer
from hunger to initiate and administer solutions to the hunger
problem;
``(2) Bill Emerson, the distinguished late Representative
from the 8th District of Missouri, demonstrated--
``(A) his commitment to solving the problem of
hunger in a bipartisan manner;
``(B) his commitment to public service; and
``(C) his great affection for the institution and
ideals of the United States Congress;
``(3) George T. (Mickey) Leland, the distinguished late
Representative from the 18th District of Texas, demonstrated--
``(A) his compassion for those in need;
``(B) his high regard for public service; and
``(C) his lively exercise of political talents;
``(4) the special concern that Mr. Emerson and Mr. Leland
demonstrated during their lives for the hungry and poor was an
inspiration for others to work toward the goals of equality and
justice for all;
``(5) these 2 outstanding leaders maintained a special bond
of friendship regardless of political affiliation and worked
together to encourage future leaders to recognize and provide
service to others; and
``(6) it is especially appropriate to honor the memory of
Mr. Emerson and Mr. Leland by creating a fellowship program to
develop and train the future leaders of the United States to
pursue careers in humanitarian service.
``(c) Definitions.--In this subsection:
``(1) Director.--The term `Director' means the head of the
Congressional Hunger Center.
``(2) Fellow.--The term `fellow' means--
``(A) a Bill Emerson Hunger Fellow; or
``(B) Mickey Leland Hunger Fellow
``(3) Fellowship programs.--The term `Fellowship Programs'
means the Bill Emerson National Hunger Fellowship Program and
the Mickey Leland International Hunger Fellowship Program
established under subsection (d)(1).
``(d) Fellowship Programs.--
``(1) In general.--There is established the Bill Emerson
National Hunger Fellowship Program and the Mickey Leland
International Hunger Fellowship Program.
``(2) Purposes.--
``(A) In general.--The purposes of the Fellowship
Programs are--
``(i) to encourage future leaders of the
United States--
``(I) to pursue careers in
humanitarian and public service;
``(II) to recognize the needs of
low-income people and hungry people;
``(III) to provide assistance to
people in need; and
``(IV) to seek public policy
solutions to the challenges of hunger
and poverty;
``(ii) to provide training and development
opportunities for such leaders through
placement in programs operated by appropriate
organizations or entities; and
``(iii) to increase awareness of the
importance of public service.
``(B) Bill emerson hunger fellowship program.--The
purpose of the Bill Emerson Hunger Fellowship Program
is to address hunger and poverty in the United States.
``(C) Mickey leland hunger fellowship program.--The
purpose of the Mickey Leland Hunger Fellowship Program
is to address international hunger and other
humanitarian needs.
``(3) Administration.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall offer to provide a grant to the
Congressional Hunger Center to administer the
Fellowship Programs.
``(B) Terms of grant.--The terms of the grant
provided under subparagraph (A), including the length
of the grant and provisions for the alteration or
termination of the grant, shall be determined by the
Secretary in accordance with this section.
``(e) Fellowships.--
``(1) In general.--The Director shall make available Bill
Emerson Hunger Fellowships and Mickey Leland Hunger Fellowships
in accordance with this subsection.
``(2) Curriculum.--
``(A) In general.--The Fellowship Programs shall
provide experience and training to develop the skills
necessary to train fellows to carry out the purposes
described in subsection (d)(2), including--
``(i) training in direct service programs
for the hungry and other anti-hunger programs
in conjunction with community-based
organizations through a program of field
placement; and
``(ii) providing experience in policy
development through placement in a governmental
entity or nongovernmental, nonprofit, or
private sector organization.
``(B) Work plan.--To carry out subparagraph (A) and
assist in the evaluation of the fellowships under
paragraph (6), the Director shall, for each fellow,
approve a work plan that identifies the target
objectives for the fellow in the fellowship, including
specific duties and responsibilities relating to those
objectives.
``(3) Period of fellowship.--
``(A) Bill emerson hunger fellow.--A Bill Emerson
Hunger Fellowship awarded under this section shall be
for not more than 15 months.
``(B) Mickey leland hunger fellow.--A Mickey Leland
Hunger Fellowship awarded under this section shall be
for not more than 2 years.
``(4) Selection of fellows.--
``(A) In general.--Fellowships shall be awarded
pursuant to a nationwide competition established by the
Director.
``(B) Qualifications.--A successful program
applicant shall be an individual who has demonstrated--
``(i) an intent to pursue a career in
humanitarian services and outstanding potential
for such a career;
``(ii) leadership potential or actual
leadership experience;
``(iii) diverse life experience;
``(iv) proficient writing and speaking
skills;
``(v) an ability to live in poor or diverse
communities; and
``(vi) such other attributes as are
considered to be appropriate by the Director.
``(5) Amount of award.--
``(A) In general.--A fellow shall receive--
``(i) a living allowance during the term of
the Fellowship; and
``(ii) subject to subparagraph (B), an end-
of-service award.
``(B) Requirement for successful completion of
fellowship.--Each fellow shall be entitled to receive
an end-of-service award at an appropriate rate for each
month of satisfactory service completed, as determined
by the Director.
``(C) Terms of fellowship.--A fellow shall not be
considered an employee of--
``(i) the Department of Agriculture;
``(ii) the Congressional Hunger Center; or
``(iii) a host agency in the field or
policy placement of the fellow.
``(D) Recognition of fellowship award.--
``(i) Emerson fellow.--An individual
awarded a fellowship from the Bill Emerson
Hunger Fellowship shall be known as an `Emerson
Fellow'.
``(ii) Leland fellow.--An individual
awarded a fellowship from the Mickey Leland
Hunger Fellowship shall be known as a `Leland
Fellow'.
``(6) Evaluations and audits.--Under terms stipulated in
the contract entered into under subsection (d)(3), the Director
shall--
``(A) conduct periodic evaluations of the
Fellowship Programs; and
``(B) arrange for annual independent financial
audits of expenditures under the Fellowship Programs.
``(f) Authority.--
``(1) In general.--Subject to paragraph (2), in carrying
out this section, the Director may solicit, accept, use, and
dispose of gifts, bequests, or devises of services or property,
both real and personal, for the purpose of facilitating the
work of the Fellowship Programs.
``(2) Limitation.--Gifts, bequests, or devises of money and
proceeds from sales of other property received as gifts,
bequests, or devises shall be used exclusively for the purposes
of the Fellowship Programs.
``(g) Report.--The Director shall annually submit to the Secretary
of Agriculture, the Committee on Agriculture of the House of
Representatives, and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that--
``(1) describes the activities and expenditures of the
Fellowship Programs during the preceding fiscal year, including
expenditures made from funds made available under subsection
(h); and
``(2) includes the results of evaluations and audits
required by subsection (f).
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary to carry out
this section, to remain available until expended.''.
(b) Repeal.--Section 4404 of the Farm Security and Rural Investment
Act of 2002 (2 U.S.C. 1161) is repealed.
SEC. 4405. HUNGER-FREE COMMUNITIES.
(a) Definitions.--In this section:
(1) Domestic hunger goal.--The term ``domestic hunger
goal'' means--
(A) the goal of reducing hunger in the United
States to at or below 2 percent by 2010; or
(B) the goal of reducing food insecurity in the
United States to at or below 6 percent by 2010.
(2) Emergency feeding organization.--The term ``emergency
feeding organization'' has the meaning given the term in
section 201A of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7501).
(3) Food security.--The term ``food security'' means the
state in which an individual has access to enough food for an
active, healthy life.
(4) Hunger-free communities goal.--The term ``hunger-free
communities goal'' means any of the 14 goals described in the
H. Con. Res. 302 (102nd Congress).
(b) Hunger Reports.--
(1) Study.--
(A) Timeline.--
(i) In general.--Not later than 1 year
after the date of enactment of this Act, the
Secretary shall conduct a study of major
matters relating to the problem of hunger in
the United States, as determined by the
Secretary.
(ii) Update.--Not later than 5 years after
the date on which the study under clause (i) is
conducted, the Secretary shall update the
study.
(B) Matters to be assessed.--The matters to be
assessed by the Secretary in the study and update under
this paragraph shall include--
(i) data on hunger and food insecurity in
the United States;
(ii) measures carried out during the
previous year by Federal, State, and local
governments to achieve domestic hunger goals
and hunger-free communities goals; and
(iii) measures that could be carried out by
Federal, State, and local governments to
achieve domestic hunger goals and hunger-free
communities goals.
(2) Recommendations.--The Secretary shall develop
recommendations on--
(A) removing obstacles to achieving domestic hunger
goals and hunger-free communities goals; and
(B) otherwise reducing domestic hunger.
(3) Report.--The Secretary shall submit to the President
and Congress--
(A) not later than 1 year after the date of
enactment of this Act, a report that contains--
(i) a detailed statement of the results of
the study, or the most recent update to the
study, conducted under paragraph (1)(A); and
(ii) the most recent recommendations of the
Secretary under paragraph (2); and
(B) not later than 5 years after the date of
submission of the report under subparagraph (A), an
update of the report.
(c) Hunger-Free Communities Collaborative Grants.--
(1) Definition of eligible entity.--In this subsection, the
term ``eligible entity'' means a public food program service
provider or a nonprofit organization, including but not limited
to an emergency feeding organization, that demonstrates the
organization has collaborated, or will collaborate, with 1 or
more local partner organizations to achieve at least 1 hunger-
free communities goal.
(2) Program authorized.--
(A) In general.--The Secretary shall use not more
than 55 percent of any funds made available under
subsection (f) to make grants to eligible entities to
pay the Federal share of the costs of an activity
described in paragraph (4).
(B) Federal share.--The Federal share of the cost
of carrying out an activity under this subsection shall
not exceed 80 percent.
(C) Non-federal share.--
(i) Calculation.--The non-Federal share of
the cost of an activity under this subsection
may be provided in cash or in kind, fairly
evaluated, including facilities, equipment, or
services.
(ii) Sources.--Any entity may provide the
non-Federal share of the cost of an activity
under this subsection through a State
government, a local government, or a private
source.
(3) Application.--
(A) In general.--To receive a grant under this
subsection, an eligible entity shall submit an
application to the Secretary at the time and in the
manner and accompanied by any information the Secretary
may require.
(B) Contents.--Each application submitted under
subparagraph (A) shall--
(i) identify any activity described in
paragraph (4) that the grant will be used to
fund;
(ii) describe the means by which an
activity identified under clause (i) will
reduce hunger in the community of the eligible
entity;
(iii) list any partner organizations of the
eligible entity that will participate in an
activity funded by the grant;
(iv) describe any agreement between a
partner organization and the eligible entity
necessary to carry out an activity funded by
the grant; and
(v) if an assessment described in paragraph
(4)(A) has been performed, include--
(I) a summary of that assessment;
and
(II) information regarding the
means by which the grant will help
reduce hunger in the community of the
eligible entity.
(C) Priority.--In making grants under this
subsection, the Secretary shall give priority to
eligible entities that--
(i) demonstrate in the application of the
eligible entity that the eligible entity makes
collaborative efforts to reduce hunger in the
community of the eligible entity; and
(ii)(I) serve communities in which the
rates of food insecurity, hunger, poverty, or
unemployment are demonstrably higher than
national average rates;
(II) provide evidence of long-term efforts
to reduce hunger in the community;
(III) provide evidence of public support
for the efforts of the eligible entity; or
(IV) demonstrate in the application of the
eligible entity a commitment to achieving more
than 1 hunger-free communities goal.
(4) Use of funds.--
(A) Assessment of hunger in the community.--
(i) In general.--An eligible entity in a
community that has not performed an assessment
described in clause (ii) may use a grant
received under this subsection to perform the
assessment for the community.
(ii) Assessment.--The assessment referred
to in clause (ii) shall include--
(I) an analysis of the problem of
hunger in the community served by the
eligible entity;
(II) an evaluation of any facility
and any equipment used to achieve a
hunger-free communities goal in the
community;
(III) an analysis of the
effectiveness and extent of service of
existing nutrition programs and
emergency feeding organizations; and
(IV) a plan to achieve any other
hunger-free communities goal in the
community.
(B) Activities.--An eligible entity in a community
that has submitted an assessment to the Secretary shall
use a grant received under this subsection for any
fiscal year for activities of the eligible entity,
including--
(i) meeting the immediate needs of people
in the community served by the eligible entity
who experience hunger by--
(I) distributing food;
(II) providing community outreach;
or
(III) improving access to food as
part of a comprehensive service;
(ii) developing new resources and
strategies to help reduce hunger in the
community;
(iii) establishing a program to achieve a
hunger-free communities goal in the community,
including--
(I) a program to prevent, monitor,
and treat children in the community
experiencing hunger or poor nutrition;
or
(II) a program to provide
information to people in the community
on hunger, domestic hunger goals, and
hunger-free communities goals; and
(iv) establishing a program to provide food
and nutrition services as part of a coordinated
community-based comprehensive service.
(d) Hunger-Free Communities Infrastructure Grants.--
(1) Definition of eligible entity.--In this subsection, the
term ``eligible entity'' means an emergency feeding
organization (as defined in section 201A(4) of the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7501(4))).
(2) Program authorized.--
(A) In general.--The Secretary shall use not more
than 45 percent of any funds made available under
subsection (f) to make grants to eligible entities to
pay the Federal share of the costs of an activity
described in paragraph (4).
(B) Federal share.--The Federal share of the cost
of carrying out an activity under this subsection shall
not exceed 80 percent.
(3) Application.--
(A) In general.--To receive a grant under this
subsection, an eligible entity shall submit an
application to the Secretary at the time and in the
manner and accompanied by any information the Secretary
may require.
(B) Contents.--Each application submitted under
subparagraph (A) shall--
(i) identify any activity described in
paragraph (4) that the grant will be used to
fund; and
(ii) describe the means by which an
activity identified under clause (i) will
reduce hunger in the community of the eligible
entity.
(C) Priority.--In making grants under this
subsection, the Secretary shall give priority to
eligible entities the applications of which demonstrate
2 or more of the following:
(i) The eligible entity serves a community
in which the rates of food insecurity, hunger,
poverty, or unemployment are demonstrably
higher than national average rates.
(ii) The eligible entity serves a community
that has carried out long-term efforts to
reduce hunger in the community.
(iii) The eligible entity serves a
community that provides public support for the
efforts of the eligible entity.
(iv) The eligible entity is committed to
achieving more than 1 hunger-free communities
goal.
(4) Use of funds.--An eligible entity shall use a grant
received under this subsection for any fiscal year to carry out
activities of the eligible entity, including--
(A) constructing, expanding, or repairing a
facility or equipment to support hunger relief agencies
in the community;
(B) assisting an emergency feeding organization in
the community in obtaining locally-produced produce and
protein products; and
(C) assisting an emergency feeding organization in
the community to process and serve wild game.
(e) Report.--If funds are made available under subsection (f), not
later than September 30, 2012, the Secretary shall submit to Congress a
report describing--
(1) each grant made under this section, including--
(A) a description of any activity funded by such a
grant; and
(B) the degree of success of each activity funded
by such a grant in achieving hunger-free communities
goals; and
(2) the degree of success of all activities funded by
grants under this section in achieving domestic hunger goals.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2008 through 2012.
SEC. 4406. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING PROGRAM
BENEFITS FOR FREE SCHOOL MEALS.
(a) In General.--Not later than June 30 of each year, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that assesses the effectiveness of each
State in enrolling school-aged children in households receiving program
benefits under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et
seq.) (referred to in this section as ``program benefits'') for free
school meals using direct certification.
(b) Specific Measures.--The assessment of the Secretary of the
performance of each State shall include--
(1) an estimate of the number of school-aged children, by
State, who were members of a household receiving program
benefits at any time in July, August, or September of the prior
year;
(2) an estimate of the number of school-aged children, by
State, who were directly certified as eligible for free lunches
under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.), based on receipt of program benefits, as
of October 1 of the prior year; and
(3) an estimate of the number of school-aged children, by
State, who were members of a household receiving program
benefits at any time in July, August, or September of the prior
year who were not candidates for direct certification because
on October 1 of the prior year the children attended a school
operating under the special assistance provisions of section
11(a)(1) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1759a) that is not operating in a base year.
(c) Performance Innovations.--The report of the Secretary shall
describe best practices from States with the best performance or the
most improved performance from the previous year.
SEC. 4407. SENSE OF CONGRESS REGARDING NUTRITION EDUCATION UNDER THE
FOOD AND NUTRITION PROGRAM.
(a) Findings.--Congress finds that--
(1) nutrition education under the Food and Nutrition Act of
2007 (7 U.S.C. 2011 et seq.) plays an essential role in
improving the dietary and physical activity practices of low-
income people in the United States, helping to reduce food
insecurity, prevent obesity, and reduce the risks of chronic
disease;
(2) expert organizations, such as the Institute of
Medicine, indicate that dietary and physical activity behavior
change is more likely to result from the combined application
of public health approaches and education than from education
alone; and
(3) State programs are implementing nutrition education
using effective strategies, including direct education, group
activities, and social marketing.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Secretary should support and encourage effective
interventions for nutrition education under the Food and
Nutrition Act of 2007 (7 U.S.C. 2011 et seq.), including
coordination with public health approaches and traditional
education, to increase the likelihood that recipients of food
and nutrition program benefits and people who are potentially
eligible for those benefits will choose diets and physical
activity practices consistent with the Dietary Guidelines for
Americans;
(2) to promote the most effective implementation of
publicly-funded programs, State nutrition education activities
under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et
seq.)--
(A) should be coordinated with other federally-
funded food assistance and public health programs; and
(B) should leverage public/private partnerships to
maximize the resources and impact of the programs; and
(3) funds provided under the Food and Nutrition Act of 2007
(7 U.S.C. 2011 et seq.) for nutrition education should be used
only for activities that promote diets and physical activity
consistent with the Dietary Guidelines for Americans among--
(A) recipients of food and nutrition program
benefits; and
(B) people who are potentially eligible for those
benefits.
Subtitle B--Food Distribution Program on Indian Reservations
SEC. 4501. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD PACKAGE.
(a) In General.--Section 4 of the Food and Nutrition Act of 2007 (7
U.S.C. 2013) is amended by striking subsection (b) and inserting the
following:
``(b) Food Distribution Program on Indian Reservations.--
``(1) In general.--Distribution of commodities, with or
without the food and nutrition program, shall be made whenever
a request for concurrent or separate food program operations,
respectively, is made by a tribal organization.
``(2) Administration.--
``(A) In general.--Subject to subparagraphs (B) and
(C), in the event of distribution on all or part of an
Indian reservation, the appropriate agency of the State
government in the area involved shall be responsible
for the distribution.
``(B) Administration by tribal organization.--If
the Secretary determines that a tribal organization is
capable of effectively and efficiently administering a
distribution described in paragraph (1), then the
tribal organization shall administer the distribution.
``(C) Prohibition.--The Secretary shall not approve
any plan for a distribution described in paragraph (1)
that permits any household on any Indian reservation to
participate simultaneously in the food and nutrition
program and the distribution of federally donated
foods.
``(3) Disqualified participants.--An individual who is
disqualified from participation in the food distribution
program on Indian reservations under this subsection is not
eligible to participate in the food and nutrition program under
this Act.
``(4) Administrative costs.--The Secretary is authorized to
pay such amounts for administrative costs and distribution
costs on Indian reservations as the Secretary finds necessary
for effective administration of such distribution by a State
agency or tribal organization.
``(5) Bison meat.--Subject to the availability of
appropriations, the Secretary may purchase bison meat for
recipients of food distributed under this subsection, including
bison meat from--
``(A) Native American bison producers; and
``(B) producer-owned cooperatives of bison
ranchers.
``(6) Traditional food fund.--
``(A) In general.--Subject to the availability of
appropriations, the Secretary shall establish a fund
for use in purchasing traditional foods for recipients
of food distributed under this subsection.
``(B) Survey.--In carrying out this paragraph, the
Secretary shall--
``(i) survey participants of the food
distribution program on Indian reservations
established under this subsection to determine
which traditional foods are most desired by
those participants; and
``(ii) purchase or offer to purchase those
traditional foods that may be procured cost-
effectively.
``(C) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary to carry
out this paragraph $5,000,000 for each of fiscal years
2008 through 2012.''.
(b) FDPIR Food Package.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report that describes--
(1) how the Secretary derives the process for determining
the food package under the food distribution program on Indian
reservations established under section 4(b) of the Food and
Nutrition Act of 2007 (7 U.S.C. 2013(b)) (referred to in this
subsection as the ``food package'');
(2) the extent to which the food package--
(A) addresses the nutritional needs of low-income
Americans compared to the food and nutrition program,
particularly for very low-income households;
(B) conforms (or fails to conform) to the 2005
Dietary Guidelines for Americans published under
section 301 of the National Nutrition Monitoring and
Related Research Act of 1990 (7 U.S.C. 5341);
(C) addresses (or fails to address) the nutritional
and health challenges that are specific to Native
Americans; and
(D) is limited by distribution costs or challenges
of infrastructure;
(3) any plans of the Secretary to revise and update the
food package to conform with the most recent Dietary Guidelines
for Americans, including any costs associated with the planned
changes; and
(4) if the Secretary does not plan changes to the food
package, the rationale of the Secretary for retaining the food
package.
Subtitle C--Administration of Emergency Food Assistance Program and
Commodity Supplemental Food Program
SEC. 4601. EMERGENCY FOOD ASSISTANCE.
(a) State Plan.--Section 202A of the Emergency Food Assistance Act
of 1983 (7 U.S.C. 7503) is amended by striking subsection (a) and
inserting the following:
``(a) Plans.--To receive commodities under this Act, every 3 years,
a State shall submit to the Secretary an operation and administration
plan for the provision of assistance under this Act.''.
(b) Donated Wild Game.--Section 204(a)(1) of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended in the first
sentence by inserting ``and donated wild game'' before the period at
the end.
SEC. 4602. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
Section 5 of the Agriculture and Consumer Protection Act of 1973 (7
U.S.C. 612c note; Public Law 93-86) is amended by striking subsection
(g) and inserting the following:
``(g) Prohibition.--Notwithstanding any other provision of law
(including regulations), the Secretary may not require a State or local
agency to prioritize assistance to a particular group of individuals
that are--
``(1) low-income persons aged 60 and older; or
``(2) women, infants, and children.''.
Subtitle D--Senior Farmers' Market Nutrition Program
SEC. 4701. EXCLUSION OF BENEFITS IN DETERMINING ELIGIBILITY FOR OTHER
PROGRAMS.
(a) In General.--Section 4402 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3007) is amended--
(1) in subsection (a), by striking ``each of fiscal years
2003 through 2007'' and inserting ``fiscal year 2008 and each
fiscal year thereafter'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (e), respectively;
(3) by inserting after subsection (a) the following:
``(b) Additional Funds.--In addition to the amounts made available
under subsection (a), for fiscal year 2008 and each fiscal year
thereafter, of the funds of the Commodity Credit Corporation, the
Secretary of Agriculture shall use $10,000,000 to expand the program
established under this section.''; and
(4) by inserting after subsection (c) (as redesignated by
paragraph (2)) the following:
``(d) Exclusion of Benefits in Determining Eligibility for Other
Programs.--The value of any benefit provided under the program under
this section shall not be taken into consideration in determining the
eligibility of an individual for any other Federal or State assistance
program.''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of enactment of this Act.
SEC. 4702. PROHIBITION ON COLLECTION OF SALES TAX.
Section 4402 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 3007) is amended by inserting after subsection (d) (as added
by section 4701(a)(4)) the following:
``(e) Prohibition on Collection of Sales Tax.--A State that
collects any sales tax on the purchase of food using a benefit provided
under the program under this section shall not be eligible to
participate in the program.''.
Subtitle E--Reauthorization of Federal Food Assistance Programs
SEC. 4801. FOOD AND NUTRITION PROGRAM.
(a) Grants for Simple Application and Eligibility Determination
Systems and Improved Access to Benefits.--Section 11(t)(1) of the Food
and Nutrition Act of 2007 (7 U.S.C. 2020(t)(1)) is amended by striking
``For each of fiscal years 2003 through 2007'' and inserting ``For
fiscal year 2008 and each fiscal year thereafter''.
(b) Funding of Employment and Training Programs.--Section 16(h)(1)
of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(h)(1)) is
amended--
(1) in subparagraph (A)(vii), by striking ``for each of
fiscal years 2002 through 2007'' and inserting ``for fiscal
year 2008 and each fiscal year thereafter''; and
(2) in subparagraph (E)(i), by striking ``for each of
fiscal years 2002 through 2007'' and inserting ``for fiscal
year 2008 and each fiscal year thereafter''.
(c) Reductions in Payments for Administrative Costs.--Section
16(k)(3) of the Food and Nutrition Act of 2007 (7 U.S.C. 2025(k)(3)) is
amended--
(1) in the first sentence of subparagraph (A), by striking
``for each of fiscal years 1999 through 2007'' and inserting
``for fiscal year 2008 and each fiscal year thereafter''; and
(2) in subparagraph (B)(ii), by striking ``through fiscal
year 2007''.
(d) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) of the
Food and Nutrition Act of 2007 (7 U.S.C. 2026(b)(1)(B(vi)) is amended
by striking ``through October 1, 2007''.
(e) Authorization of Appropriations.--Section 18(a)(1) of the Food
and Nutrition Act of 2007 (7 U.S.C. 2027(a)(1)) is amended in the first
sentence by striking ``for each of the fiscal years 2003 through 2007''
and inserting ``for fiscal year 2008 and each fiscal year thereafter''.
(f) Consolidated Block Grants for Puerto Rico and American Samoa.--
Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2007 (7 U.S.C.
2028(a)(2)(A)(ii)) by striking ``for each of fiscal years 2004 through
2007'' and inserting ``for fiscal year 2008 and each fiscal year
thereafter''.
(g) Assistance for Community Food Projects.--Section 25 of the Food
and Nutrition Act of 2007 (7 U.S.C. 2034) is amended--
(1) in subsection (b)(2), by striking subparagraph (B) and
inserting the following:
``(B) $10,000,000 for each of fiscal years 2008
through 2012.''; and
(2) in subsection (h)(4), by striking ``2007'' and
inserting ``2012''.
SEC. 4802. COMMODITY DISTRIBUTION.
(a) Emergency Food Assistance.--Section 204(a)(1) of the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended in the
first sentence by striking ``$60,000,000 for each of the fiscal years
2003 through 2007'' and inserting ``$100,000,000 for fiscal year 2008
and each fiscal year thereafter''.
(b) Commodity Distribution Program.--Section 4(a) of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note;
Public Law 93-86) is amended in the first sentence by striking ``years
1991 through 2007'' and inserting ``year 2008 and each fiscal year
thereafter''.
(c) Commodity Supplemental Food Program.--Section 5 of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note;
Public Law 93-86) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``each of fiscal
years 2003 through 2007'' and inserting ``fiscal year
2008 and each fiscal year thereafter''; and
(B) in paragraph (2)(B), by striking ``(B) Fiscal
years 2004 through 2007.--'' and all that follows
through ``2007'' and inserting the following:
``(B) Subsequent fiscal years.--For fiscal year
2004 and each subsequent fiscal year'';
(2) in subsection (d)(2), by striking ``each of the fiscal
years 1991 through 2007'' and inserting ``fiscal year 2008 and
each fiscal year thereafter''; and
(3) in subsection (g)--
(A) by striking ``If a local'' and inserting the
following:
``(1) In general.--If a local''; and
(B) by adding at the end the following:
``(2) State option.--Subject to a determination by the
Secretary that annual appropriations have enabled every State
seeking to participate in the commodity supplemental food
program to participate in that program, a State may serve low-
income persons aged 60 and older that have a household income
that is not more than 185 percent of the most recent annual
Federal Poverty Income Guidelines published by the Department
of Health and Human Services, if--
``(A) the State has submitted to the Secretary
justification for that service; and
``(B) the Secretary has approved the request of the
State.''.
(d) Distribution of Surplus Commodities to Special Nutrition
Projects.--Section 1114(a)(2)(A) of the Agriculture and Food Act of
1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence by
striking ``2007'' and inserting ``2012''.
SEC. 4803. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.
Section 4403(f) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 3171 note; Public Law 107-171) is amended by striking
``2007'' and inserting ``2012''.
Subtitle F--Miscellaneous
SEC. 4901. PERIODIC SURVEYS OF FOODS PURCHASED BY SCHOOL FOOD
AUTHORITIES.
Section 6 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1755) is amended by adding at the end the following:
``(f) Periodic Surveys of Foods Purchased by School Food
Authorities.--
``(1) In general.--For fiscal year 2008 and every fifth
fiscal year thereafter, the Secretary shall carry out a
nationally representative survey of the foods purchased during
the most recent school year for which data is available by
school authorities participating in the national school lunch
program.
``(2) Report.--On completion of each survey, the Secretary
shall submit to Congress a report that describes the results of
the survey.
``(3) Funding.--Of the funds made available under section
3, the Secretary shall use to carry out this subsection not
more than $3,000,000 for fiscal year 2008 and every fifth
fiscal year thereafter.''.
SEC. 4902. PURCHASES OF LOCALLY GROWN FRUITS AND VEGETABLES.
Section 9(j) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(j)) is amended to read as follows:
``(j) Purchases of Locally Grown Fruits and Vegetables.--The
Secretary shall--
``(1) encourage institutions receiving funds under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to
purchase locally grown fruits and vegetables, to the maximum
extent practicable and appropriate;
``(2) advise institutions participating in a program
described in paragraph (1) of the policy described in that
paragraph and post information concerning the policy on the
website maintained by the Secretary; and
``(3) allow institutions receiving funds under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
including the Department of Defense, to use a geographic
preference for the procurement of locally grown fruits and
vegetables.''.
SEC. 4903. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.
Section 18(i) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1769(i)) is amended--
(1) in paragraph (1)(C), by inserting ``promotes healthy
food education in the school curriculum and'' before
``incorporates'';
(2) by redesignating paragraph (2) as paragraph (4);
(3) by inserting after paragraph (1) the following:
``(2) Administration.--In providing grants under paragraph
(1), the Secretary shall give priority to projects that can be
replicated in schools.
``(3) Pilot program for high-poverty schools.--
``(A) Definitions.--In this paragraph:
``(i) Eligible program.--The term `eligible
program' means--
``(I) a school-based program with
hands-on vegetable gardening and
nutrition education that is
incorporated into the curriculum for 1
or more grades at 2 or more eligible
schools; or
``(II) a community-based summer
program with hands-on vegetable
gardening and nutrition education that
is part of, or coordinated with, a
summer enrichment program at 2 or more
eligible schools.
``(ii) Eligible school.--The term `eligible
school' means a public school, at least 50
percent of the students of which are eligible
for free or reduced price meals under this Act.
``(B) Establishment.--The Secretary shall carry out
a pilot program under which the Secretary shall provide
to nonprofit organizations or public entities in not
more than 5 States grants to develop and run, through
eligible programs, community gardens at eligible
schools in the States that would--
``(i) be planted, cared for, and harvested
by students at the eligible schools; and
``(ii) teach the students participating in
the community gardens about agriculture, sound
farming practices, and diet.
``(C) Priority states.--Of the States provided a
grant under this paragraph--
``(i) at least 1 State shall be among the
15 largest States, as determined by the
Secretary;
``(ii) at least 1 State shall be among the
16th to 30th largest States, as determined by
the Secretary; and
``(iii) at least 1 State shall be a State
that is not described in clause (i) or (ii).
``(D) Use of produce.--Produce from a community
garden provided a grant under this paragraph may be--
``(i) used to supplement food provided at
the eligible school;
``(ii) distributed to students to bring
home to the families of the students; or
``(iii) donated to a local food bank or
senior center nutrition program.
``(E) No cost-sharing requirement.--A nonprofit
organization or public entity that receives a grant
under this paragraph shall not be required to share the
cost of carrying out the activities assisted under this
paragraph.
``(F) Evaluation.--A nonprofit organization or
public entity that receives a grant under this
paragraph shall be required to cooperate in an
evaluation in accordance with paragraph (1)(H).
``(G) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $10,000,000.''; and
(4) in paragraph (4) (as redesignated by paragraph (2)), by
inserting ``(other than paragraph (3))'' after ``this
subsection''.
SEC. 4904. FRESH FRUIT AND VEGETABLE PROGRAM.
(a) In General.--The Richard B. Russell National School Lunch Act
is amended by inserting after section 18 (42 U.S.C. 1769) the
following:
``SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM.
``(a) In General.--For the school year beginning July 2008 and each
subsequent school year, the Secretary shall provide grants to States to
carry out a program to make free fresh fruits and vegetables available
in elementary schools (referred to in this section as the `program').
``(b) Program.--A school participating in the program shall make
free fresh fruits and vegetables available to students throughout the
school day (or at such other times as are considered appropriate by the
Secretary) in 1 or more areas designated by the school.
``(c) Funding to States.--
``(1) Minimum grant.--The Secretary shall provide to each
of the 50 States and the District of Columbia an annual grant
in an amount equal to 1 percent of the funds made available for
a fiscal year to carry out the program.
``(2) Additional funding.--Of the funds remaining after
grants are made under paragraph (1), the Secretary shall
allocate additional funds to each State that is operating a
school lunch program under section 4 based on the proportion
that--
``(A) the population of the State; bears to
``(B) the population of the United States.
``(d) Selection of Schools.--
``(1) In general.--In selecting schools to participate in
the program, each State shall--
``(A) ensure that each school chosen to participate
in the program is a school--
``(i) except as provided in paragraph (2),
in which not less than 50 percent of the
students are eligible for free or reduced price
meals under this Act; and
``(ii) that submits an application in
accordance with subparagraph (C); and
``(B) to the maximum extent practicable, give the
highest priority to schools with the highest proportion
of children who are eligible for free or reduced price
meals under this Act;
``(C) solicit applications from interested schools
that include--
``(i) information pertaining to the
percentage of students enrolled in the school
submitting the application who are eligible for
free or reduced price school lunches under this
Act;
``(ii) a certification of support for
participation in the program signed by the
school food manager, the school principal, and
the district superintendent (or equivalent
positions, as determined by the school); and
``(iii) such other information as may be
requested by the Secretary;
``(D) give priority to schools that submit a plan
for implementation of the program that includes a
partnership with 1 or more entities that provide non-
Federal resources (including entities representing the
fruit and vegetable industry) for--
``(i) the acquisition, handling, promotion,
or distribution of fresh and dried fruits and
fresh vegetables; or
``(ii) other support that contributes to
the purposes of the program;
``(E) give priority to schools that provide
evidence of efforts to integrate activities carried out
under this section with other efforts to promote sound
health and nutrition, reduce overweight and obesity, or
promote physical activity; and
``(F) ensure that each school selected is an
elementary school.
``(2) Exception.--Clause (i) of paragraph (1)(A) shall not
apply to a State if the State does not have a sufficient number
of schools that meet the requirement of that clause.
``(3) Consortia.--A consortia of schools may apply for
funding under this section.
``(e) Notice of Availability.--To be eligible to participate in the
program, a school shall widely publicize within the school the
availability of free fresh fruits and vegetables under the program.
``(f) Per-Student Grant.--The per-student grant provided to a
school under this section shall be--
``(1) determined by a State agency; and
``(2) not less than $50, nor more than $75, annually.
``(g) Limitation.--To the maximum extent practicable, each State
agency shall ensure that in making available to students the fruits and
vegetables provided under this section, schools participating in the
program offer the fruits and vegetables separately from meals otherwise
provided at the school under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.).
``(h) Schools on Indian Reservations.--The Secretary shall ensure
that not less than 100 of the schools chosen to participate in the
program are schools operated on Indian reservations.
``(i) Evaluation and Reports.--
``(1) In general.--The Secretary shall conduct an
evaluation of the program, including a determination as to
whether children experienced, as a result of participating in
the program--
``(A) increased consumption of fruits and
vegetables;
``(B) other dietary changes, such as decreased
consumption of less nutritious foods; and
``(C) such other outcomes as are considered
appropriate by the Secretary.
``(2) Report.--Not later than September 30, 2011, the
Secretary shall submit to the Committee on Education and Labor
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, a report
that describes the results of the evaluation under paragraph
(1).
``(j) Funding.--
``(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this section--
``(A) on October 1, 2007, $225,000,000; and
``(B) on October 1, 2008, and each October 1
thereafter, the amount made available for the preceding
fiscal year, as adjusted to reflect changes for the 12-
month period ending the preceding June 30 in the
Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Department of
Labor, for items other than food.
``(2) Evaluation funding.--On October 1, 2007, out of any
funds in the Treasury not otherwise appropriated, the Secretary
of the Treasury shall transfer to the Secretary to carry out
the evaluation required under subsection (i), $3,000,000, to
remain available until expended.
``(3) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section any funds transferred for that purpose, without
further appropriation.
``(4) Authorization of appropriations.--In addition to any
other amounts made available to carry out this section, there
are authorized to be appropriated such sums as are necessary to
expand the program established under this section.
``(5) Administrative costs.--Of funds made available to
carry out this section for a fiscal year, the Secretary may use
not more than $500,000 for the administrative costs of carrying
out the program.
``(6) Reallocation.--
``(A) Among states.--The Secretary may reallocate
any amounts made available to carry out this section
that are not obligated or expended by a date determined
by the Secretary.
``(B) Within states.--A State that receives a grant
under this section may reallocate any amounts made
available under the grant that are not obligated or
expended by a date determined by the Secretary.''.
(b) Conforming Amendments.--Section 18 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769) is amended--
(1) by striking subsection (g); and
(2) by redesignating subsections (h) through (k) as
subsections (g) through (j), respectively.
SEC. 4905. TEAM NUTRITION NETWORK.
Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is
amended by striking subsection (l) and inserting the following:
``(l) Funding.--
``(1) Mandatory funding.--
``(A) In general.--On October 1, 2008, and on each
October 1 thereafter through October 1, 2011, out of
any funds in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer to the
Secretary to carry out this section $3,000,000, to
remain available until expended.
``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this section the funds transferred under
subparagraph (A), without further appropriation.
``(C) Nutritional health of school children.--In
allocating funds made available under this paragraph,
the Secretary shall give priority to carrying out
subsections (a) through (g).
``(2) Authorization of appropriations.--In addition to the
amounts made available under paragraph (1), there are
authorized to be appropriated such sums as are necessary to
carry out this section.''.
SEC. 4906. BUY AMERICAN REQUIREMENTS.
(a) Findings.--Congress finds the following:
(1) Federal law requires that commodities and products
purchased with Federal funds be, to the extent practicable, of
domestic origin.
(2) Federal Buy American statutory requirements seek to
ensure that purchases made with Federal funds benefit domestic
producers.
(3) The Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) requires the use of domestic food products
for all meals served under the program, including foods
products for all meals served under the program, including
foods products purchased with local funds.
(b) Buy American Statutory Requirements.--The Department of
Agriculture should undertake training, guidance, and enforcement of the
various current Buy American statutory requirements and regulations,
including those of the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) and the Department of Defense fresh fruit and
vegetable distribution program.
SEC. 4907. MINIMUM PURCHASES OF FRUITS, VEGETABLES, AND NUTS THROUGH
SECTION 32 TO SUPPORT DOMESTIC NUTRITION ASSISTANCE
PROGRAMS.
(a) Minimum Funding for Purchases of Fruits, Vegetables, and
Nuts.--In lieu of the purchases of fruits, vegetables, and nuts
required by section 10603 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 612c-4), the Secretary shall purchase fruits,
vegetables, and nuts for the purpose of providing nutritious foods for
use in domestic nutrition assistance programs, using, of the funds made
available under section 32 of the Act of August 24, 1935 (7 U.S.C.
612c), the following amounts:
(1) $390,000,000 for fiscal year 2008.
(2) $393,000,000 for fiscal year 2009.
(3) $399,000,000 for fiscal year 2010.
(4) $403,000,000 for fiscal year 2011.
(5) $406,000,000 for fiscal year 2012 and each fiscal year
thereafter.
(b) Form of Purchases.--Fruits, vegetables, and nuts may be
purchased under this section in frozen, canned, dried, or fresh form.
(c) Value-Added Products.--The Secretary may offer value-added
products containing fruits, vegetables, or nuts under this section,
taking into consideration--
(1) whether demand exists for the value-added product; and
(2) the interests of entities that receive fruits,
vegetables, and nuts under this section.
SEC. 4908. AGRICULTURAL POLICY AND PUBLIC HEALTH.
(a) In General.--The Comptroller General of the United States shall
conduct a study to assess whether the agricultural policies of the
United States have an impact on health, nutrition, overweight and
obesity, and diet-related chronic disease.
(b) Requirements.--In conducting the study under subsection (a),
the Comptroller General of the United States shall--
(1) review, and evaluate the methodological rigor of,
existing literature and studies relating to the subjects of the
study required under subsection (a);
(2) summarize the existing literature and explain the
extent, if any, to which the literature shows a clear
association or causal relationship between United States
agricultural policy and health, nutrition, overweight and
obesity, and diet-related chronic diseases; and
(3) if the existing literature shows that there is a
relationship between United States agricultural policy and
health, nutrition, overweight and obesity, and diet-related
chronic diseases, make recommendations to guide or revise
Federal agricultural policies to improve health and reduce
obesity and diet-related chronic disease.
(c) Report.--Not later than 18 months after the date of enactment
of this section, the Comptroller General of the United States shall
submit to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report that describes the results of the study conducted under this
section.
SEC. 4909. CONFORMING AMENDMENTS TO RENAMING OF FOOD STAMP PROGRAM.
(a) In General.--
(1) Section 4 of the Food and Nutrition Act of 2007 (7
U.S.C. 2013) is amended in the section heading by striking
``food stamp program'' and inserting ``food and nutrition
program''.
(2) Section 5(h)(2)(A) of the Food and Nutrition Act of
2007 (7 U.S.C. 2014(h)(2)(A)) is amended by striking ``Food
Stamp Disaster Task Force'' and inserting ``Food and Nutrition
Disaster Task Force''.
(3) Section 6 of the Food and Nutrition Act of 2007 (7
U.S.C. 2015) is amended--
(A) in subsection (d)(3), by striking ``eligible
for food stamps'' and inserting ``eligible to receive
food and nutrition assistance'';
(B) in subsection (g), by striking ``food stamps''
and inserting ``food and nutrition assistance'';
(C) in subsection (j), in the subsection heading,
by striking ``Food Stamp'' and inserting ``Food and
Nutrition''; and
(D) in subsection (o)--
(i) in paragraph (2), by striking ``food
stamp benefits'' and inserting ``food and
nutrition assistance''; and
(ii) in paragraph (6)--
(I) in subparagraph (A)--
(aa) in clause (i), by
striking ``food stamps'' and
inserting ``food and nutrition
assistance''; and
(bb) in clause (ii)--
(AA) in the matter
preceding subclause
(I), by striking ``a
food stamp recipient''
and inserting ``a
member of a household
that receives food and
nutrition assistance'';
and
(BB) by striking
``food stamp benefits''
each place it appears
and inserting ``food
and nutrition
assistance''; and
(II) in subparagraphs (D) and (E),
by striking ``food stamp recipients''
each place it appears and inserting
``members of households that receive
food and nutrition assistance''.
(4) Section 7 of the Food and Nutrition Act of 2007 (7
U.S.C. 2016) (as amended by section 4202(a)(11)) is amended--
(A) in subsection (h)--
(i) in paragraph (3)(B)(ii), by striking
``food stamp households'' and inserting
``households receiving food and nutrition
assistance''; and
(ii) in paragraph (7), by striking ``food
stamp issuance'' and inserting ``food and
nutrition assistance issuance''; and
(B) in subsection (j)--
(i) in paragraph (2), by striking ``food
stamp benefits'' and inserting ``food and
nutrition assistance benefits''; and
(ii) in paragraph (3), by striking ``food
stamp retail'' and inserting ``food and
nutrition assistance retail''.
(5) Section 9(b)(1) of that Food and Nutrition Act of 2007
(7 U.S.C. 2018(b)(1)) is amended by striking ``food stamp
households'' and inserting ``households that receive food and
nutrition assistance''.
(6) Section 11 of the Food and Nutrition Act of 2007 (7
U.S.C. 2020) (as amended by section 4202(b)(9)(B)(III)) is
amended--
(A) in subsection (e)--
(i) in paragraph (2)--
(I) in subparagraph (A), by
striking ``food stamp offices'' and
inserting ``food and nutrition
assistance offices''; and
(II) in subparagraph (B)--
(aa) in clause (iii), by
striking ``food stamp office''
and inserting ``food and
nutrition assistance office'';
(bb) in clause (v)(II), by
striking ``food stamps'' and
inserting ``food and nutrition
assistance''; and
(cc) in clause (vii), by
striking ``food stamp offices''
and inserting ``food and
nutrition assistance offices'';
(ii) in paragraph (14), by striking ``food
stamps'' and inserting ``food and nutrition
assistance'';
(iii) in paragraph (15), by striking ``food
stamps'' and inserting ``food and nutrition
assistance''; and
(iv) in paragraph (23)--
(I) in the matter preceding
subparagraph (A), by striking
``Simplified Food Stamp Program'' and
inserting ``Simplified Food and
Nutrition Assistance Program''; and
(II) in subparagraph (A), by
striking ``food stamp benefits'' and
inserting ``food and nutrition
assistance'';
(B) in subsection (k), by striking ``may issue,
upon request by the State agency, food stamps'' and
inserting ``may provide, on request by the State
agency, food and nutrition assistance'';
(C) in subsection (l), by striking ``food stamp
participation'' and inserting ``food and nutrition
program participation'';
(D) in subsections (q) and (r), in the subsection
headings, by striking ``Food Stamps'' each place it
appears and inserting ``Food and Nutrition
Assistance'';
(E) in subsection (s), by striking ``food stamp
benefits'' each place it appears and inserting ``food
and nutrition assistance''; and
(F) in subsection (t)(1)--
(i) in subparagraph (A), by striking ``food
stamp application'' and inserting ``food and
nutrition assistance application''; and
(ii) in subparagraph (B), by striking
``food stamp benefits'' and inserting ``food
and nutrition assistance''.
(7) Section 14(b) of the Food and Nutrition Act of 2007 (7
U.S.C. 2023(b)) is amended by striking ``food stamp
allotments'' and inserting ``food and nutrition assistance''.
(8) Section 16 of the Food and Nutrition Act of 2007 (7
U.S.C. 2025) is amended--
(A) in subsection (a)(4), by striking ``food stamp
informational activities'' and inserting
``informational activities relating to the food and
nutrition program'';
(B) in subsection (c)(9)(C), by striking ``food
stamp caseload'' and inserting ``the caseload under the
food and nutrition program''; and
(C) in subsection (h)(1)(E)(i), by striking ``food
stamp recipients'' and inserting ``households receiving
food and nutrition assistance''.
(9) Section 17 of the Food and Nutrition Act of 2007 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``food stamp
benefits'' each place it appears and inserting ``food
and nutrition assistance benefits'';
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A), by
striking ``food stamp benefits'' and
inserting ``food and nutrition
assistance''; and
(II) in subparagraph (B)--
(aa) in clause (ii)(II), by
striking ``food stamp
recipients'' and inserting
``food and nutrition assistance
recipients'';
(bb) in clause (iii)(I), by
striking ``the State's food
stamp households'' and
inserting ``the number of
households in the State
receiving food and nutrition
assistance''; and
(cc) in clause
(iv)(IV)(bb), by striking
``food stamp deductions'' and
inserting ``food and nutrition
assistance deductions'';
(ii) in paragraph (2), by striking ``food
stamp benefits'' and inserting ``food and
nutrition assistance''; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by
striking ``food stamp employment'' and
inserting ``food and nutrition program
employment'';
(II) in subparagraph (B), by
striking ``food stamp recipients'' and
inserting ``food and nutrition
assistance recipients'';
(III) in subparagraph (C), by
striking ``food stamps'' and inserting
``food and nutrition assistance''; and
(IV) in subparagraph (D), by
striking ``food stamp benefits'' and
inserting ``food and nutrition
assistance benefits'';
(C) in subsection (c), by striking ``food stamps''
and inserting ``food and nutrition assistance'';
(D) in subsection (d)--
(i) in paragraph (1)(B), by striking ``food
stamp benefits'' and inserting ``food and
nutrition assistance'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by
striking ``food stamp allotments'' each
place it appears and inserting ``food
and nutrition assistance''; and
(II) in subparagraph (C)(ii), by
striking ``food stamp benefit'' and
inserting ``food and nutrition
assistance''; and
(iii) in paragraph (3)(E), by striking
``food stamp benefits'' and inserting ``food
and nutrition assistance'';
(E) in subsections (e) and (f), by striking ``food
stamp benefits'' each place it appears and inserting
``food and nutrition assistance'';
(F) in subsection (g), in the first sentence, by
striking ``receipt of food stamp'' and inserting
``receipt of food and nutrition assistance''; and
(G) in subsection (j), by striking ``food stamp
agencies'' and inserting ``food and nutrition program
agencies''.
(10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act
of 2007 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking
``food stamps'' and inserting ``food and nutrition
assistance''.
(11) Section 21(d)(3) of the Food and Nutrition Act of 2007
(7 U.S.C. 2030(d)(3)) is amended by striking ``food stamp
benefits'' and inserting ``food and nutrition assistance''.
(12) Section 22 of the Food and Nutrition Act of 2007 (7
U.S.C. 2031) is amended--
(A) in the section heading, by striking ``food
stamp portion of minnesota family investment plan'' and
inserting ``food and nutrition assistance portion of
minnesota family investment project'';
(B) in subsections (b)(12) and (d)(3), by striking
``the Food Stamp Act, as amended,'' each place it
appears and inserting ``this Act''; and
(C) in subsection (g)(1), by striking ``the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.)'' and
inserting ``this Act''.
(13) Section 26 of the Food and Nutrition Act of 2007 (7
U.S.C. 2035) is amended--
(A) in the section heading, by striking
``simplified food stamp program'' and inserting
``simplified food and nutrition program''; and
(B) in subsection (b), by striking ``simplified
food stamp program'' and inserting ``simplified food
and nutrition program''.
(b) Conforming Cross-References.--
(1) In general.--Each provision of law described in
paragraph (2) is amended (as applicable)--
(A) by striking ``food stamp program'' each place
it appears and inserting ``food and nutrition
program'';
(B) by striking ``Food Stamp Act of 1977'' each
place it appears and inserting ``Food and Nutrition Act
of 2007'';
(C) by striking ``Food Stamp Act'' each place it
appears and inserting ``Food and Nutrition Act of
2007'';
(D) by striking ``food stamp'' each place it
appears and inserting ``food and nutrition
assistance'';
(E) by striking ``food stamps'' each place it
appears and inserting ``food and nutrition
assistance'';
(F) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``food
stamp'' each place it appears and inserting ``food and
nutrition assistance'';
(G) in each applicable subsection and
appropriations heading, by striking ``Food Stamp'' each
place it appears and inserting ``Food and Nutrition
Assistance'';
(H) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``food stamp'' each
place it appears and inserting ``food and nutrition
assistance'';
(I) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``food
stamps'' each place it appears and inserting ``food and
nutrition assistance'';
(J) in each applicable subsection and
appropriations heading, by striking ``Food Stamps''
each place it appears and inserting ``Food and
Nutrition Assistance''; and
(K) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``food stamps''
each place it appears and inserting ``food and
nutrition assistance''.
(2) Provisions of law.--The provisions of law referred to
in paragraph (1) are the following:
(A) The Hunger Prevention Act of 1988 (Public Law
100-435; 102 Stat. 1645).
(B) The Food Stamp Program Improvements Act of 1994
(Public Law 103-225; 108 Stat. 106).
(C) Title IV of the Farm Security and Rural
Investment Act of 2002 (Public Law 107-171; 116 Stat.
305).
(D) Section 2 of Public Law 103-205 (7 U.S.C. 2012
note).
(E) Section 807(b) of the Stewart B. McKinney
Homeless Assistance Act (7 U.S.C. 2014 note; Public Law
100-77).
(F) The Electronic Benefit Transfer
Interoperability and Portability Act of 2000 (Public
Law 106-171; 114 Stat. 3).
(G) Section 502(b) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
2025 note; Public Law 105-185).
(H) The National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3101 et
seq.).
(I) The Emergency Food Assistance Act of 1983 (7
U.S.C. 7501 et seq.).
(J) The Immigration and Nationality Act (8 U.S.C.
1101 et seq.).
(K) Section 8119 of the Department of Defense
Appropriations Act, 1999 (10 U.S.C. 113 note; Public
Law 105-262).
(L) The Armored Car Industry Reciprocity Act of
1993 (15 U.S.C. 5901 et seq.).
(M) Title 18, United States Code.
(N) The Higher Education Act of 1965 (20 U.S.C.
1001 et seq.).
(O) The Internal Revenue Code of 1986.
(P) Section 650 of the Treasury and General
Government Appropriations Act, 2000 (26 U.S.C. 7801
note; Public Law 106-58).
(Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.).
(R) The Workforce Investment Act of 1998 (29 U.S.C.
2801 et seq.).
(S) Title 31, United States Code.
(T) Title 37, United States Code.
(U) The Public Health Service Act (42 U.S.C. 201 et
seq.).
(V) Titles II through XIX of the Social Security
Act (42 U.S.C. 401 et seq.).
(W) Section 406 of the Family Support Act of 1988
(Public Law 100-485; 102 Stat. 2400).
(X) Section 232 of the Social Security Act
Amendments of 1994 (42 U.S.C. 1314a).
(Y) The United States Housing Act of 1937 (42
U.S.C. 1437 et seq.).
(Z) The Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.).
(AA) The Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.).
(BB) The Older Americans Act of 1965 (42 U.S.C.
3001 et seq.).
(CC) Section 208 of the Intergovernmental Personnel
Act of 1970 (42 U.S.C. 4728).
(DD) The Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.).
(EE) The Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.).
(FF) Section 658K of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858i).
(GG) The Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.).
(HH) Public Law 95-348 (92 Stat. 487).
(II) The Agriculture and Food Act of 1981 (Public
Law 97-98; 95 Stat. 1213).
(JJ) The Disaster Assistance Act of 1988 (Public
Law 100-387; 102 Stat. 924).
(KK) The Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101-624; 104 Stat. 3359).
(LL) The Cranston-Gonzalez National Affordable
Housing Act (Public Law 101-625; 104 Stat. 4079).
(MM) Section 388 of the Persian Gulf Conflict
Supplemental Authorization and Personnel Benefits Act
of 1991 (Public Law 102-25; 105 Stat. 98).
(NN) The Food, Agriculture, Conservation, and Trade
Act Amendments of 1991 (Public Law 102-237; 105 Stat.
1818).
(OO) The Act of March 26, 1992 (Public Law 102-265;
106 Stat. 90).
(PP) Public Law 105-379 (112 Stat. 3399).
(QQ) Section 101(c) of the Emergency Supplemental
Act, 2000 (Public Law 106-246; 114 Stat. 528).
(c) References.--Any reference in any Federal, State, tribal, or
local law (including regulations) to the ``food stamp program''
established under the Food and Nutrition Act of 2007 (7 U.S.C. 2011 et
seq.) shall be considered to be a reference to the ``food and nutrition
program'' established under that Act.
SEC. 4910. EFFECTIVE AND IMPLEMENTATION DATES.
(a) General Effective Date.--Except as otherwise provided in this
title, this title and the amendments made by this title take effect on
April 1, 2008.
(b) Implementation of Improvements to Program Benefits.--
(1) In general.--A State agency may implement the
amendments made by part II of subtitle A beginning on a date
(as determined by the State agency) during the period beginning
on April 1, 2008, and ending on October 1, 2008.
(2) Certification period.--At the option of a State agency,
the State agency may implement 1 or more of the amendments made
by sections 4103 and 4104 for a certification period that
begins not earlier than the implementation date determined by
the State under paragraph (1).
SEC. 4911. APPLICATION.
(a) In General.--Notwithstanding any other provision of this title
or amendments made by this title, the amendments made by the provisions
described in subsection (b) shall be in effect during the period
beginning on the date of enactment of this Act (or such other effective
date as is otherwise provided in this title) and ending on September
30, 2012.
(b) Provisions.--The provisions referred to in subsection (a) are--
(1) section 4101;
(2) section 4102;
(3) section 4103;
(4) section 4104;
(5) section 4107;
(6) section 4108;
(7) section 4109;
(8) section 4110(a)(2);
(9) section 4208;
(10) section 4701(a)(3);
(11) section 4801(g); and
(12) section 4903.
SEC. 4912. GRAIN PILOT PROGRAM.
(a) In General.--Section 17A of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766a) is amended by adding at the end the
following:
``(e) Grain Pilot Program.--
``(1) Definition of eligible grain and grain product.--In
this subsection, the terms `eligible grain' and `grain product'
mean a grain or bread product, including but not limited to,
baked products and ready-to-eat cereals, having whole grain as
the primary ingredient by weight as specified on the label or
according to the recipe; except that the Secretary may review
and update as necessary the definition established under this
section.''
``(2) Program.--
``(A) In general.--For the school year beginning
July 2008, the Secretary shall carry out a pilot
program to provide eligible grain and grain products
to--
``(i) up to 125 elementary or secondary
schools operating a program under this section
in each of 6 States; and
``(ii) elementary or secondary schools
operating a program under this section on 1
Indian reservation.
``(B) Requirement.--A school participating in the
program shall provide eligible grain and grain products
as one of the meal supplement components as described
in subsection (d) to students participating in a
program authorized under this section.
``(C) Funding to states.--The Secretary shall
allocate funds to each participating State based on the
prior year claiming pattern for the afterschool snack
program in selected schools.
``(3) Selection of schools.--In selecting schools to
participate in the program under paragraph (2), the Secretary
shall--
``(A) ensure each school selected is located in a
needy area as defined in subsection (c)(1); and
``(B) solicit applications from interested schools
that meet the criteria established in subparagraph (A)
and include--
``(i) a certification of support for
participation in the program signed by the
school food manager, the school principal, and
the district superintendent (or equivalent
positions, as determined by the school); and
``(ii) such other information as may be
requested by the Secretary.
``(4) Report.--Not later than December 31, 2010, the
Secretary, acting through the Administrator of the Food and
Nutrition Service, shall submit to the Committee on Education
and Labor of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
that describes the results of the pilot program.
``(5) Funding.--The Secretary shall use not more than
$4,000,000 to carry out this subsection (other than paragraph
(4)), of which--
``(A) $2,000,000 shall be from funds made available
to carry out the senior farmers' market nutrition
program under section 4402 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 3007); and
``(B) $2,000,000 shall be from funds made available
to carry out assistance for community food projects
under section 25 of the Food and Nutrition Act of 2007
(7 U.S.C. 2034).
``(6) Evaluation and administration.--Of the funding made
available the Secretary shall use not more than $3,000,000 to
carry out the evaluation required in paragraph (4) and for the
administration of the program.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of enactment of this Act.
SEC. 4913. REPORT ON FEDERAL HUNGER PROGRAMS.
Not later than 2 years after the date of enactment of this Act, the
Comptroller General of the United States shall submit to Congress a
report that contains--
(1) a complete list of all Federal programs that seek to
alleviate hunger or food insecurity or improve nutritional
intake, including programs that support collaboration,
coordination, research, or infrastructure related to these
issues;
(2) for each program listed under paragraph (1)--
(A) the total amount of Federal funds used to carry
out the program in the most recent fiscal year for
which comparable data is available;
(B) a comparison of the amount described in
subparagraph (A) with the amount used to carry out a
similar program 10 and 20 years previously;
(C) to the maximum extent practicable, the amount
of Federal funds used under the program to provide
direct food aid to individuals (including the amount
used for the costs of administering the program); and
(D) a review to determine whether the program has
been independently reviewed for effectiveness with
respect to achieving the goals of the program,
including--
(i) the findings of the independent review;
and
(ii) for the 10 highest-cost programs, a
determination of whether the review was
conducted in accordance with accepted research
principles;
(3) for the 10- and 20-year periods before the date of
enactment of this Act, and for the most recent year for which
data is available, the estimated number of people in the United
States who are hungry (or food insecure) or obese; and
(4) as of the date of submission of the report--
(A) the number of employees of the Department of
Agriculture, including contractors and other
individuals whose salary is paid in full or part by the
Department; and
(B) the number of farmers and other agricultural
producers in the United States that receive some form
of assistance from the Department.
SEC. 4914. FOOD EMPLOYMENT EMPOWERMENT AND DEVELOPMENT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means an
entity that meets the requirements of subsection (b)(2).
(2) Vulnerable subpopulation.--
(A) In general.--The term ``vulnerable
subpopulation'' means low-income individuals,
unemployed individuals, and other subpopulations
identified by the Secretary as being likely to
experience special risks from hunger or a special need
for job training.
(B) Inclusions.--The term ``vulnerable
subpopulation'' includes--
(i) addicts (as defined in section 102 of
the Controlled Substances Act (21 U.S.C. 802));
(ii) at-risk youths (as defined in section
1432 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6472));
(iii) individuals that are basic skills
deficient (as defined in section 101 of the
Workforce Investment Act of 1998 (29 U.S.C.
2801));
(iv) homeless individuals (as defined in
section 17(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(b));
(v) homeless youths (as defined in section
387 of the Runaway and Homeless Youth Act (42
U.S.C. 5732a));
(vi) individuals with disabilities (as
defined in section 3 of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12102));
(vii) low-income individuals (as defined in
section 101 of the Workforce Investment Act of
1998 (29 U.S.C. 2801)); and
(viii) older individuals (as defined in
section 102 of the Older Americans Act of 1965
(42 U.S.C. 3002)).
(b) Food Employment Empowerment and Development Program.--
(1) Establishment.--The Secretary shall establish a food
employment empowerment and development program under which the
Secretary shall make grants to eligible entities to encourage
the effective use of community resources to combat hunger and
the root causes of hunger by creating opportunity through food
recovery and job training.
(2) Eligible entities.--To be eligible to receive a grant
under this section, an entity shall be a public agency, or
private nonprofit institution, that conducts, or will conduct,
2 or more of the following activities as an integral part of
the normal operation of the entity:
(A) Recovery of donated food from area restaurants,
caterers, hotels, cafeterias, farms, or other food
service businesses.
(B) Distribution of meals or recovered food to--
(i) nonprofit organizations described in
section 501(c)(3) of the Internal Revenue Code
of 1986;
(ii) entities that feed vulnerable
subpopulations; and
(iii) other agencies considered appropriate
by the Secretary.
(C) Training of unemployed and underemployed adults
for careers in the food service industry.
(D) Carrying out of a welfare-to-work job training
program in combination with--
(i) production of school meals, such as
school meals served under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.) or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.); or
(ii) support for after-school programs,
such as programs conducted by community
learning centers (as defined in section 4201(b)
of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7171(b))).
(3) Use of funds.--An eligible entity may use a grant
awarded under this section for--
(A) capital investments related to the operation of
the eligible entity;
(B) support services for clients, including staff,
of the eligible entity and individuals enrolled in job
training programs;
(C) purchase of equipment and supplies related to
the operation of the eligible entity or that improve or
directly affect service delivery;
(D) building and kitchen renovations that improve
or directly affect service delivery;
(E) educational material and services;
(F) administrative costs, in accordance with
guidelines established by the Secretary; and
(G) additional activities determined appropriate by
the Secretary.
(4) Preferences.--In awarding grants under this section,
the Secretary shall give preference to eligible entities that
perform, or will perform, any of the following activities:
(A) Carrying out food recovery programs that are
integrated with--
(i) culinary worker training programs, such
as programs conducted by a food service
management institute under section 21 of the
Richard B. Russell National School Lunch Act
(42 U.S.C. 1769b-1);
(ii) school education programs; or
(iii) programs of service-learning (as
defined in section 101 of the National and
Community Service Act of 1990 (42 U.S.C.
12511)).
(B) Providing job skills training, life skills
training, and case management support to vulnerable
subpopulations.
(C) Integrating recovery and distribution of food
with a job training program.
(D) Maximizing the use of an established school,
community, or private food service facility or resource
in meal preparation and culinary skills training.
(E) Providing job skills training, life skills
training, and case management support to vulnerable
subpopulations.
(5) Eligibility for job training.--To be eligible to
receive job training assistance from an eligible entity using a
grant made available under this section, an individual shall be
a member of a vulnerable subpopulation.
(6) Performance indicators.--The Secretary shall establish,
for each year of the program, performance indicators and
expected levels of performance for meal and food distribution
and job training for eligible entities to continue to receive
and use grants under this section.
(7) Technical assistance.--The Secretary may provide such
technical assistance to eligible entities as the Secretary
considers appropriate to help the eligible entities in carrying
out this section.
(8) Relationship to other law.--
(A) Bill emerson good samaritan food donation
act.--An action taken by an eligible entity using a
grant provided under this section shall be covered by
the Bill Emerson Good Samaritan Food Donation Act (42
U.S.C. 1791).
(B) Food handling guidelines.--In using a grant
provided under this section, an eligible entity shall
comply with any applicable food handling guideline
established by a State or local authority.
(9) Maximum amount of grant.--The amount of a grant
provided to an eligible entity for a fiscal year under this
section shall not exceed $200,000.
(c) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
such sums as are necessary to carry out this section for each
of fiscal years 2008 through 2012.
(2) Technical assistance.--Of the amount of funds that are
made available for a fiscal year under paragraph (1), the
Secretary shall use to provide technical assistance under
subsection (b)(7) not more than the greater of--
(A) 5 percent of the amount of funds that are made
available for the fiscal year under paragraph (1); or
(B) $1,000,000.
SEC. 4915. INFRASTRUCTURE AND TRANSPORTATION GRANTS TO SUPPORT RURAL
FOOD BANK DELIVERY OF HEALTHY PERISHABLE FOODS.
(a) Purpose.--The purpose of this section is to provide grants to
State and local food banks and other emergency feeding organizations
(as defined in section 201A of the Emergency Food Assistance Act of
1983 (7 U.S.C. 7501))--
(1) to support and expand the efforts of food banks
operating in rural areas to procure and transport highly
perishable and healthy food;
(2) to improve identification of potential providers of
donated food and to enhance the nonprofit food donation system,
particularly in and for rural areas; and
(3) to support the procurement of locally produced food
from small and family farms and ranches for distribution to
needy people.
(b) Definition of Time-Sensitive Food Product.--
(1) In general.--In this section, the term ``time-sensitive
food product'' means a fresh, raw, or processed food with a
short time limitation for safe and acceptable consumption, as
determined by the Secretary.
(2) Inclusions.--The term ``time-sensitive food product''
includes--
(A) fruits;
(B) vegetables;
(C) dairy products;
(D) meat;
(E) fish; and
(F) poultry.
(c) Grant Program.--
(1) In general.--The Secretary shall establish a program
under which the Secretary shall provide grants, on a
competitive basis, to expand the capacity and infrastructure of
food banks, statewide food bank associations, and regional food
bank collaboratives that operate in rural areas to improve the
capacity of the food banks to receive, store, distribute,
track, collect, and deliver time-sensitive food products made
available from national and local food donors.
(2) Maximum amount.--The maximum amount of a grant provided
under this subsection shall be not more than $1,000,000 for a
fiscal year.
(3) Use of funds.--A food bank may use a grant provided
under this section for--
(A) the development and maintenance of a
computerized system for the tracking of time-sensitive
food products;
(B) capital, infrastructure, and operating costs
associated with--
(i) the collection and transportation of
time-sensitive food products; or
(ii) the storage and distribution of time-
sensitive food products;
(C) improving the security and diversity of the
emergency food distribution and recovery systems of the
United States through the support of--
(i) small, midsize, or family farms and
ranches;
(ii) fisheries and aquaculture; and
(iii) donations from local food producers
and manufacturers to persons in need;
(D) providing recovered healthy foods to food banks
and similar nonprofit emergency food providers to
reduce hunger in the United States; and
(E) improving the identification of--
(i) potential providers of donated foods;
(ii) potential nonprofit emergency food
providers; and
(iii) persons in need of emergency food
assistance in rural areas.
(d) Audits.--The Secretary shall establish fair and reasonable
procedures to audit the use of funds made available to carry out this
section.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2008 through 2012.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 5001. DIRECT LOANS.
Section 302 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1922) is amended--
(1) by striking the section designation and heading and all
that follows through ``(a) The Secretary is authorized to'' and
inserting the following:
``SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.
``(a) In General.--The Secretary may''; and
(2) in subsection (a)(2), by inserting ``, taking into
consideration all farming experience of the applicant, without
regard to any lapse between farming experiences'' after
``farming operations''.
SEC. 5002. PURPOSES OF LOANS.
Section 303(a)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1923(a)(1)) is amended--
(1) in subparagraph (D), by striking ``or'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(F) refinancing guaranteed farm ownership loans
of qualified beginning farmers and ranchers under this
subtitle that were used to carry out purposes described
in subparagraphs (A) through (E).''.
SEC. 5003. SOIL AND WATER CONSERVATION AND PROTECTION.
Section 304 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1924) is amended--
(1) in subsection (a)--
(A) in paragraph (4), by inserting ``or conversion
to a certified organic farm in accordance with the
Organic Foods Production Act of 1990 (7 U.S.C. 6501 et
seq.)'' after ``systems'';
(B) in paragraph (5), by striking ``and'' at the
end;
(C) by redesignating paragraph (6) as paragraph
(7); and
(D) by inserting after paragraph (5) the following:
``(6) the implementation of 1 or more practices under the
environmental quality section of the comprehensive stewardship
incentives program established under subchapter A of chapter 6
of subtitle D of title XII of the Food Security Act of 1985;
and''; and
(2) by striking subsections (b) and (c) and inserting the
following:
``(b) Priority.--In making or guaranteeing loans under this
section, the Secretary shall give priority to--
``(1) qualified beginning farmers or ranchers and socially
disadvantaged farmers or ranchers;
``(2) owners or tenants who use the loans to convert to
sustainable or organic agricultural production systems;
``(3) producers who use the loans to build conservation
structures or establish conservation practices to comply with
section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812);
and
``(4) producers who have a certification from the Natural
Resources Conservation Service issued pursuant to section
1240B(d) of the Food Security Act of 1985.''.
SEC. 5004. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.
Section 305(a)(2) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1925(a)(2)) is amended by striking ``$200,000'' and
inserting ``$300,000''.
SEC. 5005. DOWN PAYMENT LOAN PROGRAM.
Section 310E of the Consolidated Farm and Rural Development Act (7
U.S.C. 1935) is amended--
(1) in subsection (a)(1), by inserting ``and socially
disadvantaged farmers and ranchers'' after ``ranchers'';
(2) in subsection (b)--
(A) by striking paragraph (1) and inserting the
following:
``(1) Principal.--
``(A) Purchase price of $500,000 or less.--Each
loan made under this section for a purchase price that
is $500,000 or less, shall be in an amount that does
not exceed 45 percent of the lesser of--
``(i) the purchase price; or
``(ii) the appraised value of the farm or
ranch to be acquired.
``(B) Purchase price greater than $500,000.--Each
loan made under this section for a purchase price that
is greater than $500,000, shall be in an amount that
does not exceed 45 percent of the lesser of--
``(i) $500,000; or
``(ii) the appraised value of the farm or
ranch to be acquired.'';
(B) by striking paragraph (2) and inserting the
following:
``(2) Interest rate.--The interest rate on any loan made by
the Secretary under this section shall be a rate equal to the
greater of--
``(A) the difference obtained by subtracting 400
basis points from the interest rate for regular farm
ownership loans under this subtitle; or
``(B) 2 percent.''; and
(C) in paragraph (3), by striking ``15'' and
inserting ``20'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``10 percent''
and inserting ``5 percent'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph
(2); and
(D) in subparagraph (B) of paragraph (2) (as so
redesignated), by striking ``15-year'' and inserting
``20-year''; and
(4) in subsection (d)--
(A) in paragraph (3), by striking the ``and'' at
the end;
(B) in paragraph (4), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(5) establish annual performance goals to promote the use
of the down payment loan program and other joint financing
participation loans as the preferred choice for direct real
estate loans made by any lender to a qualified beginning farmer
or rancher or socially disadvantaged farmer or rancher.''.
SEC. 5006. BEGINNING FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.
Section 310F of the Consolidated Farm and Rural Development Act (7
U.S.C. 1936) is amended to read as follows:
``SEC. 310F. BEGINNING FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.
``(a) In General.--Subject to subsection (c), the Secretary shall,
in accordance with each condition described in subsection (b), provide
a prompt payment guarantee for any loan made by a private seller of
farmland or ranch land to a qualified beginning farmer or rancher on a
contract land sale basis.
``(b) Conditions for Guarantee.--To receive a guarantee for a loan
by the Secretary under subsection (a)--
``(1) the qualified beginning farmer or rancher shall--
``(A) on the date on which the contract land sale
that is the subject of the loan is complete, own and
operate the farmland or ranch land that is the subject
of the contract land sale;
``(B) on the date on which the contract land sale
that is the subject of the loan is commenced--
``(i) have a credit history that--
``(I) includes a record of
satisfactory debt repayment, as
determined by the Secretary; and
``(II) is acceptable to the
Secretary; and
``(ii) demonstrate to the Secretary that
the qualified beginning farmer or rancher is
unable to obtain sufficient credit without a
guarantee to finance any actual need of the
qualified beginning farmer or rancher at a
reasonable rate or term;
``(2) the loan made by the private seller of farmland or
ranch land to the qualified beginning farmer or rancher on a
contract land sale basis shall meet applicable underwriting
criteria, as determined by the Secretary; and
``(3) to carry out the loan--
``(A) a commercial lending institution shall agree
to serve as an escrow agent; or
``(B) the private seller of farmland or ranch land,
in cooperation with the qualified beginning farmer or
rancher, shall use an appropriate alternate
arrangement, as determined by the Secretary.
``(c) Limitations.--
``(1) Down payment.--The Secretary shall not guarantee a
loan made by a private seller of farmland or ranch land to a
qualified beginning farmer or rancher under subsection (a) if
the contribution of the qualified beginning farmer or rancher
to the down payment for the farmland or ranch land that is the
subject of the contract land sale would be an amount less than
5 percent of the purchase price of the farmland or ranch land.
``(2) Maximum purchase price.--The Secretary shall not
guarantee a loan made by a private seller of farmland or ranch
land to a qualified beginning farmer or rancher under
subsection (a) if the purchase price or the appraisal value of
the farmland or ranch land that is the subject of the contract
land sale is an amount greater than $500,000.
``(d) Period of Guarantee.--The Secretary shall guarantee a loan
made by a private seller of farmland or ranch land to a qualified
beginning farmer or rancher under subsection (a) for a 10-year period
beginning on the date on which the Secretary guarantees the loan.
``(e) Prompt Payment Guarantee.--The Secretary shall provide to a
private seller of farmland or ranch land who makes a loan to a
qualified beginning farmer or rancher that is guaranteed by the
Secretary, a prompt payment guarantee, which shall cover--
``(1) 3 amortized annual installments; or
``(2) an amount equal to 3 annual installments (including
an amount equal to the total cost of any tax and insurance
incurred during the period covered by the annual
installments).''.
Subtitle B--Operating Loans
SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.
Section 311 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1941) is amended--
(1) by striking the section designation and all that
follows through ``(a) The Secretary is authorized to'' and
inserting the following:
``SEC. 311. PERSONS ELIGIBLE FOR LOANS.
``(a) In General.--The Secretary may'';
(2) in subsection (a)(2), by inserting ``, taking into
consideration all farming experience of the applicant, without
regard to any lapse between farming experiences'' after
``farming operations''; and
(3) in subsection (c)(1)(C), by striking ``6'' and
inserting ``7''.
SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.
Section 313(a)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1943(a)(1)) is amended by striking ``$200,000'' and
inserting ``$300,000''.
SEC. 5103. LIMITATION ON PERIOD BORROWERS ARE ELIGIBLE FOR GUARANTEED
ASSISTANCE.
Section 319 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1949) is repealed.
Subtitle C--Administrative Provisions
SEC. 5201. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS
PILOT PROGRAM.
The Consolidated Farm and Rural Development Act is amended by
adding after section 333A (7 U.S.C. 1983a) the following:
``SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT
ACCOUNTS PILOT PROGRAM.
``(a) Definitions.--In this section:
``(1) Demonstration program.--The term `demonstration
program' means a demonstration program carried out by a
qualified entity under the pilot program established in
subsection (b)(1).
``(2) Eligible participant.--The term `eligible
participant' means a qualified beginning farmer or rancher
that--
``(A) lacks significant financial resources or
assets; and
``(B) has an income that is less than--
``(i) 80 percent of the median income of
the area in which the eligible participant is
located; or
``(ii) 200 percent of the most recent
annual Federal Poverty Income Guidelines
published by the Department of Health and Human
Services for that area.
``(3) Individual development account.--The term `individual
development account' means a savings account described in
subsection (b)(4)(A).
``(4) Qualified entity.--
``(A) In general.--The term `qualified entity'
means--
``(i) 1 or more organizations--
``(I) described in section
501(c)(3) of the Internal Revenue Code
of 1986; and
``(II) exempt from taxation under
section 501(a) of such Code; or
``(ii) a State, local, or tribal government
submitting an application jointly with an
organization described in clause (i).
``(B) No prohibition on collaboration.--An
organization described in subparagraph (A)(i) may
collaborate with a financial institution or for-profit
community development corporation to carry out the
purposes of this section.
``(b) Pilot Program.--
``(1) In general.--The Secretary shall establish a pilot
program to be known as the `New Farmer Individual Development
Accounts Pilot Program' under which the Secretary shall work
through qualified entities to establish demonstration
programs--
``(A) of at least 5 years in duration; and
``(B) in at least 15 States.
``(2) Coordination.--The Secretary shall operate the pilot
program through, and in coordination with the farm loan
programs of, the Farm Service Agency.
``(3) Reserve funds.--
``(A) In general.--Each demonstration program shall
establish a reserve fund consisting of a non-Federal
match of 25 percent of the total amount of the grant
awarded to the demonstration program under this
section.
``(B) Federal funds.--After a demonstration program
has deposited in the reserve fund the non-Federal
matching funds described in subparagraph (A), the
Secretary shall provide to the demonstration program
for deposit in the reserve fund the total amount of the
grant awarded under this section.
``(C) Use of funds.--Of funds deposited in a
reserve fund under subparagraphs (A) and (B), a
demonstration program--
``(i) may use up to 20 percent for
administrative expenses; and
``(ii) shall use the remainder to make
matching awards described in paragraph
(4)(B)(ii)(I).
``(D) Interest.--Any interest earned on amounts in
a reserve fund established under subparagraph (A) may
be used as additional matching funds for, or to
administer, the demonstration program.
``(E) Guidance.--The Secretary shall implement
guidance regarding the investment requirements of
reserve funds established under this paragraph.
``(4) Individual development accounts.--
``(A) In general.--A qualified entity receiving a
grant under this section shall establish and administer
an individual development account for each eligible
participant.
``(B) Contract requirements.--To be eligible to
receive funds under this section from a qualified
entity, each eligible participant shall enter into a
contract with a qualified entity under which--
``(i) the eligible participant shall
agree--
``(I) to deposit a certain amount
of funds of the eligible participant in
a personal savings account, as
prescribed by the contractual agreement
between the eligible participant and
the qualified entity; and
``(II) to use the funds described
in subclause (I) only for 1 or more
eligible expenditures described in
paragraph (5)(A); and
``(ii) the qualified entity shall agree--
``(I) to deposit not later than 1
month after a deposit described in
clause (i)(I) at least a 100-percent,
and up to a 300-percent, match of that
amount into the individual development
account established for the eligible
participant;
``(II) with uses of funds proposed
by the eligible participant; and
``(III) to complete qualified
financial training.
``(C) Limitation.--
``(i) In general.--A qualified entity
administering a demonstration program may
provide not more than $9,000 for each fiscal
year in matching funds to any eligible
participant.
``(ii) Treatment of amount.--An amount
provided under clause (i) shall not be
considered to be a gift or loan for mortgage
purposes.
``(D) Interest.--Any interest earned on amounts in
an individual development account shall be compounded
with amounts otherwise deposited in the individual
development account.
``(5) Eligible expenditures.--
``(A) In general.--An eligible expenditure
described in this subparagraph is an expenditure--
``(i) to purchase farmland or make a down
payment on an accepted purchase offer for
farmland;
``(ii) to make mortgage payments for up to
180 days after the date of purchase of
farmland;
``(iii) to purchase farm equipment or
production, storage, or marketing
infrastructure or buy into an existing value-
added business;
``(iv) to purchase breeding stock or fruit
or nut trees or trees to harvest for timber;
``(v) to pay training or mentorship
expenses to facilitate specific entrepreneurial
agricultural activities; and
``(vi) for other similar expenditures, as
determined by the Secretary.
``(B) Timing.--
``(i) In general.--An eligible expenditure
may be made at any time during the 2-year
period beginning on the date on which the last
matching funds are provided under paragraph
(4)(B)(ii)(I).
``(ii) Unexpended funds.--Funds remaining
in an individual development account after the
period described in clause (i) shall revert to
the reserve fund of the demonstration program.
``(C) Prohibition.--An eligible participant that
uses funds in an individual development account for an
eligible expenditure described in subparagraph
(A)(viii) shall not be eligible to receive funds for a
substantially similar purpose (as determined by the
Secretary) under the national organic program
established under the Organic Foods Production Act of
1990 (7 U.S.C. 6501 et seq.).
``(c) Applications.--
``(1) Announcement of demonstration programs.--Not later
than 180 days after the date of enactment of this section, the
Secretary shall--
``(A) publicly announce the availability of funding
under this section for demonstration programs; and
``(B) ensure that applications to carry out
demonstration programs are widely available to
qualified entities.
``(2) Submission.--Not later than 270 days after the date
of enactment of this section, a qualified entity may submit to
the Secretary an application to carry out a demonstration
program.
``(3) Criteria.--In considering whether to approve an
application to carry out a demonstration program, the Secretary
shall assess--
``(A) the degree to which the demonstration program
described in the application is likely to aid eligible
participants in successfully pursuing new farming
opportunities;
``(B) the experience and ability of the qualified
entity to responsibly administer the project;
``(C) the experience and ability of the qualified
entity in recruiting, educating, and assisting eligible
participants to increase economic independence and
pursue or advance farming opportunities;
``(D) the aggregate amount of direct funds from
non-Federal public sector and private sources that are
formally committed to the demonstration program as
matching contributions;
``(E) the adequacy of the plan for providing
information relevant to an evaluation of the
demonstration program; and
``(F) such other factors as the Secretary considers
to be appropriate.
``(4) Preferences.--In considering an application to
conduct a demonstration program under this part, the Secretary
shall give preference to an application from a qualified entity
that demonstrates--
``(A) a track record of serving clients targeted by
the program, including, as appropriate, socially
disadvantaged farmers and ranchers; and
``(B) expertise in dealing with financial
management aspects of farming.
``(5) Approval.--
``(A) In general.--Not later than 1 year after the
date of enactment of this section, in accordance with
this section, the Secretary shall, on a competitive
basis, approve such applications to conduct
demonstration programs as the Secretary considers
appropriate.
``(B) Diversity.--The Secretary shall ensure, to
the maximum extent practicable, that approved
applications involve demonstration programs for a range
of geographic areas and diverse populations.
``(6) Term of authority.--If the Secretary approves an
application to carry out a demonstration program, the Secretary
shall authorize the applying qualified entity to carry out the
project for a period of 5 years, plus an additional 2 years for
the making of eligible expenditures in accordance with
subsection (b)(5)(B).
``(d) Grant Authority.--
``(1) In general.--For each year during which a
demonstration program is carried out under this section, the
Secretary shall make a grant to the qualified entity authorized
to carry out the demonstration program.
``(2) Maximum amount of grants.--The aggregate amount of
grant funds provided to a demonstration program carried out
under this section shall not exceed $300,000.
``(e) Reports.--
``(1) Annual progress reports.--
``(A) In general.--Not later than 60 days after the
end of the calendar year in which the Secretary
authorizes a qualified entity to carry out a
demonstration program, and annually thereafter until
the conclusion of the demonstration program, the
qualified entity shall prepare an annual report that
includes, for the period covered by the report--
``(i) an evaluation of the progress of the
demonstration program;
``(ii) information about the demonstration
program and eligible participants;
``(iii) the number and characteristics of
individuals that have made 1 or more deposits
into an individual development account;
``(iv) the amounts in the reserve fund
established with respect to the program;
``(v) the amounts deposited in the
individual development accounts;
``(vi) the amounts withdrawn from the
individual development accounts and the
purposes for which the amounts were withdrawn;
``(vii) the balances remaining in the
individual development accounts;
``(viii) such other information as the
Secretary may require.
``(B) Submission of reports.--A qualified entity
shall submit each report required under subparagraph
(A) to the Secretary.
``(2) Reports by the secretary.--Not later than 1 year
after the date on which all demonstration programs under this
section are concluded, the Secretary shall submit to Congress a
final report that describes the results and findings of all
reports and evaluations carried out under this section.
``(f) Regulations.--In carrying out this section, the Secretary may
promulgate regulations to ensure that the program includes provisions
for--
``(1) the termination of demonstration programs;
``(2) control of the reserve funds in the case of such a
termination;
``(3) transfer of demonstration programs to other qualified
entities; and
``(4) remissions from a reserve fund to the Secretary in a
case in which a demonstration program is terminated without
transfer to a new qualified entity.
``(g) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2008 through 2012.
``(2) Administration and training.--Of the total funds made
available under paragraph (1) and in addition to any other
available funds, not more than 10 percent may be used by the
Secretary--
``(A) to administer the pilot program; and
``(B) to provide training, or hire 1 or more
consultants to provide training, to instruct qualified
entities in carrying out demonstration programs,
including payment of reasonable costs incurred with
respect to that training for--
``(i) staff or consultant travel;
``(ii) lodging;
``(iii) meals; and
``(iv) materials.''.
SEC. 5202. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES.
(a) Inventory Sales Preferences.--Section 335(c) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (B)--
(i) in the subparagraph heading, by
inserting ``; socially disadvantaged farmer or
rancher'' after ``or rancher'';
(ii) in clause (i), by inserting `` or a
socially disadvantaged farmer or rancher''
after ``or rancher'';
(iii) in clause (ii), by inserting ``or
socially disadvantaged farmer or rancher''
after ``or rancher'';
(iv) in clause (iii), by inserting ``or a
socially disadvantaged farmer or rancher''
after ``or rancher''; and
(v) in clause (iv), by inserting ``and
socially disadvantaged farmers and ranchers''
after ``and ranchers''; and
(B) in subparagraph (C), by inserting ``or a
socially disadvantaged farmer or rancher'' after ``or
rancher'';
(2) in paragraph (5)(B)--
(A) in clause (i)--
(i) in the clause heading, by inserting ``;
socially disadvantaged farmer or rancher''
after ``or rancher'';
(ii) by inserting ``or a socially
disadvantaged farmer or rancher'' after ``a
beginning farmer or rancher''; and
(iii) by inserting ``or the socially
disadvantaged farmer or rancher'' after ``the
beginning farmer or rancher''; and
(B) in clause (ii)--
(i) in the matter preceding subclause (I),
by inserting ``or a socially disadvantaged
farmer or rancher'' after ``or rancher''; and
(ii) in subclause (II), by inserting ``or
the socially disadvantaged farmer or rancher''
after ``or rancher''; and
(3) in paragraph (6)--
(A) in subparagraph (A), by inserting ``or a
socially disadvantaged farmer or rancher'' after ``or
rancher''; and
(B) in subparagraph (C)--
(i) in clause (i)(I), by inserting ``and
socially disadvantaged farmers and ranchers''
after ``and ranchers''; and
(ii) in clause (ii), by inserting ``or
socially disadvantaged farmers or ranchers''
after ``or ranchers''.
(b) Loan Fund Set-Asides.--Section 346(b)(2) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1994(b)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i)--
(i) in subclause (I), by striking ``70
percent'' and inserting ``an amount that is not
less than 75 percent of the total amount''; and
(ii) in subclause (II)--
(I) in the subclause heading, by
inserting ``; joint financing
arrangements'' after ``payment loans'';
(II) by striking ``60 percent'' and
inserting ``an amount not less than \2/
3\ of the amount''; and
(III) by inserting ``and joint
financing arrangements under section
307(a)(3)(D)'' after ``section 310E'';
and
(B) in clause (ii)(III), by striking ``2003 through
2007, 35 percent'' and inserting ``2008 through 2012,
an amount that is not less than 50 percent of the total
amount''; and
(2) in subparagraph (B)(i), by striking ``25 percent'' and
inserting ``an amount that is not less than 40 percent of the
total amount''.
SEC. 5203. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.
Subtitle D of the Consolidated Farm and Rural Development Act is
amended by inserting after section 344 (7 U.S.C. 1992) the following:
``SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF
CREDIT.
``(a) In General.--In making or insuring a farm loan under subtitle
A or B, the Secretary shall establish a plan and promulgate regulations
(including performance criteria) that promote the goal of transitioning
borrowers to private commercial credit and other sources of credit in
the shortest practicable period of time.
``(b) Coordination.--In carrying out this section, the Secretary
shall integrate and coordinate the transition policy described in
subsection (a) with--
``(1) the borrower training program established by section
359;
``(2) the loan assessment process established by section
360;
``(3) the supervised credit requirement established by
section 361;
``(4) the market placement program established by section
362; and
``(5) other appropriate programs and authorities, as
determined by the Secretary.''.
SEC. 5204. LOAN AUTHORIZATION LEVELS.
Section 346(b)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1994(b)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``$3,796,000,000 for each of fiscal years 2003 through 2007''
and inserting ``$4,226,000,000 for each of fiscal years 2008
through 2012''; and
(2) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``$770,000,000'' and inserting ``$1,200,000,000'';
(B) in clause (i), by striking ``$205,000,000'' and
inserting ``$350,000,000''; and
(C) in clause (ii), by striking ``$565,000,000''
and inserting ``$850,000,000''.
SEC. 5205. INTEREST RATE REDUCTION PROGRAM.
Section 351(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1999(a)) is amended--
(1) in the subsection heading, by inserting ``and
Availability'' after ``Establishment'';
(2) by striking ``The Secretary'' and inserting the
following:
``(1) Establishment.--The Secretary''; and
(3) by adding at the end the following:
``(2) Availability.--The program established under
paragraph (1) shall be available with respect to new guaranteed
operating loans or guaranteed operating loans restructured
under this title after the date of enactment of this paragraph
that meet the requirements of subsection (b).''.
SEC. 5206. DEFERRAL OF SHARED APPRECIATION RECAPTURE AMORTIZATION.
Section 353(e)(7)(D) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2001(e)(7)(D)) is amended--
(1) in the subparagraph heading, by inserting ``and
deferral'' after ``Reamortization''; and
(2) in clause (ii)--
(A) by redesignating subclause (II) as subclause
(III); and
(B) by inserting after subclause (I) the following:
``(II) Term of deferral.--The term
of a deferral under this subparagraph
shall not exceed 1 year.''.
SEC. 5207. RURAL DEVELOPMENT, HOUSING, AND FARM LOAN PROGRAM
ACTIVITIES.
Subtitle D of the Consolidated Farm and Rural Development Act is
amended by inserting after section 364 (7 U.S.C. 2006f) the following:
``SEC. 365. RURAL DEVELOPMENT, HOUSING, AND FARM LOAN PROGRAM
ACTIVITIES.
``The Secretary may not complete a study of, or enter into a
contract with a private party to carry out, without specific
authorization in a subsequent Act of Congress, a competitive sourcing
activity of the Secretary, including support personnel of the
Department of Agriculture, relating to rural development, housing, or
farm loan programs.''.
Subtitle D--Farm Credit
SEC. 5301. AUTHORITY TO PASS ALONG COST OF INSURANCE PREMIUMS.
(a) In General.--Section 1.12(b) of the Farm Credit Act of 1971 (12
U.S.C. 2020(b)) is amended--
(1) in the first sentence, by striking ``Each Farm'' and
inserting the following;
``(1) In general.--Each Farm''; and
(2) by striking the second sentence and inserting the
following:
``(2) Computation.--The assessment on any association or
other financing institution described in paragraph (1) for any
period shall be computed in an equitable manner, as determined
by the Corporation.''.
(b) Rules and Regulations.--Section 5.58(10) of the Farm Credit Act
of 1971 (12 U.S.C. 2277a-7(10)) is amended by inserting ``and section
1.12(b)'' after ``part''.
SEC. 5302. TECHNICAL CORRECTION.
Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C. 2124(b))
is amended in the first sentence by striking ``per'' and inserting
``par''.
SEC. 5303. CONFIRMATION OF CHAIRMAN.
Section 5.8(a) of the Farm Credit Act of 1971 (12 U.S.C. 2242(a))
is amended in the fifth sentence by inserting ``by and with the advice
and consent of the Senate,'' after ``designated by the President,''.
SEC. 5304. PREMIUMS.
(a) Amount in Fund Not Exceeding Secure Base Amount.--Section
5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a--4(a)) is
amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``paragraph (2)'' and
inserting ``paragraph (3)''; and
(ii) by striking ``annual'' ; and
(B) by striking subparagraphs (A) through (D) and
inserting the following:
``(A) the average outstanding insured obligations
issued by the bank for the calendar year, after
deducting from the obligations the percentages of the
guaranteed portions of loans and investments described
in paragraph (2), multiplied by 0.0020; and
``(B) the product obtained by multiplying--
``(i) the sum of--
``(I) the average principal
outstanding for the calendar year on
loans made by the bank that are in
nonaccrual status; and
``(II) the average amount
outstanding for the calendar year of
other-than-temporarily impaired
investments made by the bank; by
``(ii) 0.0010.'';
(2) by striking paragraph (4);
(3) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Deductions from average outstanding insured
obligations.--The average outstanding insured obligations
issued by the bank for the calendar year referred to in
paragraph (1)(A) shall be reduced by deducting from the
obligations the sum of (as determined by the Corporation)--
``(A) 90 percent of each of--
``(i) the average principal outstanding for
the calendar year on the guaranteed portions of
Federal government-guaranteed loans made by the
bank that are in accrual status; and
``(ii) the average amount outstanding for
the calendar year of the guaranteed portions of
Federal government-guaranteed investments made
by the bank that are not permanently impaired;
and
``(B) 80 percent of each of--
``(i) the average principal outstanding for
the calendar year on the guaranteed portions of
State government-guaranteed loans made by the
bank that are in accrual status; and
``(ii) the average amount outstanding for
the calendar year of the guaranteed portions of
State government-guaranteed investments made by
the bank that are not permanently impaired.'';
(5) in paragraph (3) (as redesignated by paragraph (3)), by
striking ``annual''; and
(6) in paragraph (4) (as redesignated by paragraph (3))--
(A) in the paragraph heading, by inserting ``or
investments'' after ``loans''; and
(B) in the matter preceding subparagraph (A), by
striking ``As used'' and all that follows through
``guaranteed--'' and inserting ``In this section, the
term ``government-guaranteed'', when applied to a loan
or an investment, means a loan, credit, or investment,
or portion of a loan, credit, or investments, that is
guaranteed--''.
(b) Amount in Fund Exceeding Secure Base Amount.--Section 5.55(b)
of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(b)) is amended by
striking ``annual''.
(c) Secure Base Amount.--Section 5.55(c) of the Farm Credit Act of
1971 (12 U.S.C. 2277a-4(c)) is amended--
(1) by striking ``For purposes'' and inserting the
following:
``(1) In general.--For purposes'';
(2) by striking ``(adjusted downward'' and all that follows
through ``by the Corporation)'' and inserting ``(as adjusted
under paragraph (2))''; and
(3) by adding at the end the following:
``(2) Adjustment.--The aggregate outstanding insured
obligations of all insured System banks under paragraph (1)
shall be adjusted downward to exclude an amount equal to the
sum of (as determined by the Corporation)--
``(A) 90 percent of each of--
``(i) the guaranteed portions of principal
outstanding on Federal government-guaranteed
loans in accrual status made by the banks; and
``(ii) the guaranteed portions of the
amount of Federal government-guaranteed
investments made by the banks that are not
permanently impaired; and
``(B) 80 percent of each of--
``(i) the guaranteed portions of principal
outstanding on State government-guaranteed
loans in accrual status made by the banks; and
``(ii) the guaranteed portions of the
amount of State government-guaranteed
investments made by the banks that are not
permanently impaired.''.
(d) Determination of Loan and Investment Amounts.--Section 5.55(d)
of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(d)) is amended--
(1) in the paragraph heading, by striking ``Principal
Outstanding'' and inserting ``Loan and Investment Amounts'';
(2) in the matter preceding paragraph (1), by striking
``For the purpose'' and all that follows through ``made--'' and
inserting ``For the purpose of subsections (a) and (c), the
principal outstanding on all loans made by an insured System
bank, and the amount outstanding on all investments made by an
insured System bank, shall be determined based on--'';
(3) by inserting ``all loans or investments made'' before
``by'' the first place it appears in each of paragraph (1),
(2), and (3); and
(4) in paragraphs (1) and (2), by inserting ``or
investments'' after ``that is able to make such loans'' each
place it appears.
(e) Allocation to System Institutions of Excess Reserves.--Section
5.55(e) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(e)) is
amended--
(1) in paragraph (3), by striking ``the average secure base
amount for the calendar year (as calculated on an average daily
balance basis)'' and inserting ``the secure base amount'';
(2) in paragraph (4), by striking subparagraph (B) and
inserting the following:
``(B) there shall be credited to the Allocated
Insurance Reserves Account of each insured System bank
an amount that bears the same ratio to the total amount
(less any amount credited under subparagraph (A)) as--
``(i) the average principal outstanding for
the calendar year on insured obligations issued
by the bank (after deducting from the principal
the percentages of the guaranteed portions of
loans and investments described in subsection
(a)(2)); bears to
``(ii) the average principal outstanding
for the calendar year on insured obligations
issued by all insured System banks (after
deducting from the principal the percentages of
the guaranteed portions of loans and
investments described in subsection (a)(2)).'';
and
(3) in paragraph (6)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by
striking ``beginning more'' and all that
follows through ``January 1, 2005'';
(ii) by striking clause (i) and inserting
the following:
``(i) subject to subparagraph (D), pay to
each insured System bank, in a manner
determined by the Corporation, an amount equal
to the balance in the Allocated Insurance
Reserves Account of the System bank; and''; and
(iii) in clause (ii)--
(I) by striking ``subparagraphs
(C), (E), and (F)'' and inserting
``subparagraphs (C) and (E)''; and
(II) by striking ``, of the lesser
of--'' and all that follows through the
end of subclause (II) and inserting
``at the time of the termination of the
Financial Assistance Corporation, of
the balance in the Allocated Insurance
Reserves Account established under
paragraph (1)(B).'';
(B) in subparagraph (C)--
(i) in clause (i), by striking ``(in
addition to the amounts described in
subparagraph (F)(ii))''; and
(ii) by striking clause (ii) and inserting
the following:
``(iii) Termination of account.--On
disbursement of amount equal to $56,000,000,
the Corporation shall--
``(I) close the Account established
under paragraph (1)(B); and
``(II) transfer any remaining funds
in the Account to the remaining
Allocated Insurance Reserves Accounts
in accordance with paragraph (4)(B) for
the calendar year in which the transfer
occurs.''.
(C) by striking subparagraph (F).
SEC. 5305. CERTIFICATION OF PREMIUMS.
(a) Filing Certified Statement.--Section 5.56 of the Farm Credit
Act of 1971 (12 U.S.C. 2277a-5) is amended by striking subsection (a)
and inserting the following:
``(a) Filing Certified Statement.--On a date to be determined in
the sole discretion of the Board of Directors of the Corporation, each
insured System bank that became insured before the beginning of the
period for which premiums are being assessed (referred to in this
section as the `period') shall file with the Corporation a certified
statement showing--
``(1) the average outstanding insured obligations for the
period issued by the bank;
``(2)(A) the average principal outstanding for the period
on the guaranteed portion of Federal government-guaranteed
loans that are in accrual status; and
``(B) the average amount outstanding for the period of
Federal government-guaranteed investments that are not
permanently impaired (as defined in section 5.55(a)(4));
``(3)(A) the average principal outstanding for the period
on State government-guaranteed loans that are in accrual
status; and
``(B) the average amount outstanding for the period of
State government-guaranteed investments that are not
permanently impaired (as defined in section 5.55(a)(4));
``(4)(A) the average principal outstanding for the period
on loans that are in nonaccrual status; and
``(B) the average amount outstanding for the period of
other-than-temporarily impaired investments; and
``(5) the amount of the premium due the Corporation from
the bank for the period.''.
(b) Premium Payments.--Section 5.56 of the Farm Credit Act of 1971
(12 U.S.C. 2277a-5(c)) is amended by striking subsection (c) and
inserting the following:
``(c) Premium Payments.--
``(1) In general.--Except as provided in paragraph (2),
each insured System bank shall pay to the Corporation the
premium payments required under subsection (a), not more
frequently than once in each calendar quarter, in such manner
and at such 1 or more times as the Board of Directors shall
prescribe.
``(2) Premium amount.--The amount of the premium shall be
established not later than 60 days after filing the certified
statement specifying the amount of the premium.''.
(c) Subsequent Premium Payments.--Section 5.56 of the Farm Credit
Act of 1971 (12 U.S.C. 2277a-5) is amended--
(1) by striking subsection (d); and
(2) by redesignating subsection (e) as subsection (d).
SEC. 5306. RURAL UTILITY LOANS.
(a) Definition of Qualified Loan.--Section 8.0(9) of the Farm
Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended--
(1) in subparagraph (A)(iii), by striking ``or'' at the
end;
(2) in subparagraph (B)(ii), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following:
``(C) that is a loan, or an interest in a loan, for
an electric or telephone facility by a cooperative
lender to a borrower that has received, or is eligible
to receive, a loan under the Rural Electrification Act
of 1936 (7 U.S.C. 901 et seq.).''.
(b) Guarantee of Qualified Loans.--Section 8.6(a)(1) of the Farm
Credit Act of 1971 (12 U.S.C. 2279aa-6(a)(1)) is amended by inserting
``applicable'' before ``standards'' each place it appears in
subparagraphs (A) and (B)(i).
(c) Standards for Qualified Loans.--Section 8.8 of the Farm Credit
Act of 1971 (12 U.S.C. 2279aa-8) is amended--
(1) in subsection (a)--
(A) by striking the first sentence and inserting
the following:
``(1) In general.--The Corporation shall establish
underwriting, security appraisal, and repayment standards for
qualified loans taking into account the nature, risk profile,
and other differences between different categories of qualified
loans.
``(2) Supervision, examination, and report of condition.--
The standards shall be subject to the authorities of the Farm
Credit Administration under section 8.11.''; and
(B) in the last sentence, by striking ``In
establishing'' and inserting the following:
``(3) Mortgage loans.--In establishing'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by
inserting ``with respect to loans secured by
agricultural real estate'' after ``subsection (a)'';
and
(B) in paragraph (5)--
(i) by striking ``borrower'' the first
place it appears and inserting ``farmer or
rancher''; and
(ii) by striking ``site'' and inserting
``farm or ranch'';
(3) in subsection (c)(1), by inserting ``secured by
agricultural real estate'' after ``A loan'';
(4) by striking subsection (d); and
(5) by redesignating subsection (e) as subsection (d).
(d) Risk-Based Capital Levels.--Section 8.32(a)(1) of the Farm
Credit Act of 1971 (12 U.S.C. 2279bb-1(a)(1)) is amended--
(1) by striking ``With respect'' and inserting the
following:
``(A) In general.--With respect''; and
(2) by adding at the end the following:
``(B) Rural utility loans.--With respect to
securities representing an interest in, or obligation
backed by, a pool of qualified loans described in
section 8.0(9)(C) owned or guaranteed by the
Corporation, losses occur at a rate of default and
severity reasonably related to risks in electric and
telephone facility loans (as applicable), as determined
by the Director.''.
SEC. 5307. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT
ASSOCIATIONS.
(a) In General.--The Farm Credit Act of 1971 is amended by
inserting after section 7.6 (12 U.S.C. 2279b) the following:
``SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT
ASSOCIATIONS.
``(a) Equalization of Loan-Making Powers.--
``(1) In general.--
``(A) Federal land bank associations.--Subject to
paragraph (2), any association that owns a Federal land
bank association authorized as of January 1, 2007, to
make long-term loans under title I in its chartered
territory within the geographic area described in
subsection (b) may make short- and intermediate-term
loans and otherwise operate as a production credit
association under title II within that same chartered
territory.
``(B) Production credit associations.--Subject to
paragraph (2), any association that under its charter
has title I lending authority and that owns a
production credit association authorized as of January
1, 2007, to make short- and intermediate-term loans
under title II in the geographic area described in
subsection (b) may make long-term loans and otherwise
operate, directly or through a subsidiary association,
as a Federal land bank association or Federal land
credit association under title I in the geographic
area.
``(C) Farm credit bank.--Notwithstanding section
5.17(a), the Farm Credit Bank with which any
association had a written financing agreement as of
January 1, 2007, may make loans and extend other
similar financial assistance with respect to, and may
purchase, any loans made under the new authority
provided under subparagraph (A) or (B) by an
association exercising such authority.
``(2) Required approvals.--An association may exercise the
additional authority provided for in paragraph (1) only after
the exercise of the authority is approved by--
``(A) the board of directors of the association;
and
``(B) a majority of the voting stockholders of the
association (or, if the association is a subsidiary of
another association, the voting stockholders of the
parent association) voting, in person or by proxy, at a
duly authorized meeting of stockholders in accordance
with the process described in section 7.11.
``(b) Applicability.--This section applies only to associations the
chartered territory of which was within the geographic area served by
the Federal intermediate credit bank immediately prior to its merger
with a Farm Credit Bank under section 410(e)(1) of the Agricultural
Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100-233).''.
(c) Charter Amendments.--Section 5.17(a) of the Farm Credit Act of
1971 (12 U.S.C. 2252(a)) is amended by adding at the end the following:
``(15)(A) Approve amendments to the charters of
institutions of the Farm Credit System to implement the
equalization of loan-making powers of a Farm Credit System
association under section 7.7.
``(B) Amendments described in subparagraph (A) to the
charters of an association and the related Farm Credit Bank
shall be approved by the Farm Credit Administration, subject to
any conditions of approval imposed, by not later than 30 days
after the date on which the Farm Credit Administration receives
all approvals required by section 7.7 (a)(2).''.
(d) Conforming Amendments.--
(1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12
U.S.C. 2252(a)(2)) is amended--
(A) by striking ``(2)(A)'' and inserting ``(2)'';
and
(B) by striking subparagraphs (B) and (C).
(2) Section 410 of the 1987 act.--Section 410(e)(1)(A)(iii)
of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note;
Public Law 100-233) is amended by inserting ``(except section
7.7 of that Act)'' after ``(12 U.S.C. 2001 et seq.)''.
(3) Section 401 of the 1992 act.--Section 401(b) of the
Farm Credit Banks and Associations Safety and Soundness Act of
1992 (12 U.S.C. 2011 note; Public Law 102-552) is amended--
(A) by inserting ``(except section 7.7 of the Farm
Credit Act of 1971)'' after ``provision of law''; and
(B) by striking ``, subject to such limitations''
and all that follows through the end of the paragraph
and inserting a period.
(e) Effective Date.--The amendments made by this section take
effect on January 1, 2010.
Subtitle E--Miscellaneous
SEC. 5401. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.
The first section of Public Law 91-229 (25 U.S.C. 488) is amended--
(1) by striking ``That the Secretary'' and inserting the
following:
``SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.
``(a) In General.--The Secretary''; and
(2) by adding at the end the following:
``(b) Highly Fractionated Land.--
``(1) In general.--Subject to paragraph (2), the Secretary
of Agriculture may make and insure loans in accordance with
section 309 of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1929) to eligible purchasers of highly fractionated
land pursuant to section 205(c) of the Indian Land
Consolidation Act (25 U.S.C. 2204(c)).
``(2) Exclusion.--Section 4 shall not apply to trust land,
restricted tribal land, or tribal corporation land that is
mortgaged in accordance with paragraph (1).''.
SEC. 5402. DETERMINATION ON MERITS OF PIGFORD CLAIMS.
(a) Definitions.--In this section:
(1) Consent decree.--The term ``consent decree'' means the
consent decree in the case of Pigford v. Glickman, approved by
the United States District Court for the District of Columbia
on April 14, 1999.
(2) Pigford claim.--The term ``Pigford claim'' means a
discrimination complaint, as defined by section 1(h) of the
consent decree and documented under section 5(b) of the consent
decree.
(3) Pigford claimant.--The term ``Pigford claimant'' means
an individual who previously submitted a late-filing request
under section 5(g) of the consent decree.
(b) Determination on Merits.--Any Pigford claimant who has not
previously obtained a determination on the merits of a Pigford claim
may, in a civil action brought in the United States District Court for
the District of Columbia, obtain that determination.
(c) Limitation.--
(1) In general.--Subject to paragraph (2), all payments or
debt relief (including any limitation on foreclosure under
subsection (g)) shall be made exclusively from funds made
available under subsection (h).
(2) Maximum amount.--The total amount of payments and debt
relief pursuant to an action commenced under subsection (b)
shall not exceed $100,000,000.
(d) Intent of Congress as to Remedial Nature of Section.--It is the
intent of Congress that this section be liberally construed so as to
effectuate its remedial purpose of giving a full determination on the
merits for each Pigford claim denied that determination.
(e) Loan Data.--
(1) Report to person submitting petition.--Not later than
60 days after the Secretary receives notice of a complaint
filed by a claimant under subsection (b), the Secretary shall
provide to the claimant a report on farm credit loans made
within the claimant's county or adjacent county by the
Department during the period beginning on January 1 of the year
preceding the year or years covered by the complaint and ending
on December 31 of year following such year or years. Such
report shall contain information on all persons whose
application for a loan was accepted, including--
(A) the race of the applicant;
(B) the date of application;
(C) the date of the loan decision;
(D) the location of the office making the loan
decision; and
(E) all data relevant to the process of deciding on
the loan.
(2) No personally identifiable information.--The reports
provided pursuant to paragraph (1) shall not contain any
information that would identify any person that applied for a
loan from the Department of Agriculture.
(f) Expedited Resolutions Authorized.--Any person filing a
complaint under this Act for discrimination in the application for, or
making or servicing of, a farm loan, at his or her discretion, may seek
liquidated damages of $50,000, discharge of the debt that was incurred
under, or affected by, the discrimination that is the subject of the
person's complaint, and a tax payment in the amount equal to 25 percent
of the liquidated damages and loan principal discharged, in which
case--
(1) if only such damages, debt discharge, and tax payment
are sought, the complainant shall be able to prove his or her
case by substantial evidence (as defined in section 1(l) of the
consent decree); and
(2) the court shall decide the case based on a review of
documents submitted by the complainant and defendant relevant
to the issues of liability and damages.
(g) Limitation on Foreclosures.--Notwithstanding any other
provision of law, the Secretary may not begin acceleration on or
foreclosure of a loan if the borrower is a Pigford claimant and, in an
appropriate administrative proceeding, makes a prima facie case that
the foreclosure is related to a Pigford claim.
(h) Funding.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available for payments
and debt relief in satisfaction of claims against the United
States under subsection (b) and for any actions under
subsection (g) $100,000,000 for fiscal year 2008, to remain
available until expended.
(2) Authorization of appropriations.--In addition to funds
made available under paragraph (1), there are authorized to be
appropriated such sums as are necessary to carry out this
section.
SEC. 5403. SENSE OF THE SENATE RELATING TO CLAIMS BROUGHT BY SOCIALLY
DISADVANTAGED FARMERS OR RANCHERS.
It is the sense of the Senate that the Secretary should resolve all
claims and class actions brought against the Department of Agriculture
by socially disadvantaged farmers or ranchers (as defined in section
355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e)), including Native American, Hispanic, and female farmers or
ranchers, based on racial, ethnic, or gender discrimination in farm
program participation in an expeditious and just manner.
SEC. 5404. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR EMERGENCY
LOANS.
Section 321(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1961(a)) is amended--
(1) in paragraph (1), by striking ``farmers, ranchers'' and
inserting ``farmers or ranchers (including equine farmers or
ranchers)''; and
(2) in paragraph (2)(A), by striking ``farming, ranching,''
and inserting ``farming or ranching (including equine farming
or ranching)''.
TITLE VI--RURAL DEVELOPMENT AND INVESTMENT
Subtitle A--Consolidated Farm and Rural Development Act
SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.
Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended, by striking
``2007'' and inserting ``2012''.
SEC. 6002. RURAL BUSINESS OPPORTUNITY GRANTS.
Section 306(a)(11)(D) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 6003. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN GUARANTEES.
Section 306(a)(19) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(19)) is amended by striking subparagraph (C) and
inserting the following:
``(C) Child day care facilities.--
``(i) In general.--Of the funds of the
Commodity Credit Corporation, the Secretary
shall use for the costs of grants, loans, and
loan guarantees to pay the Federal share of the
cost of developing and constructing day care
facilities for children in rural areas, as
determined by the Secretary, $40,000,000 for
fiscal year 2008, to remain available until
expended.
``(ii) Relationship to other funding and
authorities.--The funds and authorities made
available under this subparagraph shall be in
addition to other funds and authorities
relating to development and construction of
rural day care facilities.''.
SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.
Section 306(a)(22) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(22)) is amended--
(1) in subparagraph (B), by striking ``2002 (115 Stat.
719)'' and inserting ``2008''; and
(2) in subparagraph (C), by striking ``$15,000,000 for
fiscal year 2003'' and inserting ``$20,000,000 for fiscal year
2008''.
SEC. 6005. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.
Section 306(a)(23)(E) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(23)(E)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 6006. RURAL HOSPITAL LOANS AND LOAN GUARANTEES.
Section 306(a)(24) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(24)) is amended by adding at the end the
following:
``(C) Rural hospitals.--
``(i) In general.--Of the funds of the
Commodity Credit Corporation, the Secretary
shall use for the costs of loans and loan
guarantees to pay the Federal share of the cost
of rehabilitating or improving hospitals that
have not more than 100 acute beds in rural
areas, as determined by the Secretary,
$50,000,000 for fiscal year 2008, to remain
available until expended, of which not less
than $25,000,000 shall be for use at hospitals
in rural areas with not more than 50 acute
beds.
``(ii) Priority.--In making loans and loan
guarantees under this subparagraph, the
Secretary shall give priority to hospitals
for--
``(I) the provision of facilities
to improve and install patient care,
health quality outcomes, and health
information technology, including
computer hardware and software,
equipment for electronic medical
records, handheld computer technology,
and equipment that improves
interoperability; or
``(II) the acquisition of equipment
and software purchased collectively in
a cost effective manner to address
technology needs.
``(iii) Relationship to other funding and
authorities.--The funds and authorities made
available under this subparagraph shall be in
addition to other funds and authorities
relating to rehabilitation and improvement of
hospitals described in clause (i).''.
SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY
FACILITIES.
Section 306(a)(25) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)(25)) is amended--
(1) in subparagraph (B)(ii), by striking ``75 percent'' and
inserting ``95 percent''; and
(2) in subparagraph (C), by striking ``2007'' and inserting
``2012''.
SEC. 6008. COMMUNITY FACILITY LOANS AND GRANTS FOR FREELY ASSOCIATED
STATES AND OUTLYING AREAS.
Section 306(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)) is amended by adding at the end the following:
``(26) Community facility loans and grants for freely
associated states and outlying areas.--
``(A) In general.--Subject to subparagraph (B), of
the amount that is made available for each fiscal year
for each of the community facility loan and grant
programs established under paragraphs (1), (19), (20),
(21), and (25), the Secretary shall allocate 0.5
percent of the amount for making loans or grants (as
applicable) under the program to eligible entities that
are located in freely associated States or outlying
areas (as those terms are defined in section 1121(c) of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6331(c)) that are subject to the jurisdiction of
the United States and are otherwise covered by this
Act.
``(B) Reallocation.--If the Secretary determines
that a sufficient number of applications for loans or
grants for a program described in subparagraph (A) have
not been received from eligible entities for a fiscal
year during the 180-day period beginning on October 1
of the fiscal year, the Secretary shall reallocate any
unused funds to make loans or grants (as applicable)
under the program to eligible entities that are located
in States.''.
SEC. 6009. PRIORITY FOR COMMUNITY FACILITY LOAN AND GRANT PROJECTS WITH
HIGH NON-FEDERAL SHARE.
Section 306(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)) (as amended by section 6008) is amended by adding at
the end the following:
``(27) Priority for community facility loan and grant
projects with high non-federal share.--In carrying out the
community facility loan and grant programs established under
paragraphs (1), (19), (20), (21), and (25), the Secretary shall
give priority to projects that will be carried out with a non-
Federal share of funds that is substantially greater than the
minimum requirement, as determined by the Secretary by
regulation.''.
SEC. 6010. SEARCH GRANTS.
Section 306(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)) (as amended by section 6009) is amended by adding at
the end the following:
``(28) Applications filed by eligible communities.--
``(A) Eligible community.--In this paragraph, the
term `eligible community' means a community that, as
determined by the Secretary--
``(i) has a population of 2,500 or fewer
inhabitants; and
``(ii) is financially distressed.
``(B) Applications.--In the case of water and waste
disposal and wastewater facilities grant programs
authorized under this title, the Secretary may accept
applications from eligible communities for grants for
feasibility study, design, and technical assistance.
``(C) Terms.--
``(i) In general.--Except as provided in
clause (ii), the terms of the grant programs
described in subparagraph (B) shall apply to
the applications described in that
subparagraph.
``(ii) Exceptions.--Grants made pursuant to
applications described in subparagraph (B)--
``(I) shall fund up to 100 percent
of eligible project costs; and
``(II) shall be subject to the
least documentation requirements
practicable.
``(iii) Processing.--The Secretary shall
process applications received under
subparagraph (B) in the same manner as other
similar grant applications.
``(D) Funding.--In addition to any other funds made
available for technical assistance, the Secretary may
use to carry out this paragraph not more than 4 percent
of the total amount of funds made available for a
fiscal year for water, waste disposal, and essential
community facilities.''.
SEC. 6011. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT
PROGRAM.
Section 306A(i)(2) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926a(i)(2)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 6012. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
Section 306D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926d) is amended--
(1) in subsection (a)--
(A) by striking ``make grants to the State'' and
inserting ``make grants to--
``(1) the State'';
(B) by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following:
``(2) the Denali Commission to improve solid waste disposal
sites that are contaminating, or threaten to contaminate, rural
drinking water supplies in the State of Alaska.'';
(2) in subsection (c)--
(A) in the subsection heading by striking ``With
the State of Alaska''; and
(B) by striking ``the State of Alaska'' and
inserting ``the appropriate grantee under subsection
(a)''; and
(3) in subsection (d)--
(A) in paragraph (1), by striking ``2007'' and
inserting ``2013'';
(B) by redesignating paragraph (3) as paragraph
(4); and
(C) by inserting after paragraph (2) the following:
``(3) Denali commission.--Not more than 5 percent of the
amount made available under paragraph (1) for a fiscal year may
be transferred to the Denali Commission to improve solid waste
disposal sites that are contaminating, or threaten to
contaminate, rural drinking supplies in the State of Alaska.''.
SEC. 6013. GRANTS TO DEVELOP WELLS IN RURAL AREAS.
(a) Grants to Nonprofit Organizations To Finance the Construction,
Refurbishing, and Servicing of Individually-Owned Household Water Well
Systems in Rural Areas for Individuals With Low or Moderate Incomes.--
Section 306E(d) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1926e(d)) is amended by striking ``2007'' and inserting
``2012''.
(b) Grants To Develop Area Wells in Isolated Areas.--Subtitle A of
the Consolidated Farm and Rural Development Act is amended by inserting
after section 306E (7 U.S.C. 1926e) the following:
``SEC. 306F. GRANTS TO DEVELOP AREA WELLS IN ISOLATED AREAS.
``(a) Definition of Isolated Area.--In this section, the term
`isolated area' means an area--
``(1) in which the development of a traditional water
system is not financially practical due to--
``(A) the distances or geography of the area; and
``(B) the limited number of households present to
be served; and
``(2) that is not part of a city of more than 1,000
inhabitants.
``(b) Grants.--The Secretary may make grants to nonprofit
organizations to develop and construct household, shared, and community
water wells in isolated rural areas.
``(c) Priority in Awarding Grants.--In awarding grants under this
section, the Secretary shall give priority to applicants that have
demonstrated experience in developing safe and similar projects
including household, shared, and community wells in rural areas.
``(d) Requirements.--
``(1) In general.--As a condition on receipt of a grant
under this section, the water from wells funded under this
section shall be tested annually for water quality, as
determined by the Secretary.
``(2) Results.--The results of tests under paragraph (1)
shall be made available to--
``(A) the users of the wells; and
``(B) the appropriate State agency.
``(e) Limitation.--The amount of a grant under this section shall
not exceed the lesser of--
``(1) $50,000; or
``(2) the amount that is 75 percent of the cost of a single
well and associated system.
``(f) Prohibition.--The Secretary may not award grants under this
section in any area in which a majority of the users of a proposed well
have a household income that is greater than the nonmetropolitan median
household income of the State or territory, as determined by the
Secretary.
``(g) Administrative Expenses.--Not more than 10 percent of the
amount of a grant made under this section may be used to pay
administrative expenses associated with providing project assistance,
as determined by the Secretary.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2008 through 2012.''.
SEC. 6014. COOPERATIVE EQUITY SECURITY GUARANTEE.
Section 310B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) is amended--
(1) in the first sentence of subsection (a), by inserting
``and private investment funds that invest primarily in
cooperative organizations'' after ``or nonprofit''; and
(2) in subsection (g)--
(A) in paragraph (1), by inserting ``, including
guarantees described in paragraph (3)(A)(ii)'' before
the period at the end;
(B) in paragraph (3)(A)--
(i) by striking ``(A) In general.--The
Secretary'' and inserting the following:
``(A) Eligibility.--
``(i) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(ii) Equity.--The Secretary may guarantee
a loan made for the purchase of preferred stock
or similar equity issued by a cooperative
organization or a fund that invests primarily
in cooperative organizations, if the guarantee
significantly benefits 1 or more entities
eligible for assistance under subsection
(a)(1), as determined by the Secretary.''; and
(C) in paragraph (8)(A)(ii), by striking ``a
project--'' and all that follows through the end of
subclause (II) and inserting ``a project that--
``(I)(aa) is in a rural area; and
``(bb) provides for the value-added
processing of agricultural commodities;
or
``(II) significantly benefits 1 or
more entities eligible for assistance
under subsection (a)(1), as determined
by the Secretary.''.
SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.
(a) Eligibility.--Section 310B(e)(5) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932(e)(5)) is amended--
(1) in subparagraph (A), by striking ``a nationally
coordinated, regionally or State-wide operated project'' and
inserting ``activities to promote and assist the development of
cooperatively- and mutually-owned businesses'';
(2) in subparagraph (B), by inserting ``to promote and
assist the development of cooperatively- and mutually-owned
businesses'' before the semicolon;
(3) by striking subparagraph (D);
(4) by redesignating subparagraph (E) as subparagraph (D);
(5) in subparagraph (D) (as so redesignated), by striking
``and'' at the end;
(6) by inserting after subparagraph (D) (as so
redesignated) the following:
``(E) demonstrate a commitment to--
``(i) networking with and sharing the
results of the efforts of the center with other
cooperative development centers and other
organizations involved in rural economic
development efforts; and
``(ii) developing multiorganization and
multistate approaches to addressing the
cooperative and economic development needs of
rural areas; and'';
(7) in subparagraph (F), by striking ``providing greater
than'' and inserting ``providing''.
(b) Authority To Award Multiyear Grants.--Section 310B(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is
amended by striking paragraph (6) and inserting the following:
``(6) Grant period.--
``(A) In general.--A grant awarded to a center that
has received no prior funding under this subsection
shall be made for a period of 1 year.
``(B) Multiyear grants.--If the Secretary
determines it to be in the best interest of the
program, the Secretary shall award grants for a period
of more than 1 year, but not more than 3 years, to a
center that has successfully met the parameters
described in paragraph (5).''.
(c) Authority To Extend Grant Period.--Section 310B(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is
amended--
(1) by redesignating paragraphs (7), (8), and (9) as
paragraphs (8), (9), and (12), respectively; and
(2) inserting after paragraph (6) the following:
``(7) Authority to extend grant period.--The Secretary may
extend for 1 additional 12-month period the period in which a
grantee may use a grant made under this subsection.''.
(d) Cooperative Research Program.--Section 310B(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is
amended by inserting after paragraph (9) (as redesignated by subsection
(c)(1)) the following:
``(10) Cooperative research program.--The Secretary shall
enter into a cooperative research agreement with 1 or more
qualified academic institutions in each fiscal year to conduct
research on the national economic effects of all types of
cooperatives.''.
(e) Addressing Needs of Minority Communities.--Section 310B(e) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is
amended by inserting after paragraph (10) (as added by subsection (d))
the following:
``(11) Addressing needs of minority communities.--
``(A) Definition of socially disadvantaged.--In
this paragraph, the term `socially disadvantaged' has
the meaning given the term in section 355(e).
``(B) Reservation of funds.--
``(i) In general.--If the total amount
appropriated under paragraph (12) for a fiscal
year exceeds $7,500,000, the Secretary shall
reserve an amount equal to 20 percent of the
total amount appropriated for grants for
cooperative development centers, individual
cooperatives, or groups of cooperatives that
serve socially disadvantaged communities, a
majority of the boards of directors or
governing boards of which are comprised of
socially disadvantaged individuals.
``(ii) Insufficient applications.--To the
extent that the Secretary determines that funds
reserved under clause (i) would not be used for
grants described in that clause due to
insufficient applications for the grants, the
Secretary shall use the funds as otherwise
authorized by this subsection.''.
(f) Authorization of Appropriations.--Paragraph (12) of section
310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) (as redesignated by subsection (c)(1)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.
Section 310B(f)(3) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932(f)(3)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 6017. LOCALLY-PRODUCED AGRICULTURAL FOOD PRODUCTS.
Section 310B(g) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1932(g)) is amended by adding at the end the following:
``(9) Locally-produced agricultural food products.--
``(A) Definitions.--In this paragraph:
``(i) Locally-produced agricultural food
product.--The term `locally-produced
agricultural food product' means any
agricultural product raised, produced, and
distributed in--
``(I) the locality or region in
which the final agricultural product is
marketed, so that the total distance
that the agricultural product is
transported is less than 300 miles from
the origin of the agricultural product;
or
``(II) the State in which the
agricultural product is produced.
``(ii) Underserved community.--The term
`underserved community' means a community
(including an urban or rural community and an
Indian tribal community) that has, as
determined by the Secretary--
``(I) limited access to affordable,
healthy foods, including fresh fruits
and vegetables, in grocery retail
stores or farmer-to-consumer direct
markets or a high incidence of a diet-
related disease as compared to the
national average, including obesity;
and
``(II) a high rate of hunger or
food insecurity or a high poverty rate.
``(B) Loan and loan guarantee program.--
``(i) In general.--The Secretary, acting
through the Administrator of the Rural
Business-Cooperative Service in coordination
with the Administration of the Agricultural
Marketing Service, shall make or guarantee
loans to individuals, cooperatives, businesses,
and other entities to establish and facilitate
enterprises that process, distribute,
aggregate, store, and market locally-produced
agricultural food products.
``(ii) Requirement.--The recipient of a
loan or loan guarantee under clause (i) shall
agree to make a reasonable effort, as
determined by the Secretary, to work with
retail and institutional facilities to which
the recipient sells locally-produced
agricultural food products to inform the
consumers of the retail or institutional
facilities that the consumers are purchasing or
consuming locally-produced agricultural food
products.
``(iii) Priority.--In making or
guaranteeing a loan under clause (i), the
Secretary shall give priority to--
``(I) projects that support
community development and farm and
ranch income by marketing,
distributing, storing, aggregating, or
processing a locally-produced
agricultural food product; and
``(II) projects that have
components benefitting underserved
communities.
``(iv) Retail or institutional
facilities.--The Secretary may allow recipients
of loans or loan guarantees under clause (i) to
provide up to $250,000 in loan or loan
guarantee funds per retail or institutional
facility for an underserved community in a
rural or nonrural area to help retail
facilities--
``(I) to modify and update the
facilities to accommodate locally-
produced agricultural food products;
and
``(II) to provide outreach to
consumers about the sale of locally-
produced agricultural food products.
``(v) Reports.--Not later than 1 year after
the date of enactment of this paragraph and
annually thereafter, the Secretary shall submit
to the Committee on Agriculture of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate a report that describes projects carried
out using loans or loan guarantees made under
clause (i), including--
``(I) the characteristics of the
communities served by the projects; and
``(II) benefits of the projects.
``(vi) Reservation of funds.--
``(I) In general.--For each of
fiscal years 2008 through 2012, the
Secretary shall reserve not less than 5
percent of the funds made available to
carry out this subsection to carry out
this subparagraph.
``(II) Availability of funds.--
Funds reserved under subclause (I) for
a fiscal year shall be reserved until
April 1 of the fiscal year.''.
SEC. 6018. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.
Section 310B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) is amended by adding at the end the following:
``(i) Appropriate Technology Transfer for Rural Areas Program.--
``(1) Definition of national nonprofit agricultural
assistance institution.--In this subsection, the term `national
nonprofit agricultural assistance institution' means an
organization that--
``(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation
under 501(a) of that Code;
``(B) has staff and offices in multiple regions of
the United States;
``(C) has experience and expertise in operating
national sustainable agriculture technical assistance
programs; and
``(D) provides the technical assistance through
toll-free hotlines, 1 or more websites, publications,
and workshops.
``(2) Establishment.--The Secretary shall establish a
national appropriate technology transfer for rural areas
program to assist agricultural producers that are seeking
information to help the agricultural producers--
``(A) reduce input costs;
``(B) conserve energy resources;
``(C) diversify operations through new energy crops
and energy generation facilities; and
``(D) expand markets for the agricultural
commodities produced by the producers through use of
practices involving sustainable agriculture.
``(3) Implementation.--
``(A) In general.--The Secretary shall carry out
the program under this subsection by making a grant to,
or offering to enter into a cooperative agreement with,
a national nonprofit agricultural assistance
organization.
``(B) Grant amount.--A grant made, or cooperative
agreement entered into, under subparagraph (A) shall
provide 100 percent of the cost of providing
information described in paragraph (2).
``(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection
$5,000,000 for each of fiscal years 2008 through 2012.''.
SEC. 6019. RURAL ECONOMIC AREA PARTNERSHIP ZONES.
Section 310B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932) (as amended by section 6019) is amended by adding at the
end the following:
``(j) Rural Economic Area Partnership Zones.--For the period
beginning on the date of enactment of this subsection and ending on
September 30, 2012, the Secretary shall carry out rural economic area
partnership zones in the States of New York, North Dakota, and Vermont,
in accordance with the terms and conditions contained in the
memorandums of agreement entered into by the Secretary for the rural
economic area partnership zones, except as otherwise provided in this
subsection.''.
SEC. 6020. DEFINITIONS.
(a) Rural Area.--Section 343(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)) is amended by striking paragraph
(13) and inserting the following:
``(13) Rural and rural area.--
``(A) In general.--Subject to subparagraphs (B) and
(C), the terms `rural' and `rural area' mean any area
other than--
``(i) a city or town that has a population
of greater than 50,000 inhabitants, except
that, for all activities under programs in the
rural development mission area within the areas
of the County of Honolulu, Hawaii, and the
Commonwealth of Puerto Rico, the Secretary may
designate any portion of the areas as a rural
area or eligible rural community that the
Secretary determines is not urban in character,
other than any area included in the Honolulu
Census Designated Place or the San Juan Census
Designated Place;
``(ii) any urbanized area (as defined by
the Bureau of the Census) contiguous and
adjacent to a city or town described in clause
(i); and
``(iii) any collection of census blocks
contiguous to each other (as defined by the
Bureau of the Census) that--
``(I) is adjacent to a city or town
described in clause (i) or an urbanized
area described in clause (ii); and
``(II) has a housing density that
the Secretary estimates is greater than
200 housing units per square mile,
except that an applicant may appeal the
estimate based on actual data for the
area.
``(B) Water and waste disposal grants and direct
and guaranteed loans.--For the purpose of water and
waste disposal grants and direct and guaranteed loans
provided under paragraphs (1), (2), and (24) of section
306(a), the terms `rural' and `rural area' mean a city,
town, or unincorporated area that has a population of
no more than 10,000 inhabitants.
``(C) Community facility loans and grants.--For the
purpose of community facility direct and guaranteed
loans and grants under paragraphs (1), (19), (20),
(21), and (24) of section 306(a), the terms `rural' and
`rural area' mean any area other than--
``(i) an area described in clause (i),
(ii), or (iii) of subparagraph (A); and
``(ii) a city, town, or unincorporated area
that has a population of greater than 20,000
inhabitants.
``(D) Areas rural in character.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, the Under
Secretary for Rural Development may determine
(pursuant to a petition by a local community or
on the initiative of the Under Secretary) that
an area described in clause (ii) or (iii) of
subparagraph (A) is a rural area for the
purposes of this paragraph, if the Under
Secretary finds that the area is rural in
character, as determined by the Under
Secretary.
``(ii) Administration.--In carrying out
clause (i), the Under Secretary for Rural
Development--
``(I) shall not delegate the
authority described in clause (i); but
``(II) shall consult with the
applicable rural development State or
regional director of the Department of
Agriculture.
``(E) Exclusions.--Notwithstanding any other
provision of this paragraph, in determining which
census blocks are not in a rural area (as defined in
this paragraph), the Secretary shall exclude any
cluster of census blocks that would otherwise be
considered not in a rural area only because the cluster
is adjacent to not more than 2 census blocks that are
otherwise considered not in a rural area under this
paragraph.''.
(b) Annual Reports.--Not later than 2 years after the date of
enactment of this Act and every 2 years thereafter, the Secretary shall
prepare and submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that--
(1) assesses the various definitions of the term ``rural''
and ``rural area'' that are used with respect to programs
administered by the Secretary;
(2) describes the effects that the variations in those
definitions have on those programs;
(3) make recommendations for ways to better target funds
provided through rural development programs;
(4) describes the effects the changes to the definitions of
the terms ``rural'' and ``rural area'' in the Farm Security and
Rural Investment Act of 2002 and this Act had on those programs
and eligible areas; and
(5) determines what effects the changes had on the level of
rural development funding and participation in those programs
in each State.
(b) Additional Terms.--Section 343(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)) is amended by adding at the
end the following:
``(14) Sustainable agriculture.--The term `sustainable
agriculture' means an integrated system of plant and animal
production practices having a site-specific application that
will, over the long-term--
``(A) satisfy human food and fiber needs;
``(B) enhance environmental quality and the natural
resource base upon which the agriculture economy
depends;
``(C) make the most efficient use of nonrenewable
resources and on-farm resources and integrate, where
appropriate, natural biological cycles and controls;
``(D) sustain the economic viability of farm
operations; and
``(E) enhance the quality of life for farmers and
society as a whole.
``(15) Technical assistance.--The term `technical
assistance' means managerial, financial, operational, and
scientific analysis and consultation to assist an individual or
entity (including a borrower or potential borrower under this
title)--
``(A) to identify and evaluate practices,
approaches, problems, opportunities, or solutions; and
``(B) to assist in the planning, implementation,
management, operation, marketing, or maintenance of
projects authorized under this title.''.
(c) Commercial Fishing.--Section 343 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991) is amended--
(1) in subsection (a), by inserting ``and, in the case of
subtitle B, commercial fishing'' before the period at the end
of each of paragraphs (1) and (2); and
(2) by adding at the end the following:
``(c) Definition of Farm.--In subtitle B, the term `farm' includes
a commercial fishing enterprise the owner or operator of which is
unable to obtain commercial credit from a bank or other lender, as
determined by the Secretary.''.
SEC. 6021. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.
(a) In General.--The Consolidated Farm and Rural Development Act is
amended by inserting after section 344 (7 U.S.C. 1992) the following:
``SEC. 345. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.
``(a) Definitions.--In this section:
``(1) Agricultural commodity.--The term `agricultural
commodity' has the meaning given the term in section 102 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5602).
``(2) Geographically disadvantaged farmer or rancher.--The
term `geographically disadvantaged farmer or rancher' has the
meaning given the term in section 10906(a) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 2204 note; Public
Law 107-171).
``(b) Authorization.--
``(1) In general.--Subject to paragraph (2) and the
availability of funds under subsection (d), for each fiscal
year, the Secretary may provide geographically disadvantaged
farmers or ranchers direct reimbursement payments for
activities described in subsection (c).
``(2) Limitation.--The total amount of direct reimbursement
payments provided by the Secretary under this section shall not
exceed $15,000,000 for each fiscal year.
``(c) Transportation.--
``(1) In general.--Subject to paragraphs (2) and (3), the
Secretary may provide direct reimbursement payments to a
geographically disadvantaged farmer or rancher to transport an
agricultural commodity, or inputs used to produce an
agricultural commodity, during a fiscal year.
``(2) Proof of eligibility.--To be eligible to receive
assistance under paragraph (1), farmer or rancher shall provide
to the Secretary proof (as determined by the Secretary) that
transportation or the agricultural commodity or inputs occurred
over a distance of more than 30 miles.
``(3) Amount.--The amount of direct reimbursement payments
made to a geographically disadvantaged farmer or rancher under
a subsection for a fiscal year shall equal the product obtained
by multiplying--
``(A) the amount of costs incurred by the farmer or
rancher for transportation of the agricultural
commodity or inputs during the fiscal year; and
``(B) the percentage of the allowance for that
fiscal year made under section 5941 of title 5, United
States Code, for Federal employees stationed in Alaska
and Hawaii.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
(b) Effective Date.--The amendment made by subsection (a) takes
effect on October 1, 2007.
SEC. 6022. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.
Subtitle D of the Consolidated Farm and Rural Development Act (as
amended by section 5207) is amended by inserting after section 365 the
following:
``SEC. 366. RURAL MICROENTERPRISE ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(2) Low- or moderate-income individual.--The term `low-
or moderate-income individual' means an individual with an
income (adjusted for family size) of not more than 80 percent
of the national median income.
``(3) Microcredit.--The term `microcredit' means a business
loan or loan guarantee of not more than $50,000 that is
provided to a rural microenterprise.
``(4) Microenterprise development organization.--The term
`microenterprise development organization' means an
organization that--
``(A) is--
``(i) a nonprofit entity;
``(ii) an Indian tribe, the tribal
government of which certifies to the Secretary
that no microenterprise development
organization or microenterprise development
program exists under the jurisdiction of the
Indian tribe; or
``(iii) for the purpose of subsection (b),
a public institution of higher education;
``(B) provides training and technical assistance to
rural microenterprises;
``(C) facilitates access to capital or another
service described in subsection (b) for rural
microenterprises; and
``(D) has a demonstrated record of delivering
services to economically disadvantaged
microenterprises, or an effective plan to develop a
program to deliver microenterprise services to rural
microenterprises effectively, as determined by the
Secretary.
``(5) Rural capacity building service.--The term `rural
capacity building service' means a service provided to an
organization that--
``(A) is, or is in the process of becoming, a
microenterprise development organization; and
``(B) serves rural areas for the purpose of
enhancing the ability of the organization to provide
training, technical assistance, and other services
relating to rural development.
``(6) Rural microenterprise.--
``(A) In general.--The term `rural microenterprise'
means an individual described in subparagraph (B) who
is unable to obtain sufficient training, technical
assistance, or microcredit other than under this
section, as determined by the Secretary.
``(B) Description.--An individual described in this
subparagraph is--
``(i) a self-employed individual located in
a rural area; or
``(ii) an owner and operator, or
prospective owner and operator, of a business
entity located in a rural area with not more
than 10 full-time-equivalent employees.
``(7) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Rural Business-Cooperative
Service.
``(b) Rural Microenterprise Program.--
``(1) Establishment.--The Secretary shall establish a rural
microenterprise program.
``(2) Purpose.--The purpose of the rural microenterprise
program shall be to provide low- or moderate-income individuals
with--
``(A) the skills necessary to establish new rural
microenterprises; and
``(B) continuing technical and financial assistance
as individuals and business starting or operating rural
microenterprises.
``(3) Grants.--
``(A) In general.--The Secretary may make a grant
under the rural microenterprise program to
microenterprise development organizations--
``(i) to provide training, operational
support, business planning assistance, market
development assistance, and other related
services to rural microenterprises, with an
emphasis on rural microenterprises that--
``(I) are composed of low- or
moderate-income individuals; or
``(II) are in areas that have lost
population;
``(ii) to assist in researching and
developing the best practices in delivering
training, technical assistance, and microcredit
to rural microenterprises; and
``(iii) to carry out such other projects
and activities as the Secretary determines to
be consistent with the purposes of this
section.
``(B) Diversity.--In making grants under this
paragraph, the Secretary shall ensure, to the maximum
extent practicable, that grant recipients include
microenterprise development organizations--
``(i) of varying sizes; and
``(ii) that serve racially- and ethnically-
diverse populations.
``(C) Cost sharing.--
``(i) Federal share.--The Federal share of
the cost of a project carried out using funds
from a grant made under this paragraph shall be
75 percent.
``(ii) Form of non-federal share.--The non-
Federal share of the cost of a project
described in clause (i) may be provided--
``(I) in cash (including through
fees, grants (including community
development block grants), and gifts);
or
``(II) as in-kind contributions.
``(4) Rural microloan program.--
``(A) Establishment.--In carrying out the rural
microenterprise program, the Secretary may carry out a
rural microloan program.
``(B) Purpose.--The purpose of the rural microloan
program shall be to provide technical and financial
assistance to rural microenterprises that--
``(i) are composed of low- or moderate-
income individuals; or
``(ii) are in areas that have lost
population.
``(C) Authority of secretary.--In carrying out the
rural microloan program, the Secretary may--
``(i) make direct loans to microenterprise
development organizations for the purpose of
making fixed interest rate microloans to
startup, newly established, and growing rural
microenterprises; and
``(ii) in conjunction with those loans,
provide technical assistance grants in
accordance with subparagraph (E) to those
microenterprise development organizations.
``(D) Loan duration; interest rates; conditions.--
``(i) Loan duration.--A direct loan made by
the Secretary under this paragraph shall be for
a term not to exceed 20 years.
``(ii) Applicable interest rate.--A direct
loan made by the Secretary under this paragraph
shall bear an annual interest rate of 1
percent.
``(iii) Loan loss reserve fund.--The
Secretary shall require each microenterprise
development organization that receives a direct
loan under this paragraph to--
``(I) establish a loan loss reserve
fund; and
``(II) maintain the reserve fund in
an amount equal to at least 5 percent
of the outstanding balance of such
loans owed by the microenterprise
development organization, until all
obligations owed to the Secretary under
this paragraph are repaid.
``(iv) Deferral of interest and
principal.--The Secretary shall permit the
deferral of payments on principal and interest
due on a loan made under this paragraph during
the 2-year period beginning on the date on
which the loan is made.
``(E) Technical assistance grant amounts.--
``(i) In general.--Except as otherwise
provided in this section, each microenterprise
development organization that receives a direct
loan under this paragraph shall be eligible to
receive a technical assistance grant to provide
marketing, management, and technical assistance
to rural microenterprises that are borrowers or
potential borrowers under this subsection.
``(ii) Maximum amount of technical
assistance grant for microenterprise
development organizations.--Each
microenterprise development organization that
receives a direct loan under this paragraph
shall receive an annual technical assistance
grant in an amount equal to not more than 25
percent of the total outstanding balance of
microloans made by the microenterprise
development organization under this paragraph,
as of the date of provision of the technical
assistance grant.
``(iii) Matching requirement.--
``(I) In general.--As a condition
of any grant made to a microenterprise
development organization under this
subparagraph, the Secretary shall
require the microenterprise development
organization to match not less than 15
percent of the total amount of the
grant.
``(II) Form of non-federal share.--
The non-Federal share of the cost of a
project described in subclause (I) may
be provided--
``(aa) in cash; or
``(bb) as indirect costs or
in-kind contributions.
``(c) Administrative Expenses.--Not more than 10 percent of a grant
received by a microenterprise development organization for a fiscal
year under this section may be used to pay administrative expenses.
``(d) Funding.--
``(1) Mandatory funding.--
``(A) In general.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry
out this section $40,000,000 for fiscal year 2008, to
remain available until expended.
``(B) Allocation of funds.--Of the amount made
available by subparagraph (A) for fiscal year 2008--
``(i) not less than $25,000,000 shall be
available for use in carrying out subsection
(b)(3); and
``(ii) not less than $15,000,000 shall be
available for use in carrying out subsection
(b)(4), of which not more than $7,000,000 shall
be used for the cost of direct loans.
``(2) Authorization of appropriations.--In addition to
amounts made available under paragraph (1), there are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2009 through
2012.''.
SEC. 6023. ARTISANAL CHEESE CENTERS.
Subtitle D of the Consolidated Farm and Rural Development Act is
amended by inserting after section 366 (as added by section 6022) the
following:
``SEC. 367. ARTISANAL CHEESE CENTERS.
``(a) In General.--The Secretary shall establish artisanal cheese
centers to provide educational and technical assistance relating to the
manufacture and marketing of artisanal cheese by small- and medium-
sized producers and businesses.
``(b) Authorization of Appropriations.--There is authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 6024. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
Section 378 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008m) is amended--
(1) in subsection (g)(1), by striking ``2007'' and
inserting ``2012''; and
(2) in subsection (h), by striking ``the date that is 5
years after the date of enactment of this section'' and
inserting ``September 30, 2012''.
SEC. 6025. HISTORIC BARN PRESERVATION.
Section 379A(c) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2008o(c)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Eligible projects.--
``(A) In general.--A grant under this subsection
may be made to an eligible applicant for a project--
``(i) to rehabilitate or repair a historic
barn;
``(ii) to preserve a historic barn; and
``(iii) to identify, document, survey, and
conduct research on a historic barn or historic
farm structure to develop and evaluate
appropriate techniques or best practices for
protecting historic barns.
``(B) Priority.--The Secretary shall give the
highest funding priority to grants for projects
described in subparagraph (A)(iii).''; and
(2) in paragraph (4), by striking ``2007'' and inserting
``2012''.
SEC. 6026. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.
Section 379B(d) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2008p(d)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 6027. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO
TRAIN FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR
HIGHER VALUE CROPS.
Section 379C(c) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2008q(c)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 6028. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR
INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) is amended by adding at the end the following:
``SEC. 379E. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR
INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.
``(a) Definitions.--In this section:
``(1) Individual with a disability.--The term `individual
with a disability' means an individual with a disability (as
defined in section 3 of the Americans with Disabilities Act of
1990 (42 U.S.C. 12102)).
``(2) Individuals with disabilities.--The term `individuals
with disabilities' means more than 1 individual with a
disability.
``(b) Grants.--The Secretary shall make grants to nonprofit
organizations, or to a consortium of nonprofit organizations, to expand
and enhance employment opportunities for individuals with disabilities
in rural areas.
``(c) Eligibility.--To be eligible to receive a grant under this
section, a nonprofit organization or consortium of nonprofit
organizations shall have--
``(1) a significant focus on serving the needs of
individuals with disabilities;
``(2) demonstrated knowledge and expertise in--
``(A) employment of individuals with disabilities;
and
``(B) advising private entities on accessibility
issues involving individuals with disabilities;
``(3) expertise in removing barriers to employment for
individuals with disabilities, including access to
transportation, assistive technology, and other accommodations;
``(4) existing relationships with national organizations
focused primarily on the needs of rural areas;
``(5) affiliates in a majority of the States; and
``(6) a close working relationship with the Department of
Agriculture.
``(d) Uses.--A grant received under this section may be used only
to expand or enhance--
``(1) employment opportunities for individuals with
disabilities in rural areas by developing national technical
assistance and education resources to assist small businesses
in a rural area to recruit, hire, accommodate, and employ
individuals with disabilities; and
``(2) self-employment and entrepreneurship opportunities
for individuals with disabilities in a rural area.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000 for each of fiscal
years 2008 through 2012.''.
SEC. 6029. DELTA REGIONAL AUTHORITY.
(a) Health Care Services.--Section 382C of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009aa-2) is amended by adding at
the end the following:
``(c) Health Care Services.--
``(1) In general.--Subject to the availability of
appropriated funds, the Secretary may award a grant to the
Delta Health Alliance for the development of health care
services, health education programs, and health care job
training programs fields, and for the development and expansion
of public health-related facilities, in the Mississippi Delta
region to address longstanding and unmet health needs in the
Mississippi Delta region.
``(2) Use.--As a condition of the receipt of the grant, the
Delta Health Alliance shall use the grant to fund projects and
activities described in paragraph (1), based on input solicited
from local governments, public health care providers, and other
entities in the Mississippi Delta region.
``(3) Federal interest in property.--Notwithstanding any
other provision of law, with respect to the use of grant funds
provided under this subsection for a project involving the
construction or major alteration of property, the Federal
interest in the property shall terminate on the earlier of--
``(A) the date that is 1 year after the date of the
completion of the project; or
``(B) the date on which the Federal Government is
compensated for the proportionate interest of the
Federal Government in the property, if the use of the
property changes or the property is transferred or
sold.''.
(b) Authorization of Appropriations.--Section 382M(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-12(a)) is
amended by striking ``2007'' and inserting ``2012''.
(c) Termination of Authority.--Section 382N of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009aa-13) is amended by
striking ``2007'' and inserting ``2012''.
(d) Delta Region Agricultural Economic Development.--Section
379D(b) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2008r(b)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 6030. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
(a) Establishment.--Section 383B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009bb-1) is amended--
(1) in subsection (a), by adding at the end the following:
``(4) Failure to confirm.--
``(A) Federal member.--Notwithstanding any other
provision of this section, if a Federal member
described in paragraph (2)(A) has not been confirmed by
the Senate by not later than 180 days after the date of
enactment of this paragraph, the Authority may organize
and operate without the Federal member.
``(B) Indian chairperson.--Notwithstanding any
other provision of this section, if a chairperson of an
Indian Tribe described in paragraph (2)(C) has not been
confirmed by the Senate by not later than 180 days
after the date of enactment of this paragraph, the
leaders of the Indian tribes in the region may select
that member.'';
(2) in subsection (d)--
(A) in paragraph (1), by striking ``to establish
priorities and'' and inserting ``for multistate
cooperation to advance the economic and social well-
being of the region and to''
(B) in paragraph (3), by striking ``local
development districts,'' and inserting ``regional and
local development districts or organizations, regional
boards established under subtitle I,'';
(C) in paragraph (4), by striking ``cooperation;''
and inserting ``cooperation for--
``(i) renewable energy development and
transmission;
``(ii) transportation planning and economic
development;
``(iii) information technology;
``(iv) movement of freight and individuals
within the region;
``(v) federally-funded research at
institutions of higher education; and
``(vi) conservation land management;'';
(D) by striking paragraph (6) and inserting the
following:
``(6) enhance the capacity of, and provide support for,
multistate development and research organizations, local
development organizations and districts, and resource
conservation districts in the region;''; and
(E) in paragraph (7), by inserting ``renewable
energy,'' after ``commercial,''.
(3) in subsection (f)(2), by striking ``the Federal
cochairperson'' and inserting ``a cochairperson'';
(4) in subsection (g)(1), by striking subparagraphs (A)
through (C) and inserting the following:
``(A) for each of fiscal years 2008 and 2009, 100
percent;
``(B) for fiscal year 2010, 75 percent; and
``(C) for fiscal year 2011 and each fiscal year
thereafter, 50 percent.''.
(b) Interstate Cooperation for Economic Opportunity and
Efficiency.--
(1) In general.--Subtitle G of the Consolidated Farm and
Rural Development Act is amended--
(A) by redesignating sections 383C through 383N (7
U.S.C. 2009bb-2 through 2009bb-13) as sections 383D
through 383O, respectively; and
(B) by inserting after section 383B (7 U.S.C.
2009bb-1) the following:
``SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND
EFFICIENCY.
``(a) In General.--The Authority shall provide assistance to States
in developing regional plans to address multistate economic issues,
including plans--
``(1) to develop a regional transmission system for
movement of renewable energy to markets outside the region,
``(2) to assist in the harmonization of transportation
policies and regulations that impact the interstate movement of
goods and individuals, including the establishment of a
Northern Great Plains Regional Transportation Working Group;
``(3) to encourage and support interstate collaboration on
federally-funded research that is in the national interest; and
``(4) to establish a Regional Working Group on Agriculture
Development and Transportation.
``(b) Economic Issues.--The multistate economic issues referred to
in subsection (a) shall include--
``(1) renewable energy development and transmission;
``(2) transportation planning and economic development;
``(3) information technology;
``(4) movement of freight and individuals within the
region;
``(5) federally-funded research at institutions of higher
education; and
``(6) conservation land management.''.
(2) Conforming amendments.--
(A) Section 383B(c)(3)(B) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009bb-1(c)(3)(B))
is amended by striking ``383I'' and inserting ``383J''.
(B) Section 383D(a) of the Consolidated Farm and
Rural Development Act (as redesignated by paragraph
(1)(A)) is amended by striking ``383I'' and inserting
``383J''.
(C) Section 383E of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended--
(i) in subsection (b)(1), by striking
``383F(b)'' and inserting ``383G(b)''; and
(ii) in subsection (c)(2)(A), by striking
``383I'' and inserting ``383J''.
(D) Section 383G of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended--
(i) in subsection (b)--
(I) in paragraph (1), by striking
``383M'' and inserting ``383N''; and
(II) in paragraph (2), by striking
``383D(b)'' and inserting ``383E(b)'';
(ii) in subsection (c)(2)(A), by striking
``383E(b)'' and inserting ``383F(b)''; and
(iii) in subsection (d)--
(I) by striking ``383M'' and
inserting ``383N''; and
(II) by striking ``383C(a)'' and
inserting ``383D(a)''.
(E) Section 383J(c)(2) of the Consolidated Farm and
Rural Development Act (as so redesignated) is amended
by striking ``383H'' and inserting ``383I''.
(c) Economic and Community Development Grants.--Section 383D of the
Consolidated Farm and Rural Development Act (as redesignated by
subsection (b)(1)(A)) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``transportation
and telecommunication'' and inserting ``transportation,
renewable energy transmission, and telecommunication'';
and
(B) by redesignating paragraphs (1) and (2) as
paragraphs (2) and (1), respectively, and moving those
paragraphs so as to appear in numerical order; and
(2) in subsection (b)(2), by striking ``the activities in
the following order or priority'' and inserting ``the following
activities''.
(d) Supplements to Federal Grant Programs.--Section 383E(a) of the
Consolidated Farm and Rural Development Act (as redesignated by
subsection (b)(1)(A)) is amended by striking ``, including local
development districts,''.
(e) Multistate and Local Development Districts and Organizations
and Northern Great Plains Inc.--Section 383F of the Consolidated Farm
and Rural Development Act (as redesignated by subsection (b)(1)(A)) is
amended--
(1) by striking the section heading and inserting
``multistate and local development districts and organizations
and northern great plains inc.'';
(2) by striking subsections (a) and (b) and inserting the
following:
``(a) Definition of Multistate and Local Development District or
Organization.--In this section, the term `multistate and local
development district or organization' means an entity--
``(1) that--
``(A) is a planning district in existence on the
date of enactment of this subtitle that is recognized
by the Economic Development Administration of the
Department of Commerce; or
``(B) is--
``(i) organized and operated in a manner
that ensures broad-based community
participation and an effective opportunity for
other nonprofit groups to contribute to the
development and implementation of programs in
the region;
``(ii) a nonprofit incorporated body
organized or chartered under the law of the
State in which the entity is located;
``(iii) a nonprofit agency or
instrumentality of a State or local government;
``(iv) a public organization established
before the date of enactment of this subtitle
under State law for creation of
multijurisdictional, area-wide planning
organizations;
``(v) a nonprofit agency or instrumentality
of a State that was established for the purpose
of assisting with multistate cooperation; or
``(vi) a nonprofit association or
combination of bodies, agencies, and
instrumentalities described in clauses (ii)
through (v); and
``(2) that has not, as certified by the Federal
cochairperson--
``(A) inappropriately used Federal grant funds from
any Federal source; or
``(B) appointed an officer who, during the period
in which another entity inappropriately used Federal
grant funds from any Federal source, was an officer of
the other entity.
``(b) Grants to Multistate, Local, or Regional Development
Districts and Organizations.--
``(1) In general.--The Authority may make grants for
administrative expenses under this section to multistate,
local, and regional development districts and organizations.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant
awarded under paragraph (1) shall not exceed 80 percent
of the administrative expenses of the regional or local
development district or organization receiving the
grant.
``(B) Maximum period.--No grant described in
paragraph (1) shall be awarded for a period greater
than 3 years.
``(3) Local share.--The contributions of a regional or
local development district or organization for administrative
expenses may be in cash or in kind, fairly evaluated, including
space, equipment, and services.''; and
(3) in subsection (c)--
(A) by striking ``Duties'' and inserting
``Authorities''; and
(B) in the matter preceding paragraph (1), by
striking ``shall'' and inserting ``may''.
(f) Distressed Counties and Areas and Nondistressed Counties.--
Section 383G of the Consolidated Farm and Rural Development Act (as
redesignated by subsection (b)(1)(A)) is amended--
(1) in subsection (b)(1), by striking ``75'' and inserting
``50'';
(2) by striking subsection (c);
(3) by redesignating subsection (d) as subsection (c); and
(4) in subsection (c) (as so redesignated)--
(A) in the subsection heading, by inserting ``,
Renewable Energy,'' after ``Telecommunication,''; and
(B) by inserting ``, renewable energy,'' after
``telecommunication,''.
(g) Development Planning Process.--Section 383H of the Consolidated
Farm and Rural Development Act (as redesignated by subsection
(b)(1)(A)) is amended--
(1) in subsection (c)(1), by striking subparagraph (A) and
inserting the following:
``(A) multistate, regional, and local development
districts and organizations; and''; and
(2) in subsection (d)(1), by striking ``State and local
development districts'' and inserting ``multistate, regional,
and local development districts and organizations''.
(h) Program Development Criteria.--Section 383I(a)(1) of the
Consolidated Farm and Rural Development Act (as redesignated by
subsection (b)(1)(A)) is amended by inserting ``multistate or'' before
``regional''.
(i) Authorization of Appropriations.--Section 383N(a) of the
Consolidated Farm and Rural Development Act (as redesignated by
subsection (b)(1)(A)) is amended by striking ``2002 through 2007'' and
inserting ``2008 through 2012''.
(j) Termination of Authority.--Section 383O of the Consolidated
Farm and Rural Development Act (as redesignated by subsection
(b)(1)(A)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 6031. RURAL BUSINESS INVESTMENT PROGRAM.
(a) Issuance and Guarantee of Trust Certificates.--Section 384F of
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-5) is
amended--
(1) in subsection (a)(1), by inserting ``, including an
investment pool created entirely by such bank or savings
association'' before the period at the end;
(2) in subsection (b)(3)(A), by striking ``In the event''
and inserting the following:
``(i) Authority to prepay.--A debenture may
be prepaid at any time without penalty.
``(ii) Reduction of guarantee.--Subject to
clause (i), if''; and
(3) in subsection (e), by adding at the end the following:
``(6) Distributions.--
``(A) In general.--The Secretary shall authorize
distributions to investors for unrealized income from a
debenture.
``(B) Treatment.--Distributions made by a rural
business investment company to an investor of private
capital in the rural business investment company for
the purpose of covering the tax liability of the
investor resulting from unrealized income of the rural
business investment company shall not require the
repayment of a debenture.''.
(b) Fees.--Section 384G of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009cc-6) is amended--
(1) in subsection (a), by striking ``such fees as the
Secretary considers appropriate'' and inserting ``a fee that
does not exceed $500'';
(2) in subsection (b), by striking ``approved by the
Secretary'' and inserting ``that does not exceed $500''; and
(3) in subsection (c)--
(A) in paragraph (1), by striking ``The'' and
inserting ``Except as provided in paragraph (3), the'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking
``and'' at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) shall not exceed $500 for any fee collected
under this subsection.''; and
(C) by adding at the end the following:
``(3) Prohibition on collection of certain fees.--In the
case of a license described in paragraph (1) that was approved
before July 1, 2007, the Secretary shall not collect any fees
due on or after the date of enactment of this paragraph.''.
(c) Rural Business Investment Companies.--Section 384I(c) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-8(c)) is
amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Time frame.--Each rural business investment company
shall have a period of 2 years to meet the capital requirements
of this subsection.''.
(d) Financial Institution Investments.--Section 384J of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-9) is
amended by striking subsection (c).
(e) Contracting of Functions.--Section 384Q of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009cc-16) is repealed.
(f) Funding.--The Consolidated Farm and Rural Development Act is
amended by striking section 384S (7 U.S.C. 2009cc-18) and inserting the
following:
``SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this subtitle.''.
SEC. 6032. RURAL COLLABORATIVE INVESTMENT PROGRAM.
Subtitle I of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009dd et seq.) is amended to read as follows:
``Subtitle I--Rural Collaborative Investment Program
``SEC. 385A. PURPOSE.
``The purpose of this subtitle is to establish a regional rural
collaborative investment program--
``(1) to provide rural regions with a flexible investment
vehicle, allowing for local control with Federal oversight,
assistance, and accountability;
``(2) to provide rural regions with incentives and
resources to develop and implement comprehensive strategies for
achieving regional competitiveness, innovation, and prosperity;
``(3) to foster multisector community and economic
development collaborations that will optimize the asset-based
competitive advantages of rural regions with particular
emphasis on innovation, entrepreneurship, and the creation of
quality jobs;
``(4) to foster collaborations necessary to provide the
professional technical expertise, institutional capacity, and
economies of scale that are essential for the long-term
competitiveness of rural regions; and
``(5) to better use Department of Agriculture and other
Federal, State, and local governmental resources, and to
leverage those resources with private, nonprofit, and
philanthropic investments, to achieve measurable community and
economic prosperity, growth, and sustainability.
``SEC. 385B. DEFINITIONS.
``In this subtitle:
``(1) Benchmark.--The term `benchmark' means an annual set
of goals and performance measures established for the purpose
of assessing performance in meeting a regional investment
strategy of a Regional Board.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(3) National board.--The term `National Board' means the
National Rural Investment Board established under section
385C(c).
``(4) National institute.--The term `National Institute'
means the National Institute on Regional Rural Competitiveness
and Entrepreneurship established under section 385C(b)(2).
``(5) Regional board.--The term `Regional Board' means a
Regional Rural Investment Board described in section 385D(a).
``(6) Regional innovation grant.--The term `regional
innovation grant' means a grant made by the Secretary to a
certified Regional Board under section 385F.
``(7) Regional investment strategy grant.--The term
`regional investment strategy grant' means a grant made by the
Secretary to a certified Regional Board under section 385E.
``SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL COLLABORATIVE
INVESTMENT PROGRAM.
``(a) Establishment.--The Secretary shall establish a Rural
Collaborative Investment Program to support comprehensive regional
investment strategies for achieving rural competitiveness.
``(b) Duties of Secretary.--In carrying out this subtitle, the
Secretary shall--
``(1) appoint and provide administrative and program
support to the National Board;
``(2) establish a national institute, to be known as the
`National Institute on Regional Rural Competitiveness and
Entrepreneurship', to provide technical assistance to the
Secretary and the National Board regarding regional
competitiveness and rural entrepreneurship, including technical
assistance for--
``(A) the development of rigorous analytic programs
to assist Regional Boards in determining the challenges
and opportunities that need to be addressed to receive
the greatest regional competitive advantage;
``(B) the provision of support for best practices
developed by the Regional Boards;
``(C) the establishment of programs to support the
development of appropriate governance and leadership
skills in the applicable regions; and
``(D) the evaluation of the progress and
performance of the Regional Boards in achieving
benchmarks established in a regional investment
strategy;
``(3) work with the National Board to develop a national
rural investment plan, which shall--
``(A) create a framework to encourage and support a
more collaborative and targeted rural investment
portfolio in the United States;
``(B) establish the Rural Philanthropic Initiative,
to work with rural communities to create and enhance
the pool of permanent philanthropic resources committed
to rural community and economic development;
``(C) cooperate with the Regional Boards and State
and local governments, organizations, and entities to
ensure investment strategies are developed that take
into consideration existing rural assets; and
``(D) encourage the organization of Regional
Boards;
``(4) certify the eligibility of Regional Boards to receive
regional investment strategy grants and regional innovation
grants;
``(5) provide grants for Regional Boards to develop and
implement regional investment strategies;
``(6) provide technical assistance to Regional Boards on
issues, best practices, and emerging trends relating to rural
development, in cooperation with the National Rural Investment
Board; and
``(7) provide analytic and programmatic support for
regional rural competitiveness through the National Institute,
including--
``(A) programs to assist Regional Boards in
determining the challenges and opportunities that must
be addressed to receive the greatest regional
competitive advantage;
``(B) support for best practices development by the
regional investment boards;
``(C) programs to support the development of
appropriate governance and leadership skills in the
region; and
``(D) a review and annual evaluation of the
performance of the Regional Boards (including progress
in achieving benchmarks established in a regional
investment strategy) in an annual report submitted to--
``(i) the Committee on Agriculture of the
House of Representatives; and
``(ii) the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
``(c) National Rural Investment Board.--The Secretary shall
establish within the Department of Agriculture a board to be known as
the `National Rural Investment Board'.
``(d) Duties of National Board.--The National Board shall--
``(1) not later than 180 days after the date of
establishment of the National Board, develop rules relating to
the operation of the National Board;
``(2) provide advice to the Secretary and subsequently
review the design, development, and execution of the National
Rural Investment Plan;
``(3) provide advice to Regional Boards on issues, best
practices, and emerging trends relating to rural development;
and
``(4) provide advice to the Secretary and the National
Institute on the development and execution of the program under
this subtitle.
``(e) Membership.--
``(1) In general.--The National Board shall consist of 14
members appointed by the Secretary not later than 180 days
after the date of enactment of the Food and Energy Security Act
of 2007.
``(2) Supervision.--The National Board shall be subject to
the general supervision and direction of the Secretary.
``(3) Sectors represented.--The National Board shall
consist of representatives from each of--
``(A) nationally recognized entrepreneurship
organizations;
``(B) regional strategy and development
organizations;
``(C) community-based organizations;
``(D) elected members of county and municipal
governments;
``(E) elected members of State legislatures;
``(F) primary, secondary, and higher education, job
skills training, and workforce development
institutions;
``(G) the rural philanthropic community;
``(H) financial, lending, venture capital,
entrepreneurship, and other related institutions;
``(I) private sector business organizations,
including chambers of commerce and other for-profit
business interests;
``(J) Indian tribes; and
``(K) cooperative organizations.
``(4) Selection of members.--
``(A) In general.--In selecting members of the
National Board, the Secretary shall consider
recommendations made by--
``(i) the chairman and ranking member of
each of the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate;
``(ii) the Majority Leader and Minority
Leader of the Senate; and
``(iii) the Speaker and Minority Leader of
the House of Representatives.
``(B) Ex-officio members.--In consultation with the
chairman and ranking member of each of the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate, the Secretary may appoint not more than 3
other officers or employees of the Executive Branch to
serve as ex-officio, non-voting members of the National
Board.
``(5) Term of office.--
``(A) In general.--Subject to subparagraph (B), the
term of office of a member of the National Board
appointed under paragraph (1)(A) shall be for a period
of not more than 4 years.
``(B) Staggered terms.--The members of the National
Board shall be appointed to serve staggered terms.
``(6) Initial appointments.--Not later than 120 days after
the date of enactment of the Food and Energy Security Act of
2007, the Secretary shall appoint the initial members of the
National Board.
``(7) Vacancies.--A vacancy on the National Board shall be
filled in the same manner as the original appointment.
``(8) Compensation.--A member of the National Board shall
receive no compensation for service on the National Board, but
shall be reimbursed for related travel and other expenses
incurred in carrying out the duties of the member of the
National Board in accordance with section 5702 and 5703 of
title 5, United States Code.
``(9) Chairperson.--The National Board shall select a
chairperson from among the members of the National Board.
``(10) Federal status.--For purposes of Federal law, a
member of the National Board shall be considered a special
Government employee (as defined in section 202(a) of title 18,
United States Code).
``(f) Administrative Support.--The Secretary, on a reimbursable
basis from funds made available under section 385H(b)(3), may provide
such administrative support to the National Board as the Secretary
determines is necessary to carry out the duties of the National Board.
``SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.
``(a) In General.--A Regional Rural Investment Board shall be a
multijurisdictional and multisectoral group that--
``(1) represents the long-term economic, community, and
cultural interests of a region;
``(2) is certified by the Secretary to establish a rural
investment strategy and compete for regional innovation grants;
``(3) is composed of residents of a region that are broadly
representative of diverse public, nonprofit, and private sector
interests in investment in the region, including (to the
maximum extent practicable) representatives of--
``(A) units of local government (including
multijurisdictional units of local government);
``(B) nonprofit community-based development
organizations, including community development
financial institutions and community development
corporations;
``(C) agricultural, natural resource, and other
asset-based related industries;
``(D) in the case of regions with federally
recognized Indian tribes, Indian tribes;
``(E) regional development organizations;
``(F) private business organizations, including
chambers of commerce;
``(G)(i) institutions of higher education (as
defined in section 101(a) of the Higher Education Act
of 1965 (20 U.S.C. 1001(a)));
``(ii) tribally controlled colleges or universities
(as defined in section 2(a) of Tribally Controlled
College or University Assistance Act of 1978 (25 U.S.C.
1801(a))); and
``(iii) tribal technical institutions;
``(H) workforce and job training organizations;
``(I) other entities and organizations, as
determined by the Regional Board;
``(J) cooperatives; and
``(K) consortia of entities and organizations
described in subparagraphs (A) through (J);
``(4) represents a region inhabited by--
``(A) more than 25,000 individuals, as determined
in the latest available decennial census conducted
under section 141(a) of title 13, United States Code;
or
``(B) in the case of a region with a population
density of less than 2 individuals per square mile, at
least 10,000 individuals, as determined in that latest
available decennial census;
``(5) has a membership of which not less than 25 percent,
nor more than 40 percent, represents--
``(A) units of local government and Indian tribes
described in subparagraphs (A) and (D) of paragraph
(3);
``(B) nonprofit community and economic development
organizations and institutions of higher education
described in subparagraphs (B) and (G) of paragraph
(3); or
``(C) private business (including chambers of
commerce and cooperatives) and agricultural, natural
resource, and other asset-based related industries
described in subparagraphs (C) and (F) of paragraph
(3);
``(6) has a membership that may include an officer or
employee of a Federal or State agency, serving as an ex-
officio, nonvoting member of the Regional Board to represent
the agency; and
``(7) has organizational documents that demonstrate that
the Regional Board shall--
``(A) create a collaborative, inclusive public-
private strategy process;
``(B) develop, and submit to the Secretary for
approval, a regional investment strategy that meets the
requirements of section 385E, with benchmarks--
``(i) to promote investment in rural areas
through the use of grants made available under
this subtitle; and
``(ii) to provide financial and technical
assistance to promote a broad-based regional
development program aimed at increasing and
diversifying economic growth, improved
community facilities, and improved quality of
life;
``(C) implement the approved regional investment
strategy;
``(D) provide annual reports to the Secretary and
the National Board on progress made in achieving the
benchmarks of the regional investment strategy,
including an annual financial statement; and
``(E) select a non-Federal organization (such as a
regional development organization) in the local area
served by the Regional Board that has previous
experience in the management of Federal funds to serve
as fiscal manager of any funds of the Regional Board.
``(b) Urban Areas.--A resident of an urban area may serve as an ex-
officio member of a Regional Board.
``(c) Duties.--A Regional Board shall--
``(1) create a collaborative and inclusive planning process
for public-private investment within a region;
``(2) develop, and submit to the Secretary for approval, a
regional investment strategy;
``(3) develop approaches that will create permanent
resources for philanthropic giving in the region, to the
maximum extent practicable;
``(4) implement an approved strategy; and
``(5) provide annual reports to the Secretary and the
National Board on progress made in achieving the strategy,
including an annual financial statement.
``SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.
``(a) In General.--The Secretary shall make regional investment
strategy grants available to Regional Boards for use in developing,
implementing, and maintaining regional investment strategies.
``(b) Regional Investment Strategy.--A regional investment strategy
shall provide--
``(1) an assessment of the competitive advantage of a
region, including--
``(A) an analysis of the economic conditions of the
region;
``(B) an assessment of the current economic
performance of the region;
``(C) a background overview of the population,
geography, workforce, transportation system, resources,
environment, and infrastructure needs of the region;
and
``(D) such other pertinent information as the
Secretary may request;
``(2) an analysis of regional economic and community
development challenges and opportunities, including--
``(A) incorporation of relevant material from other
government-sponsored or supported plans and consistency
with applicable State, regional, and local workforce
investment strategies or comprehensive economic
development plans; and
``(B) an identification of past, present, and
projected Federal and State economic and community
development investments in the region;
``(3) a section describing goals and objectives necessary
to solve regional competitiveness challenges and meet the
potential of the region;
``(4) an overview of resources available in the region for
use in--
``(A) establishing regional goals and objectives;
``(B) developing and implementing a regional action
strategy;
``(C) identifying investment priorities and funding
sources; and
``(D) identifying lead organizations to execute
portions of the strategy;
``(5) an analysis of the current state of collaborative
public, private, and nonprofit participation and investment,
and of the strategic roles of public, private, and nonprofit
entities in the development and implementation of the regional
investment strategy;
``(6) a section identifying and prioritizing vital
projects, programs, and activities for consideration by the
Secretary, including--
``(A) other potential funding sources; and
``(B) recommendations for leveraging past and
potential investments;
``(7) a plan of action to implement the goals and
objectives of the regional investment strategy;
``(8) a list of performance measures to be used to evaluate
the implementation of the regional investment strategy,
including--
``(A) the number and quality of jobs, including
self-employment, created during implementation of the
regional rural investment strategy;
``(B) the number and types of investments made in
the region;
``(C) the growth in public, private, and nonprofit
investment in the human, community, and economic assets
of the region;
``(D) changes in per capita income and the rate of
unemployment; and
``(E) other changes in the economic environment of
the region;
``(9) a section outlining the methodology for use in
integrating the regional investment strategy with the economic
priorities of the State; and
``(10) such other information as the Secretary determines
to be appropriate.
``(c) Maximum Amount of Grant.--A regional investment strategy
grant shall not exceed $150,000.
``(d) Cost Sharing.--
``(1) In general.--Subject to paragraph (2), of the share
of the costs of developing, maintaining, evaluating,
implementing, and reporting with respect to a regional
investment strategy funded by a grant under this section--
``(A) not more than 40 percent may be paid using
funds from the grant; and
``(B) the remaining share shall be provided by the
applicable Regional Board or other eligible grantee.
``(2) Form.--A Regional Board or other eligible grantee
shall pay the share described in paragraph (1)(B) in the form
of cash, services, materials, or other in-kind contributions,
on the condition that not more than 50 percent of that share is
provided in the form of services, materials, and other in-kind
contributions.
``SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM.
``(a) Grants.--
``(1) In general.--The Secretary shall provide, on a
competitive basis, regional innovation grants to Regional
Boards for use in implementing projects and initiatives that
are identified in a regional rural investment strategy approved
under section 385E.
``(2) Timing.--After October 1, 2008, the Secretary shall
provide awards under this section on a quarterly funding cycle.
``(b) Eligibility.--For a Regional Board to receive a regional
innovation grant, the Secretary shall determine that--
``(1) the regional rural investment strategy of a Regional
Board has been reviewed by the National Board prior to approval
by the Secretary;
``(2) the management and organizational structure of the
Regional Board is sufficient to oversee grant projects,
including management of Federal funds; and
``(3) the Regional Board has a plan to achieve, to the
maximum extent practicable, the performance-based benchmarks of
the project in the regional rural investment strategy of the
Regional Board.
``(c) Limitations.--
``(1) Amount received.--A Regional Board may not receive
more than $6,000,000 in regional innovation grants under this
section during any 5-year period.
``(2) Determination of amount.--The Secretary shall
determine the amount of a regional innovation grant based on--
``(A) the needs of the region being addressed by
the applicable regional rural investment strategy
consistent with the purposes described in subsection
(f)(2); and
``(B) the size of the geographical area of the
region.
``(3) Geographic diversity.--The Secretary shall ensure
that not more than 10 percent of funding made available under
this section is provided to Regional Boards in any State.
``(d) Cost-Sharing.--
``(1) Limitation.--Subject to paragraph (2), the amount of
a grant made under this section shall not exceed 50 percent of
the cost of the project.
``(2) Waiver of grantee share.--The Secretary may waive the
limitation in paragraph (1) under special circumstances, as
determined by the Secretary, including--
``(A) a sudden or severe economic dislocation;
``(B) significant chronic unemployment or poverty;
``(C) a natural disaster; or
``(D) other severe economic, social, or cultural
duress.
``(3) Other federal assistance.--For the purpose of
determining cost-share limitations for any other Federal
program, funds provided under this section shall be considered
to be non-Federal funds.
``(e) Preferences.--In providing regional innovation grants under
this section, the Secretary shall give--
``(1) a high priority to strategies that demonstrate
significant leverage of capital and quality job creation; and
``(2) a preference to an application proposing projects and
initiatives that would--
``(A) advance the overall regional competitiveness
of a region;
``(B) address the priorities of a regional rural
investment strategy, including priorities that--
``(i) promote cross-sector collaboration,
public-private partnerships, or the provision
of collaborative gap financing or seed capital
for program implementation;
``(ii) exhibit collaborative innovation and
entrepreneurship, particularly within a public-
private partnership; and
``(iii) represent a broad coalition of
interests described in section 385D(a);
``(C) include a strategy to leverage public non-
Federal and private funds and existing assets,
including agricultural assets, natural assets, and
public infrastructure, with substantial emphasis placed
on the existence of real financial commitments to
leverage the available funds;
``(D) create quality jobs;
``(E) enhance the role, relevance, and leveraging
potential of community and regional foundations in
support of regional investment strategies;
``(F) demonstrate a history, or involve
organizations with a history, of successful leveraging
of capital for economic development and public
purposes;
``(G) address gaps in existing basic services,
including technology, within a region;
``(H) address economic diversification, including
agricultural and non-agriculturally based economies,
within a regional framework;
``(I) improve the overall quality of life in the
region (including with respect to education, health
care, housing, recreation, and arts and culture);
``(J) enhance the potential to expand economic
development successes across diverse stakeholder groups
within the region;
``(K) include an effective working relationship
with 1 or more institutions of higher education,
tribally controlled colleges or universities, or tribal
technical institutions; or
``(L) help to meet the other regional
competitiveness needs identified by a Regional Board.
``(f) Uses.--
``(1) Leverage.--A Regional Board shall prioritize projects
and initiatives carried out using funds from a regional
innovation grant provided under this section, based in part on
the degree to which members of the Regional Board are able to
leverage additional funds for the implementation of the
projects.
``(2) Purposes.--A Regional Board may use a regional
innovation grant--
``(A) to support the development of critical
infrastructure (including technology deployment and
services) necessary to facilitate the competitiveness
of a region;
``(B) to provide assistance to entities within the
region that provide essential public and community
services;
``(C) to enhance the value-added production,
marketing, and use of agricultural and natural
resources within the region, including activities
relating to renewable and alternative energy production
and usage;
``(D) to assist with entrepreneurship, job
training, workforce development, housing, educational,
or other quality of life services or needs, relating to
the development and maintenance of strong local and
regional economies;
``(E) to assist in the development of unique new
collaborations that link public, private, and
philanthropic resources, including community
foundations;
``(F) to provide support for business and
entrepreneurial investment, strategy, expansion, and
development, including feasibility strategies,
technical assistance, peer networks, and business
development funds;
``(G) to carry out other broad activities relating
to strengthening the economic competitiveness of the
region; and
``(H) to provide matching funds to enable community
foundations located within the region to build
endowments which provide permanent philanthropic
resources to implement a regional investment strategy.
``(3) Availability of funds.--The funds made available to a
Regional Board or any other eligible grantee through a regional
innovation grant shall remain available for the 7-year period
beginning on the date on which the award is provided, on the
condition that the Regional Board or other grantee continues to
be certified by the Secretary as making adequate progress
toward achieving established benchmarks.
``(g) Cost Sharing.--
``(1) Waiver of grantee share.--The Secretary may waive the
share of a grantee of the costs of a project funded by a
regional innovation grant under this section if the Secretary
determines that such a waiver is appropriate, including with
respect to special circumstances within tribal regions, in the
event an area experiences--
``(A) a sudden or severe economic dislocation;
``(B) significant chronic unemployment or poverty;
``(C) a natural disaster; or
``(D) other severe economic, social, or cultural
duress.
``(2) Other federal programs.--For the purpose of
determining cost-sharing requirements for any other Federal
program, funds provided as a regional innovation grant under
this section shall be considered to be non-Federal funds.
``(h) Noncompliance.--If a Regional Board or other eligible grantee
fails to comply with any requirement relating to the use of funds
provided under this section, the Secretary may--
``(1) take such actions as are necessary to obtain
reimbursement of unused grant funds; and
``(2) reprogram the recaptured funds for purposes relating
to implementation of this subtitle.
``(i) Priority to Areas With Awards and Approved Strategies.--
``(1) In general.--Subject to paragraph (3), in providing
rural development assistance under other programs, the
Secretary shall give a high priority to areas that receive
innovation grants under this section.
``(2) Consultation.--The Secretary shall consult with the
heads of other Federal agencies to promote the development of
priorities similar to those described in paragraph (1).
``(3) Exclusion of certain programs.--Paragraph (1) shall
not apply to the provision of rural development assistance
under any program relating to basic health, safety, or
infrastructure, including broadband deployment or minimum
environmental needs.
``SEC. 385G. RURAL ENDOWMENT LOANS PROGRAM.
``(a) In General.--The Secretary may provide long-term loans to
eligible community foundations to assist in the implementation of
regional investment strategies.
``(b) Eligible Community Foundations.--To be eligible to receive a
loan under this section, a community foundation shall--
``(1) be located in an area that is covered by a regional
investment strategy;
``(2) match the amount of the loan with an amount that is
at least 250 percent of the amount of the loan; and
``(3) use the loan and the matching amount to carry out the
regional investment strategy targeted to community and economic
development, including through the development of community
foundation endowments.
``(c) Terms.--A loan made under this section shall--
``(1) have a term of not less than 10, nor more than 20,
years;
``(2) bear an interest rate of 1 percent per annum; and
``(3) be subject to such other terms and conditions as are
determined appropriate by the Secretary.
``SEC. 385H. FUNDING.
``(a) In General.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use $135,000,000 to carry out this
subtitle, to remain available until expended.
``(b) Use by Secretary.--Of the amounts made available to the
Secretary under subsection (a), the Secretary shall use--
``(1) $15,000,000 to be provided for regional investment
strategy grants to Regional Boards under section 385E;
``(2) $110,000,000 to provide innovation grants to Regional
Boards under section 385F and for the cost of rural endowment
loans under section 385G;
``(3) $5,000,000 for fiscal year 2008 to administer the
duties of the National Board, to remain available until
expended; and
``(4) $5,000,000 for fiscal year 2008 to administer the
National Institute, to remain available until expended.
``(c) Authorization of Appropriations.--In addition to funds
otherwise made available to carry out this subtitle, there are
authorized to be appropriated to the Secretary such sums as are
necessary to carry out this subtitle.''.
SEC. 6033. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT
APPLICATIONS.
(a) Definition of Application.--In this section, the term
``application'' does not include an application for a loan or grant
that, as of the date of enactment of this Act, is in the preapplication
phase of consideration under regulations of the Secretary in effect on
the date of enactment of this Act.
(b) Use of Funds.--Subject to subsection (c), the Secretary shall
use funds made available under subsection (d) to provide funds for
applications that are pending on the date of enactment of this Act
for--
(1) water or waste disposal grants or direct loans under
paragraph (1) or (2) of section 306(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1926(a)); and
(2) emergency community water assistance grants under
section 306A of that Act (7 U.S.C. 1926a).
(c) Limitations.--
(1) Appropriated amounts.--Funds made available under this
section shall be available to the Secretary to provide funds
for applications for loans and grants described in subsection
(b) that are pending on the date of enactment of this Act only
to the extent that funds for the loans and grants appropriated
in the annual appropriations Act for fiscal year 2007 have been
exhausted.
(2) Program requirements.--The Secretary may use funds made
available under this section to provide funds for a pending
application for a loan or grant described in subsection (b)
only if the Secretary processes, reviews, and approves the
application in accordance with regulations in effect on the
date of enactment of this Act.
(3) Priority.--In providing funding under this section for
pending applications for loans or grants described in
subsection (b), the Secretary shall provide funding in the
following order of priority (until funds made available under
this section are exhausted):
(A) Pending applications for water systems.
(B) Pending applications for waste disposal
systems.
(4) Individual states.--In allocating funds made available
under subsection (d), the Secretary shall use not more 5
percent of the funds for pending applications for loans or
grants described in subsection (b) that are made in any
individual State.
(d) Funding.--Notwithstanding any other provision of law, of the
funds of the Commodity Credit Corporation, the Secretary shall use to
carry out this section $135,000,000, to remain available until
expended.
SEC. 6034. NORTHERN BORDER ECONOMIC DEVELOPMENT COMMISSION.
The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
seq.) is amended by adding at the end the following:
``Subtitle J--Northern Border Economic Development Commission
``SEC. 386A. DEFINITIONS.
``In this subtitle:
``(1) Commission.--The term `Commission' means the Northern
Border Economic Development Commission established by section
386B.
``(2) Federal grant program.--The term `Federal grant
program' means a Federal grant program to provide assistance in
carrying out economic and community development activities and
conservation activities that are consistent with economic
development.
``(3) Non-profit entity.--The term `non-profit entity'
means any entity with tax-exempt or non-profit status, as
defined by the Internal Revenue Service.
``(4) Region.--The term `region' means the area covered by
the Commission (as described in section 386N).
``SEC. 386B. NORTHERN BORDER ECONOMIC DEVELOPMENT COMMISSION.
``(a) Establishment.--
``(1) In general.--There is established the Northern Border
Economic Development Commission.
``(2) Composition.--The Commission shall be composed of--
``(A) a Federal member, to be appointed by the
President, with the advice and consent of the Senate;
and
``(B) the Governor of each State in the region that
elects to participate in the Commission.
``(3) Cochairpersons.--The Commission shall be headed by--
``(A) the Federal member, who shall serve--
``(i) as the Federal cochairperson; and
``(ii) as a liaison between the Federal
Government and the Commission; and
``(B) a State cochairperson, who--
``(i) shall be a Governor of a
participating State in the region; and
``(ii) shall be elected by the State
members for a term of not less than 1 year.
``(b) Alternate Members.--
``(1) State alternates.--
``(A) Appointment.--The State member of a
participating State may have a single alternate, who
shall be appointed by the Governor of the State from
among the Governor's cabinet or personal staff.
``(B) Voting.--An alternate shall vote in the event
of the absence, death, disability, removal, or
resignation of the member for whom the individual is an
alternate.
``(2) Alternate federal cochairperson.--The President shall
appoint an alternate Federal cochairperson.
``(3) Quorum.--
``(A) In general.--Subject to the requirements of
this paragraph, the Commission shall determine what
constitutes a quorum of the Commission.
``(B) Federal cochairperson.--The Federal
cochairperson or the Federal cochairperson's designee
must be present for the establishment of a quorum of
the Commission.
``(C) State alternates.--A State alternate shall
not be counted toward the establishment of a quorum of
the Commission.
``(4) Delegation of power.--No power or responsibility of
the Commission specified in paragraphs (3) and (4) of
subsection (c), and no voting right of any Commission member,
shall be delegated to any person--
``(A) who is not a Commission member; or
``(B) who is not entitled to vote in Commission
meetings.
``(c) Decisions.--
``(1) Requirements for approval.--Except as provided in
subsection (g), decisions by the Commission shall require the
affirmative vote of the Federal cochairperson and of a majority
of the State members, exclusive of members representing States
delinquent under subsection (g)(2)(C).
``(2) Consultation.--In matters coming before the
Commission, the Federal cochairperson, to the extent
practicable, shall consult with the Federal departments and
agencies having an interest in the subject matter.
``(3) Decisions requiring quorum of state members.--The
following decisions may not be made without a quorum of State
members:
``(A) A decision involving Commission policy.
``(B) Approval of State, regional, or subregional
development plans or strategy statements.
``(C) Modification or revision of the Commission's
code.
``(D) Allocation of amounts among the States.
``(4) Project and grant proposals.--The approval of project
and grant proposals is a responsibility of the Commission and
shall be carried out in accordance with section 386H.
``(d) Duties.--The Commission shall--
``(1) develop, on a continuing basis, comprehensive and
coordinated plans and programs to establish priorities and
approve grants for the economic development of the region,
giving due consideration to other Federal, State, and local
planning and development activities in the region;
``(2) not later than 365 days after the date of enactment
of this Act, establish priorities in a development plan for the
region (including 5-year regional outcome targets);
``(3) assess the needs and capital assets of the region
based on available research, demonstration projects,
assessments, and evaluations of the region prepared by Federal,
State, or local agencies, local development districts, and any
other relevant source;
``(4)(A) enhance the capacity of, and provide support for,
local development districts in the region; or
``(B) if no local development district exists in an area in
a participating State in the region, foster the creation of a
local development district;
``(5) actively solicit the participation of representatives
of local development districts, industry groups, and other
appropriate organizations as approved by the Commission, in all
public proceedings of the Commission conducted under subsection
(e)(1), either in-person or through interactive
telecommunications; and
``(6) encourage private investment in industrial,
commercial, and other economic development projects in the
region.
``(e) Administration.--In carrying out subsection (d), the
Commission may--
``(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and print
or otherwise reproduce and distribute a description of the
proceedings and reports on actions by the Commission as the
Commission considers appropriate;
``(2) authorize, through the Federal or State cochairperson
or any other member of the Commission designated by the
Commission, the administration of oaths if the Commission
determines that testimony should be taken or evidence received
under oath;
``(3) request from any Federal, State, or local department
or agency such information as may be available to or procurable
by the department or agency that may be of use to the
Commission in carrying out duties of the Commission;
``(4) adopt, amend, and repeal bylaws and rules governing
the conduct of Commission business and the performance of
Commission duties;
``(5) request the head of any Federal department or agency
to detail to the Commission such personnel as the Commission
requires to carry out duties of the Commission, each such
detail to be without loss of seniority, pay, or other employee
status;
``(6) request the head of any State department or agency or
local government to detail to the Commission such personnel as
the Commission requires to carry out duties of the Commission,
each such detail to be without loss of seniority, pay, or other
employee status;
``(7) provide for coverage of Commission employees in a
suitable retirement and employee benefit system by--
``(A) making arrangements or entering into
contracts with any participating State government; or
``(B) otherwise providing retirement and other
employee benefit coverage;
``(8) accept, use, and dispose of gifts or donations of
services or real, personal, tangible, or intangible property;
``(9) enter into and perform such contracts or other
transactions as are necessary to carry out Commission duties;
``(10) establish and maintain a central office located
within the Northern Border Economic Development Commission
region and field offices at such locations as the Commission
may select; and
``(11) provide for an appropriate level of representation
in Washington, DC.
``(f) Federal Agency Cooperation.--A Federal agency shall--
``(1) cooperate with the Commission; and
``(2) provide, on request of the Federal cochairperson,
appropriate assistance in carrying out this subtitle, in
accordance with applicable Federal laws (including
regulations).
``(g) Administrative Expenses.--
``(1) In general.--Administrative expenses of the
Commission (except for the expenses of the Federal
cochairperson, including expenses of the alternate and staff of
the Federal cochairperson, which shall be paid solely by the
Federal Government) shall be paid--
``(A) by the Federal Government, in an amount equal
to 50 percent of the administrative expenses; and
``(B) by the States in the region participating in
the Commission, in an amount equal to 50 percent of the
administrative expenses.
``(2) State share.--
``(A) In general.--The share of administrative
expenses of the Commission to be paid by each State
shall be determined by the Commission.
``(B) No federal participation.--The Federal
cochairperson shall not participate or vote in any
decision under subparagraph (A).
``(C) Delinquent states.--If a State is delinquent
in payment of the State's share of administrative
expenses of the Commission under this subsection--
``(i) no assistance under this subtitle
shall be furnished to the State (including
assistance to a political subdivision or a
resident of the State); and
``(ii) no member of the Commission from the
State shall participate or vote in any action
by the Commission.
``(h) Compensation.--
``(1) Federal cochairperson.--The Federal cochairperson
shall be compensated by the Federal Government at level III of
the Executive Schedule in subchapter II of chapter 53 of title
V, United States Code.
``(2) Alternate federal cochairperson.--The alternate
Federal cochairperson--
``(A) shall be compensated by the Federal
Government at level V of the Executive Schedule
described in paragraph (1); and
``(B) when not actively serving as an alternate for
the Federal cochairperson, shall perform such functions
and duties as are delegated by the Federal
cochairperson.
``(3) State members and alternates.--
``(A) In general.--A State shall compensate each
member and alternate representing the State on the
Commission at the rate established by law of the State.
``(B) No additional compensation.--No State member
or alternate member shall receive any salary, or any
contribution to or supplementation of salary from any
source other than the State for services provided by
the member or alternate to the Commission.
``(4) Detailed employees.--
``(A) In general.--No person detailed to serve the
Commission under paragraph (5) or (6) of subsection (e)
shall receive any salary or any contribution to or
supplementation of salary for services provided to the
Commission from--
``(i) any source other than the Federal,
State, local, or intergovernmental department
or agency from which the person was detailed;
or
``(ii) the Commission.
``(B) Violation.--Any person that violates this
paragraph shall be fined not more than $5,000,
imprisoned not more than 1 year, or both.
``(C) Applicable law.--The Federal cochairperson,
the alternate Federal cochairperson, and any Federal
officer or employee detailed to duty on the Commission
under subsection (e)(5) shall not be subject to
subparagraph (A), but shall remain subject to sections
202 through 209 of title 18, United States Code.
``(5) Additional personnel.--
``(A) Compensation.--
``(i) In general.--The Commission may
appoint and fix the compensation of an
executive director and such other personnel as
are necessary to enable the Commission to carry
out the duties of the Commission.
``(ii) Exception.--Compensation under
clause (i) shall not exceed the maximum rate
for the Senior Executive Service under section
5382 of title 5, United States Code, including
any applicable locality-based comparability
payment that may be authorized under section
5304(h)(2)(C) of that title.
``(B) Executive director.--The executive director
shall be responsible for--
``(i) the carrying out of the
administrative duties of the Commission;
``(ii) direction of the Commission staff;
and
``(iii) such other duties as the Commission
may assign.
``(C) No federal employee status.--No member,
alternate, officer, or employee of the Commission
(except the Federal cochairperson of the Commission,
the alternate and staff for the Federal cochairperson,
and any Federal employee detailed to the Commission
under subsection (e)(5)) shall be considered to be a
Federal employee for any purpose.
``(i) Conflicts of Interest.--
``(1) In general.--Except as provided under paragraph (2),
no State member, alternate, officer, or employee of the
Commission shall participate personally and substantially as a
member, alternate, officer, or employee of the Commission,
through decision, approval, disapproval, recommendation, the
rendering of advice, investigation, or otherwise, in any
proceeding, application, request for a ruling or other
determination, contract, claim, controversy, or other matter in
which, to knowledge of the member, alternate, officer, or
employee any of the following persons has a financial interest:
``(A) The member, alternate, officer, or employee.
``(B) The spouse, minor child, partner, or
organization (other than a State or political
subdivision of the State) of the member, alternate,
officer, or employee, in which the member, alternate,
officer, or employee is serving as officer, director,
trustee, partner, or employee.
``(C) Any person or organization with whom the
member, alternate, officer, or employee is negotiating
or has any arrangement concerning prospective
employment.
``(2) Disclosure.--Paragraph (1) shall not apply if the
State member, alternate, officer, or employee--
``(A) immediately advises the Commission of the
nature and circumstances of the proceeding,
application, request for a ruling or other
determination, contract, claim, controversy, or other
particular matter presenting a potential conflict of
interest;
``(B) makes full disclosure of the financial
interest; and
``(C) before the proceeding concerning the matter
presenting the conflict of interest, receives a written
determination by the Commission that the interest is
not so substantial as to be likely to affect the
integrity of the services that the Commission may
expect from the State member, alternate, officer, or
employee.
``(3) Violation.--Any person that violates this subsection
shall be fined not more than $10,000, imprisoned not more than
2 years, or both.
``(j) Validity of Contracts, Loans, and Grants.--The Commission may
declare void any contract, loan, or grant of or by the Commission in
relation to which the Commission determines that there has been a
violation of any provision under subsection (h)(4), subsection (i), or
sections 202 through 209 of title 18, United States Code.
``SEC. 386C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.
``(a) In General.--The Commission may approve grants to States,
local development districts (as defined in section 386E(a)), and public
and nonprofit entities for projects, approved in accordance with
section 386H--
``(1) to develop the infrastructure of the region for the
purpose of facilitating economic development in the region
(except that grants for this purpose may only be made to a
State or local government);
``(2) to assist the region in obtaining job training,
employment-related education, business development, and small
business development and entrepreneurship;
``(3) to assist the region in community and economic
development;
``(4) to support the development of severely distressed and
underdeveloped areas;
``(5) to promote resource conservation, forest management,
tourism, recreation, and preservation of open space in a manner
consistent with economic development goals;
``(6) to promote the development of renewable and
alternative energy sources; and
``(7) to achieve the purposes of this subtitle.
``(b) Funding.--
``(1) In general.--Funds for grants under subsection (a)
may be provided--
``(A) entirely from appropriations to carry out
this section;
``(B) in combination with funds available under
another State or Federal grant program; or
``(C) from any other source.
``(2) Eligible projects.--The Commission may provide
assistance, make grants, enter into contracts, and otherwise
provide funds to eligible entities in the region for projects
that promote--
``(A) business development;
``(B) job training or employment-related education;
``(C) small businesses and entrepreneurship,
including--
``(i) training and education to aspiring
entrepreneurs, small businesses, and students;
``(ii) access to capital and facilitating
the establishment of small business venture
capital funds;
``(iii) existing entrepreneur and small
business development programs and projects; and
``(iv) projects promoting small business
innovation and research;
``(D) local planning and leadership development;
``(E) basic public infrastructure, including high-
tech infrastructure and productive natural resource
conservation;
``(F) information and technical assistance for the
modernization and diversification of the forest
products industry to support value-added forest
products enterprises;
``(G) forest-related cultural, nature-based, and
heritage tourism;
``(H) energy conservation and efficiency in the
region to enhance its economic competitiveness;
``(I) the use of renewable energy sources in the
region to produce alternative transportation fuels,
electricity and heat; and
``(J) any other activity facilitating economic
development in the region.
``(3) Federal share.--Notwithstanding any provision of law
limiting the Federal share in any grant program, funds
appropriated or otherwise made available to carry out this
section may be used to increase a Federal share in a grant
program, as the Commission determines appropriate.
``SEC. 386D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
``(a) Federal Grant Program Funding.--In accordance with subsection
(b), the Federal cochairperson may use amounts made available to carry
out this subtitle, without regard to any limitations on areas eligible
for assistance or authorizations for appropriation under any other Act,
to fund all or any portion of the basic Federal contribution to a
project or activity under a Federal grant program in the region in an
amount that is above the fixed maximum portion of the cost of the
project otherwise authorized by applicable law, but not to exceed 80
percent of the costs of the project.
``(b) Certification.--
``(1) In general.--In the case of any program or project
for which all or any portion of the basic Federal contribution
to the project under a Federal grant program is proposed to be
made under this section, no Federal contribution shall be made
until the Federal official administering the Federal law
authorizing the contribution certifies that the program or
project--
``(A) meets the applicable requirements of the
applicable Federal grant law; and
``(B) could be approved for Federal contribution
under the law if funds were available under the law for
the program or project.
``(2) Certification by commission.--
``(A) In general.--The certifications and
determinations required to be made by the Commission
for approval of projects under this subtitle in
accordance with section 386H--
``(i) shall be controlling; and
``(ii) shall be accepted by the Federal
agencies.
``(B) Acceptance by federal cochairperson.--Any
finding, report, certification, or documentation
required to be submitted to the head of the department,
agency, or instrumentality of the Federal Government
responsible for the administration of any Federal grant
program shall be accepted by the Federal cochairperson
with respect to a supplemental grant for any project
under the program.
``SEC. 386E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND
ADMINISTRATIVE EXPENSES.
``(a) Definition of Local Development District.--In this section,
the term `local development district' means an entity designated by the
State that--
``(1) is--
``(A)(i) a planning district in existence on the
date of enactment of this Act that is recognized by the
Economic Development Administration of the Department
of Commerce; or
``(ii) a development district recognized by the
State; or
``(B) if an entity described in subparagraph (A)(i)
or (A)(ii) does not exist, an entity designated by the
Commission that satisfies the criteria developed by the
Economic Development Administration for a local
development district; and
``(2) has not, as certified by the Federal cochairperson--
``(A) inappropriately used Federal grant funds from
any Federal source; or
``(B) appointed an officer who, during the period
in which another entity inappropriately used Federal
grant funds from any Federal source, was an officer of
the other entity.
``(b) Grants to Local Development Districts.--
``(1) In general.--The Commission may make grants for
administrative expenses under this section.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant
awarded under paragraph (1) shall not exceed 80 percent
of the administrative expenses of the local development
district receiving the grant.
``(B) Local share.--The contributions of a local
development district for administrative expenses may be
in cash or in kind, fairly evaluated, including space,
equipment, and services.
``(c) Duties of Local Development Districts.--A local development
district shall--
``(1) operate as a lead organization serving multicounty
areas in the region at the local level; and
``(2) serve as a liaison between State and local
governments, nonprofit organizations (including community-based
groups and educational institutions), the business community,
and citizens that--
``(A) are involved in multijurisdictional planning;
``(B) provide technical assistance to local
jurisdictions and potential grantees; and
``(C) provide leadership and civic development
assistance.
``SEC. 386F. DEVELOPMENT PLANNING PROCESS.
``(a) State Development Plan.--In accordance with policies
established by the Commission, each State member shall submit a
development plan for the area of the region represented by the State
member.
``(b) Content of Plan.--A State development plan submitted under
subsection (a) shall reflect the goals, objectives, and priorities
identified in the regional development plan developed under section
386B(d)(2).
``(c) Consultation.--In carrying out the development planning
process, a State shall--
``(1) consult with--
``(A) local development districts;
``(B) local units of government;
``(C) institutions of higher learning; and
``(D) stakeholders; and
``(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities described in
paragraph (1).
``(d) Public Participation.--The Commission and applicable State
and local development districts shall encourage and assist, to the
maximum extent practicable, public participation in the development,
revision, and implementation of all plans and programs under this
subtitle.
``SEC. 386G. PROGRAM DEVELOPMENT CRITERIA.
``(a) In General.--In considering programs and projects to be
provided assistance under this subtitle, and in establishing a priority
ranking of the requests for assistance provided by the Commission, the
Commission shall follow procedures that ensure, to the maximum extent
practicable, consideration of--
``(1) the relationship of the project to overall regional
development;
``(2) the economic distress of an area, including the per
capita income, outmigration, poverty and unemployment rates,
and other socioeconomic indicators for the area;
``(3) the financial resources available to the applicants
for assistance seeking to carry out the project, with emphasis
on ensuring that projects are adequately financed to maximize
the probability of successful economic development;
``(4) the importance of the project in relation to other
projects that may be in competition for the same funds;
``(5) the prospects that the project for which assistance
is sought will improve, on a continuing rather than a temporary
basis, the opportunities for employment, the average level of
income, or the economic development of the area served by the
project;
``(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures and
the results of the expenditures may be evaluated; and
``(7) the preservation of multiple uses, including
conservation, of natural resources.
``(b) No Relocation Assistance.--No financial assistance authorized
by this subtitle shall be used to assist an establishment in relocating
from 1 area to another.
``(c) Reduction of Funds.--Funds may be provided for a program or
project in a State under this subtitle only if the Commission
determines that the level of Federal or State financial assistance
provided under a law other than this subtitle, for the same type of
program or project in the same area of the State within the region,
will not be reduced as a result of funds made available by this
subtitle.
``SEC. 386H. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.
``(a) In General.--A State or regional development plan or any
multistate subregional plan that is proposed for development under this
subtitle shall be reviewed by the Commission.
``(b) Evaluation by State Member.--An application for a grant or
any other assistance for a project under this subtitle shall be made
through and evaluated for approval by the State member of the
Commission representing the applicant.
``(c) Certification.--An application for a grant or other
assistance for a project shall be approved only on certification by the
State member and Federal cochairperson that the application for the
project--
``(1) describes ways in which the project complies with any
applicable State development plan;
``(2) meets applicable criteria under section 386G;
``(3) provides adequate assurance that the proposed project
will be properly administered, operated, and maintained; and
``(4) otherwise meets the requirements of this subtitle.
``(d) Votes for Decisions.--Upon certification of an application
for a grant or other assistance for a specific project under this
section, an affirmative vote of the Commission under section 386B(c)
shall be required for approval of the application.
``SEC. 386I. CONSENT OF STATES.
``Nothing in this subtitle requires any State to engage in or
accept any program under this subtitle without the consent of the
State.
``SEC. 386J. RECORDS.
``(a) Records of the Commission.--
``(1) In general.--The Commission shall maintain accurate
and complete records of all transactions and activities of the
Commission.
``(2) Availability.--All records required under paragraph
(1) shall be available for audit by the Comptroller General of
the United States and the Commission (including authorized
representatives of the Comptroller General and the Commission).
``(b) Records of Recipients of Federal Assistance.--
``(1) In general.--A recipient of Federal funds under this
subtitle shall, as required by the Commission, maintain
accurate and complete records of transactions and activities
financed with Federal funds and report on the transactions and
activities to the Commission.
``(2) Availability.--All records required under paragraph
(1) shall be available for audit by the Comptroller General of
the United States and the Commission (including authorized
representatives of the Comptroller General and the Commission).
``SEC. 386K. ANNUAL REPORT.
``Not later than 180 days after the end of each fiscal year, the
Commission shall submit to the President and to Congress a report
describing the activities carried out under this subtitle.
``SEC. 386L. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There is authorized to be appropriated to the
Commission to carry out this subtitle $40,000,000 for each of fiscal
years 2008 through 2012, to remain available until expended.
``(b) Administrative Expenses.--Not more than 5 percent of the
amount appropriated under subsection (a) for a fiscal year shall be
used for administrative expenses of the Commission.
``SEC. 386M. TERMINATION OF COMMISSION.
``This subtitle shall have no force or effect on or after October
1, 2012.
``SEC. 386N. REGION OF NORTHERN BORDER ECONOMIC DEVELOPMENT COMMISSION.
``(a) Goal.--It shall be the goal of the Commission to address
economic distress along the northern border of the United States east
of, and including, Cayuga County, New York, especially in rural areas.
``(b) Counties Included in Northern Border Region.--Consistent with
the goal described in subsection (a), the region of Commission shall
include the following counties:
``(1) In Maine, the counties of Aroostook, Franklin,
Oxford, Somerset, and Washington.
``(2) In New Hampshire, the county of Coos.
``(3) In New York, the counties of Cayuga, Clinton,
Franklin, Jefferson, Oswego, and St. Lawrence.
``(4) In Vermont, the counties of Essex, Franklin, Grand
Isle, and Orleans.
``(c) Contiguous Counties.--
``(1) In general.--Subject to paragraph (2), in addition to
the counties listed in subsection (b), the region of Commission
shall include the following counties:
``(A) In Maine, the counties of Androscoggin,
Kennebec, Penobscot, Piscataquis, and Waldo.
``(B) In New York, the counties of Essex, Hamilton,
Herkimer, Lewis, Oneida, and Seneca.
``(C) In Vermont, the county of Caledonia.
``(2) Recommendations to congress.--As part of an annual
report submitted under section 386K, the Commission may
recommend to Congress removal of a county listed in paragraph
(1) from the region on the basis that the county no longer
exhibits 2 or more of the following economic distress factors:
population loss, poverty, income levels, and unemployment.
``(d) Examination of Additional Counties and Areas for Inclusion in
the Region.--
``(1) In general.--Not later than one year after the date
of enactment of this Act, the Commission--
``(A) shall examine all counties that border the
region of the Commission specified in subsection (a),
including the political subdivisions and census tracts
within such counties; and
``(B) may add a county or any portion of a county
examined under subparagraph (A)to the region, if the
Commission determines that the county or portion--
``(i) is predominantly rural in nature; and
``(ii) exhibits significant economic
distress in terms of population loss, poverty,
income levels, unemployment, or other economic
indicator that the Commission considers
appropriate.
``(2) Priority.--In carrying out paragraph (1)(A), the
Commission shall first examine the following counties:
``(A) In Maine, the counties of Hancock and Knox.
``(B) In New Hampshire, the counties of Grafton,
Carroll, and Sullivan.
``(C) In New York, the counties of Fulton, Madison,
Warren, Saratoga, and Washington.
``(D) In Vermont, the county of Lamoille.
``(e) Addition of Counties and Other Areas.--
``(1) Recommendations.--Following the one-year period
beginning on the date of enactment of this Act, as part of an
annual report submitted under section 386K, the Commission may
recommend to Congress additional counties or portions of
counties for inclusion in the region.
``(2) Areas of economic distress.--The Commission may
recommend that an entire county be included in the region on
the basis of one or more distressed areas within the county.
``(3) Assessments of economic conditions.--The Commission
may provide technical and financial assistance to a county that
is not included in the region for the purpose of conducting an
economic assessment of the county. The results of such an
assessment may be used by the Commission in making
recommendations under paragraph (1).
``(f) Limitation.--A county eligible for assistance from the
Appalachian Regional Commission under subtitle IV of title 40, United
States Code, shall not be eligible for assistance from the Northern
Border Economic Development Commission.''.
Subtitle B--Rural Electrification Act of 1936
SEC. 6101. ENERGY EFFICIENCY PROGRAMS.
Sections 2(a) and 4 of the Rural Electrification Act of 1936 (7
U.S.C. 902(a), 904) are amended by inserting ``efficiency and'' before
``conservation'' each place it appears.
SEC. 6102. LOANS AND GRANTS FOR ELECTRIC GENERATION AND TRANSMISSION.
(a) In General.--Section 4 of the Rural Electrification Act of 1936
(7 U.S.C. 904) is amended in the first sentence by striking
``authorized and empowered, from the sums hereinbefore authorized, to''
and inserting ``shall''.
(b) Rural Communities With Extremely High Energy Costs.--Section
19(a) of the Rural Electrification Act of 1936 (7 U.S.C. 918a(a)) is
amended in the matter preceding paragraph (1) by striking ``may'' and
inserting ``shall''.
SEC. 6103. FEES FOR ELECTRIFICATION BASELOAD GENERATION LOAN
GUARANTEES.
The Rural Electrification Act of 1936 is amended by inserting after
section 4 (7 U.S.C. 904) the following:
``SEC. 5. FEES FOR ELECTRIFICATION BASELOAD GENERATION LOAN GUARANTEES.
``(a) In General.--For electrification baseload generation loan
guarantees, the Secretary shall, at the request of the borrower, charge
an upfront fee to cover the costs of the loan guarantee.
``(b) Fee.--
``(1) In general.--The fee described in subsection (a) for
a loan guarantee shall be at least equal to the costs of the
loan guarantee (within the meaning of section 502(5)(C) of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
``(2) Separate fee.--The Secretary may establish a separate
fee for each loan.
``(c) Eligibility.--To be eligible for an electrification baseload
generation loan guarantee under this section, a borrower shall--
``(1) provide a rating of the loan, exclusive of the
Federal guarantee, by an organization identified by the
Securities and Exchange Commission as a nationally recognized
statistical rating organization that determines that the loan
has at least a AA rating, or equivalent rating, as determined
by the Secretary; or
``(2) obtain insurance or a guarantee for the full and
timely repayment of principal and interest on the loan from an
entity that has at least an AA or equivalent rating by a
nationally recognized statistical rating organization.
``(d) Limitation.--Funds received from a borrower to pay for the
fees described in this section shall not be derived from a loan or
other debt obligation that is made or guaranteed by the Federal
Government.''.
SEC. 6104. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED ENERGY
EFFICIENCY AND DEMAND REDUCTION.
Section 12 of the Rural Electrification Act of 1936 (7 U.S.C. 912)
is amended by adding at the end the following:
``(c) Deferment of Payments To Allow Loans for Improved Energy
Efficiency and Demand Reduction.--
``(1) In general.--The Secretary shall allow borrowers to
defer payment of principal and interest on any direct loan made
under this Act to enable the borrower to make loans to
residential, commercial, and industrial consumers to install
energy efficient measures or devices that reduce the demand on
electric systems.
``(2) Amount.--The total amount of a deferment under this
subsection shall not exceed the sum of the principal and
interest on the loans made to a customer of the borrower, as
determined by the Secretary.
``(3) Term.--The term of a deferment under this subsection
shall not exceed 60 months.''.
SEC. 6105. RURAL ELECTRIFICATION ASSISTANCE.
Section 13 of the Rural Electrification Act of 1936 (7 U.S.C. 913)
is amended to read as follows:
``SEC. 13. DEFINITIONS.
``In this Act:
``(1) Farm.--The term `farm' means a farm, as defined by
the Bureau of the Census.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(3) Rural area.--
``(A) In general.--Except as provided otherwise in
this Act, the term `rural area' means the farm and
nonfarm population of--
``(i) any area described in section
343(a)(13)(A) of the Consolidated Farm and
Rural Development Act (7 U.S.C.
1991(a)(13)(A)); and
``(ii) any area within a service area of a
borrower for which a borrower has an
outstanding loan made under titles I through V
as of the date of enactment of this paragraph.
``(B) Rural broadband access.--For the purpose of
loans and loan guarantees made under section 601, the
term `rural area' has the meaning given the term in
section 343(a)(13)(C) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(13)(C)).
``(4) Territory.--The term `territory' includes any insular
possession of the United States.
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.''.
SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR
TELEPHONE PURPOSES.
Section 313A of the Rural Electrification Act of 1936 (7 U.S.C.
940c-1) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``for
electrification'' and all that follows through the end
and inserting ``for eligible electrification or
telephone purposes consistent with this Act.''; and
(B) by striking paragraph (4) and inserting the
following:
``(4) Annual amount.--The total amount of guarantees
provided by the Secretary under this section during a fiscal
year shall not exceed $1,000,000,000, subject to the
availability of funds under subsection (e).'';
(2) in subsection (c), by striking paragraphs (2) and (3)
and inserting the following:
``(2) Amount.--
``(A) In general.--The amount of the annual fee
paid for the guarantee of a bond or note under this
section shall be equal to 30 basis points of the amount
of the unpaid principal of the bond or note guaranteed
under this section.
``(B) Prohibition.--Except as otherwise provided in
this subsection and subsection (e)(2), no other fees
shall be assessed.
``(3) Payment.--
``(A) In general.--A lender shall pay the fees
required under this subsection on a semiannual basis.
``(B) Structured schedule.--The Secretary shall,
with the consent of the lender, structure the schedule
for payment of the fee to ensure that sufficient funds
are available to pay the subsidy costs for note or bond
guarantees as provided for in subsection (e)(2).''; and
(3) in subsection (f), by striking ``2007'' and inserting
``2012''.
SEC. 6107. EXPANSION OF 911 ACCESS.
Section 315 of the Rural Electrification Act of 1936 (7 U.S.C.
940e) is amended to read as follows:
``SEC. 315. EXPANSION OF 911 ACCESS.
``(a) In General.--Subject to such terms and conditions as the
Secretary may prescribe, the Secretary may make loans under this title
to entities eligible to borrow from the Rural Utilities Service,
emergency communications equipment providers, State or local
governments, Indian tribes (as defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b)), or other
public entities for facilities and equipment to expand or improve--
``(1) 911 access;
``(2) integrated interoperable emergency communications,
including multiuse networks that--
``(A) serve rural areas; and
``(B) provide commercial services or transportation
information services in addition to emergency
communications services;
``(3) homeland security communications;
``(4) transportation safety communications; or
``(5) location technologies used outside an urbanized area.
``(b) Loan Security.--Government-imposed fees related to emergency
communications (including State or local 911 fees) may be considered to
be security for a loan under this section.
``(c) Regulations.--The Secretary shall--
``(1) not later than 90 days after the date of enactment of
this subsection, promulgate proposed regulations to carry out
this section; and
``(2) not later than 90 days after the publication of
proposed rules to carry out this section, adopt final rules.
``(d) Authorization of Appropriations.--The Secretary shall use to
make loans under this section any funds otherwise made available for
telephone or broadband loans for each of fiscal years 2007 through
2012.''.
SEC. 6108. ELECTRIC LOANS TO RURAL ELECTRIC COOPERATIVES.
Title III of the Rural Electrification Act of 1936 is amended by
inserting after section 316 (7 U.S.C. 940f) the following:
``SEC. 317. ELECTRIC LOANS TO RURAL ELECTRIC COOPERATIVES.
``(a) Definition of Renewable Energy Source.--In this section, the
term `renewable energy source' has the meaning given the term
`qualified energy resources' in section 45(c)(1) of the Internal
Revenue Code of 1986.
``(b) Loans.--In addition to any other funds or authorities
otherwise made available under this Act, the Secretary may make
electric loans under this title for--
``(1) electric generation from renewable energy resources
for resale to rural and nonrural residents; and
``(2) transmission lines principally for the purpose of
wheeling power from 1 or more renewable energy sources.
``(c) Rate.--The rate of a loan under this section shall be equal
to the average tax-exempt municipal bond rate of similar maturities.''.
SEC. 6109. AGENCY PROCEDURES.
Title III of the Rural Electrification Act of 1936 is amended by
inserting after section 317 (as added by section 6108) the following:
``SEC. 318. AGENCY PROCEDURES.
``(a) Customer Service.--The Secretary shall ensure that loan
applicants under this Act are contacted at least once each month by the
Rural Utilities Service regarding the status of any pending loan
applications.
``(b) Financial Need.--The Secretary shall ensure that--
``(1) an applicant for any grant program administered by
the Rural Utilities Service has an opportunity to present
special economic circumstances in support of the grant, such as
the high cost of living, out migration, low levels of
employment, weather damage, or environmental loss; and
``(2) the special economic circumstances presented by the
applicant are considered in determining the financial need of
the applicant.
``(c) Mobile Digital Wireless.--To facilitate the transition from
analog wireless service to digital mobile wireless service, the
Secretary may adjust population limitations under this Act related to
digital mobile wireless service up to the level permitted under section
601.
``(d) Bonding Requirements.--The Secretary shall review the bonding
requirements for all programs administered by the Rural Utilities
Service under this Act to ensure that bonds are not required if--
``(1) the interests of the Secretary are adequately
protected by product warranties; or
``(2) the costs or conditions associated with a bond exceed
the benefit of the bond to the Secretary.''.
SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
AREAS.
(a) In General.--Section 601 of the Rural Electrification Act of
1936 (7 U.S.C. 950bb) is amended to read as follows:
``SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
AREAS.
``(a) Purpose.--The purpose of this section is to provide loans and
loan guarantees to provide funds for the costs of the construction,
improvement, and acquisition of facilities and equipment for broadband
service in rural areas.
``(b) Definition of Broadband Service.--In this section:
``(1) In general.--The term `broadband service' means any
technology identified by the Secretary as having the capacity
to transmit data to enable a subscriber to the service to
originate and receive high-quality voice, data, graphics, and
video.
``(2) Mobile broadband.--The term `broadband service'
includes any service described in paragraph (1) that is
provided over a licensed spectrum through the use of a mobile
station or receiver communicating with a land station or other
mobile stations communicating among themselves.
``(c) Loans and Loan Guarantees.--
``(1) In general.--The Secretary shall make or guarantee
loans to eligible entities described in subsection (d) to
provide funds for the construction, improvement, or acquisition
of facilities and equipment for the provision of broadband
service in rural areas.
``(2) Priority.--In making or guaranteeing loans under
paragraph (1), the Secretary shall give the highest priority to
applicants that offer to provide broadband service to the
greatest proportion of households that, prior to the provision
of the service, had no terrestrial broadband service provider.
``(3) Offer of service.--For purposes of this section, a
provider shall be considered to offer broadband service in a
rural area if the provider makes the broadband service
available to households in the rural area at not more than
average prices as compared to the prices at which similar
services are made available in the nearest urban area, as
determined by the Secretary.
``(d) Eligible Entities.--
``(1) Requirements.--
``(A) In general.--To be eligible to obtain a loan
or loan guarantee under this section, an entity shall--
``(i) have the ability to furnish, improve,
or extend a broadband service to a rural area;
``(ii) submit to the Secretary a proposal
that meets the requirements of this section for
a project to offer to provide service to at
least 25 percent of households in a specified
rural area that, as of the date on which the
proposal is submitted, are not offered
broadband service by a terrestrial broadband
service provider; and
``(iii) agree to complete buildout of the
broadband service described in the proposal not
later than 3 years after the date on which a
loan or loan guarantee under this section is
received.
``(B) Prohibition.--In carrying out this section,
the Secretary may not make a loan or loan guarantee for
a project in any specific area in which broadband
service is offered by 3 or more terrestrial service
providers that offer services that are comparable to
the services proposed by the applicant.
``(C) Equity and market survey requirements.--
``(i) In general.--The Secretary may
require an entity to provide a cost share in an
amount not to exceed 10 percent of the amount
of the loan or loan guarantee requested in the
application of the entity.
``(ii) Credit.--Recurring revenues of an
entity, including broadband service client
revenues, may be credited toward the cost share
required under clause (i).
``(iii) Market survey.--
``(I) In general.--The Secretary
may require an entity that proposes to
have a subscriber projection of more
than 20 percent of the broadband
service market in a rural area to
submit to the Secretary a market
survey.
``(II) Less than 20 percent.--The
Secretary may not require an entity
that proposes to have a subscriber
projection of less than 20 percent of
the broadband service market in a rural
area to submit to the Secretary a
market survey.
``(2) State and local governments and indian tribes.--
Subject to paragraph (1), a State or local government
(including any agency, subdivision, or instrumentality thereof
(including consortia thereof)) and an Indian tribe shall be
eligible for a loan or loan guarantee under this section to
provide broadband services to a rural area.
``(3) Adequacy of security.--The Secretary shall ensure
that the type, amount, and method of security used to secure
any loan or loan guarantee provided under this section is
commensurate to the risk involved with the loan or loan
guarantee, particularly if the loan or loan guarantee is issued
to a financially-healthy, strong, and stable entity.
``(4) Limitation.--No entity (including subsidiaries of an
entity) may acquire more than 20 percent of the resources of
the program under this section in any fiscal year, as
determined by the Secretary.
``(5) Notice requirement.--The Secretary shall include a
notice of applications under this section on the website of the
Secretary for a period of not less than 90 days.
``(6) Proposal information.--
``(A) Public access.--The Secretary shall make
available on the website of the Secretary during the
consideration of a loan by the Secretary--
``(i) the name of the applicant;
``(ii) a description and geographical
representation of the proposed area of
broadband service;
``(iii) a geographical representation and
numerical estimate of the households that have
no terrestrial broadband service offered in the
proposed service area of the project; and
``(iv) such other relevant information that
the Secretary determines to be appropriate.
``(B) Proprietary information.--In making
information available relating to a loan proposal as
described in subparagraph (A), the Secretary shall not
make available information that is proprietary (within
the meaning of section 552(b)(4) of title 5, United
States Code) to the business interests of the loan
applicant.
``(7) Timeline.--The Secretary shall establish a timeline
on the website for the Secretary for tracking applications
received under this section.
``(8) Additional information and determination.--
``(A) Prompt processing of applications.--
``(i) In general.--The Secretary shall
establish, by regulation, procedures to ensure
prompt processing of loan and loan guarantee
applications under this section.
``(ii) Time limits.--Subject to clause
(iii), the regulations shall establish general
time limits for action by the Secretary and
applicant response.
``(iii) Extensions.--The Secretary may
grant an extension for a time limit established
under clause (ii).
``(iv) Annual reports.--The Secretary shall
publish an annual report that--
``(I) describes processing times
for loan and loan guarantee
applications under this section; and
``(II) provides an explanation for
any processing time extensions required
by the Secretary.
``(B) Additional information.--Not later than 60
days after the date on which an applicant submits an
application, the Secretary shall request any additional
information required for the application to be
complete.
``(C) Determination.--Not later than 180 days after
the date on which an applicant submits a completed
application, the Secretary shall make a determination
of whether to approve the application.
``(9) Loan closing.--Not later than 45 days after the date
on which the Secretary approves an application, documents
necessary for the closing of the loan or loan guarantee shall
be provided to applicant.
``(10) Fund disbursement.--Not later than 10 business days
after the date of the receipt of valid documentation requesting
disbursement of the approved, closed loan, the disbursement of
loan funds shall occur.
``(11) Preapplication process.--The Secretary shall
establish an optional preapplication process under which an
applicant may apply to the Rural Utilities Service for a
binding determination of area eligibility prior to preparing a
full loan application.
``(12) Pending applications.--An application for a loan or
loan guarantee under this section, or a petition for
reconsideration of a decision on such an application, that is
pending on the date of enactment of this paragraph shall be
considered under eligibility and feasibility criteria that are
no less favorable to the applicant than the criteria in effect
on the original date of submission of the application.
``(e) Broadband Service.--
``(1) In general.--The Secretary shall, from time to time
as advances in technology warrant, review and recommend
modifications of rate-of-data transmission criteria for
purposes of the identification of broadband service
technologies under subsection (b).
``(2) Prohibition.--The Secretary shall not establish
requirements for bandwidth or speed that have the effect of
precluding the use of evolving technologies appropriate for
rural areas outside rural communities.
``(f) Technological Neutrality.--For purposes of determining
whether to make a loan or loan guarantee for a project under this
section, the Secretary shall use criteria that are technologically
neutral.
``(g) Terms and Conditions for Loans and Loan Guarantees.--
``(1) In general.--Notwithstanding any other provision of
law, a loan or loan guarantee under subsection (c) shall--
``(A) bear interest at an annual rate of, as
determined by the Secretary--
``(i) in the case of a direct loan, the
lower of--
``(I) the cost of borrowing to the
Department of the Treasury for
obligations of comparable maturity; or
``(II) 4 percent; and
``(ii) in the case of a guaranteed loan,
the current applicable market rate for a loan
of comparable maturity; and
``(B) except as provided in paragraph (2), have a
term not to exceed the useful life of the assets
constructed, improved, or acquired with the proceeds of
the loan or extension of credit.
``(2) Term of loan exception.--A loan or loan guarantee
under subsection (c) may have a term not to exceed 30 years if
the Secretary determines that the loan security is sufficient.
``(3) Recurring revenue.--The Secretary shall consider the
recurring revenues of the entity at the time of application in
determining an adequate level of credit support.
``(h) Use of Loan Proceeds To Refinance Loans for Deployment of
Broadband Service.--Notwithstanding any other provision of this Act,
the proceeds of any loan made or guaranteed by the Secretary under this
Act may be used by the recipient of the loan for the purpose of
refinancing an outstanding obligation of the recipient on another
telecommunications-related loan made under this Act if the use of the
proceeds for that purpose will further the construction, improvement,
or acquisition of facilities and equipment for the provision of
broadband service in rural areas.
``(i) Reports.--Not later than 1 year after the date of enactment
of the Food and Energy Security Act of 2007, and biennially thereafter,
the Administrator shall submit to Congress a report that--
``(1) describes the ways in which the Administrator
determines under subsection (b)(1) that a service enables a
subscriber to originate and receive high-quality voice, data,
graphics, and video; and
``(2) provides a detailed list of services that have been
granted assistance under this section.
``(j) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$25,000,000 for each of fiscal years 2008 through 2012.
``(2) Allocation of funds.--
``(A) In general.--From amounts made available for
each fiscal year under this subsection, the Secretary
shall--
``(i) establish a national reserve for
loans and loan guarantees to eligible entities
in States under this section; and
``(ii) allocate amounts in the reserve to
each State for each fiscal year for loans and
loan guarantees to eligible entities in the
State.
``(B) Amount.--Based on information available from
the most recent decennial census, the amount of an
allocation made to a State for a fiscal year under
subparagraph (A) shall bear the same ratio to the
amount of allocations made for all States for the
fiscal year as--
``(i) the number of communities with a
population of 2,500 inhabitants or less in the
State; bears to
``(ii) the number of communities with a
population of 2,500 inhabitants or less in all
States.
``(C) Unobligated amounts.--Any amounts in the
reserve established for a State for a fiscal year under
subparagraph (B) that are not obligated by April 1 of
the fiscal year shall be available to the Secretary to
make loans and loan guarantees under this section to
eligible entities in any State, as determined by the
Secretary.
``(k) Termination of Authority.--No loan or loan guarantee may be
made under this section after September 30, 2012.''.
(b) National Center for Rural Telecommunications Assessment.--Title
VI of Rural Electrification Act of 1936 (7 U.S.C. 950bb et seq.) is
amended by adding at the end the following:
``SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.
``(a) Establishment of Center.--The Secretary shall designate a
National Center for Rural Telecommunications Assessment (referred to in
this section as the `Center').
``(b) Criteria.--In designating the Center, the Secretary shall
ensure that--
``(1) the Center is an entity with a focus on rural policy
research and a minimum of 5 years experience in rural
telecommunications research and assessment;
``(2) the Center is capable of assessing broadband services
in rural areas; and
``(3) the Center has significant experience with other
rural economic development centers and organizations in the
assessment of rural policies and formulation of policy
solutions at the local, State, and Federal levels.
``(c) Duties.--The Center shall--
``(1) assess the effectiveness of programs under this
section in increasing broadband availability and use in rural
areas, especially in those rural communities identified by the
Secretary as having no service before award of a broadband loan
or loan guarantee under section 601(c);
``(2) develop assessments of broadband availability in
rural areas, working with existing rural development centers
selected by the Center;
``(3) identify policies and initiatives at the local,
State, and Federal level that have increased broadband
availability and use in rural areas;
``(4) conduct national studies of rural households and
businesses focusing on the adoption of, barriers to, and use of
broadband services, with specific attention addressing the
economic, social and educational consequences of
inaccessibility to affordable broadband services;
``(5) provide reports to the public on the activities
carried out and funded under this section; and
``(6) conduct studies and provide recommendations to local,
State, and Federal policymakers on effective strategies to
bring affordable broadband services to rural citizens residing
outside of the municipal boundaries of rural cities and towns.
``(d) Reporting Requirements.--Not later than December 1, 2008, and
each year thereafter through December 1, 2012, the Center shall submit
to the Secretary a report that--
``(1) describes the activities of the Center, the results
of research carried out by the Center, and any additional
information for the preceding fiscal year that the Secretary
may request; and
``(2) includes--
``(A) assessments of the programs carried out under
this section and section 601;
``(B) annual assessments on the effects of the
policy initiatives identified under subsection (c)(3);
and
``(C) results from the national studies of rural
households and businesses conducted under subsection
(c)(4).
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $1,000,000 for
each of fiscal years 2008 through 2012.''.
(c) Regulations.--The Secretary may promulgate such regulations as
are necessary to implement the amendments made by this section.
SEC. 6111. COMPREHENSIVE RURAL BROADBAND.
(a) Comprehensive Rural Broadband Strategy.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Chairman of
the Federal Communications Commission, in coordination with the
Secretary, shall submit to the Committees on Energy and
Commerce and Agriculture of the House of Representatives and
the Committees on Commerce, Science, and Transportation and
Agriculture, Nutrition, and Forestry of the Senate a report
describing a comprehensive rural broadband strategy that
includes--
(A) recommendations--
(i) to promote interagency coordination of
Federal agencies in regards to policies,
procedures, and targeted resources, and to
improve and streamline the polices, programs,
and services;
(ii) to coordinate among Federal agencies
regarding existing rural broadband or rural
initiatives that could be of value to rural
broadband development;
(iii) to address both short- and long-term
solutions and needs assessments for a rapid
build-out of rural broadband solutions and
applications for Federal, State, regional, and
local government policy makers; and
(iv) to identify how specific Federal
agency programs and resources can best respond
to rural broadband requirements and overcome
obstacles that currently impede rural broadband
deployment; and
(B) a description of goals and timeframes to
achieve the strategic plans and visions identified in
the report.
(2) Updates.--The Chairman of the Federal Communications
Commission, in coordination with the Secretary shall update and
evaluate the report described in paragraph (1) on an annual
basis.
(b) Rural Broadband.--Section 306(a)(20)(E) of the Consolidated
Rural Development Act (7 U.S.C. 1926(a)(20)(E)) is amended by striking
``dial-up Internet access or''.
SEC. 6112. SUBSTANTIALLY UNDERSERVED TRUST AREAS.
The Rural Electrification Act of 1936 is amended by inserting after
section 306E (7 U.S.C. 936e) the following:
``SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS.
``(a) Definitions.--In this section:
``(1) Substantially underserved trust area.--The term
`substantially underserved trust area' means a community in
`trust land' (as defined in section 3765 of title 38, United
States Code) in which more than 20 percent of the beneficiaries
do not have modern, affordable, or reliable utility services,
as determined by the Secretary.
``(2) Utility service.--The term `utility service' means
electric, telecommunications, broadband, or water service.
``(b) Initiative.--The Secretary, in consultation with local
governments and Federal agencies, may implement an initiative to
identify and improve the availability and quality of utility services
in communities in substantially underserved trust areas.
``(c) Authority of Secretary.--In carrying out subsection (b), the
Secretary--
``(1) may make available from loan or loan guarantee
programs administered by the Rural Utilities Service to
qualified utilities or applicants financing with an interest
rate as low as 2 percent, and extended repayment terms, for use
in facilitating improved utility service in substantially
underserved trust areas;
``(2) may waive nonduplication restrictions, matching fund
requirements, credit support requirements, or other regulations
from any loan or grant program administered by the Rural
Utilities Service to facilitate the construction, acquisition,
or improvement of infrastructure used to deliver affordable
utility services to substantially underserved trust areas;
``(3) may assign the highest funding priority to projects
in substantially underserved trust areas;
``(4) shall make any loan or loan guarantee found to be
financially feasible to provide service to substantially
underserved trust areas; and
``(5) may conduct research and participate in regulatory
proceedings to recommend policy changes to enhance utility
service in substantially underserved trust areas.
``(d) Report.--Not later than 1 year after the date of enactment of
this section and annually thereafter, the Secretary shall submit to
Congress a report that describes--
``(1) the progress of the initiative implemented under
subsection (b); and
``(2) recommendations for any regulatory or legislative
changes that would be appropriate to improve services to
substantially underserved trust areas.''.
SEC. 6113. STUDY OF FEDERAL ASSISTANCE FOR BROADBAND INFRASTRUCTURE.
(a) In General.--The Comptroller General of the United States shall
conduct a study of--
(1) how the Rural Utilities Service takes into account
economic factors in the decisionmaking process of the Service
in allocating Federal broadband benefits;
(2) what other considerations the Rural Utilities Service
takes into account in making benefit awards;
(3) what economic forces prompt Rural Utilities Service
broadband loan applicants to seek Federal funding rather than
relying on the private market alone;
(4) how awards made by the Rural Utilities Service of
Federal benefits impact the expansion of broadband
infrastructure by the private sector; and
(5) what changes to Federal policy are needed to further
encourage technology expansion by private broadband service
providers.
(b) Report.--Not later than 30 months after the date of enactment
of this Act, the Comptroller General of the United States shall submit
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report that describes the results of the study conducted under
subsection (a), including any findings and recommendations.
Subtitle C--Connect the Nation Act
SEC. 6201. SHORT TITLE.
This subtitle may be cited as the ``Connect the Nation Act''.
SEC. 6202. GRANTS TO ENCOURAGE STATE INITIATIVES TO IMPROVE BROADBAND
SERVICE.
(a) Definitions.--In this section:
(1) Broadband service.--The term ``broadband service''
means any service that connects the public to the Internet with
a data transmission-rate equivalent that is at least 200
kilobits per second or 200,000 bits per second, or any
successor transmission-rate established by the Federal
Communications Commission for broadband, in at least 1
direction.
(2) Eligible entity.--The term ``eligible entity'' means a
nonprofit organization that, in conjunction with State agencies
and private sector partners, carries out an initiative under
the section to identify and track the availability and adoption
of broadband services within States.
(3) Nonprofit organization.--The term ``nonprofit
organization'' means an organization that--
(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from tax under
section 501(a) of that Code;
(B) has net earnings that do not inure to the
benefit of any member, founder, contributor, or
individual associated with the organization;
(C) has an established record of competence and
working with public and private sectors to accomplish
widescale deployment and adoption of broadband services
and information technology; and
(D) has a board of directors that does not have a
majority of individuals who are employed by, or
otherwise associated with, any Federal, State, or local
government or agency.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(b) Program.--The Secretary shall award grants to eligible entities
to pay the Federal share of the cost of the development and
implementation of statewide initiatives to identify and track the
availability and adoption of broadband services within States.
(c) Purposes.--The purpose of a grant made this section shall be--
(1) to ensure, to the maximum extent practicable, that all
citizens and businesses in States have access to affordable and
reliable broadband service;
(2) to promote improved technology literacy, increased
computer ownership, and home broadband use among those citizens
and businesses;
(3) to establish and empower local grassroots technology
teams in States to plan for improved technology use across
multiple community sectors; and
(4) to establish and sustain an environment that supports
broadband services and information technology investment.
(d) Eligibility.--To be eligible to receive a grant for an
initiative under this section, an eligible entity shall--
(1) submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary
may require; and
(2) provide matching non-Federal funds in an amount that is
equal to not less than 20 percent of the total cost of the
initiative.
(e) Competitive Basis.--Grants under this section shall be awarded
on a competitive basis.
(f) Peer Review.--
(1) In general.--The Secretary shall require technical and
scientific peer review of applications for grants under this
section.
(2) Review procedures.--The Secretary shall require that
any technical and scientific peer review group--
(A) be provided a written description of the grant
to be reviewed;
(B) provide the results of any review by the group
to the Secretary; and
(C) certify that the group will enter into such
voluntary nondisclosure agreements as are necessary to
prevent the unauthorized disclosure of confidential and
propriety information provided by broadband service
providers in connection with projects funded by a grant
under this section.
(g) Use of Funds.--A grant awarded to an eligible entity under this
section shall be used--
(1) to provide a baseline assessment of broadband service
deployment in 1 or more participating States;
(2) to identify and track--
(A) areas in the participating States that have low
levels of broadband service deployment;
(B) the rate at which individuals and businesses
adopt broadband service and other related information
technology services; and
(C) possible suppliers of the services;
(3) to identify barriers to the adoption by individuals and
businesses of broadband service and related information
technology services, including whether--
(A) the demand for the services is absent; and
(B) the supply for the services is capable of
meeting the demand for the services;
(4) to create and facilitate in each county or designated
region in the participating States a local technology planning
team--
(A) with members representing a cross section of
communities, including representatives of business,
telecommunications labor organizations, K-12 education,
health care, libraries, higher education, community-
based organizations, local government, tourism, parks
and recreation, and agriculture; and
(B) that shall--
(i) benchmark technology use across
relevant community sectors;
(ii) set goals for improved technology use
within each sector; and
(iii) develop a tactical business plan for
achieving the goals of the team, with specific
recommendations for online application
development and demand creation;
(5) to work collaboratively with broadband service
providers and information technology companies to encourage
deployment and use, especially in unserved, underserved, and
rural areas, through the use of local demand aggregation,
mapping analysis, and the creation of market intelligence to
improve the business case for providers to deploy;
(6) to establish programs to improve computer ownership and
Internet access for unserved, underserved, and rural
populations;
(7) to collect and analyze detailed market data concerning
the use and demand for broadband service and related
information technology services;
(8) to facilitate information exchange regarding the use
and demand for broadband services between public and private
sectors; and
(9) to create within the participating States a geographic
inventory map of broadband service that shall--
(A) identify gaps in the service through a method
of geographic information system mapping of service
availability at the census block level; and
(B) provide a baseline assessment of statewide
broadband deployment in terms of households with high-
speed availability.
(h) Participation Limitation.--For each participating State, an
eligible entity may not receive a new grant under this section to carry
out the activities described in subsection (g) within the participating
State if the eligible entity obtained prior grant awards under this
section to carry out the same activities in the participating State for
each of the previous 4 fiscal years.
(i) Report.--Each recipient of a grant under this section shall
submit to the Secretary a report describing the use of the funds
provided by the grant.
(j) No Regulatory Authority.--Nothing in this section provides any
public or private entity with any regulatory jurisdiction or oversight
authority over providers of broadband services or information
technology.
(k) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $40,000,000 for each of fiscal
years 2008 through 2012.
Subtitle D--Food, Agriculture, Conservation, and Trade Act of 1990
SEC. 6301. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.
Section 1670(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5923(e)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 6302. TELEMEDICINE, LIBRARY CONNECTIVITY, PUBLIC TELEVISION, AND
DISTANCE LEARNING SERVICES IN RURAL AREAS.
(a) In General.--Chapter 1 of subtitle D of title XXII of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et
seq.) is amended in the chapter heading by striking ``AND DISTANCE
LEARNING'' and inserting ``, LIBRARY CONNECTIVITY, PUBLIC TELEVISION,
AND DISTANCE LEARNING''.
(b) Purpose.--Section 2331 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 950aaa) is amended by striking
``telemedicine services and distance learning'' and inserting
``telemedicine services, library connectivity, and distance learning''.
(c) Definitions.--Section 2332 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-1) is amended--
(1) by redesignating paragraphs (1) through (3) as
paragraphs (2) through (4), respectively; and
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Connectivity.--The term `connectivity' means the
ability to use a range of high-speed digital services or
networks.''.
(d) Telemedicine, Library Connectivity, and Distance Learning
Services in Rural Areas.--Section 2333 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-2) is amended--
(1) in the section heading, by striking ``and distance
learning'' and inserting ``, library connectivity, public
television, and distance learning'';
(2) in subsection (a), by striking ``construction of
facilities and systems to provide telemedicine services and
distance learning services'' and inserting ``construction and
use of facilities and systems to provide telemedicine services,
library connectivity, distance learning services, and public
television station digital conversion'';
(3) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) Form.--The Secretary shall establish by notice the
amount of the financial assistance available to applicants in
the form of grants, costs of money loans, combinations of
grants and loans, or other financial assistance so as to--
``(A)(i) further the purposes of this chapter; and
``(ii) in the case of loans, result in the maximum
feasible repayment to the Federal Government of the
loan; and
``(B) to ensure that funds made available to carry
out this chapter are used to the maximum extent
practicable to assist useful and needed projects.'';
(4) in subsection (c)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A), by striking ``financial assistance'' and
inserting ``assistance in the form of grants'';
(ii) in subparagraph (A), by striking
``and'' at the end;
(iii) in subparagraph (B)--
(I) by striking ``service or
distance'' and inserting ``services,
library connectivity services, public
television station digital conversion,
or distance'';
(II) by striking the period at the
end and inserting a semicolon; and
(III) by adding at the end the
following:
``(C) libraries or library support organizations;
``(D) public television stations and the parent
organizations of public television stations; and
``(E) schools, libraries, and other facilities
operated by the Bureau of Indian Affairs or the Indian
Health Service.'';
(B) in paragraph (4), by striking ``services or
distance'' and inserting ``service, library
connectivity, public television station digital
conversion, or distance''; and
(C) by adding at the end the following:
``(5) Public television grants.--The Secretary shall
establish a separate competitive process to determine the
allocation of grants under this chapter to public television
stations.'';
(5) in subsection (d)--
(A) in the matter preceding paragraph (1), by
inserting ``1 or more of'' after ``considering'';
(B) in paragraph (12), by striking ``and'' at the
end;
(C) by redesignating paragraph (13) as paragraph
(14); and
(D) by inserting after paragraph (12) the
following:
``(13) the cost and availability of high-speed network
access; and'';
(6) by striking subsection (f) and inserting the following:
``(f) Use of Funds.--Financial assistance provided under this
chapter shall be used for--
``(1) the development, acquisition, and digital
distribution of instructional programming to rural users;
``(2) the development and acquisition, through lease or
purchase, of computer hardware and software, audio and visual
equipment, computer network components, telecommunications
terminal equipment, telecommunications transmission facilities,
data terminal equipment, or interactive video equipment,
teleconferencing equipment, or other facilities that would
further telemedicine services, library connectivity, or
distance learning services;
``(3) the provision of technical assistance and instruction
for the development or use of the programming, equipment, or
facilities referred to in paragraphs (1) and (2);
``(4) the acquisition of high-speed network transmission
equipment or services that would not otherwise be available or
affordable to the applicant;
``(5) costs relating to the coordination and collaboration
among and between libraries on connectivity and universal
service initiatives, or the development of multi-library
connectivity plans that benefit rural users;
``(6) competitive grants, for public television stations or
a consortium of public television stations, to provide
education, outreach, and assistance, in cooperation with
community groups, to rural communities and vulnerable
populations with respect to the digital television transition,
and particularly the acquisition, delivery, and installation of
the digital-to-analog converter boxes described in section 3005
of the Digital Television Transition and Public Safety Act of
2005 (47 U.S.C. 309 note); or
``(7) other uses that are consistent with this chapter, as
determined by the Secretary.''; and
(7) in subsection (i)--
(A) in paragraph (1), by striking ``telemedicine or
distance'' and inserting ``telemedicine, library
connectivity, public television station digital
conversion, or distance''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking
``telemedicine or distance'' and inserting
``telemedicine, library connectivity, or
distance''; and
(ii) in subparagraph (B), by inserting
``nonproprietary information contained in''
before ``the applications''.
(e) Administration.--Section 2334 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-3) is amended--
(1) in subsection (a), by striking ``services or distance''
and inserting ``services, library connectivity, or distance'';
and
(2) in subsection (d), by striking ``or distance learning''
and all that follows through the end of the subsection and
inserting ``, library connectivity, or distance learning
services through telecommunications in rural areas.''.
(f) Authorization of Appropriations.--Section 2335A of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is
amended by striking ``2007'' and inserting ``2012''.
(g) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7
U.S.C. 950aaa note; Public Law 102-551) is amended by striking ``2007''
and inserting ``2012''.
Subtitle E--Miscellaneous
SEC. 6401. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.
(a) Definitions.--Section 231 of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is amended by
striking subsection (a) and inserting the following:
``(a) Definitions.--In this section:
``(1) Assisting organization.--The term `assisting
organization' means a nonprofit organization, institution of
higher education, or units of government with expertise, as
determined by the Secretary, to assist eligible producers and
entities described in subsection (b)(1) through--
``(A) the provision of market research, training,
or technical assistance; or
``(B) the development of supply networks for value-
added products that strengthen the profitability of
small and mid-sized family farms.
``(2) Technical assistance.--The term `technical
assistance' means managerial, financial, operational, and
scientific analysis and consultation to assist an individual or
entity (including a recipient or potential recipient of a grant
under this section)--
``(A) to identify and evaluate practices,
approaches, problems, opportunities, or solutions; and
``(B) to assist in the planning, implementation,
management, operation, marketing, or maintenance of
projects authorized under this section.
``(3) Value-added agricultural product.--
``(A) In general.--The term `value-added
agricultural product' means any agricultural commodity
or product that--
``(i)(I) has undergone a change in physical
state;
``(II) was produced in a manner that
enhances the value of the agricultural
commodity or product, as demonstrated through a
business plan that shows the enhanced value, as
determined by the Secretary; or
``(III) is physically segregated in a
manner that results in the enhancement of the
value of the agricultural commodity or product;
and
``(ii) as a result of the change in
physical state or the manner in which the
agricultural commodity or product was produced,
marketed, or segregated--
``(I) the customer base for the
agricultural commodity or product has
been expanded; and
``(II) a greater portion of the
revenue derived from the marketing,
processing, or physical segregation of
the agricultural commodity or product
is available to the producer of the
commodity or product.
``(B) Inclusion.--The term `value-added
agricultural products' includes--
``(i) farm- or ranch-based renewable
energy, including the sale of E-85 fuel; and
``(ii) the aggregation and marketing of
locally-produced agricultural food products.''.
(b) Grant Program.--Section 231(b) of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is
amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking ``exceed
$500,000'' and inserting ``exceed--
``(i) $300,000 in the case of grants
including working capital; and
``(ii) $100,000 in the case of all other
grants.''; and
(B) by adding at the end the following:
``(C) Research, training, technical assistance, and
outreach.--The amount of grant funds provided to an
assisting organization for a fiscal year may not exceed
10 percent of the total amount of funds that are used
to make grants for the fiscal year under this
subsection.'';
(2) in paragraph (3)--
(A) in subparagraph (A), by striking ``or'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(C) to conduct market research, provide training
and technical assistance, develop supply networks, or
provide program outreach.''; and
(3) by striking paragraph (4) and inserting the following:
``(4) Term.--A grant under this section shall have a term
that does not exceed 3 years.
``(5) Simplified application.--The Secretary shall offer a
simplified application form and process for project proposals
requesting less than $50,000.
``(6) Priority.--
``(A) In general.--In awarding grants, the
Secretary shall give the priority to projects that--
``(i) contribute to increasing
opportunities for beginning farmers or
ranchers, socially disadvantaged farmers or
ranchers, and operators of small- and medium-
sized farms and ranches that are not larger
than family farms; and
``(ii) support new ventures that do not
have well-established markets or product
development staffs and budgets, including the
development of local food systems and the
development of infrastructure to support local
food systems.
``(B) Participation.--To the maximum extent
practicable, the Secretary shall provide grants to
projects that provide training and outreach activities
in areas that have, as determined by the Secretary,
received relatively fewer grants than other areas.
``(7) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection for each of fiscal years 2008 through
2012.''.
SEC. 6402. INSURANCE OF LOANS FOR HOUSING AND RELATED FACILITIES FOR
DOMESTIC FARM LABOR.
Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C. 1484(f)(3))
is amended by striking ``or the handling of such commodities in the
unprocessed stage'' and inserting ``, the handling of agricultural or
aquacultural commodities in the unprocessed stage, or the processing of
agricultural or aquacultural commodities''.
Subtitle F--Housing Assistance Council
SEC. 6501. SHORT TITLE.
This title may be cited as the ``Housing Assistance Council
Authorization Act of 2007''.
SEC. 6502. ASSISTANCE TO HOUSING ASSISTANCE COUNCIL.
(a) Use.--The Secretary of Housing and Urban Development may
provide financial assistance to the Housing Assistance Council for use
by such Council to develop the ability and capacity of community-based
housing development organizations to undertake community development
and affordable housing projects and programs in rural areas. Assistance
provided by the Secretary under this section may be used by the Housing
Assistance Council for--
(1) technical assistance, training, support, and advice to
develop the business and administrative capabilities of rural
community-based housing development organizations;
(2) loans, grants, or other financial assistance to rural
community-based housing development organizations to carry out
community development and affordable housing activities for
low- and moderate-income families; and
(3) such other activities as may be determined by the
Housing Assistance Council.
(b) Authorization of Appropriations.--There is authorized to be
appropriated for financial assistance under this section for the
Housing Assistance Council--
(1) $10,000,000 for fiscal year 2008; and
(2) $15,000,000 for each of fiscal years 2009 and 2010.
SEC. 6503. AUDITS AND REPORTS.
(a) Audit.--In any year in which the Housing Assistance Council
receives funds under this title, the Comptroller General of the United
States shall--
(1) audit the financial transactions and activities of such
Council only with respect to such funds so received; and
(2) submit a report detailing such audit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives.
(b) GAO Report.--The Comptroller General of the United States shall
conduct a study and submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representative on the use of any funds
appropriated to the Housing Assistance Council over the past 10 years.
SEC. 6504. PERSONS NOT LAWFULLY PRESENT IN THE UNITED STATES.
None of the funds made available under this title may be used to
provide direct housing assistance to any person not lawfully present in
the United States.
SEC. 6505. LIMITATION ON USE OF AUTHORIZED AMOUNTS.
None of the amounts authorized by this title may be used to lobby
or retain a lobbyist for the purpose of influencing a Federal, State,
or local governmental entity or officer.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
SEC. 7001. DEFINITIONS.
Section 1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103) is amended--
(1) in paragraph (4)--
(A) by redesignating subparagraphs (A) through (E)
as clauses (i) through (v), respectively;
(B) by striking ``(4) The terms'' and inserting the
following:
``(4) College and university.--
``(A) In general.--The terms''; and
(C) by adding at the end the following:
``(B) Inclusions.--The terms `college' and
`university' include a research foundation maintained
by a college or university described in subparagraph
(A).'';
(2) by redesignating paragraphs (6) through (8), (9)
through (14), (15), and (16) as paragraphs (7) through (9),
(11) through (16), (19), and (6), respectively, and moving the
paragraphs so as to appear in alphabetical order;
(3) by inserting after paragraph (9) (as redesignated by
paragraph (2)) the following:
``(10) Hispanic-serving agricultural colleges and
universities.--The term `Hispanic-serving agricultural colleges
and universities' means a college or university that--
``(A) qualifies as a Hispanic-serving institution;
and
``(B) offers associate, bachelor's, or other
accredited degree programs in agriculture-related
fields.''; and
(4) by striking paragraph (11) (as so redesignated) and
inserting the following:
``(11) Hispanic-serving institution.--The term `Hispanic-
serving institution' has the meaning given the term in section
502(a) of the Higher Education Act of 1965 (20 U.S.C.
1101a(a)).''.
SEC. 7002. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
Section 1408 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is
amended--
(A) in subsection (g)(1), by striking ``$350,000''
and inserting ``$500,000''; and
(B) in subsection (h), by striking ``2007'' and
inserting ``2012''.
SEC. 7003. VETERINARY MEDICINE LOAN REPAYMENT.
Section 1415A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3151a) is amended--
(1) by redesignating subsection (d) as subsection (g); and
(2) by inserting after subsection (c) the following:
``(d) Initial Implementation.--To address the urgent security
concerns of the United States with respect to public health,
bioterrorism preparedness, and food supply security, in implementing
the first phase of the veterinary medicine loan repayment program, the
Secretary shall give priority to large and mixed animal practitioner
shortages in rural communities.
``(e) Use of Funds.--None of the funds appropriated to the
Secretary under subsection (g) may be used to carry out section 5379 of
title 5, United States Code.
``(f) Regulations.--Notwithstanding subchapter II of chapter 5 of
title 5, United States Code, not later than 270 days after the date of
enactment of this subsection, the Secretary shall promulgate
regulations to carry out this section.''.
SEC. 7004. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR
GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
EDUCATION.
Section 1417 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
(1) in the matter preceding paragraph (1) of subsection
(b), by inserting ``(including the University of the District
of Columbia)'' after ``land-grant colleges and universities'';
and
(2) in subsection (d)(2), by inserting ``(including the
University of the District of Columbia)'' after
``universities''.
SEC. 7005. GRANTS TO 1890 INSTITUTIONS TO EXPAND EXTENSION CAPACITY.
Section 1417(b)(4) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(4)) is
amended by striking ``teaching and research'' and inserting ``teaching,
research, and extension''.
SEC. 7006. EXPANSION OF FOOD AND AGRICULTURAL SCIENCES AWARDS.
Section 1417(i) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3152(i)) is amended--
(1) in the subsection heading, by striking ``Teaching
Awards '' and ``Teaching, Extension, and Research Awards''; and
(2) by striking paragraph (1) and inserting the following:
``(1) Establishment.--
``(A) In general.--The Secretary shall establish a
National Food and Agricultural Sciences Teaching,
Extension, and Research Awards program to recognize and
promote excellence in teaching, extension, and research
in the food and agricultural sciences at a college or
university.
``(B) Minimum requirement.--The Secretary shall
make at least 1 cash award in each fiscal year to a
nominee selected by the Secretary for excellence in
each of the areas of teaching, extension, and research
of food and agricultural science at a college or
university.''.
SEC. 7007. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
EDUCATION.
(a) Education Teaching Programs.--Section 1417(j) of the National
Agricultural Research, Extension and Teaching Policy Act of 1977 (7
U.S.C. 3152(j)) is amended--
(1) in the subsection heading, by striking ``and 2-Year
Postsecondary Education Teaching Programs'' and inserting ``,
2-Year Postsecondary Education, and Agriculture in the K-12
Classroom''; and
(2) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by
striking ``and institutions of higher education that
award an associate's degree'' and inserting ``,
institutions of higher education that award an
associate's degree, other institutions of higher
education, and nonprofit organizations'';
(B) in subparagraph (E), by striking ``and'' at the
end;
(C) in subparagraph (F), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(G) to support current agriculture in the
classroom programs for grades K-12.''.
(b) Authorization of Appropriations.--Section 1417(l) of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3152(l)) is amended by striking ``2007'' and inserting
``2012''.
(c) Report.--Section 1417 of the National Agricultural Research,
Extension and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Report.--The Secretary shall submit an annual report to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
describing the distribution of funds used to implement teaching
programs under subsection (j).''.
SEC. 7008. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS
AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES
AND FOREST PRODUCTS.
Section 1419(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7009. POLICY RESEARCH CENTERS.
Section 1419A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
(1) in subsection (b), by inserting ``(including the Food
Agricultural Policy Research Institute, the Agricultural and
Food Policy Center, the Rural Policy Research Institute, and
the Community Vitality Center)'' after ``research institutions
and organizations''; and
(2) in subsection (d), by striking ``2007'' and inserting
``2012''.
SEC. 7010. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH
PROGRAM.
Section 1424(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7011. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL
RESEARCH.
Section 1424A(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7012. NUTRITION EDUCATION PROGRAM.
(a) Definitions.--Section 1425 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175) is
amended--
(1) by redesignating subsections (a) through (c) as
subsections (b) through (d), respectively;
(2) by striking the section heading and ``Sec. 1425.'' and
inserting the following:
``SEC. 1425. NUTRITION EDUCATION PROGRAM.
``(a) Definitions.--In this section, the terms `1862 Institution'
and `1890 Institution' have the meaning given those terms in section 2
of the Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7601).'';
(3) in subsection (b) (as redesignated by paragraph (1)),
by striking ``The Secretary'' and inserting the following:
``(b) Establishment.--The Secretary''; and
(4) in subsection (c) (as so redesignated), by striking
``In order to enable'' and inserting the following:
``(c) Employment and Training.--To enable''.
(b) Funding to 1862, 1890, and Insular Area Institutions.--
Subsection (d) of section 1425 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175) (as
redesignated by subsection (a)(1)) is amended--
(1) in the matter preceding paragraph (1), by striking
``Beginning'' and inserting the following:
``(d) Allocation of Funding.--Beginning''; and
(2) in paragraph (2), by striking subparagraph (B) and
inserting the following:
``(B) Notwithstanding section 3(d)(2) of the Act of
May 8, 1914 (7 U.S.C. 343(d)(2)), the remainder shall
be allocated among the States as follows:
``(i) $100,000 shall be distributed to each
1862 and 1890 land-grant college and
university.
``(ii)(I) Subject to subclause (II), of the
remainder, 10 percent for fiscal year 2008, 11
percent for fiscal year 2009, 12 percent for
fiscal year 2010, 13 percent for fiscal year
2011, 14 percent for fiscal year 2012, and 15
percent for each fiscal year thereafter, shall
be distributed among the 1890 Institutions, to
be allocated to each 1890 Institution in an
amount that bears the same ratio to the total
amount to be allocated under this clause as--
``(aa) the population living at or
below 125 percent of the income poverty
guidelines (as prescribed by the Office
of Management and Budget and as
adjusted pursuant to section 673(2) of
the Community Services Block Grant Act
(42 U.S.C. 9902(2))) in the State in
which the 1890 Institution is located;
bears to
``(bb) the total population living
at or below 125 percent of the income
poverty guidelines in all States that
have 1890 Institutions, as determined
by the last preceding decennial census
at the time each such additional amount
is first appropriated.
``(II) The total amount allocated under
this clause shall not exceed the amount of the
funds appropriated for the conduct of the
expanded food and nutrition education program
for the fiscal year that are in excess of the
amount appropriated for the conduct of the
program for fiscal year 2007.
``(iii)(I) Subject to subclauses (II) and
(III), the remainder shall be allocated to the
1860 institution in each State (including the
appropriate insular area institution and the
University of the District of Columbia) in an
amount that bears the same ratio to the total
amount to be allocated under this subparagraph
as--
``(aa) the population of the State
living at or below 125 percent of the
income poverty guidelines prescribed by
the Office of Management and Budget
(adjusted pursuant to section 673(2) of
the Omnibus Budget Reconciliation Act
of 1981 (42 U.S.C. 9902(2))); bears to
``(bb) the total population of all
the States living at or below 125
percent of the income poverty
guidelines, as determined by the last
preceding decennial census at the time
each such additional amount is first
appropriated.
``(II) The total amount allocated under
this clause to the University of the District
of Columbia shall not exceed the amount
described in clause (ii)(II), reduced by the
amount allocated to the University of the
District of Columbia under clause (ii).
``(III) Nothing in this clause precludes
the Secretary from developing educational
materials and programs for persons in income
ranges above the level designated in this
clause.''.
(c) Authorization of Appropriations.--Subsection (d)(3) of section
1425 of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3175) (as redesignated by subsection
(a)(1)) is amended--
(1) by striking ``There is'' and inserting the following:
``(3) Authorization of appropriations.--There is''; and
(2) by striking ``$83,000,000 for each of fiscal years 1996
through 2007'' and inserting ``$90,000,000 for each of fiscal
years 2008 through 2012''.
(d) Conforming Amendment.--Section 1588(b) of the Food Security Act
of 1985 (7 U.S.C. 3175e(b)) is amended by striking ``section
1425(c)(2)'' and inserting ``section 1425(d)(2)''.
(e) Effective Date.--The amendments made by this section take
effect on October 1, 2007.
SEC. 7013. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE
RESEARCH.
Section 1429 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3191) is amended--
(1) in paragraph (8), by striking ``and'' at the end;
(2) in paragraph (9), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(10) support work with agricultural colleges and
universities to develop methods and practices of animal
husbandry that ensure the judicious use of antibiotics.''.
SEC. 7014. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.
Section 1433(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended in the
first sentence by striking ``2007'' and inserting ``2012''.
SEC. 7015. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL
PROBLEMS.
Section 1434(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7016. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM.
Section 1434(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3196(b)) is amended by
inserting after ``universities'' the following: ``(including 1890
Institutions (as defined in section 2 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)))''.
SEC. 7017. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-GRANT
COLLEGES.
Section 1444(a)(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)(2)) is
amended by striking ``15 percent'' and inserting ``20 percent''.
SEC. 7018. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT 1890 LAND-
GRANT COLLEGES.
Section 1445(a)(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)(2)) is
amended by striking ``25 percent'' and inserting ``30 percent''.
SEC. 7019. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
UNIVERSITY.
Section 1447(b) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7020. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES
AT THE DISTRICT OF COLUMBIA LAND GRANT UNIVERSITY.
The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 is amended by inserting after section 1447 (7 U.S.C. 3222b)
the following:
``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AT THE DISTRICT OF COLUMBIA LAND GRANT
UNIVERSITY.
``(a) Purpose.--It is the intent of Congress to assist the land
grant university in the District of Columbia established under section
208 of the District of Columbia Public Postsecondary Education
Reorganization Act (Public Law 93-471; 88 Stat. 1428) in efforts to
acquire, alter, or repair facilities or relevant equipment necessary
for conducting agricultural research.
``(b) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $750,000 for each of fiscal
years 2008 through 2012.''.
SEC. 7021. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.
Section 1448 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended by striking
``2007'' each place it appears in subsections (a)(1) and (f) and
inserting ``2012''.
SEC. 7022. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION
ACTIVITIES OF 1890 INSTITUTIONS.
Section 1449(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222d(c)) is amended in the
first sentence by striking ``2007'' and inserting ``2012.''.
SEC. 7023. HISPANIC-SERVING INSTITUTIONS.
Section 1455 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3241) is amended--
(1) in subsection (a) by striking ``(or grants without
regard to any requirement for competition)'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``of consortia'';
(B) in paragraph (3), by striking ``, beginning
with the mentoring of students'' and all that follows
through ``doctoral degree''; and
(C) in paragraph (4)--
(i) by striking ``2 or more''; and
(ii) by striking ``, or between Hispanic-
serving'' and all that follows through ``the
private sector,''; and
(3) in subsection (c)--
(A) by striking ``$20,000,000'' and inserting
``$40,000,000''; and
(B) by striking ``2007'' and inserting ``2012''.
SEC. 7024. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.
(a) In General.--The National Agricultural Research, Extension and
Teaching Policy Act of 1977 is amended by inserting after section 1455
(7 U.S.C. 3241) the following:
``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.
``(a) Definition of Endowment Fund.--In this section, the term
`endowment fund' means the Hispanic-Serving Agricultural Colleges and
Universities Fund established under subsection (b).
``(b) Endowment.--
``(1) In general.--The Secretary of the Treasury shall
establish in accordance with this subsection a Hispanic-Serving
Agricultural Colleges and Universities Fund.
``(2) Agreements.--The Secretary of the Treasury may enter
into such agreements as are necessary to carry out this
subsection.
``(3) Deposit to the endowment fund.--The Secretary of the
Treasury shall deposit in the endowment fund any--
``(A) amounts made available through Acts of
appropriations, which shall be the endowment fund
corpus; and
``(B) interest earned on the endowment fund corpus.
``(4) Investments.--The Secretary of the Treasury shall
invest the endowment fund corpus and income in interest-bearing
obligations of the United States.
``(5) Withdrawals and expenditures.--
``(A) Corpus.--The Secretary of the Treasury may
not make a withdrawal or expenditure from the endowment
fund corpus.
``(B) Withdrawals.--On September 30, 2008, and each
September 30 thereafter, the Secretary of the Treasury
shall withdraw the amount of the income from the
endowment fund for the fiscal year and warrant the
funds to the Secretary of Agriculture who, after making
adjustments for the cost of administering the endowment
fund, shall distribute the adjusted income as follows:
``(i) 60 percent shall be distributed among
the Hispanic-serving agricultural colleges and
universities on a pro rata basis based on the
Hispanic enrollment count of each institution.
``(ii) 40 percent shall be distributed in
equal shares to the Hispanic-serving
agricultural colleges and universities.
``(6) Endowments.--Amounts made available under this
subsection shall be held and considered to be granted to
Hispanic-serving agricultural colleges and universities to
establish an endowment in accordance with this subsection.
``(7) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as are
necessary to carry out this subsection for fiscal year 2008 and
each fiscal year thereafter.
``(c) Authorization for Annual Payments.--
``(1) In general.--For fiscal year 2008 and each fiscal
year thereafter, there are authorized to be appropriated to the
Department of Agriculture to carry out this subsection an
amount equal to the product obtained by multiplying--
``(A) $80,000; by
``(B) the number of Hispanic-serving agricultural
colleges and universities.
``(2) Payments.--For fiscal year 2008 and each fiscal year
thereafter, the Secretary of the Treasury shall pay to the
treasurer of each Hispanic-Serving agricultural college and
university an amount equal to--
``(A) the total amount made available by
appropriations under subparagraph (A); divided by
``(B) the number of Hispanic-serving agricultural
colleges and universities.
``(3) Use of funds.--
``(A) In general.--Amounts authorized to be
appropriated under this subsection shall be used in the
same manner as is prescribed for colleges under the Act
of August 30, 1890 (commonly known as the `Second
Morrill Act') (7 U.S.C. 321 et seq.).
``(B) Relationship to other law.--Except as
otherwise provided in this subsection, the requirements
of that Act shall apply to Hispanic-serving
agricultural colleges and universities under this
section.
``(d) Institutional Capacity-Building Grants.--
``(1) In general.--For fiscal year 2008 and each fiscal
year thereafter, the Secretary shall make grants to assist
Hispanic-serving agricultural colleges and universities in
institutional capacity building (not including alteration,
repair, renovation, or construction of buildings).
``(2) Criteria for institutional capacity-building
grants.--
``(A) Requirements for grants.--The Secretary shall
make grants under this subsection on the basis of a
competitive application process under which Hispanic-
serving agricultural colleges and universities may
submit applications to the Secretary at such time, in
such manner, and containing such information as the
Secretary may require.
``(B) Demonstration of need.--
``(i) In general.--As part of an
application for a grant under this subsection,
the Secretary shall require the applicant to
demonstrate need for the grant, as determined
by the Secretary.
``(ii) Other sources of funding.--The
Secretary may award a grant under this
subsection only to an applicant that
demonstrates a failure to obtain funding for a
project after making a reasonable effort to
otherwise obtain the funding.
``(C) Payment of non-federal share.--A grant
awarded under this subsection shall be made only if the
recipient of the grant pays a non-Federal share in an
amount that is specified by the Secretary and based on
assessed institutional needs.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as are
necessary to carry out this subsection for fiscal year 2008 and
each fiscal year thereafter.
``(e) Competitive Grants Program.--
``(1) In general.--The Secretary shall establish a
competitive grants program to fund fundamental and applied
research at Hispanic-serving agricultural colleges and
universities in agriculture, human nutrition, food science,
bioenergy, and environmental science.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as are
necessary to carry out this subsection for fiscal year 2008 and
each fiscal year thereafter.''.
(b) Extension.--Section 3 of the Smith-Lever Act (7 U.S.C. 343) is
amended--
(1) in subsection (b), by adding at the end the following:
``(4) Annual appropriation for hispanic-serving
agricultural colleges and universities.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such
sums as are necessary to carry out this paragraph for
fiscal year 2008 and each fiscal year thereafter.
``(B) Additional amount.--Amounts made available
under this paragraph shall be in addition to any other
amounts made available under this section to States,
the Commonwealth of Puerto Rico, or any other territory
or possession of the United States.
``(C) Administration.--Amounts made available under
this paragraph shall be--
``(i) distributed on the basis of a
competitive application process to be developed
and implemented by the Secretary and paid by
the Secretary to the State institutions
established in accordance with the Act of July
2, 1862 (commonly known as the `First Morrill
Act') (7 U.S.C. 301 et seq.); and
``(ii) administered by State institutions
through cooperative agreements with the
Hispanic-serving agricultural colleges and
universities (as defined in section 1456 of the
National Agricultural Research, Extension and
Teaching Policy Act of 1977) in the State in
accordance with regulations promulgated by the
Secretary.''; and
(2) in subsection (f)--
(A) in the subsection heading, by inserting ``and
Hispanic-Serving Agricultural Colleges and
Universities'' after ``1994 Institutions''; and
(B) by striking ``pursuant to subsection (b)(3)''
and inserting ``or Hispanic-serving agricultural
colleges and universities in accordance with paragraphs
(3) and (4) of subsection (b)''.
SEC. 7025. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND
EDUCATION.
Section 1458(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``and'' after
the semicolon;
(B) in subparagraph (B), by adding ``and'' at the
end; and
(C) by adding at the end the following:
``(C) giving priority to those institutions with
existing memoranda of understanding, agreements, or
other formal ties to United States institutions, or
Federal or State agencies;'';
(2) in paragraph (3), by inserting ``Hispanic-serving
agricultural colleges and universities,'' after
``universities,'';
(3) in paragraph (7)(A), by striking ``and land-grant
colleges and universities'' and inserting ``, land-grant
colleges and universities, and Hispanic-serving agricultural
colleges and universities'';
(4) in paragraph (9)--
(A) in subparagraph (A), by striking ``or other
colleges and universities'' and inserting ``, Hispanic-
serving agricultural colleges and universities, or
other colleges and universities''; and
(B) in subparagraph (D), by striking ``and'' at the
end;
(5) in paragraph (10), by striking the period at the end
and inserting ``; and''; and
(6) by adding at the end the following:
``(11) establish a program for the purpose of providing
fellowships to United States or foreign students to study at
foreign agricultural colleges and universities working under
agreements provided for under paragraph (3).''.
SEC. 7026. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE
AND EDUCATION PROGRAMS.
Section 1459A(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7027. INDIRECT COSTS.
Section 1462(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3310(a)) is amended by
striking ``shall not exceed 19 percent'' and inserting ``shall be the
negotiated indirect rate of cost established for an institution by the
appropriate Federal audit agency for the institution, not to exceed 30
percent''.
SEC. 7028. RESEARCH EQUIPMENT GRANTS.
Section 1462A(e) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3310a(e)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7029. UNIVERSITY RESEARCH.
Section 1463 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking
``2007'' each place it appears in subsections (a) and (b) and inserting
``2012''.
SEC. 7030. EXTENSION SERVICE.
Section 1464 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7031. INDIRECT COST RECOVERY.
Section 1473A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3319a) is amended in the second
sentence by striking ``not exceeding 10 percent of the direct cost''
and inserting ``and shall be the negotiated indirect rate of cost for
an institution by the appropriate Federal audit agency for the
institution, not to exceed 30 percent.''
SEC. 7032. SUPPLEMENTAL AND ALTERNATIVE CROPS.
Section 1473D(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7033. AQUACULTURE RESEARCH FACILITIES.
(a) Fish Disease Program.--Section 1475(f) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3322(f)) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary''; and
(2) by adding at the end the following:
``(2) Viral hemorrhagic septicemia.--
``(A) In general.--The study of viral hemorrhagic
septicemia (referred to in this paragraph as `VHS') and
VHS management shall be considered an area of priority
research under this subsection.
``(B) Consultation.--
``(i) In general.--The Secretary shall
consult with appropriate directors of State and
tribal natural resource management and
agriculture agencies in areas that are VHS
positive as of the date of enactment of this
paragraph to develop and implement a
comprehensive set of priorities for managing
VHS, including providing funds for research
into the spread and control of the disease,
surveillance, monitoring, risk evaluation,
enforcement, screening, education and outreach,
and management.
``(ii) Consideration.--The Secretary shall
provide special consideration to the
recommendations of the directors described in
clause (i) in the development of the VHS
priorities.''.
(b) Authorization of Appropriations.--Section 1477 of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3324) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7034. RANGELAND RESEARCH.
(a) Grants.--Section 1480(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3333(a)) is
amended--
(1) in paragraph (1), by striking ``; and'' and inserting a
semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) pilot programs to coordinate and conduct
collaborative projects to address natural resources management
issues and facilitate the collection of information and
analysis to provide Federal and State agencies, private
landowners, and the public with information to allow for
improved management of public and private rangeland.''.
(b) Matching Requirements.--Section 1480(b)(2) of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3333(b)(2)) is amended by striking ``subsection (a)(2)'' and
inserting ``paragraph (2) or (3) of subsection (a)''.
(c) Authorization of Appropriations.--Section 1483(a) of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3336(a)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 7035. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.
Section 1484(a) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7036. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM
FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.
(a) Distance Education Grants for Insular Areas.--Section 1490(f)
of the National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3362(f)) is amended by striking ``2007'' and
inserting ``2012''.
(b) Resident Instruction Grants for Insular Areas.--Section 1491 of
the National Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3363) is amended--
(1) by redesignating subsection (e) as subsection (c); and
(2) in subsection (c) (as so redesignated), by striking
``2007'' and inserting ``2012''.
SEC. 7037. FARM MANAGEMENT TRAINING AND PUBLIC FARM BENCHMARKING
DATABASE.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended by inserting after section 1467
(7 U.S.C. 3313) the following:
``SEC. 1468. FARM MANAGEMENT TRAINING AND PUBLIC FARM BENCHMARKING
DATABASE.
``(a) Definitions.--In this section:
``(1) Benchmark, benchmarking.--The term `benchmark' or
`benchmarking' means the process of comparing the performance
of an agricultural enterprise against the performance of other
similar enterprises, through the use of comparable and reliable
data, in order to identify business management strengths,
weaknesses, and steps necessary to improve management
performance and business profitability.
``(2) Farm management association.--The term `farm
management association' means a public or nonprofit
organization or educational program--
``(A) the purpose of which is to assist farmers,
ranchers, and other agricultural operators to improve
financial management and business profitability by
providing training on farm financial planning and
analysis, record keeping, and other farm management
topics; and
``(B) that is affiliated with a land-grant college
or university, other institution of higher education,
or nonprofit entity.
``(3) National farm management center.--The term `National
Farm Management Center' means a land-grant college or
university that, as determined by the Secretary--
``(A) has collaborative partnerships with more than
5 farm management associations that are representative
of agricultural diversity in multiple regions of the
United States;
``(B) has maintained and continues to maintain farm
financial analysis software applicable to the
production and management of a wide range of crop and
livestock agricultural commodities (including some
organic commodities);
``(C) has established procedures that enable
producers--
``(i) to benchmark the farms of the
producers against peer groups; and
``(ii) to query the benchmarking database
by location, farm type, farm size, and
commodity at the overall business and
individual enterprise levels; and
``(D) has provided and continues to provide public
online access to farm and ranch financial benchmarking
databases.
``(b) Establishment.--
``(1) In general.--The Secretary shall establish a National
Farm Management Center to improve the farm management knowledge
and skills of individuals directly involved in production
agriculture through--
``(A) participation in a farm management education
and training program; and
``(B) direct access to a public farm benchmarking
database.
``(2) Proposals.--The Secretary shall request proposals
from appropriate land-grant colleges and universities for the
establishment of a National Farm Management Center in
accordance with this section.
``(3) Requirements.--The National Farm Management Center
established under paragraph (1) shall--
``(A) coordinate standardized financial analysis
methodologies for use by farmers, ranchers, other
agricultural operators, and farm management
associations;
``(B) provide the software tools necessary for farm
management associations, farmers, ranchers, and other
agricultural operators to perform the necessary
financial analyses, including the benchmarking of
individual enterprises; and
``(C) develop and maintain a national farm
financial database to facilitate those financial
analyses and benchmarking that is available online to
farmers, ranchers, other agricultural operators, farm
management associations, and the public.
``(c) Association Designation.--
``(1) In general.--The Secretary shall designate
collaborating farm management associations to collaborate with
the National Farm Management Center established under this
section.
``(2) Selection.--
``(A) In general.--The Secretary shall request
proposals from farm management associations and make
selections in consultation with the National Farm
Management Center.
``(B) National scope.--The National Farm Management
Center and the Secretary shall encourage the
establishment, nomination, and designation of qualified
farm management associations to provide farmers,
ranchers, and other agricultural operators in each
State with access to the training and benchmarking
tools described in this section.
``(3) Selection and designation criteria.--The designation
of each collaborating farm management association shall be
based upon--
``(A) in the case of an established farm management
association in a State or geographic region--
``(i) working with farmers, ranchers, and
other agricultural operators to improve their
financial management and business
profitability; and
``(ii) contributing farm, ranch, and other
agricultural operation financial analysis data
to a publicly available online benchmarking
database; and
``(B) in the case in which there is no established
farm management association in a particular State or
geographic region, a farm management association may be
designated as a collaborating farm management
association if the National Farm Management Center and
the Secretary determine that there is a strong
likelihood that the association will meet the ongoing
requirements described in subsection (d).
``(d) Association Requirements.--Each collaborating farm management
association designated under subsection (c) and receiving funds under
this section shall--
``(1) maintain a farm management education and training
program that is open to all agricultural producers;
``(2) provide individualized education to farmers,
ranchers, and other agricultural operators on accounting,
financial planning, and business management;
``(3) provide an annual farm financial analysis to each
participating farmer, rancher, or other agricultural operator;
``(4) use standardized farm business analysis procedures as
specified by the National Farm Management Center;
``(5) contribute farm and ranch financial analysis data to
the public online benchmarking database in a form and manner
determined by the National Farm Management Center; and
``(6) facilitate and encourage producers' sign-up for
ongoing multi-year participation in the training and
benchmarking programs.
``(e) Limitation on Indirect Costs.--Indirect costs charged against
funds provided under this section shall not be charged at a rate in
excess of the rate at which the applicable institution charged, or
could have charged, indirect costs during fiscal year 2007 against
funds received as described in section 1462 of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3310).
``(f) Administrative Expenses.--Not more than 8 percent of the
funds made available to carry out this section may be used for the
payment of administrative expenses of the Department of Agriculture in
carrying out this section.
``(g) Funding.--The Secretary shall make available each fiscal year
not less than 25 percent of funds appropriated under subsection (h) to
the National Farm Management Center designated under subsection (b).
``(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
SEC. 7038. TROPICAL AND SUBTROPICAL AGRICULTURAL RESEARCH.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) is amended by
adding at the end the following:
``SEC. 1473E. TROPICAL AND SUBTROPICAL AGRICULTURAL RESEARCH.
``(a) Definition of Caribbean and Pacific Basins.--In this section,
the term `Caribbean and Pacific basins', means--
``(1) the States of Florida and Hawaii;
``(2) the Commonwealth of Puerto Rico;
``(3) the United States Virgin Islands;
``(4) Guam;
``(5) American Samoa;
``(6) the Commonwealth of the Northern Mariana Islands;
``(7) the Federated States of Micronesia;
``(8) the Republic of the Marshall Islands; and
``(9) the Republic of Palau.
``(b) Establishment.--The Secretary shall establish a program, to
be known as the `Tropical and Subtropical Agricultural Research
Program', to sustain the agriculture and environment of the Caribbean
and Pacific basins, by supporting the full range of research relating
to food and agricultural sciences in the Caribbean and Pacific basins,
with an emphasis on--
``(1) pest management;
``(2) deterring introduction and establishment of invasive
species;
``(3) enhancing existing and developing new tropical and
subtropical agricultural products; and
``(4) expanding value-added agriculture in tropical and
subtropical ecosystems.
``(c) Grants.--
``(1) In general.--In carrying out this section, the
Secretary shall provide grants to be awarded competitively to
support tropical and subtropical agricultural research in the
Caribbean and Pacific basins.
``(2) Eligible entities.--To be eligible to receive a
grant, an entity shall be a land-grant college or university,
or affiliated with a land-grant college or university, that is
located in any region of the Caribbean and Pacific basin.
``(3) Requirements.--
``(A) Equal amounts.--The total amount of grants
provided under this subsection shall be equally divided
between the Caribbean and Pacific basins, as determined
by the Secretary.
``(B) Research infrastructure and capability
priority.--In providing grants under this subsection,
the Secretary shall give priority to projects of
eligible entities that--
``(i) expand the infrastructure and
capability of the region of the eligible
entity;
``(ii) scientifically and culturally
address regional agricultural and environmental
challenges; and
``(iii) sustain agriculture in the region
of the eligible entity.
``(C) Term.--The term of a grant provided under
this subsection shall not exceed 5 years.
``(D) Prohibitions.--A grant provided under this
subsection shall not be used for the planning, repair,
rehabilitation, acquisition, or construction of any
building or facility.
``(d) Funding.--
``(1) Set-aside.--Not less than 25 percent of the funds
made available to carry out this section during a fiscal year
shall be used to support programs and services that--
``(A) address the pest management needs of a region
in the Caribbean and Pacific basins; or
``(B) minimize the impact to a region in the
Caribbean and Pacific basins of invasive species.
``(2) Administrative costs.--The Secretary shall use not
more than 4 percent of the funds made available under
subsection (e) for administrative costs incurred by the
Secretary in carrying out this section.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section such sums as
are necessary for each of fiscal years 2008 through 2012.''.
SEC. 7039. REGIONAL CENTERS OF EXCELLENCE.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7036) is amended by adding at the end the following:
``SEC. 1473F. REGIONAL CENTERS OF EXCELLENCE.
``(a) Purposes.--The purposes of this section are--
``(1) to authorize regional centers of excellence for
specific agricultural commodities; and
``(2) to develop a national, coordinated program of
research, teaching, and extension for commodities that will--
``(A) be cost effective by reducing duplicative
efforts regarding research, teaching, and extension;
``(B) leverage available resources by using public/
private partnerships among industry groups,
institutions of higher education, and the Federal
Government;
``(C) increase the economic returns to agricultural
commodity industries by identifying, attracting, and
directing funds to high-priority industry issues; and
``(D) more effectively disseminate industry issue
solutions to target audiences through web-based
extension information, instructional courses, and
educational or training modules.
``(b) Definitions.--In this section:
``(1) Agricultural commodity.--The term `agricultural
commodity' has the meaning given the term in section 513 of the
Commodity Promotion, Research, and Information Act of 1996 (7
U.S.C. 7412).
``(2) Land-grant colleges and universities.--The term
`land-grant colleges and universities' means--
``(A) 1862 Institutions (as defined in section 2 of
the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7601));
``(B) 1890 Institutions (as defined in section 2 of
that Act); and
``(C) 1994 Institutions (as defined in section 2 of
that Act).
``(c) Establishment.--
``(1) Original composition.--The Secretary shall establish
regional centers of excellence for specific agricultural
commodities that are each comprised of--
``(A) a lead land-grant college or university; and
``(B) 1 or more member land-grant colleges and
universities that provide financial support to the
regional center of excellence.
``(2) Board of directors.--Each regional center of
excellence shall be administered by a board of directors
consisting of 15 members, as determined by the lead and member
land-grant colleges and universities of the center.
``(3) Additional directors and institutions.--Each board of
directors of a regional center of excellence may--
``(A) designate additional land-grant colleges and
universities as members of the center; and
``(B) designate representatives of the additional
land-grant colleges and universities and agriculture
industry groups to be additional members of the board
of directors.
``(d) Programs.--Each regional center of excellence shall achieve
the purposes of this section through--
``(1) research initiatives focused on issues pertaining to
the specific agricultural commodity;
``(2) teaching initiatives at lead and member land-grant
colleges and universities to provide intensive education
relating to the specific agricultural commodity; and
``(3) extension initiatives focusing on an internet-based
information gateway to provide for relevant information
development, warehousing, and delivery.
``(e) Funding.--
``(1) In general.--Each regional center of excellence shall
be funded through the use of--
``(A) grants made by the Secretary; and
``(B) matching funds provided by land-grant
colleges and universities and agriculture industry
groups.
``(2) Process.--The board of directors of each regional
center of excellence shall have the responsibility for
submitting grant proposals to the Secretary to carry out the
research, education, and extension program activities described
in subsection (d).
``(3) Term of grant.--The term of a grant under this
subsection may not exceed 5 years.
``(f) Poultry Sustainability Center of Excellence.--
``(1) In general.--The Secretary shall establish a poultry
sustainability center of excellence--
``(A) to identify challenges and develop solutions
to enhance the economic and environmental
sustainability of the poultry industry in the southwest
region of the United States;
``(B) to research, develop, and implement
programs--
``(i) to recover energy and other useful
products from poultry waste;
``(ii) to identify new technologies for the
storage, treatment, and use of animal waste;
and
``(iii) to assist the poultry industry in
ensuring that emissions of animal waste and
discharges of the industry are maintained at
levels at or below applicable regulatory
standards;
``(C) to provide technical assistance, training,
applied research, and monitoring to eligible
applicants;
``(D) to develop environmentally effective programs
in the poultry industry; and
``(E) to collaborate with eligible applicants to
work with the Federal Government (including Federal
agencies) in the development of conservation and
watershed programs to help private landowners and
agricultural producers meet applicable water quality
standards.
``(2) Reports.--Not later than 2 years after the date of
enactment of this section, and for each fiscal year thereafter,
the Secretary shall submit to Congress a report describing--
``(A) each project for which funds are provided
under this subsection; and
``(B) any advances in technology resulting from the
implementation of this subsection.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2008 through 2012.''.
SEC. 7040. NATIONAL DROUGHT MITIGATION CENTER.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7037) is amended by adding at the end the following:
``SEC. 1473G. NATIONAL DROUGHT MITIGATION CENTER.
``(a) In General.--The Secretary shall offer to enter into an
agreement with the National Drought Mitigation Center, under which the
Center shall--
``(1) continue to produce the United States Drought
Monitor;
``(2) maintain a clearinghouse and internet portal on
drought; and
``(3) develop new drought mitigation and preparedness
strategies, responses, models, and methodologies for the
agricultural community.
``(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each fiscal
year.''.
SEC. 7041. AGRICULTURAL DEVELOPMENT IN THE AMERICAN-PACIFIC REGION.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7038) is amended by adding at the end the following:
``SEC. 1473H. AGRICULTURAL DEVELOPMENT IN THE AMERICAN-PACIFIC REGION.
``(a) Definitions.--In this section:
``(1) American-pacific region.--The term `American-Pacific
region' means the region encompassing--
``(A) American Samoa;
``(B) Guam;
``(C) the Commonwealth of the Northern Mariana
Islands;
``(D) the Federated States of Micronesia;
``(E) the Republic of the Marshall Islands;
``(F) the Republic of Palau;
``(G) the State of Hawaii; and
``(H) the State of Alaska.
``(2) Consortium.--The term `consortium' means a
collaborative group that--
``(A) is composed of each eligible institution; and
``(B) submits to the Secretary an application for a
grant under subsection (b)(2).
``(3) Eligible institution.--The term `eligible
institution' means a land-grant college or university that is
located in the American-Pacific region.
``(b) Agricultural Development in the American Pacific Grants.--
``(1) In general.--The Secretary may make grants to a
consortium of eligible institutions to carry out integrated
research, extension, and instruction programs in support of
food and agricultural sciences.
``(2) Application.--To receive a grant under paragraph (1),
a consortium of eligible institutions shall submit to the
Secretary an application that includes--
``(A) for each eligible institution, a description
of each objective, procedure, and proposed use of funds
relating to any funds provided by the Secretary to the
consortium under paragraph (1); and
``(B) the method of allocation proposed by the
consortium to distribute to each eligible institution
any funds provided by the Secretary to the consortium
under paragraph (1).
``(3) Use of funds.--
``(A) In general.--An eligible institution that
receives funds through a grant under paragraph (1)
shall use the funds--
``(i) to acquire the equipment,
instrumentation, networking capability,
hardware and software, digital network
technology, and infrastructure required to
integrate research, extension, and instruction
programs in the American-Pacific region;
``(ii) to develop and provide support for
conducting research, extension, and instruction
programs in support of food and agricultural
sciences relevant to the American-Pacific
region, with special emphasis on--
``(I) the management of pests; and
``(II) the control of the spread of
invasive alien species; and
``(iii) to provide leadership development
to administrators, faculty, and staff of the
eligible institution with responsibility for
programs relating to agricultural research,
extension, and instruction.
``(B) Prohibited uses.--An eligible institution
that receives funds through a grant under paragraph (1)
may not use the funds for any cost relating to the
planning, acquisition, construction, rehabilitation, or
repair of any building or facility of the eligible
institution.
``(4) Grant term.--A grant under paragraph (1) shall have a
term of not more than 5 years.
``(5) Administration.--
``(A) Authority of secretary.--The Secretary may
carry out this section in a manner that recognizes the
different needs of, and opportunities for, each
eligible institution.
``(B) Administrative costs.--The Secretary shall
use not more than 4 percent of the amount appropriated
under subsection (d) for a fiscal year to pay
administrative costs incurred in carrying out this
section.
``(c) No Effect on Distribution of Funds.--Nothing in this section
affects any basis for distribution of funds by a formula in existence
on the date of enactment of this section relating to--
``(1) the Federated States of Micronesia;
``(2) the Republic of the Marshall Islands; or
``(3) the Republic of Palau.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 7042. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY
FELLOWSHIP PROGRAM.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7039) is amended by adding at the end the following:
``SEC. 1473I. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY
FELLOWSHIP PROGRAM.
``(a) Fellowship Program.--
``(1) In general.--The Secretary shall establish a
fellowship program, to be known as the `Borlaug International
Agricultural Science and Technology Fellowship Program,' to
provide fellowships for scientific training and study in the
United States to individuals from eligible countries (as
described in subsection (b)) who specialize in agricultural
education, research, and extension.
``(2) Programs.--The Secretary shall carry out the
fellowship program by implementing 3 programs designed to
assist individual fellowship recipients, including--
``(A) a graduate studies program in agriculture to
assist individuals who participate in graduate
agricultural degree training at a United States
institution;
``(B) an individual career improvement program to
assist agricultural scientists from developing
countries in upgrading skills and understanding in
agricultural science and technology; and
``(C) a Borlaug agricultural policy executive
leadership course to assist senior agricultural policy
makers from eligible countries, with an initial focus
on individuals from sub-Saharan Africa and the newly
independent states of the former Soviet Union.
``(b) Eligible Countries.--An eligible country is a developing
country, as determined by the Secretary using a gross national income
per capita test selected by the Secretary.
``(c) Purpose of Fellowships.--A fellowship provided under this
section shall--
``(1) promote food security and economic growth in eligible
countries by--
``(A) educating a new generation of agricultural
scientists;
``(B) increasing scientific knowledge and
collaborative research to improve agricultural
productivity; and
``(C) extending that knowledge to users and
intermediaries in the marketplace; and
``(2) shall support--
``(A) training and collaborative research
opportunities through exchanges for entry level
international agricultural research scientists,
faculty, and policymakers from eligible countries;
``(B) collaborative research to improve
agricultural productivity;
``(C) the transfer of new science and agricultural
technologies to strengthen agricultural practice; and
``(D) the reduction of barriers to technology
adoption.
``(d) Fellowship Recipients.--
``(1) Eligible candidates.--The Secretary may provide
fellowships under this section to individuals from eligible
countries who specialize in or have experience in agricultural
education, research, extension, or related fields, including--
``(A) individuals from the public and private
sectors; and
``(B) private agricultural producers.
``(2) Candidate identification.--The Secretary shall use
the expertise of United States land grant colleges and
universities and similar universities, international
organizations working in agricultural research and outreach,
and national agricultural research organizations to help
identify program candidates for fellowships under this section
from the public and private sectors of eligible countries.
``(e) Use of Fellowships.--A fellowship provided under this section
shall be used--
``(1) to promote collaborative programs among agricultural
professionals of eligible countries, agricultural professionals
of the United States, the international agricultural research
system, and, as appropriate, United States entities conducting
research; and
``(2) to support fellowship recipients through programs
described in subsection (a)(2).
``(f) Program Implementation.--The Secretary shall provide for the
management, coordination, evaluation, and monitoring of the overall
Borlaug International Agricultural Science and Technology Fellowship
Program and for the individual programs described in subsection (a)(2),
except that the Secretary may contract out to 1 or more collaborating
universities the management of 1 or more of the fellowship programs.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section, to
remain available until expended.''.
SEC. 7043. NEW ERA RURAL TECHNOLOGY PROGRAM.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7040) is amended by adding at the end the following:
``SEC. 1473J. NEW ERA RURAL TECHNOLOGY PROGRAM.
``(a) Definition of Rural Community College.--In this section, the
term `rural community college' means an institution of higher education
that--
``(1) admits as regular students individuals who--
``(A) are beyond the age of compulsory school
attendance in the State in which the institution is
located; and
``(B) have the ability to benefit from the training
offered by the institution, in accordance with criteria
established by the Secretary;
``(2) does not provide an educational program for which it
awards a bachelor's degree or an equivalent degree;
``(3)(A) provides an educational program of not less than 2
years that is acceptable for full credit toward such a degree;
or
``(B) offers a 2-year program in engineering, technology,
mathematics, or the physical, chemical or biological sciences
that is designed to prepare a student to work as a technician
or at the semiprofessional level in engineering, scientific, or
other technological fields requiring the understanding and
application of basic engineering, scientific, or mathematical
principles of knowledge; and
``(4) is located in a rural area (as defined in section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)).
``(b) Program.--
``(1) In general.--The Secretary shall establish a program,
to be known as the `New Era Rural Technology Program', under
which the Secretary shall make grants available for technology
development, applied research, and training to aid in the
development of an agriculture-based renewable energy workforce.
``(2) Fields.--In making grants under the program, the
Secretary shall support the fields of--
``(A) bioenergy;
``(B) pulp and paper manufacturing; and
``(C) agriculture-based renewable energy resources.
``(c) Eligibility.--To be eligible to receive a grant under this
section, an entity shall--
``(1) be a rural community college or advanced
technological center (as determined by the Secretary), in
existence on the date of the enactment of this section, that
participates in agricultural or bioenergy research and applied
research;
``(2) have a proven record of development and
implementation of programs to meet the needs of students,
educators, business, and industry to supply the agriculture-
based, renewable energy, or pulp and paper manufacturing fields
with certified technicians, as determined by the Secretary; and
``(3) have the ability to leverage existing partnerships
and occupational outreach and training programs for secondary
schools, 4-year institutions, and relevant nonprofit
organizations.
``(d) Grant Priority.--In making grants under this section, the
Secretary shall give preference to rural community colleges working in
partnership--
``(1) to improve information sharing capacity; and
``(2) to maximize the ability of eligible recipients to
meet the purposes of this section.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 7044. FARM AND RANCH STRESS ASSISTANCE NETWORK.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7041) is amended by adding at the end the following:
``SEC. 1473K. FARM AND RANCH STRESS ASSISTANCE NETWORK.
``(a) In General.--The Secretary, in cooperation with the Secretary
of Health and Human Services, shall establish a network, to be known as
the `Farm and Ranch Stress Assistance Network' (referred to in this
section as the `Network').
``(b) Purpose.--The purpose the network shall be to provide
behavioral health programs to participants in the agricultural sector
in the United States.
``(c) Grants.--The Secretary, in collaboration with the extension
service at the National Institute of Food and Agriculture, shall
provide grants on a competitive basis to States and nonprofit
organizations for use in carrying out pilot projects to achieve the
purpose of the Network.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 7045. RURAL ENTREPRENEURSHIP AND ENTERPRISE FACILITATION PROGRAM.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7042) is amended by adding at the end the following:
``SEC. 1473L. RURAL ENTREPRENEURSHIP AND ENTERPRISE FACILITATION
PROGRAM.
``(a) Definition of Regional Rural Development Center.--In this
section, the term `regional rural development center' means--
``(1) the North Central Regional Center for Rural
Development (or a designee);
``(2) the Northeast Regional Center for Rural Development
(or a designee);
``(3) the Southern Rural Development Center (or a
designee); and
``(4) the Western Rural Development Center (or a designee).
``(b) Projects.--The Secretary shall carry out research, extension,
and education projects to obtain data, convey knowledge, and develop
skills through projects that--
``(1) transfer practical, reliable, and timely information
to rural entrepreneurs and rural entrepreneurial development
organizations concerning business management, business
planning, microenterprise, marketing, entrepreneurial education
and training, and the development of local and regional
entrepreneurial systems in rural areas and rural communities;
``(2) provide education, training, and technical assistance
to newly-operational and growing rural businesses;
``(3) improve access to diverse sources of capital, such as
microenterprise loans and venture capital;
``(4) determine the best methods to train entrepreneurs
with respect to preparing business plans, recordkeeping, tax
rules, financial management, and general business practices;
``(5) promote entrepreneurship among--
``(A) rural youth, minority, and immigrant
populations;
``(B) women; and
``(C) low- and moderate-income rural residents;
``(6) create networks of entrepreneurial support through
partnerships among rural entrepreneurs, local business
communities, all levels of government, nonprofit organizations,
colleges and universities, and other sectors;
``(7) study and facilitate entrepreneurial development
systems that best align with the unique needs and strengths of
particular rural areas and communities; and
``(8) explore promising strategies for building an
integrated system of program delivery to rural entrepreneurs.
``(c) Agreements.--To carry out projects under subsection (b), the
Secretary shall provide grants to--
``(1) land-grant colleges and universities, including
cooperative extension services, agricultural experiment
stations, and regional rural development centers;
``(2) other colleges and universities;
``(3) community, junior, technical, and vocational colleges
and other 2-year institutions of higher education, and post-
secondary business and commerce schools;
``(4) elementary schools and secondary schools;
``(5) nonprofit organizations; and
``(6) Federal, State, local, and tribal governmental
entities.
``(d) Selection and Priority of Projects.--
``(1) In general.--In selecting projects to be carried out
under this section, the Secretary shall take into
consideration--
``(A) the relevance of the project to the purposes
of this section;
``(B) the appropriateness of the design of the
project;
``(C) the likelihood of achieving the objectives of
the project; and
``(D) the national or regional applicability of the
findings and outcomes of the project.
``(2) Priority.--In carrying out projects under this
section, the Secretary shall give priority to projects that--
``(A) enhance widespread access to entrepreneurial
education, including access to such education in
community-based settings for low- and moderate-income
entrepreneurs and potential entrepreneurs;
``(B) closely coordinate research and education
activities, including outreach education efforts;
``(C) indicate the manner in which the findings of
the project will be made readily usable to rural
entrepreneurs and to rural community leaders;
``(D) maximize the involvement and cooperation of
rural entrepreneurs; and
``(E) involve cooperation and partnerships between
rural entrepreneurs, nonprofit organizations,
entrepreneurial development organizations, educational
institutions at all levels, and government agencies at
all levels.
``(e) Competitive Basis.--Grants under this section shall be
awarded on a competitive basis, in accordance with such criteria as the
national administrative council established under subsection (j)(1) may
establish.
``(f) Term.--The term of a grant provided under this section shall
be not more than 5 years.
``(g) Limitation.--Not more than 20 percent of the total amount of
grants provided under this section shall be provided to projects in
which cooperative extension services are involved as the sole or lead
entity of the project.
``(h) Diversification of Research, Extension, and Education
Projects.--The Secretary shall carry out projects under this section in
areas that the Secretary determines to be broadly representative of the
diversity of the rural areas of the United States, and of rural
entrepreneurship in the United States, including entrepreneurship
involving youth, minority populations, microenterprise, and women, with
a focus on nonagricultural businesses or food and agriculturally-based
businesses, but not direct agriculture production.
``(i) Administration.--The Secretary shall administer projects
carried out under this section acting through the Administrator of the
National Institute of Food and Agriculture.
``(j) National Administrative Council.--
``(1) Establishment.--The Secretary shall establish, in
accordance with this subsection, a national administrative
council to assist the Secretary in carrying out this section.
``(2) Membership.--The membership of the national
administrative council shall include--
``(A) qualified representatives of entities with
demonstrable expertise relating to rural
entrepreneurship, including representatives of--
``(i) the Cooperative State Research,
Education, and Extension Service;
``(ii) the Rural Business-Cooperative
Service;
``(iii) the Small Business Administration;
``(iv) regional rural development centers;
``(v) nonprofit organizations;
``(vi) regional and State agencies;
``(vii) cooperative extension services;
``(viii) colleges and universities;
``(ix) philanthropic organizations; and
``(x) Indian tribal governments;
``(B) self-employed rural entrepreneurs and owners
of rural small businesses;
``(C) elementary and secondary educators that
demonstrate experience in rural entrepreneurship; and
``(D) other persons with experience relating to
rural entrepreneurship and the impact of rural
entrepreneurship on rural communities.
``(3) Responsibilities.--In collaboration with the
Secretary, the national administrative council established
under this subsection shall--
``(A) promote the projects carried out under this
section;
``(B) establish goals and criteria for the
selection of projects under this section;
``(C)(i) appoint a technical committee to evaluate
project proposals to be considered by the council; and
``(ii) make recommendations of the technical
committee to the Secretary; and
``(D) prepare and make publicly available an annual
report relating to each applicable project carried out
under this section, including a review of projects
carried out during the preceding year.
``(4) Conflict of interest.--A member of the national
administrative council or a technical committee shall not
participate in any determination relating to, or recommendation
of, a project proposed to be carried out under this section if
the member has had any business interest (including the
provision of consulting services) in the project or the
organization submitting the application.
``(k) Authorization for Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of the fiscal years 2008 through 2012.''.
SEC. 7046. SEED DISTRIBUTION.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7043) is amended by adding at the end the following:
``SEC. 1473M. SEED DISTRIBUTION.
``(a) Establishment.--The Secretary shall establish a program, to
be known as the `seed distribution program', under which the Secretary
shall provide a grant to a nonprofit organization selected under
subsection (c) to carry out a seed distribution program to administer
and maintain the distribution of vegetable seeds donated by commercial
seed companies.
``(b) Purpose.--The purpose of the seed distribution program under
this section shall be to distribute vegetable seeds donated by
commercial seed companies.
``(c) Selection of Nonprofit Organizations.--
``(1) In general.--The nonprofit organization selected to
receive a grant under subsection (a) shall demonstrate to the
satisfaction of the Secretary that the organization--
``(A) has expertise regarding distribution of
vegetable seeds donated by commercial seed companies;
and
``(B) has the ability to achieve the purpose of the
seed distribution program.
``(2) Priority.--In selecting a nonprofit organization for
purposes of this section, the Secretary shall give priority to
a nonprofit organization that, as of the date of selection,
carries out an activity to benefit underserved communities,
such as communities that experience--
``(A) limited access to affordable fresh
vegetables;
``(B) a high rate of hunger or food insecurity; or
``(C) severe or persistent poverty.
``(d) Requirement.--The nonprofit organization selected under this
section shall ensure that seeds donated by commercial seed companies
are distributed free-of-charge to appropriate--
``(1) individuals;
``(2) groups;
``(3) institutions;
``(4) governmental and nongovernmental organizations; and
``(5) such other entities as the Secretary may designate.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 7047. FARM AND RANCH SAFETY.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7044) is amended by adding at the end the following:
``SEC. 1473N. FARM AND RANCH SAFETY.
``(a) In General.--The Secretary shall establish a program, to be
known as the `agricultural safety program', under which the Secretary
shall provide grants to eligible entities to carry out projects to
decrease the incidence of injury and death on farms and ranches.
``(b) Eligible Entities.--To be eligible to receive a grant under
this section, an entity shall be--
``(1) a nonprofit organization;
``(2) a land-grant college or university (including a
cooperative extension service);
``(3) a minority-serving institution;
``(4) a 2-year or 4-year institution of higher education;
or
``(5) such other entity as the Secretary may designate.
``(c) Eligible Projects.--An eligible entity shall use a grant
received under this section only to carry out--
``(1) a project at least 1 component of which emphasizes--
``(A) preventative service through on-site farm or
ranch safety reviews;
``(B) outreach and dissemination of farm safety
research and interventions to agricultural employers,
employees, youth, farm and ranch families, seasonal
workers, or other individuals; or
``(C) agricultural safety education and training;
and
``(2) other appropriate activities, as determined by the
Secretary;
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 7048. WOMEN AND MINORITIES IN STEM FIELDS.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7045) is amended by adding at the end the following:
``SEC. 1473O. WOMEN AND MINORITIES IN STEM FIELDS.
``(a) Establishment.--The Secretary shall establish a program under
which the Secretary, in coordination with applicable Federal, State,
and local programs, shall provide grants to eligible institutions to
increase, to the maximum extent practicable, participation by women and
underrepresented minorities from rural areas (as defined in section
343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a))), in science, technology, engineering, and mathematics fields
(referred to in this section as `STEM fields').
``(b) Activities.--In carrying out the program established under
subsection (a), the Secretary shall--
``(1) implement multitrack technology career advancement
training programs and provide related services to engage, and
encourage participation by, women and underrepresented
minorities in STEM fields;
``(2) develop and administer training programs for
educators, career counselors, and industry representatives in
recruitment and retention strategies to increase and retain
women and underrepresented minority students and job entrants
into STEM fields; and
``(3) support education-to-workforce programs for women and
underrepresented minorities to provide counseling, job
shadowing, mentoring, and internship opportunities to guide
participants in the academic, training, and work experience
needed for STEM careers.
``(c) Institutions.--
``(1) Grants.--The Secretary shall carry out the program
under this section at such institutions as the Secretary
determines to be appropriate by providing grants, on a
competitive basis, to the institutions.
``(2) Priority.--In providing grants under paragraph (1),
the Secretary shall give priority, to the maximum extent
practicable, to institutions carrying out continuing programs
funded by the Secretary.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
SEC. 7049. NATURAL PRODUCTS RESEARCH PROGRAM.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7046) is amended by adding at the end the following:
``SEC. 1473P. NATURAL PRODUCTS RESEARCH PROGRAM.
``(a) In General.--The Secretary shall establish a natural products
research program.
``(b) Duties.--In carrying out the program established under
subsection (a), the Secretary shall coordinate research relating to
natural products, including--
``(1) research to improve human health and agricultural
productivity through the discovery, development, and
commercialization of pharmaceuticals and agrichemicals from
bioactive natural products, including products from plant,
marine, and microbial sources;
``(2) research to characterize the botanical sources,
production, chemistry, and biological properties of plant-
derived natural products important for agriculture and
medicine; and
``(3) other research priorities identified by the
Secretary.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2008 through 2012.''.
SEC. 7050. INTERNATIONAL ANTI-HUNGER AND NUTRITION PROGRAM.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7047) is amended by adding at the end the following:
``SEC. 1473Q. INTERNATIONAL ANTI-HUNGER AND NUTRITION.
``(a) In General.--The Secretary shall provide support to
established nonprofit organizations that focus on promoting research
concerning--
``(1) anti-hunger and improved nutrition efforts
internationally; and
``(2) increased quantity, quality, and availability of
food.
``(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,000,000 for each of fiscal
years 2008 through 2012.''.
SEC. 7051. CONSORTIUM FOR AGRICULTURAL AND RURAL TRANSPORTATION
RESEARCH AND EDUCATION.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7048) is amended by adding at the end the following:
``SEC. 1473R. CONSORTIUM FOR AGRICULTURAL AND RURAL TRANSPORTATION
RESEARCH AND EDUCATION.
``(a) In General.--Subject to the availability of appropriations to
carry out this section, the Secretary, acting through the Agricultural
Marketing Service, shall award grants to the Consortium for
Agricultural and Rural Transportation Research and Education for the
purpose of funding prospective, independent research, education, and
technology transfer activities.
``(b) Activities.--Activities funded with grants made under
subsection (a) shall focus on critical rural and agricultural
transportation and logistics issues facing agricultural producers and
other rural businesses, including--
``(1) issues relating to the relationship between renewable
fuels and transportation;
``(2) export promotion issues based on transportation
strategies for rural areas;
``(3) transportation and rural business facility planning
and location issues;
``(4) transportation management and supply chain management
support issues;
``(5) rural road planning and finance issues;
``(6) advanced transportation technology applications in a
rural area; and
``(7) creation of a national agricultural marketing and
rural business transportation database.
``(c) Report.--Not later than September 30, 2011, the Secretary
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that--
``(1) describes the activities of Consortium for
Agricultural and Rural Transportation Research and Education
that have been funded through grants made under this section;
and
``(2) contains recommendations about the grant program.
``(d) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section $19,000,000 for each of fiscal years
2008 through 2012.
``(2) Administrative expenses.--Of the total amount made
available under paragraph (1), not more than $1,000,000 may be
used by the Agricultural Marketing Service for administrative
expenses incurred in carrying out this section.''.
SEC. 7052. REGIONAL CENTERS OF EXCELLENCE IN FOOD SYSTEMS VETERINARY
MEDICINE.
Subtitle K of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
section 7049) is amended by adding at the end the following:
``SEC. 1473S. REGIONAL CENTERS OF EXCELLENCE IN FOOD SYSTEMS VETERINARY
MEDICINE.
``(a) Definition of Eligible School of Veterinary Medicine.--In
this section, the term `eligible school of veterinary medicine' means a
school of veterinary medicine that is--
``(1) a public or other nonprofit entity; and
``(2) accredited by an entity that is approved for such
purpose by the Department of Education.
``(b) Grant Program.--The Secretary shall make grants to eligible
schools of veterinary medicine to assist the eligible schools of
veterinary medicine in supporting centers of emphasis in food systems
veterinary medicine.
``(c) Application Process.--
``(1) Application requirement.--To be eligible to receive a
grant from the Secretary under subsection (b), an eligible
school of veterinary medicine shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require.
``(2) Consideration of applications.--The Secretary shall
establish procedures to ensure that--
``(A) each application submitted under paragraph
(1) is rigorously reviewed; and
``(B) grants are competitively awarded based on--
``(i) the ability of the eligible school of
veterinary medicine to provide a comprehensive
educational experience for students with
particular emphasis on the species of food
animal for which the eligible school of
veterinary medicine is applying that is used
for food production (including food animal
veterinary medicine, food supply bioterrorism
prevention and surveillance, food-safety, and
the improvement of the quality of the
environment);
``(ii) the ability of the eligible school
of veterinary medicine to increase capacity
with respect to research on the species of food
animal for which the eligible school of
veterinary medicine is applying that is used
for food production; and
``(iii) any other consideration that the
Secretary determines to be appropriate.
``(3) Preference for consortium.--In making grants under
subsection (b), the Secretary shall give preference to eligible
schools of veterinary medicine that participate in
interinstitutional agreements that--
``(A) cover issues relating to residency, tuition,
or fees; and
``(B) consist of more than 1 other--
``(i) school of veterinary medicine;
``(ii) school of public health;
``(iii) school of agriculture; or
``(iv) appropriate entity that carries out
education and research activities with respect
to food production systems, as determined by
the Secretary.
``(d) Required Use of Funds.--The Secretary may not make a grant to
an eligible school of veterinary medicine under subsection (b) unless
the eligible school of veterinary medicine agrees to use the grant
funds--
``(1) to develop a competitive student applicant pool
through linkages with other appropriate schools of veterinary
medicine, as determined by the Secretary;
``(2) to improve the capacity of the eligible school of
veterinary medicine--
``(A) to train, recruit, and retain faculty;
``(B) to pay such stipends and fellowships as the
Secretary determines to be appropriate in areas of
research relating to--
``(i) food animal medicine; and
``(ii) food-safety and defense; and
``(C) to enhance the quality of the environment;
``(3) to carry out activities to improve the information
resources, curriculum, and clinical education of students of
the eligible school of veterinary medicine with respect to--
``(A) food animal veterinary medicine; and
``(B) food-safety;
``(4) to facilitate faculty and student research on health
issues that--
``(A) affect--
``(i) food-producing animals; and
``(ii) food-safety; and
``(B) enhance the environment;
``(5) to provide stipends for students to offset costs
relating to travel, tuition, and other expenses associated with
attending the eligible school of veterinary medicine; and
``(6) for any other purpose that the Secretary determines
to be appropriate.
``(e) Period of Grants.--
``(1) In general.--Subject to paragraph (2), an eligible
school of veterinary medicine that receives funds through a
grant under subsection (b) shall receive funds under the grant
for not more than 5 years after the date on which the grant was
first provided.
``(2) Conditions relating to grant funds.--Funds provided
to an eligible school of veterinary medicine through a grant
under subsection (b) shall be subject to--
``(A) the annual approval of the Secretary; and
``(B) the availability of appropriations.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.''.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
SEC. 7101. NATIONAL GENETIC RESOURCES PROGRAM.
(a) In General.--Section 1632 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5841) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Purpose.--The program is established for the purpose of--
``(1) maintaining and enhancing a program providing for the
collection, preservation, and dissemination of plant, animal,
and microbial genetic material of importance to food and
agriculture production in the United States; and
``(2) undertaking long-term research on plant and animal
breeding and disease resistance.''; and
(2) in subsection (d)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) by redesignating paragraph (6) as paragraph
(7); and
(C) by inserting after paragraph (5) the following:
``(6) in conjunction with national programs for plant and
animal genetic resources, undertake long-term research on plant
and animal breeding, including the development of varieties
adapted to sustainable and organic farming systems, and disease
resistance; and''.
(b) Authorization of Appropriations.--Section 1635(b) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5844(b)) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 7102. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925) is amended--
(1) in subsection (e), by adding at the end the following:
``(46) Colony collapse disorder and pollinator research
program.--Research and extension grants may be made to--
``(A) survey and collect data on bee colony
production and health;
``(B) investigate pollinator biology, immunology,
ecology, genomics, and bioinformatics;
``(C) conduct research on various factors that may
be contributing to or associated with colony collapse
disorder, and other serious threats to the health of
honey bees and other pollinators, including--
``(i) parasites and pathogens of
pollinators; and
``(ii) the sublethal effects of
insecticides, herbicides, and fungicides on
honey bees and native and managed pollinators;
``(D) develop mitigative and preventative measures
to improve native and managed pollinator health; and
``(E) promote the health of honey bees and native
pollinators through habitat conservation and best
management practices.
``(47) Marine shrimp farming program.--Research and
extension grants may be made to establish a research program to
advance and maintain a domestic shrimp farming industry in the
United States.
``(48) Cranberry research program.--Research and extension
grants may be made to study new technologies to assist
cranberry growers in complying with Federal and State
environmental regulations, increase cranberry production,
develop new growing techniques, establish more efficient
growing methodologies, and educate farmers about sustainable
growth practices.
``(49) Turfgrass research initiative.--Research and
extension grants may be made to study the production of
turfgrass (including the use of water, fertilizer, pesticides,
fossil fuels, and machinery for turf establishment and
maintenance) and environmental protection and enhancement
relating to turfgrass production.
``(50) Pesticide safety research initiative.--Research
grants may be made to study pesticide safety for migrant and
seasonal agricultural workers, including research on increased
risks of cancer or birth defects among migrant or seasonal
farmworkers and their children, identification of objective
biological indicators, and development of inexpensive clinical
tests to enable clinicians to diagnose overexposure to
pesticides, and development of field-level tests to determine
when pesticide-treated fields are safe to reenter to perform
hand labor activities.
``(51) Swine genome project.--Research grants may be made
under this section to conduct swine genome research and to map
the swine genome.
``(52) High plains aquifer region.--Research and extension
grants may be made to carry out interdisciplinary research
relating to diminishing water levels and increased demand for
water in the High Plains aquifer region encompassing the States
of Colorado, Kansas, Nebraska, New Mexico, Oklahoma, South
Dakota, Texas, and Wyoming.
``(53) Cellulosic feedstock transportation and delivery
initiative.--Research and extension grants may be made to study
new technologies for the economic post-harvest densification,
handling, transportation, and delivery of cellulosic feedstocks
for bioenergy conversion.
``(54) Deer initiative.--Research and extension grants may
be made to support collaborative research focusing on the
development of viable strategies for the prevention, diagnosis,
and treatment of infectious, parasitic, and toxic diseases of
farmed deer and the mapping of the deer genome.
``(55) Pasture-based beef systems for appalachia research
initiative.--Research and extension grants may be made to land-
grant institutions--
``(A) to study the development of forage sequences
and combinations for cow-calf, heifer development,
stocker, and finishing systems;
``(B) to deliver optimal nutritive value for
efficient production of cattle for pasture finishing;
``(C) to optimize forage systems to produce pasture
finished beef that is acceptable to consumers;
``(D) to develop a 12-month production and
marketing model cycle for forage-fed beef; and
``(E) to assess the effect of forage quality on
reproductive fitness and related measures.
``(56) Sustainable agricultural production for the
environment.--Research and extension grants may be made to--
``(A) field and laboratory studies that examine the
ecosystem from gross to minute scales;
``(B) conduct projects that explore the future
environmental ramifications of sustainable agricultural
practices; and
``(C) to assess the effect of forage quality on
reproductive fitness and related measures.
``(57) Biomass-derived energy resources.--Research and
extension grants may be made to--
``(A) study plant cell wall structure and function
and the use of plant biotechnology to produce
industrial enzymes; and
``(B) conduct projects that develop renewable,
plant biomass-derived energy resources using the
technology described in subparagraph (A).
``(58) Brucellosis control and eradication; bighorn and
domestic sheep disease mechanisms.--Research and extension
grants may be made available--
``(A) for the conduct of research relating to the
development of vaccines and vaccine delivery systems to
effectively control and eliminate brucellosis in
wildlife;
``(B) to assist with the controlling of the spread
of brucellosis from wildlife to domestic animals in the
greater Yellowstone area; and
``(C) to conduct research relating to the health
status (including the presence of infectious diseases)
of bighorn and domestic sheep under range
conditions.''; and
(2) in subsection (h), by striking ``2007'' and inserting
``2012, of which $20,000,000 shall be used for each fiscal year
to make grants described in subsection (e)(46)''.
SEC. 7103. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.
Section 1672A of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925a) is amended--
(1) by redesignating subsection (g) as subsection (f); and
(2) in subsection (f) (as so redesignated), by striking
``2007'' and inserting ``2012''.
SEC. 7104. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.
Section 1672B of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925b) is amended by striking subsection (e) and
inserting the following:
``(e) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out this section $16,000,000 for each
of fiscal years 2008 through 2012, to remain available until
expended.''.
SEC. 7105. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 7106. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ``2007''
and inserting ``2012''.
SEC. 7107. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2007'' and
inserting ``2012''.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
SEC. 7201. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.
(a) Funding.--Section 401(b) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)) is
amended--
(1) by striking paragraph (1) and inserting the following:
``(1) In general.--Not later than 30 days after the date of
enactment of the Food and Energy Security Act of 2007, the
Secretary of the Treasury shall transfer $45,000,000 to the
Account.''; and
(2) by striking paragraph (3) and inserting the following:
``(3) Other funding.--
``(A) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$200,000,000 for each of fiscal years 2008 through
2012.
``(B) Shortage of funds.--Notwithstanding any other
provision of law, during any year for which funds are
not made available under this subsection, the Secretary
shall use not less than 80 percent of the funds made
available for competitive mission-linked systems
research grants under section 2(b)(10)(B) of the
Competitive, Special, and Facilities Research Grant Act
(7 U.S.C. 450i(b)(10)(B)) to carry out a competitive
grant program under the same terms and conditions as
are provided under this section.''.
(b) Purposes.--Section 401(c) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(c)) is
amended--
(1) in paragraph (1)(D), by striking ``policy''; and
(2) in paragraph (2)--
(A) by striking subparagraphs (A) and (D);
(B) by redesignating subparagraphs (B), (C), (E),
and (F) as subparagraphs (A), (B), (F), and (G),
respectively;
(C) by inserting after subparagraph (B) the
following:
``(C) sustainable and renewable agriculture-based
energy production options and policies;
``(D) environmental services and outcome-based
conservation programs and markets;
``(E) agricultural and rural entrepreneurship and
business and community development, including farming
and ranching opportunities for beginning farmers or
ranchers;''; and
(D) in subparagraph (F) (as redesignated by
subparagraph (B))--
(i) by inserting ``and environmental''
after ``natural resource''; and
(ii) by inserting ``agro-ecosystems and''
after ``including''; and
(E) in subparagraph (G) (as redesignated by
subparagraph (B))--
(i) by striking ``including the viability''
and inserting the following: ``including--
``(i) the viability''; and
(ii) by striking ``operations.'' and
inserting the following: ``operations;
``(ii) farm transition options for retiring
farmers or ranchers; and
``(iii) farm transfer and entry
alternatives for beginning or socially-
disadvantaged farmers or ranchers.''.
SEC. 7202. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY
RESEARCH.
Section 402(g) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7203. PRECISION AGRICULTURE.
Section 403(i)(1) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7204. BIOBASED PRODUCTS.
(a) Pilot Project.--Section 404(e)(2) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is
amended by striking ``2007'' and inserting ``2012''.
(b) Authorization of Appropriations.--Section 404(h) of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7624(h)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7205. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.
Section 405(h) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7206. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
GRANTS PROGRAM.
Section 406(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7207. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE,
AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA
INDICA.
Section 408(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7208. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.
Section 409(b) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7209. GRANTS FOR YOUTH ORGANIZATIONS.
Section 410(c) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7630(c)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7210. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR
DEVELOPING COUNTRIES.
Section 411(c) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7211. SPECIALTY CROP RESEARCH INITIATIVE.
Title IV of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7621 et seq.) is amended by adding at the
end the following:
``SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.
``(a) Definitions.--In this section:
``(1) Initiative.--The term `Initiative' means the
specialty crop research initiative established by subsection
(b).
``(2) Specialty crop.--The term `specialty crop' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108-465).
``(b) Establishment.--There is established within the Department a
specialty crop research initiative.
``(c) Purpose.--The purpose of the Initiative shall be to address
the critical needs of the specialty crop industry by providing science-
based tools to address needs of specific crops and regions, including--
``(1) fundamental and applied work in plant breeding,
genetics, and genomics to improve crop characteristics, such
as--
``(A) product appearance, quality, taste, yield,
and shelf life;
``(B) environmental responses and tolerances;
``(C) plant-nutrient uptake efficiency resulting in
improved nutrient management;
``(D) pest and disease management, including
resilience to pests and diseases resulting in reduced
application management strategies; and
``(E) enhanced phytonutrient content;
``(2) efforts to prevent, identify, control, or eradicate
invasive species;
``(3) methods of improving agricultural production by
developing more technologically-efficient and effective
applications of water, nutrients, and pesticides to reduce
energy use;
``(4) new innovations and technology to enhance
mechanization and reduce reliance on labor;
``(5) methods of improving production efficiency,
productivity, sustainability, and profitability over the long
term;
``(6) methods to prevent, control, and respond to human
pathogen contamination of specialty crops, including fresh-cut
produce;
``(7) methods of improving the supply and effectiveness of
pollination for specialty crop production; and
``(8) efforts relating to optimizing the production of
organic specialty crops.
``(d) Eligible Entities.--The Secretary may carry out the
Initiative through--
``(1) Federal agencies;
``(2) national laboratories;
``(3) institutions of higher education;
``(4) research institutions and organizations;
``(5) private organizations and corporations;
``(6) State agricultural experiment stations; and
``(7) individuals.
``(e) Research Projects.--In carrying out this section, the
Secretary may--
``(1) carry out research; and
``(2) award grants on a competitive basis.
``(f) Priorities.--In making grants under this section, the
Secretary shall provide a higher priority to projects that--
``(1) are multistate, multi-institutional, or
multidisciplinary; and
``(2) include explicit mechanisms to communicate usable
results to producers and the public.
``(g) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out this section $16,000,000 for each
of fiscal years 2008 through 2012, to remain available until
expended.''.
SEC. 7212. OFFICE OF PEST MANAGEMENT POLICY.
(a) In General.--Section 614(b) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7653(b)) is
amended--
(1) in the matter preceding paragraph (1), by striking
``Department'' and inserting ``Office of the Chief Economist'';
(2) in paragraph (1), by striking ``the development and
coordination'' and inserting ``the development, coordination,
and representation''; and
(3) in paragraph (3), by striking ``assisting other
agencies of the Department in fulfilling their'' and inserting
``enabling the Secretary to fulfill the statutory''.
(b) Authorization of Appropriations.--Section 614(f) of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7653(f)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7213. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.
Section 604 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7642) is amended by adding at the end the
following:
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,500,000 for each of fiscal
years 2008 through 2012.''.
Subtitle D--Other Laws
SEC. 7301. CRITICAL AGRICULTURAL MATERIALS ACT.
Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
178n(a)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7302. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
(a) Definition of 1994 Institutions.--Section 532 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103-382) is amended by adding at the end the following:
``(34) Ilisagvik College.''.
(b) Endowment for 1994 Institutions.--Section 533(b) of the Equity
in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103-382) is amended in the first sentence by striking ``2007'' and
inserting ``2012''.
(c) Institutional Capacity Building Grants.--Section 535 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382) is amended by striking ``2007'' each place it
appears and inserting ``2012''.
(d) Research Grants.--Section 536(c) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382)
is amended in the first sentence by striking ``2007'' and inserting
``2012''.
SEC. 7303. SMITH-LEVER ACT.
(a) Children, Youth, and Families Education and Research Network
Program.--Section 3 of the Smith-Lever Act (7 U.S.C. 343) is amended by
adding at the end the following:
``(k) Children, Youth, and Families Education and Research Network
Program.--Notwithstanding section 3(d)(2) of the Act of May 8, 1914 (7
U.S.C. 343(d)(2)), in carrying out the children, youth, and families
education and research network program using amounts made available
under subsection (d), the Secretary shall include 1890 Institutions (as
defined in section 2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601)) as eligible program
applicants and participants.''.
(b) Elimination of the Governor's Report Requirement for Extension
Activities.--Section 5 of the Smith-Lever Act (7 U.S.C. 345) is amended
by striking the third sentence.
SEC. 7304. HATCH ACT OF 1887.
(a) District of Columbia.--Section 3(d)(4) of the Hatch Act of 1887
(7 U.S.C. 361c(d)(4)) is amended--
(1) in the paragraph heading, by inserting ``and the
district of columbia'' after ``areas'';
(2) in subparagraph (A)--
(A) by inserting ``and the District of Columbia''
after ``United States''; and
(B) by inserting ``and the District of Columbia''
after ``respectively,''; and
(3) in subparagraph (B), by inserting ``or the District of
Columbia'' after ``area''.
(b) Elimination of Penalty Mail Authorities.--
(1) In general.--Section 6 of the Hatch Act of 1887 (7
U.S.C. 361f) is amended in the first sentence by striking
``under penalty indicia:'' and all that follows through the end
of the sentence and inserting a period.
(2) Conforming amendments in other laws.--
(A) National agricultural research, extension, and
teaching policy act of 1977.--
(i) Section 1444(f) of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3221(f)) is
amended by striking ``under penalty indicia:''
and all that follows through the end of the
sentence and inserting a period.
(ii) Section 1445(e) of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3222(e)) is
amended by striking ``under penalty indicia:''
and all that follows through the end of the
sentence and inserting a period.
(B) Other provisions.--Section 3202(a) of title 39,
United States Code, is amended--
(i) in paragraph (1)--
(I) in subparagraph (D), by adding
``and'' at the end;
(II) in subparagraph (E), by
striking ``sections; and'' and
inserting ``sections.''; and
(III) by striking subparagraph (F);
(ii) in paragraph (2), by adding ``and'' at
the end;
(iii) in paragraph (3) by striking
``thereof; and'' and inserting ``thereof.'';
and
(iv) by striking paragraph (4).
SEC. 7305. RESEARCH FACILITIES ACT.
Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 7306. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING
POLICY ACT AMENDMENTS OF 1985.
Section 1431 of the National Agricultural Research, Extension, and
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat.
1556) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7307. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT.
(a) Competitive Grants.--The Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i) is amended in subsection (b)--
(1) in paragraph (2)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``in the areas'' and all
that follows through ``needs shall be'' and
inserting ``, as''; and
(ii) by striking ``year.'' and inserting
``year, relating to--'';
(B) in subparagraph (B), by striking ``production
efficiency and animal well-being'' and inserting
``production efficiency, animal well-being, and the
judicious use of antibiotics'';
(C) in subparagraph (D), by striking ``surface
water and ground water quality'' and inserting
``surface water quality and ground water quality,
including the reduction of antibiotics or antibiotic-
resistant bacteria'';
(D) in subparagraph (E), by striking ``and'' at the
end and inserting ``; agricultural genomics and
biotechnology, including the application of genomics
and bioinformatics tools to develop traits in plants
and animals (translational genomics);'';
(E) in subparagraph (F), by striking the period at
the end and inserting ``, including areas of concern to
beginning farmers or ranchers; and''; and
(F) by adding at the end the following:
``(G) classical plant and animal breeding,
including cultivar and breed development, selection
theory, applied quantitative genetics, breeding for
organic and sustainable systems, breeding for improved
nutritional and eating quality, breeding for improved
local adaptation to biotic stress, abiotic stress, and
climate change, and participatory breeding with farmers
and end users.'';
(2) in paragraph (4)--
(A) by striking ``The'' and inserting the
following:
``(A) In general.--Subject to subparagraph (B),
the''; and
(B) by adding at the end the following:
``(B) Classical plant and animal breeding.--
``(i) Term.--The term of a competitive
grant relating to classical plant and animal
breeding under paragraph (2)(G) shall not
exceed 10 years.
``(ii) Availability.--Funds made available
for a fiscal year for a competitive grant
relating to classical plant and animal breeding
under paragraph (2)(G) shall remain available
until expended to pay for obligations incurred
in that fiscal year.''; and
(3) in paragraph (10), by striking ``2007'' and inserting
``2012''.
(b) National Research Support Project-7.--The Competitive, Special,
and Facilities Research Grant Act (7 U.S.C. 450i) is amended by adding
at the end the following:
``(l) National Research Support Project-7.--
``(1) Definitions.--In this subsection:
``(A) Project.--The term `project' means the
project established by the Secretary under paragraph
(2).
``(B) Secretary.--The term `Secretary' means the
Secretary of Agriculture.
``(2) Establishment.--The Secretary shall establish the
National Research Support Project-7--
``(A) to identify the animal drug needs for--
``(i) minor species; and
``(ii) minor uses in major species;
``(B) to generate and disseminate data to ensure
the safe, effective, and lawful use of drugs to be used
primarily for the therapy or reproductive management of
minor animal species; and
``(C) to facilitate the development and approval of
drugs for minor species, and minor uses in major
species, by the Center for Veterinary Medicine of the
Food and Drug Administration.
``(3) Administration of project.--
``(A) National research support project-7.--The
Secretary shall carry out the project in accordance
with each purpose and principle of the National
Research Support Project-7 carried out by the
Administrator of the Cooperative State Research,
Education, and Extension Service as of the day before
the date of enactment of this subsection.
``(B) Consultation with other entities.--The
Secretary shall carry out the project in consultation
with--
``(i) the Commissioner of Food and Drugs;
``(ii) State agricultural experiment
stations;
``(iii) institutions of higher education;
``(iv) private entities; and
``(v) any other interested individual or
entity.
``(4) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection.''.
SEC. 7308. EDUCATION GRANTS TO ALASKA NATIVE SERVING INSTITUTIONS AND
NATIVE HAWAIIAN SERVING INSTITUTIONS.
Section 759 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2000 (7 U.S.C.
3242) is amended--
(1) in subsection (a)(3), by striking ``2006'' and
inserting ``2012''; and
(2) in subsection (b)--
(A) in paragraph (2)(A), by inserting before the
semicolon at the end the following: ``, including
permitting consortia to designate fiscal agents for the
members of the consortia and to allocate among the
members funds made available under this section''; and
(B) in paragraph (3), by striking ``2006'' and
inserting ``2012''.
SEC. 7309. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.
(a) Grants.--Section 7405(c) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (I), by inserting ``, including
energy conservation and efficiency'' after
``assistance''; and
(B) in subparagraph (K), by inserting ``, including
transition to organic and other source-verified and
value-added alternative production and marketing
systems'' after ``strategies'';
(2) by striking paragraph (3) and inserting the following:
``(3) Maximum term and size of grant.--
``(A) In general.--A grant under this subsection
shall--
``(i) have a term that is not more than 3
years; and
``(ii) be in an amount that is not more
than $250,000 a year.
``(B) Consecutive grants.--An eligible recipient
may receive consecutive grants under this
subsection.'';
(3) by redesignating paragraphs (5) through (7) as
paragraphs (9) through (11), respectively;
(4) by inserting after paragraph (4) the following:
``(5) Evaluation criteria.--In making grants under this
subsection, the Secretary shall evaluate--
``(A) relevancy;
``(B) technical merit;
``(C) achievability;
``(D) the expertise and track record of 1 or more
applicants;
``(E) the adequacy of plans for the participatory
evaluation process, outcome-based reporting, and the
communication of findings and results beyond the
immediate target audience; and
``(F) other appropriate factors, as determined by
the Secretary.
``(6) Regional balance.--In making grants under this
subsection, the Secretary shall, to the maximum extent
practicable, ensure geographic diversity.
``(7) Organic conversion.--The Secretary may make grants
under this subsection to support projects that provide
comprehensive technical assistance to beginning farmers or
ranchers who are in the process of converting to certified
organic production.
``(8) Priority.--In making grants under this subsection,
the Secretary shall give priority to partnerships and
collaborations that are led by or include non-governmental and
community-based organizations with expertise in new farmer
training and outreach.''; and
(5) in paragraph (9) (as redesignated by paragraph (3))--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period and
adding ``; and''; and
(C) by adding at the end the following:
``(D) refugee or immigrant beginning farmers or
ranchers''.
(b) Education Teams.--Section 7405(d)(2) of the Farm Security and
Rural Investment At of 2002 (7 U.S.C. 3319f(d)(2)) is amended by
inserting ``, including sustainable and organic farming production and
marketing methods'' before the period at the end.
(c) Stakeholder Input.--Section 7405(f) of the Farm Security and
Rural Investment At of 2002 (7 U.S.C. 3319f(f)) is amended--
(1) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and indenting
appropriately;
(2) by striking ``In carrying out'' and inserting the
following:
``(1) In general.--In carrying out''; and
(3) by adding at the end the following:
``(2) Review panels.--In forming review panels to evaluate
proposals submitted under this section, the Secretary shall
include individuals from the categories described in paragraph
(1).''.
(d) Funding.--Section 7405 of the Farm Security and Rural
Investment At of 2002 (7 U.S.C. 3319f) is amended by striking
subsection (h) and inserting the following:
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $30,000,000 for each of fiscal
years 2002 through 2012.''.
SEC. 7310. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.
Section 2 of Public Law 87-788 (commonly known as the ``McIntire-
Stennis Cooperative Forestry Act'') (16 U.S.C. 582a-1) is amended by
inserting ``and 1890 Institutions (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7601)),'' before ``and (b)''.
SEC. 7311. NATIONAL AQUACULTURE ACT OF 1980.
Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809)
is amended by striking ``2007'' each place it appears and inserting
``2012''.
SEC. 7312. NATIONAL ARBORETUM.
The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is amended by
adding at the end the following:
``SEC. 7. CONSTRUCTION OF A CHINESE GARDEN AT NATIONAL ARBORETUM.
``(a) In General.--A Chinese Garden may be constructed at the
National Arboretum established under this Act with--
``(1) funds accepted under section 5; and
``(2) authorities provided to the Secretary of Agriculture
under section 6.
``(b) Report.--Each year the Secretary of Agriculture shall submit
to Congress, and post on the public website of the National Arboretum,
an itemized budget that shall describe, for the preceding year--
``(1) the total costs of the National Arboretum;
``(2) the costs of--
``(A) operation and maintenance;
``(B) horticulture and grounds;
``(C) visitor services; and
``(D) supplies and materials;
``(3) indirect costs of the Agricultural Research Service
relating to the National Arboretum; and
``(4) the total number of visitors to the National
Arboretum.
``(c) Limitation.--No Federal funds shall be used for the
construction of the Chinese Garden authorized under subsection (a).''.
SEC. 7313. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR
CERTAIN LAND-GRANT UNIVERSITY ASSISTANCE.
Section 208 of the District of Columbia Public Postsecondary
Education Reorganization Act (Public Law 93-471; 88 Stat. 1428) is
amended--
(1) in subsection (b)(2), by striking ``, except'' and all
that follows through the period and inserting a period; and
(2) in subsection (c)--
(A) by striking ``section 3'' each place it appears
and inserting ``section 3(c)''; and
(B) by striking ``Such sums may be used to pay''
and all that follows through ``work.''.
SEC. 7314. EXCHANGE OR SALE AUTHORITY.
Title III of the Department of Agriculture Reorganization Act of
1994 is amended by adding after section 307 (7 U.S.C. 2204 note; Public
Law 103-354) (as amended by section 2602) the following:
``SEC. 308. EXCHANGE OR SALE AUTHORITY.
``(a) Definition of Qualified Items of Personal Property.--In this
section, the term `qualified items of personal property' means--
``(1) animals;
``(2) animal products;
``(3) plants; and
``(4) plant products.
``(b) General Authority.--Except as provided in subsection (c),
notwithstanding chapter 5 of subtitle I of title 40, United States
Code, the Secretary of Agriculture, acting through the Under Secretary
for Research, Education, and Economics, in managing personal property
for the purpose of carrying out the research functions of the
Department of Agriculture, may exchange, sell, or otherwise dispose of
any qualified items of personal property, including by way of public
auction, and may retain and apply the sale or other proceeds, without
further appropriation, in whole or in partial payment--
``(1) to acquire any qualified items of personal property;
or
``(2) to offset costs related to the maintenance, care, or
feeding of any qualified items of personal property.
``(c) Exception.--Subsection (b) does not apply to the free
dissemination of new varieties of seeds and germ plasm in accordance
with section 520 of the Revised Statutes (commonly known as the
`Department of Agriculture Organic Act of 1862') (7 U.S.C. 2201).''.
SEC. 7315. CARBON CYCLE RESEARCH.
(a) In General.--To the extent funds are made available, the
Secretary shall provide a grant to the Consortium for Agricultural
Soils Mitigation of Greenhouse Gases, acting through Kansas State
University, to develop, analyze, and implement, through the land grant
universities described in subsection (b), carbon cycle and greenhouse
gas management research at the national, regional, and local levels.
(b) Land Grant Universities.--The land grant universities referred
to in subsection (a) are--
(1) Colorado State University;
(2) Iowa State University;
(3) Kansas State University;
(4) Michigan State University;
(5) Montana State University;
(6) Purdue University;
(7) Ohio State University;
(8) Texas A&M University; and
(9) University of Nebraska.
(c) Use.--Land grant universities described in subsection (b) shall
use funds made available under this section--
(1) to conduct research to improve the scientific basis of
using land management practices to increase soil carbon
sequestration, including research on the use of new
technologies to increase carbon cycle effectiveness, such as
biotechnology and nanotechnology;
(2) to conduct research on management of other greenhouse
gases in the agricultural sector;
(3) to enter into partnerships to identify, develop, and
evaluate agricultural best practices, including partnerships
between--
(A) Federal, State, or private entities; and
(B) the Department of Agriculture;
(4) to develop necessary computer models to predict and
assess the carbon cycle;
(5) to estimate and develop mechanisms to measure carbon
levels made available as a result of--
(A) voluntary Federal conservation programs;
(B) private and Federal forests; and
(C) other land uses;
(6) to develop outreach programs, in coordination with
Extension Services, to share information on carbon cycle and
agricultural best practices that is useful to agricultural
producers; and
(7) to collaborate with the Great Plains Regional Earth
Science Application Center to develop a space-based carbon
cycle remote sensing technology program--
(A) to provide, on a near-continual basis, a real-
time and comprehensive view of vegetation conditions;
(B) to assess and model agricultural carbon
sequestration; and
(C) to develop commercial products.
(d) Cooperative Research.--
(1) In general.--Subject to the availability of
appropriations, the Secretary, in cooperation with departments
and agencies participating in the U.S. Global Change Research
Program and eligible entities, may carry out research to
promote understanding of--
(A) the flux of carbon in soils and plants
(including trees); and
(B) the exchange of other greenhouse gases from
agriculture.
(2) Eligible entities.--Research under this subsection may
be carried out through the competitive awarding of grants and
cooperative agreements to colleges and universities (as defined
in section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)).
(3) Cooperative research purposes.--Research conducted
under this subsection shall encourage collaboration among
scientists with expertise in the areas of soil science,
agronomy, agricultural economics, forestry, and other
agricultural sciences to focus on--
(A) developing data addressing carbon losses and
gains in soils and plants (including trees) and the
exchange of methane and nitrous oxide from agriculture;
(B) understanding how agricultural and forestry
practices affect the sequestration of carbon in soils
and plants (including trees) and the exchange of other
greenhouse gases, including the effects of new
technologies such as biotechnology and nanotechnology;
(C) developing cost-effective means of measuring
and monitoring changes in carbon pools in soils and
plants (including trees), including computer models;
(D) evaluating the linkage between Federal
conservation programs and carbon sequestration;
(E) developing methods, including remote sensing,
to measure the exchange of carbon and other greenhouse
gases sequestered, and to evaluate leakage,
performance, and permanence issues; and
(F) assessing the applicability of the results of
research conducted under this subsection for developing
methods to account for the impact of agricultural
activities (including forestry) on the exchange of
greenhouse gases.
(e) Extension Projects.--
(1) In general.--The Secretary, in cooperation with
departments and agencies participating in the U.S. Global
Change Research Program and local extension agents, experts
from institutions of higher education that offer a curriculum
in agricultural and biological sciences, and other local
agricultural or conservation organizations, may implement
extension projects (including on-farm projects with direct
involvement of agricultural producers) that combine measurement
tools and modeling techniques into integrated packages to
monitor the carbon sequestering benefits of conservation
practices and the exchange of greenhouse gas emissions from
agriculture that demonstrate the feasibility of methods of
measuring and monitoring--
(A) changes in carbon content and other carbon
pools in soils and plants (including trees); and
(B) the exchange of other greenhouse gases.
(2) Education and outreach.--The Secretary shall make
available to agricultural producers, private forest landowners,
and appropriate State agencies in each State information
concerning--
(A) the results of projects under this subsection;
(B) the manner in which the methods used in the
projects might be applicable to the operations of the
agricultural producers, private forest landowners, and
State agencies; and
(C) information on how agricultural producers and
private forest landowners can participate in carbon
credit and greenhouse gas trading system.
(f) Repeal.--Section 221 of the Agricultural Risk Protection Act of
2000 (7 U.S.C. 6711) is repealed.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $15,000,000 for each of fiscal
years 2008 through 2012.
SEC. 7316. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.
Title III of the Department of Agriculture Reorganization Act of
1994 is amended by adding after section 309 (as added by section 7402)
the following:
``SEC. 310. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.
``(a) Establishment.--To enhance the use of real property
administered by agencies of the Department, the Secretary may establish
a pilot program, in accordance with this section, at the Henry A.
Wallace Beltsville Agricultural Research Center of the Agricultural
Research Service and the National Agricultural Library to lease
property of the Center or the Library to any individual or entity,
including agencies or instrumentalities of State or local governments.
``(b) Requirements.--
``(1) In general.--Notwithstanding chapter 5 of subtitle I
of title 40, United States Code, the Secretary may lease real
property at the Beltsville Agricultural Research Center or the
National Agricultural Library in accordance with such terms and
conditions as the Secretary may prescribe, if the Secretary
determines that the lease--
``(A) is consistent with, and will not adversely
affect, the mission of the Department agency
administering the property;
``(B) will enhance the use of the property;
``(C) will not permit any portion of Department
agency property or any facility of the Department to be
used for retail, wholesale, commercial, or residential
development;
``(D) will not provide authority for the
development or improvement of any new property or
facility by any Department agency; and
``(E) will not include any property or facility
required for any Department agency purpose without
prior written authority.
``(2) Term.--The term of the lease under this section shall
not exceed 50 years.
``(3) Consideration.--
``(A) In general.--Consideration provided for a
lease under this section shall be--
``(i) in an amount equal to fair market
value, as determined by the Secretary; and
``(ii) in the form of cash.
``(B) Use of funds.--
``(i) In general.--Consideration provided
for a lease under this section shall be--
``(I) deposited in a capital asset
account to be established by the
Secretary; and
``(II) available until expended,
without further appropriation, for
maintenance, capital revitalization,
and improvements of the Department
properties and facilities covered by
the lease.
``(ii) Budgetary treatment.--For purposes
of the budget, the amounts described in clause
(i) shall not be treated as a receipt of any
Department agency or any other agency leasing
property under this section.
``(4) Costs.--The lessee shall cover all costs associated
with a lease under this section, including the cost of--
``(A) the project to be carried out on property or
at a facility covered by the lease;
``(B) provision and administration of the lease;
``(C) construction of any applicable real property;
``(D) provision of applicable utilities; and
``(E) any other facility cost normally associated
with the operation of a leased facility.
``(5) Prohibition of use of appropriations.--The Secretary
shall not use any funds made available to the Secretary in an
appropriations Act for the construction or operating costs of
any property or facility covered by a lease under this section.
``(c) Effect of Other Laws.--
``(1) Utilization.--Property that is leased pursuant to
this section shall not be considered to be unutilized or
underutilized for purposes of section 501 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11411).
``(2) Disposal.--Property at the Beltsville Agricultural
Research Center or the National Agricultural Library that is
leased pursuant to this section shall not be considered to be
disposed of by sale, lease, rental, excessing, or surplusing
for purposes of section 523 of Public Law 100-202 (101 Stat.
1329-417).
``(d) Reports.--
``(1) Fiscal years 2008 through 2013.--For each of fiscal
years 2008 through 2013, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate an annual report describing the implementation of the
pilot program under this section during the preceding fiscal
year, including--
``(A) a copy of each lease entered into pursuant to
this section;
``(B) an assessment by the Secretary of the success
of the pilot program in promoting the mission of the
Beltsville Agricultural Research Center and the
National Agricultural Library; and
``(C) recommendations regarding whether the pilot
program should be expanded or improved with respect to
other Department activities.
``(2) Fiscal year 2014 and thereafter.--For fiscal year
2014 and every 5 fiscal years thereafter, the Secretary shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report described in paragraph (1)
relating to the preceding 5-fiscal-year period.''.
SEC. 7317. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF ANTIBIOTIC-
RESISTANT BACTERIA IN LIVESTOCK.
(a) In General.--The Secretary shall provide research and education
grants, on a competitive basis--
(1) to study the development of antibiotic-resistant
bacteria in livestock; and
(2) to study and ensure the judicious use of antibiotics in
livestock production to protect animal health without
negatively impacting human public health.
(b) Use of Funds.--An entity shall use a grant provided under this
section to conduct research relating to--
(1) methods and practices of animal husbandry that ensure
the judicious use of antibiotics;
(2) movement and prevention of movement of antibiotics and
antibiotic resistance traits from animals into ground and
surface water;
(3) safe and effective alternatives to antibiotics;
(4) the effect on antibiotic resistance from various drug
use regimens;
(5) the development of better veterinary diagnostics to
improve decisionmaking on proper antibiotic use;
(6) the identification of conditions or factors that affect
antibiotic use on farms; and
(7) the development of procedures to monitor antibiotic use
at the farm level to relate findings to on-farm management
practices and develop intervention strategies when appropriate.
Subtitle E--National Institute of Food and Agriculture
SEC. 7401. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.
(a) In General.--Subtitle F of the Department of Agriculture
Reorganization Act of 1994 is amended by adding after section 252 (7
U.S.C. 6972) the following:
``SEC. 253. NATIONAL INSTITUTE OF FOOD AND AGRICULTURE.
``(a) Definitions.--In this section:
``(1) Advisory board.--The term `Advisory Board' means the
National Agricultural Research, Extension, Education, and
Economics Advisory Board established under section 1408 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3123).
``(2) Competitive program.--The term `competitive program'
means each of the following agricultural research, extension,
education, and related programs for which the Secretary has
administrative or other authority as of the day before the date
of enactment of this section:
``(A) The competitive grant program established
under section 2(b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b)),
commonly known as the `National Research Initiative
Competitive Grants Program'.
``(B) The program providing competitive grants for
risk management education established under section
524(a)(3) of the Federal Crop Insurance Act (7 U.S.C.
1524(a)(3)).
``(C) The program providing community food project
competitive grants established under section 25 of the
Food Stamp Act of 1977 (7 U.S.C. 2034).
``(D) Each grant program established under section
2501 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 2279) providing outreach and
assistance for socially disadvantaged farmers and
ranchers.
``(E) The program providing grants under section
1417(b)(1) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(b)(1)), commonly known as `Higher Education
Challenge Grants'.
``(F) The program providing grants and related
assistance established under section 1417(b)(5) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3152(b)(5)) commonly known
as the `Higher Education Multicultural Scholars
Program'.
``(G) The program providing food and agricultural
sciences national needs graduate and postgraduate
fellowship grants established under section 1417(b)(6)
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(6)).
``(H) The program providing grants under section
1417(j) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(j)), commonly known as `Institution Challenge
Grants'.
``(I) The program providing grants for Hispanic-
serving institutions established under section 1455 of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3241).
``(J) The program providing competitive grants for
international agricultural science and education
programs under section 1459A of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3292b).
``(K) The program of agricultural development in
the American-Pacific region established under section
1473H of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977.
``(L) The research and extension projects carried
out under section 1621 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5811),
commonly known as the `Sustainable Agriculture Research
and Education program'.
``(M) The biotechnology risk assessment research
program established under section 1668 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5921).
``(N) The organic agriculture research and
extension initiative established under section 1672B of
the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5925b).
``(O) The Initiative for Future Agriculture and
Food Systems established under section 401 of the
Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7621).
``(P) The integrated research, education, and
extension competitive grants program established under
section 406 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7626).
``(Q) The Small Business Innovation Research
Program established under section 9 of the Small
Business Act (15 U.S.C. 638).
``(R) The specialty crop research initiative under
section 412 of the Agricultural Research, Extension,
and Education Reform Act of 1998.
``(S) The administration and management of the
regional bioenergy crop research program carried out
under section 9012 of the Farm Security and Rural
Investment Act of 2002.
``(T) The research, extension, and education
programs authorized by section 407 of the Agricultural
Research, Extension, and Education Reform Act of 1998
(7 U.S.C. 7627) relating to the viability and
competitiveness of small- and medium-sized dairy,
livestock, crop, and other commodity operations.
``(U) Other programs, including any programs added
by amendments made by title VII of the Food and Energy
Security Act of 2007 that are competitive programs, as
determined by the Secretary.
``(3) Director.--The term `Director' means the Director of
the Institute.
``(4) Infrastructure program.--The term `infrastructure
program' means each of the following agricultural research,
extension, education, and related programs for which the
Secretary has administrative or other authority as of the day
before the date of enactment of this section:
``(A) Each program providing funding to any of the
1994 Institutions under sections 533, 534(a), and 535
of the Equity in Educational Land-Grant Status Act of
1994 (7 U.S.C. 301 note; Public Law 103-382) (commonly
known as `financial assistance, technical assistance,
and endowments to tribal colleges and Navajo Community
College').
``(B) The program established under section 536 of
the Equity in Educational Land-Grant Status Act of 1994
(7 U.S.C. 301 note; Public Law 103-382) providing
research grants for 1994 institutions.
``(C) Each program established under subsections
(b), (c), and (d) of section 3 of the Smith-Lever Act
(7 U.S.C. 343).
``(D) Each program established under the Hatch Act
of 1887 (7 U.S.C. 361a et seq.).
``(E) Each program established under section
1417(b)(4) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(b)(4)), including grant programs under that
section (commonly known as the `1890 Institution
Teaching and Research Capacity Building Grants
Program').
``(F) The animal health and disease research
program established under subtitle E of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3191 et seq.).
``(G) Each extension program available to 1890
Institutions established under sections 1444 and 1464
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3221, 3312).
``(H) The program established under section 1445 of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222) (commonly
known as the `Evans-Allen Program').
``(I) The program providing grants to upgrade
agricultural and food sciences facilities at 1890
Institutions established under section 1447 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3222b).
``(J) The program providing distance education
grants for insular areas established under section 1490
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3362).
``(K) The program providing resident instruction
grants for insular areas established under section 1491
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3363).
``(L) Each program available to 1890 Institutions
established under section 406 of the Agricultural
Research, Extension, and Education Reform Act of 1998
(7 U.S.C. 7626).
``(M) The program providing competitive extension
grants to eligible 1994 Institutions under section 1464
of National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3312) and the
Equity in Educational Land-Grant Status Act of 1994
(Public Law 103-382; 7 U.S.C. 301 note) established
under section 406 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7626).
``(N) Each research and development and related
program established under Public Law 87-788 (commonly
known as the `McIntire-Stennis Cooperative Forestry
Act') (16 U.S.C. 582a et seq.).
``(O) Each program established under the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1671 et
seq.).
``(P) Each program providing funding to Hispanic-
serving agricultural colleges under section 1456 of the
National Agricultural Research, Extension and Teaching
Policy Act of 1977.
``(Q) The administration and management of the farm
energy education and technical assistance program
carried out under section 9005 of the Farm Security and
Rural Investment Act of 2002.
``(R) Other programs, including any programs added
by amendments made by title VII of the Food and Energy
Security Act of 2007 that are infrastructure programs,
as determined by the Secretary.
``(5) Institute.--The term `Institute' means the National
Institute of Food and Agriculture established by subsection
(b)(1)(A).
``(b) Establishment of National Institute for Food and
Agriculture.--
``(1) Establishment.--
``(A) In general.--There is established within the
Department an agency to be known as the `National
Institute of Food and Agriculture'.
``(B) Location.--The location of the Institute
shall be in Washington, District of Columbia, as
determined by the Secretary.
``(C) Members.--The Institute shall consist of--
``(i) the Director;
``(ii) the individual offices established
under subsection (e); and
``(iii) the staff and employees of National
Institute for Food and Agriculture.
``(2) Transfer of authorities.--There are transferred to
the Institute the authorities (including all budget authorities
and personnel), duties, obligations, and related legal and
administrative functions prescribed by law or otherwise granted
to the Secretary, the Department, or any other agency or
official of the Department under--
``(A) the infrastructure programs;
``(B) the competitive programs;
``(C) the research, education, economic,
cooperative State research programs, cooperative
extension and education programs, international
programs, and other functions and authorities delegated
by the Secretary to the Administrator of the
Cooperative State Research, Education, and Extension
Service pursuant to section 2.66 of title 7, Code of
Federal Regulations (or successor regulations); and
``(D) any and all other authorities administered by
the Administrator of the Cooperative State Research,
Education, and Extension Service.
``(3) Consolidation of authorities.--To carry out this Act,
in accordance with the transfer and continuation of the
authorities, budgetary functions, and personnel resources under
this subsection, the administrative entity within the
Department known as the Cooperative State Research, Education,
and Extension Service shall terminate on the earlier of--
``(A) October 1, 2008; or
``(B) such earlier date as the Director determines
to be appropriate.
``(c) Director.--
``(1) In general.--The Institute shall be headed by a
Director, who shall be an individual who is--
``(A) a distinguished scientist; and
``(B) appointed by the President (after taking into
consideration recommendations made by the National
Academy of Sciences), by and with the advice and
consent of the Senate.
``(2) Term.--The Director shall serve for a single, 6-year
term.
``(3) Supervision.--The Director shall report directly to
the Secretary.
``(4) Compensation.--The Director shall receive basic pay
at the rate provided for level II of the Executive Schedule
under section 5513 of title 5, United States Code.
``(5) Authority and responsibilities of director.--
``(A) In general.--Except as otherwise specifically
provided in this section, the Director shall--
``(i) exercise all of the authority
provided to the Institute by this section;
``(ii) formulate programs in accordance
with policies adopted by the Institute;
``(iii) establish offices within the
Institute;
``(iv) establish procedures for the peer
review of research funded by the Institute;
``(v) establish procedures for the
provision and administration of grants by the
Institute in accordance with this section;
``(vi) assess the personnel needs of
agricultural research in the areas supported by
the Institute, and, if determined to be
appropriate by the Director, for other areas of
food and agricultural research;
``(vii) plan programs that will help meet
agricultural personnel needs in the future,
including portable fellowship and training
programs in fundamental agricultural research
and fundamental science; and
``(viii) consult regularly with the
National Agricultural Research, Extension,
Education, and Economics Advisory Board.
``(B) Finality of actions.--An action taken by the
Director in accordance with this section shall be final
and binding upon the Institute.
``(C) Delegation and redelegation of functions.--
``(i) In general.--Except as provided in
clause (ii), the Director may, from time to
time and as the Director considers to be
appropriate, authorize the performance by any
other officer, agency, or employee of the
Institute of any of the functions of the
Director under this section.
``(ii) Contracts, grants, and other
arrangements.--The Director may enter into
contracts and other arrangements, and provide
grants, in accordance with this section.
``(iii) Formulation of programs.--The
formulation of programs in accordance with the
policies of the Institute shall be carried out
by the Director.
``(6) Staff.--The Director shall recruit and hire such
senior staff and other personnel as are necessary to assist the
Director in carrying out this section.
``(7) Reporting and consultation.--The Director shall--
``(A) periodically report to the Secretary with
respect to activities carried out by the Institute; and
``(B) consult regularly with the Secretary to
ensure, to the maximum extent practicable, that--
``(i) research of the Institute is relevant
to agriculture in the United States and
otherwise serves the national interest; and
``(ii) the research of the Institute
supplements and enhances, and does not replace,
research conducted or funded by--
``(I) other agencies of the
Department;
``(II) the National Science
Foundation; or
``(III) the National Institutes of
Health.
``(d) Powers.--
``(1) In general.--The Institute shall have such authority
as is necessary to carry out this section, including the
authority--
``(A) to promulgate such regulations as the
Institute considers to be necessary for governance of
operations, organization, and personnel;
``(B) to make such expenditures as are necessary to
carry out this section;
``(C) to enter into contracts or other
arrangements, or modifications of contracts or other
arrangements--
``(i) to provide for the conduct, by
organizations or individuals in the United
States (including other agencies of the
Department, Federal agencies, and agencies of
foreign countries), of such agricultural
research or related activities as the Institute
considers to be necessary to carry out this
section; and
``(ii) for the conduct of such specific
agricultural research as is in the national
interest or is otherwise of critical
importance, as determined by the Secretary,
with the concurrence of the Institute;
``(D) to make advance, progress, and other payments
relating to research and scientific activities without
regard to subsections (a) and (b) of section 3324 of
title 31, United States Code;
``(E) to receive and use donated funds, if the
funds are donated without restriction other than that
the funds be used in furtherance of 1 or more of the
purposes of the Institute;
``(F) to publish or arrange for the publication of
research and scientific information to further the full
dissemination of information of scientific value
consistent with the national interest, without regard
to section 501 of title 44, United States Code;
``(G)(i) to accept and use the services of
voluntary and uncompensated personnel; and
``(ii) to provide such transportation and
subsistence as are authorized by section 5703 of title
5, United States Code, for individuals serving without
compensation;
``(H) to prescribe, with the approval of the
Comptroller General of the United States, the extent to
which vouchers for funds expended under contracts for
scientific or engineering research shall be subject to
itemization or substantiation prior to payment, without
regard to the limitations of other laws relating to the
expenditure and accounting of public funds;
``(I) to reimburse the Secretary, and the heads of
other Federal agencies, for the performance of any
activity that the Institute is authorized to conduct;
and
``(J) to enter into contracts, at the request of
the Secretary, for the carrying out of such specific
agricultural research as is in the national interest or
otherwise of critical importance, as determined by the
Secretary, with the consent of the Institute.
``(2) Transfer of research funds of other departments or
agencies.--Funds available to the Secretary, or any other
department or agency of the Federal Government, for
agricultural or scientific research shall be--
``(A) available for transfer, with the approval of
the Secretary or the head of the other appropriate
department or agency involved, in whole or in part, to
the Institute for use in providing grants in accordance
with the purposes for which the funds were made
available; and
``(B) if so transferred, expendable by the
Institute for those purposes.
``(e) Offices.--
``(1) Establishment of offices.--
``(A) Office of the agricultural research,
extension, and education network.--
``(i) Establishment.--The Director shall
establish within the Institute an Office of the
Agricultural Research, Extension, and Education
Network (referred to in this subparagraph as
the `Office').
``(ii) Duties.--At the discretion of the
Director, the Office shall have responsibility
for all infrastructure programs.
``(B) Office of competitive programs for
fundamental research.--
``(i) Definition of fundamental research.--
In this subparagraph, the term `fundamental
research' means research that--
``(I) is directed toward greater
knowledge or understanding of the
fundamental aspects of phenomena and
has the potential for broad, rather
than specific, application; and
``(II) has an effect on
agriculture, food, nutrition, human
health, or another purpose of this
section.
``(ii) Establishment.--The Director shall
establish within the Institute an Office of
Competitive Programs for Fundamental Research
(referred to in this subparagraph as the
`Office').
``(iii) Duties.--At the discretion of the
Director, the Office shall have responsibility
for all competitive programs relating to
fundamental research.
``(C) Office of competitive programs for applied
research.--
``(i) Definition of applied research.--In
this subparagraph, the term `applied research'
means research that expands on the findings of
fundamental research to uncover practical ways
in which new knowledge can be advanced to
benefit individuals and society.
``(ii) Establishment.--The Director shall
establish within the Institute an Office of
Competitive Programs for Applied Research
(referred to in this subparagraph as the
`Office').
``(iii) Duties.--At the discretion of the
Director, the Office shall have responsibility
for all competitive programs relating to
applied research.
``(D) Office of competitive programs for education
and other purposes.--
``(i) Establishment.--The Director shall
establish within the Institute an Office of
Competitive Programs for Education and Other
Purposes (referred to in this subparagraph as
the `Office').
``(ii) Duties.--At the discretion of the
Director, the Office shall have responsibility
for all competitive programs that provide
education fellowships and other education-
related grants.
``(2) Competitive programs for fundamental and applied
research.--
``(A) Definition of a competitive program for
fundamental and applied research.--In this paragraph,
the term `competitive program for fundamental and
applied research' means--
``(i) the competitive grant program
established under section 2 of the Competitive,
Special, and Facilities Research Grant Act (7
U.S.C. 450i), commonly known as the `National
Research Initiative Competitive Grants
Program'; and
``(ii) any other competitive program within
the Institute that funds both fundamental and
applied research, as determined by the
Director.
``(B) Program allocations.--For purposes of
determining which Office established under paragraph
(1) should have primary responsibility for
administering grants under a competitive program for
fundamental and applied research, the Director shall--
``(i) determine whether the grant under the
competitive program for fundamental and applied
research is principally related to fundamental
or applied research; and
``(ii) assign the grant to the appropriate
Office.
``(3) Responsibility of the director.--The Director shall
ensure that the Offices established under paragraph (1)
coordinate with each other Office for maximum efficiency.
``(f) Reporting.--The Director shall submit to the Secretary, the
Committee on Agriculture and the Committee on Appropriations of the
House of Representatives, and the Committee on Agriculture, Nutrition,
and Forestry and the Committee on Appropriations of the Senate--
``(1) not later than 1 year after the date of establishment
of the Institute, and biennially thereafter, a comprehensive
report that--
``(A) describes the research funded and other
activities carried out by the Institute during the
period covered by the report; and
``(B) describes each contract or other arrangement
that the Institute has entered into, each grant awarded
to the Institute, and each other action of the Director
taken, under subsection (c)(5)(C)(ii); and
``(2) not later than 1 year after the date of establishment
of the Institute, and annually thereafter, a report that
describes the allocation and use of funds under subsection
(g)(2) of section 401 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7621).
``(g) Funding.--
``(1) In general.--In addition to funds otherwise
appropriated to carry out each program administered by the
Institute, there are authorized to be appropriated such sums as
are necessary to carry out this section for each fiscal year.
``(2) Allocation.--Funding made available under paragraph
(1) shall be allocated according to recommendations contained
in the roadmap described in section 309(c)(1)(A).''.
(b) National Agricultural Research, Extension, and Teaching Policy
Act of 1977.--Section 1408(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(b)) is
amended--
(1) in paragraph (1), by striking ``31 members'' and
inserting ``24 members'';
(2) by striking paragraph (3) and inserting the following:
``(3) Membership categories.--The Advisory Board shall
consist of members from each of the following categories:
``(A) 1 member representing a national farm
organization.
``(B) 1 member representing farm cooperatives.
``(C) 1 member actively engaged in the production
of a food animal commodity.
``(D) 1 member actively engaged in the production
of a plant commodity.
``(E) 1 member actively engaged in aquaculture.
``(F) 1 member representing a national food animal
science society.
``(G) 1 member representing a national crop, soil,
agronomy, horticulture, plant pathology, or weed
science society.
``(H) 1 member representing a national food science
organization.
``(I) 1 member representing a national human health
association.
``(J) 1 member representing a national nutritional
science society.
``(K) 1 member representing the land-grant colleges
and universities eligible to receive funds under the
Act of July 2, 1862 (7 U.S.C. 301 et seq.).
``(L) 1 member representing the land-grant colleges
and universities eligible to receive funds under the
Act of August 30, 1890 (7 U.S.C. 321 et seq.),
including Tuskegee University.
``(M) 1 member representing the 1994 Institutions
(as defined in section 532 of the Equity in Educational
Land-Grant Status Act of 1994 (Public Law 103-382; 7
U.S.C. 301 note)).
``(N) 1 member representing Hispanic-serving
institutions.
``(O) 1 member representing the American Colleges
of Veterinary Medicine.
``(P) 1 member engaged in the transportation of
food and agricultural products to domestic and foreign
markets.
``(Q) 1 member representing food retailing and
marketing interests.
``(R) 1 member representing food and fiber
processors.
``(S) 1 member actively engaged in rural economic
development.
``(T) 1 member representing a national consumer
interest group.
``(U) 1 member representing a national forestry
group.
``(V) 1 member representing a national conservation
or natural resource group.
``(W) 1 member representing private sector
organizations involved in international development.
``(X) 1 member representing a national social
science association.''; and
(3) in paragraph (4), by striking ``the Administrator of
the Cooperative State Research, Education, and Extension
Service'' and inserting ``the Director of the National
Institute of Food and Agriculture''.
(c) Conforming Amendments.--
(1) Section 296(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
(A) in paragraph (4), by striking ``or'' at the
end;
(B) in paragraph (5), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(6) the authority of the Secretary relating to the
National Institute of Food and Agriculture under section 253;
or''.
(2) The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended--
(A) in section 1424A(b) (7 U.S.C. 3174a(b)), by
striking ``the Cooperative State Research, Education,
and Extension Service'' and inserting ``the National
Institute of Food and Agriculture''; and
(B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)),
by striking ``the Cooperative State Research,
Education, and Extension Service'' and inserting ``the
National Institute of Food and Agriculture''.
(3) Section 522(d)(2) of the Federal Crop Insurance Act (7
U.S.C. 1522(d)(2)) is amended by striking ``the Cooperative
State Research, Education, and Extension Service'' and
inserting ``the National Institute of Food and Agriculture''.
(4) Section 524(a) of the Federal Crop Insurance Act (7
U.S.C. 1524(a)) is amended in each of paragraphs (1)(B) and
(3)(A) by striking ``the Cooperative State Research, Education,
and Extension Service'' each place it appears and inserting
``the National Institute of Food and Agriculture''.
(5) Section 306(a)(11)(C) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(11)(C)) is amended by
striking ``the Cooperative State Research, Education, and
Extension Service'' and inserting ``the National Institute of
Food and Agriculture''.
(6) Section 704 of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations
Act, 2006 (7 U.S.C. 2209b), is amended by striking
``Cooperative State Research, Education, and Extension
Service'' and inserting ``the National Institute of Food and
Agriculture''.
(7) Section 7404(b)(1)(B) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107-171)
is amended by striking clause (vi) and inserting the following:
``(vi) the National Institute of Food and
Agriculture.''.
(8) Section 1499(c) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5506(c)) is amended by striking
``the Cooperative State Research Service'' and inserting ``the
National Institute of Food and Agriculture''.
(9) Section 1622 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5812) is amended--
(A) in subsection (a)(1), by striking ``the
Cooperative State Research Service'' and inserting
``the National Institute of Food and Agriculture''; and
(B) in subsection (b)(1), by striking subparagraph
(B) and inserting the following:
``(B) the National Institute of Food and
Agriculture;''.
(10) Section 1668(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5921(b)) is
amended by striking ``Cooperative State Research, Education,
and Extension Service and the Agricultural Research Service''
and inserting ``the National Institute of Food and
Agriculture''.
(11) Section 1670(a)(4) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is
amended by striking ``the Administrator of the Cooperative
State Research, Education, and Extension Service'' and
inserting ``the Director of the National Institute of Food and
Agriculture''.
(12) Section 537 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7446) is amended in each of
subsections (a)(2) and (b)(3)(B)(i) by striking ``Cooperative
State Research, Education, and Extension Service'' and
inserting ``the National Institute of Food and Agriculture''.
(13) Section 103(a) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7613(a))
is amended--
(A) in the subsection heading, by striking
``Cooperative State Research, Education, and Extension
Service'' and inserting ``National Institute of Food
and Agriculture''; and
(B) in each of paragraphs (1) and (2)(A), by
striking ``the Cooperative State Research, Education,
and Extension Service'' and inserting ``the National
Institute of Food and Agriculture''.
(14) Section 401(f)(5) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7621(f)(5)) is amended by striking ``the Cooperative State
Research, Education, and Extension Service'' and inserting
``the National Institute of Food and Agriculture''.
(15) Section 407(c) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7627(c))
is amended by striking ``the Cooperative State Research,
Education, and Extension Service'' and inserting ``the National
Institute of Food and Agriculture''.
(16) Section 410(a) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7630(a))
is amended by striking ``the Administrator of the Cooperative
State Research, Education, and Extension Service'' and
inserting ``the Director of the National Institute of Food and
Agriculture''.
(17) Section 307(g)(5) of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking
``Administrator of the Cooperative State Research, Education,
and Extension Service'' and inserting ``the Director of the
National Institute of Food and Agriculture''.
(18) Section 6(b) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2103b(b)) is amended by striking ``the
Cooperative State Research, Education, and Extension Service,
may provide technical, financial, and related assistance to
State foresters, equivalent State officials, or Cooperative
Extension officials'' and inserting ``the National Institute of
Food and Agriculture, may provide technical, financial and
related assistance to State foresters, equivalent State
officials, and Institute officials''.
(19) Section 19 of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2113) is amended in subsections (a)(2) and
(b)(1)(B)(i), by striking ``Extension Service,'' each place it
appears and inserting ``National Institute of Food and
Agriculture,''.
(20) Section 105(a) of the Africa: Seeds of Hope Act of
1998 (22 U.S.C. 2293 note; Public Law 105-385) is amended by
striking ``the Cooperative State Research, Education, and
Extension Service (CSREES)'' and inserting ``the National
Institute of Food and Agriculture''.
(21) Section 307(a)(4) of the National Aeronautic and Space
Administration Authorization Act of 2005 (42 U.S.C.
16657(a)(4)) is amended by striking subparagraph (B) and
inserting the following:
``(B) the program and structure of, peer review
process of, management of conflicts of interest by,
compensation of reviewers of, and the effects of
compensation on reviewer efficiency and quality within,
the National Institute of Food and Agriculture of the
Department of Agriculture;''.
SEC. 7402. COORDINATION OF AGRICULTURAL RESEARCH SERVICE AND NATIONAL
INSTITUTE OF FOOD AND AGRICULTURE.
Title III of the Department of Agriculture Reorganization Act of
1994 is amended by adding after section 308 (as added by section 7314)
the following:
``SEC. 309. COORDINATION OF AGRICULTURAL RESEARCH SERVICE AND NATIONAL
INSTITUTE OF FOOD AND AGRICULTURE.
``(a) In General.--The Undersecretary for Research, Education, and
Economics shall coordinate the programs under the authority of the
Administrator of the Agricultural Research Service and the Director of
the National Institute of Food and Agriculture, and the staff of the
Administrator and the Director, including national program leaders,
shall meet on a regular basis to--
``(1) increase coordination and integration of research
programs at the Agricultural Research Service and the research,
extension, and education programs of the National Institute of
Food and Agriculture;
``(2) coordinate responses to emerging issues;
``(3) minimize duplication of work and resources at the
staff level of each agency;
``(4) use the extension and education program to deliver
knowledge to stakeholders;
``(5) address critical needs facing agriculture; and
``(6) focus the research, extension, and education funding
strategy of the Department.
``(b) Reports.--Not later than 270 days after the date of enactment
of this section, and annually thereafter, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report describing efforts to increase coordination between the
Agricultural Research Service and the National Institute for Food and
Agriculture.
``(c) Roadmap.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, acting through the
Under Secretary for Research, Education, and Economics shall--
``(A) prepare a roadmap for agricultural research,
extension, and education that--
``(i) identifies major opportunities and
gaps in agricultural research, extension, and
education that no single entity in the
Department would be able to carry out
individually, but that is necessary to carry
out agricultural research;
``(ii) involves--
``(I) stakeholders from across the
Federal Government;
``(II) stakeholders from across the
full array of nongovernmental entities;
and
``(III) the National Agricultural
Research, Extension, Education, and
Economics Advisory Board established
under section 1408 of the National
Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C.
3123);
``(iii) incorporates roadmaps for
agricultural research made publicly available
by other Federal entities, agencies, or
offices; and
``(iv) describes recommended funding levels
for areas of agricultural research, extension,
and education, including--
``(I) competitive programs; and
``(II) infrastructure programs,
with attention to the future growth
needs of small 1862 Institutions, 1890
Institutions, and 1994 Institutions (as
those terms are defined in section 2 of
the Agricultural Research, Extension,
and Education Reform Act of 1998 (7
U.S.C. 7601)), Hispanic-serving
agricultural colleges (as defined in
section 1456(a) of the National
Agricultural Research, Extension and
Teaching Policy Act of 1977), and any
other public college or university that
is not such an institution or college
but that offers a baccalaureate or
higher degree in the study of
agriculture;
``(B) use the roadmap to set the research,
extension, and education agenda of the Department; and
``(C) submit a description of the roadmap to the
Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate.
``(2) Implementation.--The Secretary, acting through the
Under Secretary, shall implement, to the maximum extent
practicable, the roadmap.
``(3) Funding.--There are authorized to be appropriated
such sums as are necessary to carry out this subsection.''.
Subtitle F--Miscellaneous
SEC. 7501. JOINT NUTRITION MONITORING AND RELATED RESEARCH ACTIVITIES.
The Secretary and the Secretary of Health and Human Services shall
continue to provide jointly for national nutrition monitoring and
related research activities carried out as of the date of enactment of
this Act--
(1) to collect continuous data relating to diet, health,
physical activity, and knowledge about diet and health, using a
nationally-representative sample;
(2) to periodically collect data described in paragraph (1)
on special at-risk populations, as identified by the
Secretaries;
(3) to distribute information on health, nutrition, the
environment, and physical activity to the public in a timely
manner;
(4) to analyze new data as the data becomes available;
(5) to continuously update food composition tables; and
(6) to research and develop data collection methods and
standards.
SEC. 7502. DEMONSTRATION PROJECT AUTHORITY FOR TEMPORARY POSITIONS.
Notwithstanding section 4703(d)(1) of title 5, United States Code,
the amendment to the personnel management demonstration project
established in the Department of Agriculture (67 Fed. Reg. 70776
(2002)), shall become effective upon the date of enactment of this Act
and shall remain in effect unless modified by law.
SEC. 7503. REVIEW OF PLAN OF WORK REQUIREMENTS.
(a) Review.--The Secretary of Agriculture (referred to in this
section as the ``Secretary'') shall work with university partners in
extension and research to review and identify measures to streamline
the submission, reporting under, and implementation of plan of work
requirements including requirements under--
(1) sections 1444(d) and 1445(c) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3221(d), 3222(c));
(2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); and
(3) section 4 of the Smith-Lever Act (7 U.S.C. 344).
(b) Report.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report describing the results of the review conducted
under subsection (a).
(2) Inclusions.--The report shall include recommendations--
(A) to reduce the administrative burden and
workload on institutions associated with plan of work
compliance while meeting the reporting needs of the
Department of Agriculture for input, output, and
outcome indicators;
(B) to streamline the submission and reporting
requirements of the plan of work so that the plan of
work is of practical utility to both the Department of
Agriculture and the institutions; and
(C) for any legislative changes necessary to carry
out the plan of work improvements.
(c) Consultation.--In carrying out this section, the Secretary
shall consult with land-grant colleges and universities (as defined in
section 1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)).
SEC. 7504. STUDY AND REPORT ON ACCESS TO NUTRITIOUS FOODS.
(a) In General.--The Secretary shall carry out a study of, and
prepare a report on, areas in the United States with limited access to
affordable and nutritious food, with a particular focus on
predominantly lower-income neighborhoods and communities.
(b) Contents.--The study and report shall--
(1) assess the incidence and prevalence of areas with
limited access to affordable and nutritious food in the United
States;
(2) identify--
(A) characteristics and factors causing and
influencing those areas; and
(B) the effect on local populations of limited
access to affordable and nutritious food; and
(3) develop recommendations for addressing the causes and
influences of those areas through measures including--
(A) community and economic development initiatives;
(B) incentives for retail food market development,
including supermarkets, small grocery stores, and
farmers' markets; and
(C) improvements to Federal food assistance and
nutrition education programs.
(c) Coordination With Other Agencies and Organizations.--The
Secretary shall conduct the study under this section in coordination
and consultation with--
(1) the Secretary of Health and Human Services;
(2) the Administrator of the Small Business Administration;
(3) the Institute of Medicine; and
(4) representatives of appropriate businesses, academic
institutions, and nonprofit and faith-based organizations.
(d) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit the report prepared
under this section, including the findings and recommendations
described in subsection (b), to--
(1) the Committee on Agriculture of the House of
Representatives; and
(2) the Committee on Agriculture, Nutrition, and Forestry
of the Senate.
SEC. 7505. SENSE OF SENATE REGARDING ORGANIC RESEARCH.
It is the sense of the Senate that--
(1) the Secretary should recognize that sales of certified
organic products have been expanding by 17 to 20 percent per
year for more than a decade, but research and outreach
activities relating specifically to certified organic
production growth and processing of agricultural products (as
defined in section 2103 of the Organic Foods Production Act of
1990 (7 U.S.C. 6502)) has not kept pace with this expansion;
(2) research conducted specifically on organic methods and
production systems benefits organic and conventional producers
and contributes to the strategic goals of the Department of
Agriculture, resulting in benefits for trade, human health, the
environment, and overall agricultural productivity;
(3) in order to meet the needs of the growing organic
sector, the Secretary should use a portion of the total annual
funds of the Agricultural Research Service for research
specific to organic food and agricultural systems that is at
least commensurate with the market share of the organic sector
of the domestic food retail market; and
(4) the increase in funding described in paragraph (3)
should include funding for efforts--
(A) to establish long-term core capacities for
organic research;
(B) to assist organic farmers and farmers intending
to transition to organic production systems; and
(C) to disseminate research results through the
Alternative Farming Systems Information Center of the
National Agriculture Library.
SEC. 7506. MODIFICATIONS TO INFORMATION TECHNOLOGY SERVICE.
(a) In General.--The Secretary shall not implement any modification
that reduces the availability or provision of information technology
service, or administrative management control of that service,
including data or center service agency, functions, and personnel at
the National Finance Center and the National Information Technology
Center service locations, until the date that is 60 days after the date
on which the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
receive a written determination and report from the Chief Financial
Officer or Chief Information Officer of the Department of Agriculture
and the Secretary that states that the implementation of the
modification is in the best interests of the Department of Agriculture.
(b) Report on Proposed Modifications.--Not later than 180 days
after the date of enactment of this Act, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives, the
Committee on Agriculture, Nutrition, and Forestry of the Senate, and
the Comptroller General a report on any proposed modification to reduce
the availability or provision of any information technology service, or
administrative management control of such a service, including data or
center service agency, functions, and personnel at the National Finance
Center and National Technology Center service locations, that
includes--
(1) a business case analysis (including of the near- and
long-term costs and benefits to the Department of Agriculture
and all other Federal agencies and departments that benefit
from services provided by the National Finance Center and the
National Information Technology Center service locations) of
the proposed modifications, as compared with maintaining
administrative management control or information technology
service functions and personnel in the existing structure and
at present locations; and
(2) an analysis of the impact of any changes in that
administrative management control or information technology
service (including data or center service agency, functions,
and personnel) on the ability of the National Finance Center
and National Information Technology Center service locations to
provide, in the near- and long-term, to all Federal agencies
and departments, cost-effective, secure, efficient, and
interoperable--
(A) information technology services;
(B) cross-servicing;
(C) e-payroll services; and
(D) human resource line-of-business services.
(c) Assessment.--Not later than 90 days after the date on which the
Comptroller General receives the report submitted under subsection (b),
the Comptroller General shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a detailed written assessment of
the report that includes an analysis (including of near- and long-term
cost benefits and impacts) of the alternatives available to all Federal
agencies and departments to acquire cost-effective, secure, efficient,
and interoperable information technology, cross-servicing, e-payroll,
and human resource line-of-business services.
(d) Operating Reserve.--
(1) In general.--Of annual income amounts in the working
capital fund of the Department of Agriculture allocated for the
National Finance Center, the Secretary may reserve not more
than 4 percent--
(A) for the replacement or acquisition of capital
equipment, including equipment for--
(i) the improvement and implementation of a
financial management plan;
(ii) information technology; and
(iii) other systems of the National Finance
Center; or
(B) to pay any unforeseen, extraordinary costs of
the National Finance Center.
(2) Availability for obligation.--
(A) In general.--Except as provided in subparagraph
(B), none of the amounts reserved under paragraph (1)
shall be available for obligation unless the Secretary
submits notification of the obligation to--
(i) the Committees on Appropriations and
Agriculture of the House of Representatives;
and
(ii) the Committees on Appropriations and
Agriculture, Nutrition, and Forestry of the
Senate.
(B) Exception.--The limitation described in
subparagraph (A) shall not apply to any obligation
that, as determined by the Secretary, is necessary--
(i) to respond to a declared state of
emergency that significantly impacts the
operations of the National Finance Center; or
(ii) to evacuate employees of the National
Finance Center to a safe haven to continue
operations of the National Finance Center.
SEC. 7507. STUDIES AND REPORTS BY THE DEPARTMENT OF AGRICULTURE, THE
DEPARTMENT OF HEALTH AND HUMAN SERVICES, AND THE NATIONAL
ACADEMY OF SCIENCES ON FOOD PRODUCTS FROM CLONED ANIMALS.
(a) Study by the Department of Agriculture.--
(1) In general.--The Secretary of Agriculture, in
coordination with the Economic Research Service, and after
consultation with the Secretary of Health and Human Services,
shall conduct a study and report to Congress on the state of
domestic and international markets for products from cloned
animals, including consumer acceptance. Such report shall be
submitted to Congress no later than 180 days after the date of
enactment of this Act.
(2) Content.--The study and report under paragraph (1)
shall include a description of how countries regulate the
importation of food and agricultural products (including dairy
products), the basis for such regulations, and potential
obstacles to trade.
(b) Study With the National Academy of Sciences.--
(1) In general.--The Secretary of Health and Human Services
shall contract with the National Academy of Sciences to conduct
a study and report to Congress regarding the safety of food
products derived from cloned animals and the health effects and
costs attributable to milk from cloned animals in the food
supply. Such report shall be submitted to Congress no later
than 1 year after the date of enactment of this Act.
(2) Content.--The study and report under paragraph (1)
shall include--
(A) a review and an assessment of whether the
studies (including peer review studies), data, and
analysis used in the draft risk assessment issued by
the Food and Drug Administration entitled Animal
Cloning: A Draft Risk Assessment (issued on December
28, 2006) supported the conclusions drawn by such draft
risk assessment and--
(i) whether there were a sufficient number
of studies to support such conclusions; and
(ii) whether additional pertinent studies
and data exist which were not considered in the
draft risk assessment and how this additional
information affects the conclusions drawn in
such draft risk assessment; and
(B) an evaluation and measurement of the potential
public health effects and associated health care costs,
including any consumer behavior changes and negative
impacts on nutrition, health, and chronic diseases that
may result from any decrease in dairy consumption,
attributable to the commercialization of milk from
cloned animals and their progeny.
(c) Rule of Construction.--Nothing in this section shall be
construed to impede ongoing scientific research in artificial
reproductive health technologies.
(d) Timeframe of Final Risk Assessment.--Notwithstanding any other
provision of law, the Secretary of Health and Human Services (acting
through the Commissioner of Food and Drugs) shall not issue the final
risk assessment on the safety of cloned animals and food products
derived from cloned animals until the date that the Secretary of
Agriculture and the Secretary of Health and Human Services complete the
studies required under this section.
(e) Continuance of Moratorium.--Any voluntary moratorium on
introducing food from cloned animals or their progeny into the food
supply shall remain in effect at least until the date that the
Secretary of Health and Human Services (acting through the Commissioner
of Food and Drugs) issues the final risk assessment described in
subsection (d).
SEC. 7508. ANIMAL BIOSCIENCE FACILITY, BOZEMAN, MONTANA.
There is authorized to be appropriated to the Secretary for the
period of fiscal years 2008 through 2012 $16,000,000, to remain
available until expended, for the construction in Bozeman, Montana, of
an animal bioscience facility within the Agricultural Research Service.
TITLE VIII--FORESTRY
Subtitle A--Cooperative Forestry Assistance Act of 1978
SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION.
Section 2 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2101) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Priorities.--In allocating funds appropriated or otherwise
made available under this Act, the Secretary shall focus on the
following national private forest conservation priorities:
``(1) Conserving and managing working forest landscapes for
multiple values and uses.
``(2) Protecting forests from threats to forest and forest
health, including unnaturally large wildfires, hurricanes,
tornadoes, windstorms, snow or ice storms, flooding, drought,
invasive species, insect or disease outbreak, or development,
and restoring appropriate forest structures and ecological
processes in response to such threats.
``(3) Enhancing public benefits from private forests,
including air and water quality, forest products, forestry-
related jobs, production of renewable energy, wildlife,
enhanced biodiversity, the establishment or maintenance of
wildlife corridors and wildlife habitat, and recreation.
``(d) Reporting Requirement.--Not later than September 30, 2011,
the Secretary shall submit to Congress a report describing how funding
was used under this Act to address the national priorities specified in
subsection (c) and the outcomes achieved in meeting the national
priorities.''.
SEC. 8002. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.
(a) Findings.--Congress finds that--
(1) the Forest Service projects that, by calendar year
2030, approximately 44,000,000 acres of privately-owned forest
land will be developed throughout the United States;
(2) public access to parcels of privately-owned forest land
for outdoor recreational activities, including hunting,
fishing, and trapping, has declined and, as a result,
participation in those activities has also declined in cases in
which public access is not secured;
(3) rising rates of obesity and other public health
problems relating to the inactivity of the citizens of the
United States have been shown to be ameliorated by improving
public access to safe and attractive areas for outdoor
recreation;
(4) in rapidly-growing communities of all sizes throughout
the United States, remaining parcels of forest land play an
essential role in protecting public water supplies;
(5) forest parcels owned by local governmental entities and
nonprofit organizations are providing important demonstration
sites for private landowners to learn forest management
techniques;
(6) throughout the United States, communities of diverse
types and sizes are deriving significant financial and
community benefits from managing forest land owned by local
governmental entities for timber and other forest products; and
(7) there is an urgent need for local governmental entities
to be able to leverage financial resources in order to purchase
important parcels of privately-owned forest land as the parcels
are offered for sale.
(b) Community Forest and Open Space Conservation Program.--The
Cooperative Forestry Assistance Act of 1978 is amended by inserting
after section 7 (16 U.S.C. 2103c) the following:
``SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means a
local governmental entity, Indian tribe, or nonprofit
organization that owns or acquires a parcel under the program.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(3) Local governmental entity.--The term `local
governmental entity' includes any municipal government, county
government, or other local government body with jurisdiction
over local land use decisions.
``(4) Nonprofit organization.--The term `nonprofit
organization' means any organization that--
``(A) is described in section 170(h)(3) of the
Internal Revenue Code of 1986; and
``(B) operates in accordance with 1 or more of the
purposes specified in section 170(h)(4)(A) of that
Code.
``(5) Program.--The term `Program' means the community
forest and open space conservation program established under
subsection (b).
``(6) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Chief of the Forest Service.
``(b) Establishment.--The Secretary shall establish a program, to
be known as the `community forest and open space conservation program'.
``(c) Grant Program.--
``(1) In general.--The Secretary may award grants to
eligible entities to acquire private forest land, to be owned
in fee simple, that--
``(A) are threatened by conversion to nonforest
uses; and
``(B) provide public benefits to communities,
including--
``(i) economic benefits through sustainable
forest management;
``(ii) environmental benefits, including
clean water and wildlife habitat;
``(iii) benefits from forest-based
educational programs, including vocational
education programs in forestry;
``(iv) benefits from serving as models of
effectively-managed effective forest
stewardship for private landowners; and
``(v) recreational benefits, including
hunting and fishing.
``(2) Federal cost share.--An eligible entity may receive a
grant under the Program in an amount equal to not more than 50
percent of the cost of acquiring 1 or more parcels, as
determined by the Secretary.
``(3) Non-federal share.--As a condition of receipt of the
grant, an eligible entity that receives a grant under the
Program shall provide, in cash, donation, or in kind, a non-
Federal matching share in an amount that is at least equal to
the amount of the grant received.
``(4) Appraisal of parcels.--To determine the non-Federal
share of the cost of a parcel of privately-owned forest land
under paragraph (2), an eligible entity shall require
appraisals of the land that comply with the Uniform Appraisal
Standards for Federal Land Acquisitions developed by the
Interagency Land Acquisition Conference.
``(5) Application.--An eligible entity that seeks to
receive a grant under the Program shall submit to the State
forester or equivalent official (or in the case of an eligible
entity that is an Indian tribe, an equivalent official of the
Indian tribe) an application that includes--
``(A) a description of the land to be acquired;
``(B) a forest plan that provides--
``(i) a description of community benefits
to be achieved from the acquisition of the
private forest land; and
``(ii) an explanation of the manner in
which any private forest land to be acquired
using funds from the grant will be managed; and
``(C) such other relevant information as the
Secretary may require.
``(6) Effect on trust land.--
``(A) Ineligibility.--The Secretary shall not
provide a grant under the Program for any project on
land held in trust by the United States (including
Indian reservations and allotment land).
``(B) Acquired land.--No land acquired using a
grant provided under the Program shall be converted to
land held in trust by the United States on behalf of
any Indian tribe.
``(7) Applications to secretary.--The State forester or
equivalent official (or in the case of an eligible entity that
is an Indian tribe, an equivalent official of the Indian tribe)
shall submit to the Secretary a list that includes a
description of each project submitted by an eligible entity at
such times and in such form as the Secretary shall prescribe.
``(d) Duties of Eligible Entity.--An eligible entity--
``(1) shall provide public access to, and manage, forest
land acquired with a grant under this section in a manner that
is consistent with the purposes for which the land was acquired
under the Program; and
``(2) shall not convert the property to other uses.
``(e) Prohibited Uses.--
``(1) In general.--Subject to paragraphs (2) and (3), an
eligible entity that acquires a parcel under the Program shall
not sell the parcel or convert the parcel to nonforest use.
``(2) Reimbursement of funds.--An eligible entity that
sells or converts to nonforest use a parcel acquired under the
Program shall pay to the Federal Government an amount equal to
the greater of the current sale price, or current appraised
value, of the parcel.
``(3) Loss of eligibility.--An eligible entity that sells
or converts a parcel acquired under the Program shall not be
eligible for additional grants under the Program.
``(f) State Administration and Technical Assistance.--To assist
model stewardship of parcels acquired under the Program, the Secretary
may allocate not more than 10 percent of all funds made available to
carry out the Program for each fiscal year to State foresters or
equivalent officials (including an equivalent official of an Indian
tribe) for Program administration and technical assistance.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
SEC. 8003. FEDERAL, STATE, AND LOCAL COORDINATION AND COOPERATION.
Section 19(b)(2)(D) of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2113(b)(2)(D)) is amended by inserting ``except for
projects submitted by an Indian tribe,'' before ``make
recommendations''.
SEC. 8004. COMPREHENSIVE STATEWIDE FOREST PLANNING.
The Cooperative Forestry Assistance Act of 1978 is amended--
(1) by redesignating section 20 (16 U.S.C. 2114) as section
22; and
(2) by inserting after section 19 (16 U.S.C. 2113) the
following:
``SEC. 20. COMPREHENSIVE STATEWIDE FOREST PLANNING.
``(a) Establishment.--The Secretary shall establish a comprehensive
statewide forest planning program under which the Secretary shall
provide financial and technical assistance to States for use in the
development and implementation of statewide forest resource assessments
and plans.
``(b) Statewide Forest Resource Assessment and Plan.--For a State
to be eligible to receive funds under this Act, not later than 2 years
after the date of enactment of the Food and Energy Security Act of
2007, the State Forester of the State, or an equivalent State official,
shall develop a statewide forest resource assessment and plan that, at
a minimum--
``(1) identifies each critical forest resource area in the
State described in section 2(c);
``(2) to the maximum extent practicable--
``(A) incorporates any forest management plan of
the State in existence on the date of enactment of this
section (including community wildfire protection
plans);
``(B) addresses the needs of the region, without
regard to the borders of each State of the region (or
the political subdivisions of each State of the
region);
``(C) provides a comprehensive statewide plan
(including the opportunity for public participation in
the development of the statewide plan) for--
``(i) managing the forest land in the
State;
``(ii) achieving the national priorities
specified in section 2(c)(2);
``(iii) monitoring the forest land in the
State; and
``(iv) administering any forestry-related
Federal, State, or private grants awarded to
the State under this section or any other
provisions of law; and
``(D) includes a multiyear, integrated forest
management strategy that provides a management
framework for--
``(i) the administration of each applicable
program of the State; and
``(ii) the use of any funds made available
for the management of the forest land in the
State; and
``(3) is determined by the Secretary to be sufficient to
satisfy all relevant State planning and assessment requirements
under this Act.
``(c) Coordination.--In developing the statewide assessment and
plan under subsection (b), the State Forester or equivalent State
official shall--
``(1) coordinate with--
``(A) the State Forest Stewardship Coordination
Committee established for the State under section
19(b);
``(B) the State wildlife agency, with respect to
strategies contained in the State wildlife action
plans;
``(C) the State Technical Committee; and
``(D) applicable Federal land management agencies;
and
``(2) for purposes of the Forest Legacy Program under
section 7, work cooperatively with the State lead agency
designated by the Governor.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each fiscal
year.''.
SEC. 8005. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA, THE
REPUBLIC OF THE MARSHALL ISLANDS, AND THE REPUBLIC OF
PALAU.
Section 13(d)(1) of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109(d)(1)) is amended by striking ``the Trust Territory of
the Pacific Islands,'' and inserting ``the Federated States of
Micronesia, the Republic of the Marshall Islands, the Republic of
Palau,''.
Subtitle B--Tribal-Forest Service Cooperative Relations
SEC. 8101. DEFINITIONS.
In this subtitle:
(1) Indian.--The term ``Indian'' means an individual who is
a member of an Indian tribe.
(2) Indian tribe.--The term ``Indian tribe''--
(A) for purposes of title I, has the meaning given
the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b); and
(B) for purposes of title II, means any Indian or
Alaska Native tribe, band, nation, pueblo, village, or
other community the name of which is included on a list
published by the Secretary of the Interior pursuant to
section 104 of the Federally Recognized Indian Tribe
List Act of 1994 (25 U.S.C. 479a-1).
(3) National forest system.--The term ``National Forest
System'' has the meaning given the term in section 11(a) of the
Forest and Rangeland Renewable Resources Planning Act of 1974
(16 U.S.C. 1609(a)).
PART I--COLLABORATION BETWEEN INDIAN TRIBES AND FOREST SERVICE
SEC. 8111. FOREST LEGACY PROGRAM.
(a) Participation by Indian Tribes.--Section 7 of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2103c) is amended--
(1) in subsection (a), in the first sentence, by inserting
``, including Indian tribes,'' after ``government'';
(2) in subsection (b), by inserting ``or programs of Indian
tribes'' after ``regional programs'';
(3) in subsection (f), in the second sentence, by striking
``other appropriate State or regional natural resource
management agency'' and inserting ``other appropriate natural
resource management agency of a State, region, or Indian
tribe'';
(4) in subsection (h)(2), by inserting ``, including an
Indian tribe'' before the period at the end; and
(5) in subsection (j)(2), in the first sentence, by
inserting ``including Indian tribes,'' after ``governmental
units,''.
(b) Optional State and Tribal Grants.--Section 7(l) of the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103c(l)) is
amended--
(1) in the subsection heading, by inserting ``and Tribal''
after ``State'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Definition of indian tribe.--In this subsection, the
term `Indian tribe' has the meaning given the term in section 4
of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450b).
``(2) Grants.--On request of a participating State or
Indian tribe, the Secretary shall provide a grant to the State
or Indian tribe to carry out the Forest Legacy Program in the
State or with the Indian tribe.
``(3) Administration.--If a State or Indian tribe elects to
receive a grant under this subsection--
``(A) the Secretary shall use a portion of the
funds made available under subsection (m), as
determined by the Secretary, to provide a grant to the
State or Indian tribe; and
``(B) the State or Indian tribe shall use the grant
to carry out the Forest Legacy Program in the State or
with the Indian tribe, including through acquisition by
the State or Indian tribe of land and interests in
land.
``(4) Effect on trust land.--
``(A) Ineligibility.--The Secretary shall not
provide a grant under this subsection for any project
on land held in trust by the United States (including
Indian reservations and allotment land).
``(B) Acquired land.--No land acquired using a
grant provided under this subsection shall be converted
to land held in trust by the United States on behalf of
any Indian tribe.''.
(c) Conforming Amendments.--Section 7(j)(1) of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2103c(j)(1)) is amended by
striking the first sentence and inserting the following: ``Fair market
value shall be paid for any property interest acquired (other than by
donation) under this section.''.
SEC. 8112. FORESTRY AND RESOURCE MANAGEMENT ASSISTANCE FOR INDIAN
TRIBES.
(a) Definition of Eligible Indian Land.--In this section, the term
``eligible Indian land'' means, with respect to each participating
Indian tribe--
(1) trust land located within the boundaries of the
reservation of the Indian tribe;
(2) land owned in fee by the Indian tribe; and
(3) trust land located outside the boundaries of the
reservation of the Indian tribe that is eligible for use for
land programs of the Indian tribe.
(b) Authority To Provide Assistance.--The Secretary may provide
financial, technical, educational, and related assistance to any Indian
tribe for--
(1) tribal consultation and coordination with the Forest
Service on issues relating to--
(A) access and use by members of the Indian tribe
to National Forest System land and resources for
traditional, religious, and cultural purposes;
(B) coordinated or cooperative management of
resources shared by the Forest Service and the Indian
tribe; or
(C) the provision of tribal traditional, cultural,
or other expertise or knowledge;
(2) projects and activities for conservation education and
awareness with respect to forest land or grassland that is
eligible Indian land; and
(3) technical assistance for forest resources planning,
management, and conservation on eligible Indian land.
(c) Requirements.--
(1) In general.--During any fiscal year, an Indian tribe
may participate in only 1 approved activity that receives
assistance under--
(A) subsection (b)(3); or
(B) the forest stewardship program under section 5
of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2103a).
(d) Implementation.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall promulgate
regulations to implement subsection (b), including rules for
determining the distribution of assistance under that
subsection.
(2) Consultation.--In developing regulations pursuant to
paragraph (1), the Secretary shall conduct full, open, and
substantive consultation with Indian tribal governments and
other representatives of Indian tribes.
(e) Coordination With Secretary of Interior.--In carrying out this
section, the Secretary shall coordinate with the Secretary of the
Interior to ensure that activities under subsection (b)--
(1) do not conflict with Indian tribal programs provided by
the Department of the Interior; and
(2) achieve the goals established by the affected Indian
tribes.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
PART II--CULTURAL AND HERITAGE COOPERATION AUTHORITY
SEC. 8121. PURPOSES.
The purposes of this part are--
(1) to authorize the reburial of human remains and cultural
items, including human remains and cultural items repatriated
under the Native American Graves Protection and Repatriation
Act (25 U.S.C. 3001 et seq.), on National Forest System land;
(2) to prevent the unauthorized disclosure of information
regarding reburial sites, including--
(A) the quantity and identity of human remains and
cultural items on the sites; and
(B) the location of the sites;
(3) to authorize the Secretary to ensure access to National
Forest System land, to the maximum extent practicable, by
Indians and Indian tribes for traditional and cultural
purposes;
(4) to authorize the Secretary to provide forest products
free of charge to Indian tribes for traditional and cultural
purposes;
(5) to authorize the Secretary to protect the
confidentiality of certain information, including information
that is culturally sensitive to Indian tribes;
(6) to increase the availability of Forest Service programs
and resources to Indian tribes in support of the policy of the
United States to promote tribal sovereignty and self-
determination; and
(7) to strengthen support for the policy of the United
States of protecting and preserving the traditional, cultural,
and ceremonial rites and practices of Indian tribes, in
accordance with Public Law 95-341 (commonly known as the
``American Indian Religious Freedom Act'') (42 U.S.C. 1996).
SEC. 8122. DEFINITIONS.
In this part:
(1) Adjacent site.--The term ``adjacent site'' means a site
that borders a boundary line of National Forest system land.
(2) Cultural items.--
(A) In general.--The term ``cultural items'' has
the meaning given the term in section 2 of the Native
American Graves Protection and Repatriation Act (25
U.S.C. 3001).
(B) Exception.--The term ``cultural items'' does
not include human remains.
(3) Human remains.--The term ``human remains'' means the
physical remains of the body of a person of Indian ancestry.
(4) Lineal descendant.--The term ``lineal descendant''
means an individual that can trace, directly and without
interruption, the ancestry of the individual through the
traditional kinship system of an Indian tribe, or through the
common law system of descent, to a known Indian, the human
remains, funerary objects, or other sacred objects of whom are
claimed by the individual.
(5) Reburial site.--The term ``reburial site'' means a
discrete physical location at which cultural items or human
remains are reburied.
(6) Traditional and cultural purpose.--The term
``traditional and cultural purpose'', with respect to a
definable use, area, or practice, means that the use, area, or
practice is identified by an Indian tribe as traditional or
cultural because of the long-established significance or
ceremonial nature of the use, area, or practice to the Indian
tribe.
SEC. 8123. REBURIAL OF HUMAN REMAINS AND CULTURAL ITEMS.
(a) Reburial Sites.--In consultation with an affected Indian tribe
or lineal descendant, the Secretary may authorize the use of National
Forest System land by the Indian tribe or lineal descendant for the
reburial of human remains or cultural items in the possession of the
Indian tribe or lineal descendant that have been disinterred from
National Forest System land or an adjacent site.
(b) Reburial.--With the consent of the affected Indian tribe or
lineal descendent, the Secretary may recover and rebury, at Federal
expense or using other available funds, human remains and cultural
items described in subsection (a) at the National Forest System land
identified under that subsection.
(c) Authorization of Use.--
(1) In general.--Subject to paragraph (2), the Secretary
may authorize such uses on reburial sites or adjacent sites as
the Secretary determines to be necessary for management of the
National Forest System.
(2) Avoidance of adverse impacts.--In carrying out
paragraph (1), the Secretary shall avoid adverse impacts to
cultural items and human remains, to the maximum extent
practicable.
SEC. 8124. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL PURPOSES.
(a) Recognition of Historic Use.--The Secretary shall, to the
maximum extent practicable, ensure access to National Forest System
land by Indians for traditional and cultural purposes, in accordance
with subsection (b), in recognition of the historic use by Indians of
National Forest System land.
(b) Closing Land From Public Access.--
(1) In general.--On receipt of a request from an Indian
tribe, the Secretary may temporarily close from public access
specifically designated National Forest System land to protect
the privacy of tribal activities for traditional and cultural
purposes.
(2) Limitation.--A closure of National Forest System land
under paragraph (1) shall affect the smallest practicable area
for the minimum period necessary for activities of the
applicable Indian tribe.
(3) Consistency.--Access by Indian tribes to National
Forest System land under this subsection shall be consistent
with the purposes of Public Law 95-341 (commonly known as the
``American Indian Religious Freedom Act'') (42 U.S.C. 1996).
SEC. 8125. FOREST PRODUCTS FOR TRADITIONAL AND CULTURAL PURPOSES.
(a) In General.--Notwithstanding section 14 of the National Forest
Management Act of 1976 (16 U.S.C. 472a), the Secretary may provide free
of charge to Indian tribes any trees, portions of trees, or forest
products from National Forest System land for traditional and cultural
purposes.
(b) Prohibition.--Trees, portions of trees, or forest products
provided under subsection (a) may not be used for commercial purposes.
SEC. 8126. PROHIBITION ON DISCLOSURE.
(a) Nondisclosure of Information.--
(1) In general.--The Secretary shall not disclose under
section 552 of title 5, United States Code (commonly known as
the ``Freedom of Information Act''), any information relating
to--
(A) subject to subsection (b)(l), human remains or
cultural items reburied on National Forest System land
under section 8123; or
(B) subject to subsection (b)(2), resources,
cultural items, uses, or activities that--
(i) have a traditional and cultural
purpose; and
(ii) are provided to the Secretary by an
Indian or Indian tribe under an express
expectation of confidentiality in the context
of forest and rangeland research activities
carried out under the authority of the Forest
Service.
(2) Limitations on disclosure.--Subject to subsection
(b)(2), the Secretary shall not be required to disclose
information under section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information Act''),
concerning the identity, use, or specific location in the
National Forest System of--
(A) a site or resource used for traditional and
cultural purposes by an Indian tribe; or
(B) any cultural items not covered under section
8123.
(b) Limited Release of Information.--
(1) Reburial.--The Secretary may disclose information
described in subsection (a)(l)(A) if, before the disclosure,
the Secretary--
(A) consults with an affected Indian tribe or
lineal descendent;
(B) determines that disclosure of the information--
(i) would advance the purposes of this
part; and
(ii) is necessary to protect the human
remains or cultural items from harm, theft, or
destruction; and
(C) attempts to mitigate any adverse impacts
identified by an Indian tribe or lineal descendant that
reasonably could be expected to result from disclosure
of the information.
(2) Other information.--The Secretary may disclose
information described under paragraph (1)(B) or (2) of
subsection if the Secretary determines that disclosure of the
information to the public--
(A) would advance the purposes of this part;
(B) would not create an unreasonable risk of harm,
theft, or destruction of the resource, site, or object,
including individual organic or inorganic specimens;
and
(C) would be consistent with other applicable laws.
SEC. 8127. SEVERABILITY AND SAVINGS PROVISIONS.
(a) Severability.--If any provision of this part, or the
application of any provision of this part to any person or
circumstance, is held invalid, the application of such provision or
circumstance and the remainder of this part shall not be affected
thereby.
(b) Savings.--Nothing in this part--
(1) diminishes or expands the trust responsibility of the
United States to Indian tribes, or any legal obligation or
remedy resulting from that responsibility;
(2) alters, abridges, repeals, or affects any valid
agreement between the Forest Service and an Indian tribe;
(3) alters, abridges, diminishes, repeals, or affects any
reserved or other right of an Indian tribe; or
(4) alters, abridges, diminishes, repeals, or affects any
other valid existing right relating to National Forest System
land or other public land.
Subtitle C--Amendments to Other Laws
SEC. 8201. RENEWABLE RESOURCES EXTENSION ACTIVITIES.
(a) Authorization of Appropriations.--Section 6 of the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the
first sentence by striking ``2007'' and inserting ``2012''.
(b) Termination Date.--Section 8 of the Renewable Resources
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405(d) of the Global Climate Change Prevention Act of 1990
(7 U.S.C. 6704(d)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 8203. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY ADJUSTMENT.
(a) In General.--The boundary of the Green Mountain National Forest
is modified to include the 12 designated expansion units as generally
depicted on the forest maps entitled ``Green Mountain Expansion Area
Map I'' and ``Green Mountain Expansion Area Map II'' and dated February
20, 2002 (copies of which shall be on file and available for public
inspection in the Office of the Chief of the Forest Service,
Washington, District of Columbia), and more particularly described
according to the site specific maps and legal descriptions on file in
the office of the Forest Supervisor, Green Mountain National Forest.
(b) Management.--Federally owned land delineated on the maps
acquired for National Forest purposes shall continue to be managed in
accordance with the laws (including regulations) applicable to the
National Forest System.
(c) Land and Water Conservation Fund.--For the purposes of section
7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460 l-
9), the boundaries of the Green Mountain National Forest, as adjusted
by this section, shall be considered to be the boundaries of the
national forest as of January 1, 1965.
SEC. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES.
(a) In General.--The Lacey Act Amendments of 1981 are amended--
(1) in section 2 (16 U.S.C. 3371)--
(A) by striking subsection (f) and inserting the
following:
``(f) Plant.--
``(1) In general.--The term `plant' means any wild member
of the plant kingdom, including roots, seeds, parts, and
products thereof.
``(2) Exclusions.--
``(A) In general.--Subject to subparagraph (B), the
term `plant' excludes--
``(i) any cultivar or common food crop; or
``(ii) a plant intended to remain planted,
to be planted, or replanted (including roots,
seeds, and germplasm) that is--
``(I)(aa) imported into the United
States accompanied by a phytosanitary
certificate issued by the national
plant protection organization of the
country of origin or transshipment
country; or
``(bb) precleared for entry by the
Secretary; or
``(II) a domestically produced
plant, or derived from a domestically
produced plant, that is--
``(aa) moving in interstate
commerce; and
``(bb) not listed pursuant
to any State law that provides
for the conservation of species
threatened with extinction.
``(B) Limitation.--The exclusions in subparagraph
(A) do not apply to a plant listed--
``(i) on an appendix to the Convention on
International Trade in Endangered Species of
Wild Fauna and Flora, done at Washington on
March 3, 1973 (27 UST 1087; TIAS 8249); or
``(ii) as an endangered or threatened
species under the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.).''.
(B) in subsection (h), by inserting ``also'' after
``plants the term''; and
(C) by striking subsection (j) and inserting the
following:
``(j) Taken and Taking.--
``(1) Taken.--The term `taken' means captured, killed, or
collected and, with respect to a plant, also means harvested,
cut, logged, or removed.
``(2) Taking.--The term `taking' means the act by which
fish, wildlife, or plants are taken.'';
(2) in section 3 (16 U.S.C. 3372)--
(A) in subsection (a)--
(i) in paragraph (2), by striking
subparagraph (B) and inserting the following:
``(B) any plant--
``(i) taken, possessed, transported, or
sold, in violation of any law or regulation of
any State, or any foreign law, that protects
plants or that regulates--
``(I) the theft of plants;
``(II) the taking of plants from a
park, forest reserve, or other
officially protected area;
``(III) the taking of plants from
an officially designated area; or
``(IV) the taking of plants
without, or contrary to, required
authorization;
``(ii) taken, possessed, transported, or
sold, without the payment of royalties, taxes,
or stumpage fees required for the plant by any
law or regulation of any State or any foreign
law; or
``(iii) taken, possessed, transported, or
sold, in violation of any limitation under any
law or regulation of any State or under any
foreign law; or''; and
(ii) in paragraph (3), by striking
subparagraph (B) and inserting the following:
``(B) to possess any plant--
``(i) taken, possessed, transported, or
sold, in violation of any law or regulation of
any State, or any foreign law, that protects
plants or that regulates--
``(I) the theft of plants;
``(II) the taking of plants from a
park, forest reserve, or other
officially protected area;
``(III) the taking of plants from
an officially designated area; or
``(IV) the taking of plants
without, or contrary to, required
authorization;
``(ii) taken, possessed, transported, or
sold, without the payment of royalties, taxes,
or stumpage fees required for the plant by any
law or regulation of any State or any foreign
law; or
``(iii) taken, possessed, transported, or
sold, in violation of any limitation under any
law or regulation of any State or under any
foreign law; governing the export or
transshipment of plants; or''; and
(B) by adding at the end the following:
``(f) Plant Declarations.--
``(1) In general.--Effective 180 days from the date of
enactment of this subsection and except as provided in
paragraph (3), it shall be unlawful for any person to import
any plant unless the person files upon importation where
clearance is requested a declaration that contains--
``(A) the scientific name of any plant (including
the genus and species of the plant) contained in the
importation;
``(B) a description of--
``(i) the value of the importation; and
``(ii) the quantity, including the unit of
measure, of the plant; and
``(C) the name of the country from which the plant
was taken.
``(2) Declaration relating to plant products.--Until the
date on which the Secretary promulgates a regulation under
paragraph (6), a declaration relating to a plant product
shall--
``(A) in the case in which the species of plant
used to produce the plant product that is the subject
of the importation varies, and the species used to
produce the plant product is unknown, contain the name
of each species of plant that may have been used to
produce the plant product; and
``(B) in the case in which the species of plant
used to produce the plant product that is the subject
of the importation is commonly taken from more than 1
country, and the country from which the plant was taken
and used to produce the plant product is unknown,
contain the name of each country from which the plant
may have been taken.
``(3) Exclusions.--Paragraphs (1) and (2) shall not apply
to plants used exclusively as packaging materials to support,
protect, or carry another item, unless the packaging materials
are the items being imported.
``(4) Review.--
``(A) In general.--Not later than 2 years after the
date of enactment of this subsection, the Secretary
shall review the implementation of each requirement
described in paragraphs (1) and (2).
``(B) Review of excluded wood and paper packaging
materials.--The Secretary--
``(i) shall, in conducting the review under
subparagraph (A), consider the effect of
excluding the materials described in paragraph
(3); and
``(ii) may limit the scope of the
exclusions under paragraph (3) if the Secretary
determines, based on the review, that the
limitations in scope are warranted.
``(5) Report.--
``(A) In general.--Not later than 180 days after
the date on which the Secretary completes the review
under paragraph (4), the Secretary shall submit to the
appropriate committees of Congress a report
containing--
``(i) an evaluation of--
``(I) the effectiveness of each
type of information required under
paragraphs (1) and (2) in assisting
enforcement of section 3; and
``(II) the potential to harmonize
each requirement described in
paragraphs (1) and (2) with other
applicable import regulations in
existence as of the date of the report;
``(ii) recommendations for such legislation
as the Secretary determines to be appropriate
to assist in the identification of plants that
are imported into the United States in
violation of section 3; and
``(iii) an analysis of the effect of the
provisions of subsection (a) and (f) on--
``(I) the cost of legal plant
imports; and
``(II) the extent and methodology
of illegal logging practices and
trafficking.
``(B) Public participation.--In conducting the
review under paragraph (4), the Secretary shall provide
public notice and an opportunity for comment.
``(6) Promulgation of regulations.--Not later than 180 days
after the date on which the Secretary completes the review
under paragraph (4), the Secretary may promulgate regulations--
``(A) to limit the applicability of any requirement
described in paragraph (2) to specific plant products;
``(B) to make any other necessary modification to
any requirement described in paragraph (2), as
determined by the Secretary based on the review under
paragraph (4); and
``(C) to limit the scope of the exclusions under
paragraph (3) if the Secretary determines, based on the
review under paragraph (4), that the limitations in
scope are warranted.'';
(3) in section 4 (16 U.S.C. 3373)--
(A) by striking ``subsections (b) and (d)'' each
place it appears and inserting ``subsections (b), (d),
and (f)'';
(B) by striking ``section 3(d)'' each place it
appears and inserting ``subsection (d) or (f) of
section 3''; and
(C) in subsection (a)(2), by striking ``subsection
3(b)'' and inserting ``subsection (b) or subsection (f)
of section 3, except as provided in paragraph (1),'';
(4) by adding at the end of section 5 (16 U.S.C. 3374) the
following:
``(d) Civil Forfeitures.--Civil forfeitures under this section
shall be governed by the provisions of chapter 46 of title 18, United
States Code.''; and
(5) in section 7(a)(1) (16 U.S.C. 3376(a)(1)), by striking
``section 4'' and inserting ``section 3(f), section 4,''.
(b) Technical Correction.--
(1) In general.--Section 102(c) of Public Law 100-653 (102
Stat. 3825) is amended by striking ``(other than section
3(b))'' and inserting ``(other than subsection 3(b))''.
(2) Effective date.--The amendment made by paragraph (1)
takes effect on November 14, 1988.
(c) Exclusions.--
(A) The term plant excludes--
(i) any cultivar or common food crop; or
(ii) plants intended to remain planted, to be
planted or replanted (including roots, seeds, and
germplasm) that are--
(I) imported into the United States
accompanied by a phytosanitary certificate
issued by the national plant protection
organization of the country of origin or
transshipment country, or that have been
precleared for entry by the Secretary; or
(II) domestically produced, or derived from
domestically produced plants, moving in
interstate commerce; or
(iii) non-woody plant material, from plants lacking
a well-defined stem or stems and a more or less
definite crown including roots, seeds, and germplasm,
intended for research;
(B) The exclusions in paragraph (A) do not apply to plants
listed--
(i) on an appendix to the Convention on
International Trade in Endangered Species of Wild Fauna
and Flora (27 UST 1087; TIAS 8249);
(ii) as an endangered or threatened species under
the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.); or
(iii) pursuant to any State law that provides for
the conservation of species threatened with extinction.
SEC. 8205. SALE AND EXCHANGE OF NATIONAL FOREST SYSTEM LAND, VERMONT.
(a) Definitions.--In this section:
(1) Bromley.--The term ``Bromley'' means Bromley Mountain
Ski Resort, Inc.
(2) Map.--The term ``map'' means the map entitled
``Proposed Bromley Land Sale or Exchange'' and dated April 7,
2004.
(3) State.--The term ``State'' means the State of Vermont.
(b) Sale or Exchange of Green Mountain National Forest Land.--
(1) In general.--The Secretary may, under any terms and
conditions that the Secretary may prescribe, sell or exchange
any right, title, and interest of the United States in and to
the parcels of National Forest System land described in
paragraph (2).
(2) Description of land.--The parcels of National Forest
System land referred to in paragraph (1) are the 5 parcels of
land in Bennington County in the State, as generally depicted
on the map.
(3) Map and legal descriptions.--
(A) In general.--The map shall be on file and
available for public inspection in--
(i) the office of the Chief of the Forest
Service; and
(ii) the office of the Supervisor of the
Green Mountain National Forest.
(B) Modifications.--The Secretary may modify the
map and legal descriptions to--
(i) correct technical errors; or
(ii) facilitate the conveyance under
paragraph (1).
(4) Consideration.--Consideration for the sale or exchange
of land described in paragraph (2)--
(A) shall be equal to an amount that is not less
than the fair market value of the land sold or
exchanged; and
(B) may be in the form of cash, land, or a
combination of cash and land.
(5) Appraisals.--Any appraisal carried out to facilitate
the sale or exchange of land under paragraph (1) shall conform
with the Uniform Appraisal Standards for Federal Land
Acquisitions.
(6) Methods of sale.--
(A) Conveyance to bromley.--
(i) In general.--Before soliciting offers
under subparagraph (B), the Secretary shall
offer to convey to Bromley the land described
in paragraph (2).
(ii) Contract deadline.--If Bromley accepts
the offer under clause (i), the Secretary and
Bromley shall have not more than 180 days after
the date on which any environmental analyses
with respect to the land are completed to enter
into a contract for the sale or exchange of the
land.
(B) Public or private sale.--If the Secretary and
Bromley do not enter into a contract for the sale or
exchange of the land by the date specified in
subparagraph (A)(ii), the Secretary may sell or
exchange the land at public or private sale (including
auction), in accordance with such terms, conditions,
and procedures as the Secretary determines to be in the
public interest.
(C) Rejection of offers.--The Secretary may reject
any offer received under this paragraph if the
Secretary determines that the offer is not adequate or
is not in the public interest.
(D) Brokers.--In any sale or exchange of land under
this subsection, the Secretary may--
(i) use a real estate broker or other third
party; and
(ii) pay the real estate broker or third
party a commission in an amount comparable to
the amounts of commission generally paid for
real estate transactions in the area.
(7) Cash equalization.--Notwithstanding section 206(b) of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1716(b)), the Secretary may accept a cash equalization payment
in excess of 25 percent of the value of any Federal land
exchanged under this section.
(c) Disposition of Proceeds.--
(1) In general.--The Secretary shall deposit the net
proceeds from a sale or exchange under this section in the fund
established under Public Law 90-171 (16 U.S.C. 484a) (commonly
known as the ``Sisk Act'').
(2) Use.--Amounts deposited under paragraph (1) shall be
available to the Secretary until expended, without further
appropriation, for--
(A) the location and relocation of the Appalachian
National Scenic Trail and the Long National Recreation
Trail in the State;
(B) the acquisition of land and interests in land
by the Secretary for National Forest System purposes
within the boundary of the Green Mountain National
Forest, including land for and adjacent to the
Appalachian National Scenic Trail and the Long National
Recreation Trail;
(C) the acquisition of wetland or an interest in
wetland within the boundary of the Green Mountain
National Forest to offset the loss of wetland from the
parcels sold or exchanged; and
(D) the payment of direct administrative costs
incurred in carrying out this section.
(3) Limitation.--Amounts deposited under paragraph (1)
shall not--
(A) be paid or distributed to the State or counties
or towns in the State under any provision of law; or
(B) be considered to be money received from units
of the National Forest System for purposes of--
(i) the Act of May 23, 1908 (16 U.S.C.
500); or
(ii) the Act of March 4, 1913 (16 U.S.C.
501).
(4) Prohibition of transfer or reprogramming.--Amounts
deposited under paragraph (1) shall not be subject to transfer
or reprogramming for wildfire management or any other emergency
purposes.
(d) Acquisition of Land.--The Secretary may acquire, using funds
made available under subsection (c) or otherwise made available for
acquisition, land or an interest in land for National Forest System
purposes within the boundary of the Green Mountain National Forest.
(e) Exemption From Certain Laws.--Subtitle I of title 40, United
States Code, shall not apply to any sale or exchange of National Forest
System land under this section.
Subtitle D--Qualifying Timber Contract Options
SEC. 8301. QUALIFYING TIMBER CONTRACT OPTIONS.
(a) Definitions.--
(1) Authorized producer price index.--The term ``authorized
Producer Price Index'' includes--
(A) the softwood commodity index (code number
0811);
(B) the hardwood commodity index (code number
0812);
(C) the wood chip index (code number PCU
3211332135); and
(D) any other subsequent comparable index, as
established by the Bureau of Labor Statistics of the
Department of Labor.
(2) Qualifying contract.--The term ``qualifying contract''
means a contract for the sale of timber on National Forest
System land--
(A) that was awarded during the period beginning on
July 1, 2004, and ending on December 31, 2006;
(B) for which there is unharvested volume remaining
on the parcel of land that is the subject of the
contract;
(C) for which, not later than 90 days after the
date of enactment of this Act, the timber purchaser
makes a written request to the Secretary for any option
described in subsection (b);
(D) that is not a salvage sale; and
(E) that is not in breach or in default.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture (acting through the Chief of the Forest
Service).
(b) Options for Qualifying Contracts.--
(1) Cancellation; rate redetermination.--Notwithstanding
any other provision of law, if the rate at which a qualifying
contract would be advertised as of the date of enactment of
this Act is at least 50 percent less than the sum of the
original purchase rates for all of the species of timber that
are the subject of the qualifying contract, the Secretary may,
at the sole discretion of the Secretary--
(A) cancel the qualifying contract if the timber
purchaser--
(i) pays 30 percent of the total value of
the qualifying contract based on current
contract rates;
(ii) completes each contractual obligation
of the timber purchaser with respect to each
unit on which harvest has begun, (including the
removal of downed timber, the completion of
road work, and the completion of erosion
control work) to a logical stopping point, as
determined by the Secretary, in consultation
with the timber purchaser; and
(iii) terminates the rights of the timber
purchaser under the qualifying contract; or
(B) redetermine the rate of the qualifying contract
to equal the sum obtained by adding--
(i) 25 percent of the bid premium on the
qualifying contract; and
(ii) the rate at which the qualifying
contract would be advertised as of the date of
enactment of this Act.
(2) Substitution of index.--
(A) In general.--Notwithstanding any other
provision of law, the Secretary may, at the sole
discretion of the Secretary, substitute the Producer
Price Index in provision A20 of a qualifying contract
if the timber purchaser of the qualifying contract
identifies--
(i) each product that the timber purchaser
intends to produce from the timber harvested
from each unit of land that is the subject of
the qualifying contract; and
(ii) a substitute index that contains
products similar to each product identified in
clause (i) from an authorized Producer Price
Index.
(B) Authority of secretary to modify qualifying
contract.--If the Secretary substitutes the Producer
Price Index of a qualifying contract under subparagraph
(A), the Secretary may modify the qualifying contract
as the Secretary determines to be necessary to provide
for an emergency rate redetermination.
(c) Extension of Qualifying Contracts.--With respect to a
qualifying contract for which the current contract rate is redetermined
by the Secretary under subsection (b)(1)(B), or for which the Producer
Price Index is substituted by the Secretary under subsection (b)(2),
the Secretary may--
(1) extend the contract term for a 1-year period beginning
on the contract termination date; and
(2) adjust the periodic payments required under the
contract in accordance with applicable law (including
regulations) and policies.
(d) Effect of Options.--
(1) In general.--This section shall not have the effect of
surrendering any claim by the United States against any timber
purchaser that arose under a qualifying contract before the
date on which the Secretary conducts a cancellation, rate
redetermination, or index substitution under subsection (b).
(2) Release of liability.--The United States shall be
released from all liability, including further consideration or
compensation, resulting from--
(A) a cancellation, rate redetermination, or index
substitution conducted by the Secretary under
subsection (b); or
(B) a determination made by the Secretary not to
cancel, redetermine any rate, or substitute any index
under subsection (b).
(3) Limitation.--A cancellation, rate redetermination, or
index substitution conducted by the Secretary under subsection
(b) shall release the timber purchaser from liability for any
damages resulting from the cancellation, rate redetermination,
or index substitution.
TITLE IX--ENERGY
SEC. 9001. ENERGY.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is amended to read as follows:
``TITLE IX--ENERGY
``SEC. 9001. DEFINITIONS.
``Except as otherwise provided, in this title:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Advisory committee.--The term `Advisory Committee'
means the Biomass Research and Development Technical Advisory
Committee established by section 9008(d)(1).
``(3) Advanced biofuel.--
``(A) In general.--The term `advanced biofuel'
means fuel derived from renewable biomass other than
corn starch.
``(B) Inclusions.--The term `advanced biofuel'
includes--
``(i) biofuel derived from cellulose,
hemicellulose, or lignin;
``(ii) biofuel derived from sugar and
starch (other than ethanol derived from corn
starch);
``(iii) biofuel derived from waste
material, including crop residue, other
vegetative waste material, animal waste and
byproducts (including fats, oils, greases, and
manure), food waste, and yard waste;
``(iv) diesel-equivalent fuel derived from
renewable biomass, including vegetable oil and
animal fat;
``(v) biogas (including landfill gas and
sewage waste treatment gas) produced through
the conversion of organic matter from renewable
biomass;
``(vi) butanol or other alcohols produced
through the conversion of organic matter from
renewable biomass; and
``(vii) other fuel derived from cellulosic
biomass.
``(4) Biobased product.--The term `biobased product' means
a product determined by the Secretary to be a commercial or
industrial product (other than food or feed) that is--
``(A) composed, in whole or in significant part, of
biological products, including renewable domestic
agricultural materials and forestry materials; or
``(B) an intermediate ingredient or feedstock.
``(5) Biofuel.--The term `biofuel' means a fuel derived
from renewable biomass.
``(6) Biomass conversion facility.--The term `biomass
conversion facility' means a facility that converts or proposes
to convert renewable biomass into--
``(A) heat;
``(B) power;
``(C) biobased products; or
``(D) advanced biofuels.
``(7) Biorefinery.--The term `biorefinery' means equipment
and processes that--
``(A) convert renewable biomass into biofuels and
biobased products; and
``(B) may produce electricity.
``(8) Board.--The term `Board' means the Biomass Research
and Development Board established by section 9008(c).
``(9) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 102(a) of the Higher Education Act of 1965 (20
U.S.C. 1002(a)).
``(11) Intermediate ingredient or feedstock.--The term
`intermediate ingredient or feedstock' means a material or
compound made in whole or in significant part from biological
products, including renewable agricultural materials (including
plant, animal, and marine materials) or forestry materials,
that are subsequently used to make a more complex compound or
product.
``(12) Renewable biomass.--The term `renewable biomass'
means--
``(A) materials, pre-commercial thinnings, or
removed exotic species that--
``(i) are byproducts of preventive
treatments (such as trees, wood, brush,
thinnings, chips, and slash), that are
removed--
``(I) to reduce hazardous fuels;
``(II) to reduce or contain disease
or insect infestation; or
``(III) to restore ecosystem
health;
``(ii) would not otherwise be used for
higher-value products; and
``(iii) are harvested from National Forest
System land or public lands (as defined in
section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)), in
accordance with--
``(I) Federal and State law;
``(II) applicable land management
plans; and
``(III) the requirements for old-
growth maintenance, restoration, and
management direction of paragraphs (2),
(3), and (4) of subsection (e) of
section 102 of the Healthy Forests
Restoration Act of 2003 (16 U.S.C.
6512) and the requirements for large-
tree retention of subsection (f) of
that section; or
``(B) any organic matter that is available on a
renewable or recurring basis from non-Federal land or
land belonging to an Indian or Indian tribe that is
held in trust by the United States or subject to a
restriction against alienation imposed by the United
States, including--
``(i) renewable plant material, including--
``(I) feed grains;
``(II) other agricultural
commodities;
``(III) other plants and trees; and
``(IV) algae; and
``(ii) waste material, including--
``(I) crop residue;
``(II) other vegetative waste
material (including wood waste and wood
residues);
``(III) animal waste and byproducts
(including fats, oils, greases, and
manure);
``(IV) construction waste; and
``(V) food waste and yard waste.
``(13) Renewable energy.--The term `renewable energy' means
energy derived from--
``(A) a wind, solar, renewable biomass, ocean
(including tidal, wave, current, and thermal),
geothermal, or hydroelectric source; or
``(B) hydrogen derived from renewable biomass or
water using an energy source described in subparagraph
(A).
``(14) Rural area.--Except as otherwise provided in this
title, the term `rural area' has the meaning given the term in
section 343(a)(13)(A) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)(13)(A)).
``(15) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 9002. BIOBASED MARKETS PROGRAM.
``(a) Federal Procurement of Biobased Products.--
``(1) Definition of procuring agency.--In this subsection,
the term `procuring agency' means--
``(A) any Federal agency that is using Federal
funds for procurement; or
``(B) a person that is a party to a contract with
any Federal agency, with respect to work performed
under such a contract.
``(2) Application of section.--Except as provided in
paragraph (3), each procuring agency shall comply with this
subsection (including any regulations issued under this
subsection), with respect to any purchase or acquisition of a
procurement item for which--
``(A) the purchase price of the item exceeds
$10,000; or
``(B) the quantity of the items or of functionally-
equivalent items purchased or acquired during the
preceding fiscal year was at least $10,000.
``(3) Procurement preference.--
``(A) In general.--Except as provided in
subparagraph (B), after the date specified in
applicable guidelines prepared pursuant to paragraph
(5), each procuring agency that procures any items
designated in the guidelines and items containing
designated biobased intermediate ingredients and
feedstocks shall, in making procurement decisions
(consistent with maintaining a satisfactory level of
competition, considering the guidelines), give
preference to items that--
``(i) are composed of the highest
percentage of biobased products practicable;
``(ii) are composed of at least 5 percent
of intermediate ingredients and feedstocks (or
a lesser percentage that the Secretary
determines to be appropriate) as designated by
the Secretary; or
``(iii) comply with the regulations issued
under section 103 of Public Law 100-556 (42
U.S.C. 6914b-1).
``(B) Flexibility.--Notwithstanding subparagraph
(A), a procuring agency may decide not to procure items
described in that subparagraph if the procuring agency
determines that the items--
``(i) are not reasonably available within a
reasonable period of time;
``(ii) fail to meet--
``(I) the performance standards set
forth in the applicable specifications;
or
``(II) the reasonable performance
standards of the procuring agencies; or
``(iii) are available only at an
unreasonable price.
``(C) Certification.--After the date specified in
any applicable guidelines prepared pursuant to
paragraph (5), contracting offices shall require that,
with respect to biobased products, vendors certify that
the biobased products to be used in the performance of
the contract will comply with the applicable
specifications or other contractual requirements.
``(4) Specifications.--Each Federal agency that has the
responsibility for drafting or reviewing procurement
specifications shall, not later than 1 year after the date of
publication of applicable guidelines under paragraph (5), or as
otherwise specified in the guidelines, ensure that the
specifications require the use of biobased products consistent
with this subsection.
``(5) Guidelines.--
``(A) In general.--The Secretary, after
consultation with the Administrator, the Administrator
of General Services, and the Secretary of Commerce
(acting through the Director of the National Institute
of Standards and Technology), shall prepare, and from
time to time revise, guidelines for the use of
procuring agencies in complying with the requirements
of this subsection.
``(B) Requirements.--The guidelines under this
paragraph shall--
``(i) designate those items that are or can
be produced with biobased products (including
biobased products for which there is only a
single product or manufacturer in the category)
and the procurement of which by procuring
agencies will carry out the objectives of this
subsection;
``(ii) designate those intermediate
ingredients and feedstocks and finished
products that contain significant portions of
biobased materials or components the
procurement of which by procuring agencies will
carry out the objectives of this subsection;
``(iii) set forth recommended practices
with respect to the procurement of biobased
products and items containing such materials
and with respect to certification by vendors of
the percentage of biobased products used;
``(iv) provide information as to the
availability, relative price, performance, and
environmental and public health benefits, of
such materials and items; and
``(v) automatically designate those items
that are composed of materials and items
designated pursuant to paragraph (3), if the
content of the final product exceeds 50 percent
(unless the Secretary determines a different
composition percentage).
``(C) Information provided.--Information provided
pursuant to subparagraph (B)(iv) with respect to a
material or item shall be considered to be provided for
another item made with the same material or item.
``(D) Prohibition.--Guidelines issued under this
paragraph may not require a manufacturer or vendor of
biobased products, as a condition of the purchase of
biobased products from the manufacturer or vendor, to
provide to procuring agencies more data than would be
required to be provided by other manufacturers or
vendors offering products for sale to a procuring
agency, other than data confirming the biobased content
of a product.
``(E) State procurement.--Not later than 180 days
after the date of enactment of this section, the
Secretary shall offer procurement system models that
States may use for the procurement of biobased products
by the States.
``(6) Administration.--
``(A) Office of federal procurement policy.--The
Office of Federal Procurement Policy, in cooperation
with the Secretary, shall--
``(i) coordinate the implementation of this
subsection with other policies for Federal
procurement;
``(ii) annually collect the information
required to be reported under subparagraph (B)
and make the information publicly available;
``(iii) take a leading role in conducting
proactive research to inform and promote the
adoption of and compliance with procurement
requirements for biobased products by Federal
agencies; and
``(iv) not less than once every 2 years,
submit to Congress a report that--
``(I) describes the progress made
in carrying out this subsection,
including agency compliance with
paragraph (4); and
``(II) contains a summary of the
information reported pursuant to
subparagraph (B).
``(B) Other agencies.--To assist the Office of
Federal Procurement Policy in carrying out subparagraph
(A)--
``(i) each procuring agency shall submit
each year to the Office of Federal Procurement
Policy, to the maximum extent practicable,
information concerning--
``(I) actions taken to implement
paragraphs (3), (4), and (7);
``(II) the results of the annual
review and monitoring program
established under paragraph
(7)(B)(iii);
``(III) the number and dollar value
of contracts entered into during the
year that include the direct
procurement of biobased products;
``(IV) the number of service and
construction (including renovations and
modernizations) contracts entered into
during the year that include language
on the use of biobased products; and
``(V) the types and dollar value of
biobased products actually used by
contractors in carrying out service and
construction (including renovations and
modernizations) contracts during the
previous year; and
``(ii) the General Services Administration
and the Defense Logistics Agency shall submit
each year to the Office of Federal Procurement
Policy, to the maximum extent practicable,
information concerning the types and dollar
value of biobased products purchased by
procuring agencies through GSA Advantage!, the
Federal Supply Schedule, and the Defense
Logistic Agency (including the DoD EMall).
``(7) Procurement program.--
``(A) In general.--Not later than 1 year after the
date of publication of applicable guidelines under
paragraph (5), each Federal agency shall develop a
procurement program that--
``(i) will ensure that items composed of
biobased products will be purchased to the
maximum extent practicable; and
``(ii) is consistent with applicable
provisions of Federal procurement law.
``(B) Minimum requirements.--Each procurement
program required under this paragraph shall, at a
minimum, contain--
``(i) a biobased products preference
program;
``(ii) an agency promotion program to
promote the preference program adopted under
clause (i); and
``(iii) annual review and monitoring of the
effectiveness of the procurement program of the
agency.
``(C) Consideration.--
``(i) In general.--In developing a
preference program, an agency shall--
``(I) consider the options
described in clauses (ii) and (iii);
and
``(II) adopt 1 of the options, or a
substantially equivalent alternative,
for inclusion in the procurement
program.
``(ii) Case-by-case policy development.--
``(I) In general.--Subject to
paragraph (3)(B), except as provided in
subclause (II), in developing a
preference program, an agency shall
consider a policy of awarding contracts
to the vendor offering an item composed
of the highest percentage of biobased
products practicable.
``(II) Certain contracts allowed.--
Subject to paragraph (3)(B), an agency
may make an award to a vendor offering
items with less than the maximum
biobased products content.
``(iii) Minimum content standards.--In
developing a preference program, an agency
shall consider minimum biobased products
content specifications that are established in
a manner that ensures that the biobased
products content required is consistent with
this subsection, without violating paragraph
(3)(B).
``(b) Labeling.--
``(1) In general.--The Secretary, in consultation with the
Administrator, shall establish a voluntary program under which
the Secretary authorizes producers of biobased products to use
the label `USDA Certified Biobased Product'.
``(2) Eligibility criteria.--
``(A) Criteria.--
``(i) In general.--Not later than 90 days
after the date of the enactment of this
section, except as provided in clause (ii), the
Secretary, in consultation with the
Administrator and representatives from small
and large businesses, academia, other Federal
agencies, and such other persons as the
Secretary considers appropriate, shall issue
criteria (as of the date of enactment of this
section) for determining which products may
qualify to receive the label under paragraph
(1).
``(ii) Exception.--Clause (i) shall not
apply to final criteria that have been issued
(as of the date of enactment of this section)
by the Secretary.
``(B) Requirements.--Criteria issued under
subparagraph (A)--
``(i) shall encourage the purchase of
products with the maximum biobased content;
``(ii) shall provide that the Secretary may
designate as biobased for the purposes of the
voluntary program established under this
subsection finished products that contain
significant portions of biobased materials or
components; and
``(iii) to the maximum extent practicable,
should be consistent with the guidelines issued
under subsection (a)(5).
``(3) Use of label.--The Secretary shall ensure that the
label referred to in paragraph (1) is used only on products
that meet the criteria issued pursuant to paragraph (2).
``(4) Recognition.--The Secretary shall--
``(A) establish a voluntary program to recognize
Federal agencies and private entities that use a
substantial amount of biobased products; and
``(B) encourage Federal agencies to establish
incentives programs to recognize Federal employees or
contractors that make exceptional contributions to the
expanded use of biobased products.
``(c) Limitation.--Nothing in this section (other than subsections
(f), (g), and (h)) shall apply to the procurement of motor vehicle
fuels, heating oil, or electricity.
``(d) Inclusion.--
``(1) In general.--Not later than 90 days after the date of
enactment of the Food and Energy Security Act of 2007, the
Architect of the Capitol, the Sergeant at Arms of the Senate,
and the Chief Administrative Officer of the House of
Representatives shall establish procedures that apply the
requirements of this section to procurement for the Capitol
Complex.
``(2) Annual showcase.--Beginning in calendar year 2008,
the Secretary shall sponsor or otherwise support, consistent
with applicable Federal laws (including regulations), an annual
exposition at which entities may display and demonstrate
biobased products.
``(e) Testing of Biobased Products.--
``(1) In general.--The Secretary may establish 1 or more
national testing centers for biobased products to verify
performance standards, biobased contents, and other product
characteristics.
``(2) Requirement.--In establishing 1 or more national
testing centers under paragraph (1), the Secretary shall give
preference to entities that have established capabilities and
experience in the testing of biobased materials and products.
``(f) Bioenergy and Other Biobased Products Education and Awareness
Campaign.--
``(1) In general.--The Secretary in consultation with the
Secretary of Energy, shall establish a program to make
competitive grants to eligible entities to carry out broad-
based education and public awareness campaigns relating to
bioenergy (including biofuels but excluding biodiesel) and
other biobased products.
``(2) Eligible entities.--An entity eligible to receive a
grant described in paragraph (1) is an entity that has
demonstrated a knowledge of bioenergy (including biofuels but
excluding biodiesel) and other biobased products and is--
``(A) a State energy or agricultural office;
``(B) a regional, State-based, or tribal energy
organization;
``(C) a land-grant college or university (as
defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)) or other institution of higher education;
``(D) a rural electric cooperative or utility;
``(E) a nonprofit organization, including an
agricultural trade association, resource conservation
and development district, and energy service provider;
``(F) a State environmental quality office; or
``(G) any other similar entity, other than a
Federal agency or for-profit entity, as determined by
the Secretary.
``(g) Reports.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section and each year thereafter, the
Secretary shall submit to Congress a report on the
implementation of this section.
``(2) Contents.--The report shall include--
``(A) a comprehensive management plan that
establishes tasks, milestones, and timelines,
organizational roles and responsibilities, and funding
allocations for fully implementing this section; and
``(B) information on the status of implementation
of--
``(i) item designations (including
designation of intermediate ingredients and
feedstocks); and
``(ii) the voluntary labeling program
established under subsection (b).
``(h) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use, to the maximum extent
practicable, $3,000,000 for each of fiscal years 2008 through
2012--
``(A) to continue mandatory funding for biobased
products testing as required to carry out this section;
and
``(B) to carry out the bioenergy education and
awareness campaign under subsection (f).
``(2) Authorization of appropriations.--In addition to any
other funds made available to carry out this section, there are
authorized to be appropriated to carry out this section such
sums as are necessary for each of fiscal years 2008 through
2012.
``(3) Priority.--At the discretion of the Secretary, the
Secretary may give priority to the testing of products for
which private sector firms provide cost sharing for the
testing.
``SEC. 9003. BIODIESEL FUEL EDUCATION.
``(a) Purpose.--The purpose of this section is to educate potential
users about the proper use and benefits of biodiesel.
``(b) Establishment.--The Secretary shall, under such terms and
conditions as are appropriate, make grants to eligible entities to
educate governmental and private entities that operate vehicle fleets,
oil refiners, automotive companies, owners and operators of watercraft
fleets, other interested entities (as determined by the Secretary), and
the public about the benefits of biodiesel fuel use.
``(c) Eligible Entities.--To receive a grant under subsection (b),
an entity shall--
``(1) be a nonprofit organization or institution of higher
education (as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001));
``(2) have demonstrated knowledge of biodiesel fuel
production, use, or distribution; and
``(3) have demonstrated the ability to conduct educational
and technical support programs.
``(d) Consultation.--In carrying out this section, the Secretary
shall consult with the Secretary of Energy.
``(e) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out this section, to the maximum
extent practicable, $2,000,000 for each of fiscal years 2008 through
2012.
``SEC. 9004. BIOMASS CROP TRANSITION.
``(a) Definitions.--In this section:
``(1) Eligible crop.--
``(A) In general.--The term `eligible crop' means a
crop of renewable biomass.
``(B) Exclusions.--The term `eligible crop' does
not include any plant that--
``(i) the Secretary determines to be
invasive or noxious on a regional basis under
the Plant Protection Act (7 U.S.C. 7701 et
seq.); or
``(ii) has the potential to become invasive
or noxious on a regional basis, as determined
by the Secretary, in consultation with other
appropriate Federal or State departments and
agencies.
``(2) Eligible land.--The term `eligible land' means
private agricultural or forest land that the Secretary
determines was planted or considered to be planted for at least
4 of the 6 years preceding the date of enactment of the Food
and Energy Security Act of 2007.
``(3) Eligible participant.--The term `eligible
participant' means an agricultural producer, forest land owner,
or other individual holding the right to collect or harvest
renewable biomass--
``(A) that is establishing 1 or more eligible crops
on eligible land to be used in the production of
advanced biofuels, other biobased products, heat, or
power from a biomass conversion facility;
``(B) that is collecting or harvesting renewable
biomass to be used in the production of advanced
biofuels, other biobased products, heat, or power from
a biomass conversion facility;
``(C) that has a letter of intent or proof of
financial commitment from a biomass conversion
facility, including a proposed biomass conversion
facility that is economically viable, as determined by
the Secretary, to purchase the eligible crops; and
``(D) the production operation of which is in such
proximity to the biomass conversion facility described
in subparagraph (C) as to make delivery of the eligible
crops to that location economically practicable.
``(b) Biomass Crop Transition Assistance.--
``(1) Establishment of program.--The Secretary shall
establish a program to provide transitional assistance,
including planning grants, for the establishment and production
of eligible crops to be used in the production of advanced
biofuels, other biobased products, heat, or power from a
biomass conversion facility.
``(2) Exclusion.--An agricultural producer shall not be
eligible for assistance under paragraph (1) for the
establishment and production of--
``(A) any crop that is eligible for benefits under
title I of the Food and Energy Security Act of 2007; or
``(B) an annual crop.
``(3) Contracts.--
``(A) In general.--The Secretary shall enter into
contracts with eligible participants and entities
described in subparagraph (B) to provide transitional
assistance payments to eligible participants.
``(B) Contracts with member entities.--The
Secretary may enter into 1 or more contracts with
farmer-owned cooperatives, agricultural trade
associations, or other similar entities on behalf of
producer members that meet the requirements of, and
elect to be treated as, eligible participants if the
contract would offer greater efficiency in
administration of the program.
``(C) Requirements.--Under a contract described in
subparagraph (A), an eligible participant shall be
required, as determined by the Secretary--
``(i) to produce 1 or more eligible crops;
``(ii) to develop and actively apply a
conservation plan that meets the requirements
for highly erodible land conservation and
wetlands conservation as established under
subtitles B and C of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
and
``(iii) to agree to implement a
conservation plan approved by the local soil
conservation district, in consultation with the
local committees established under section
8(b)(5) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(B)(5)) and the
Secretary, or by the Secretary to use such
conservation practices as are necessary, where
appropriate--
``(I) to advance the goals and
objectives of State, regional, and
national fish and wildlife conservation
plans and initiatives; and
``(II) to comply with mandatory
environmental requirements for a
producer under Federal, State, and
local law.
``(4) Payments.--
``(A) First year.--During the first year of the
contract, the Secretary shall make a payment to an
eligible participant in an amount that covers the cost
of establishing 1 or more eligible crops.
``(B) Subsequent years.--During any subsequent year
of the contract, the Secretary shall make incentive
payments to an eligible participant in an amount
determined by the Secretary to encourage the eligible
participant to produce renewable biomass.
``(5) Applications.--An application to the Secretary for
assistance shall include--
``(A) identification of the proposed biomass
conversion facility for which the crop is intended;
``(B) letters of intent or proof of financial
commitment from the biomass conversion facility to
purchase the crop; and
``(C) documentation from each eligible participant
that describes--
``(i) the variety and acreage of the
eligible crop the eligible participants have
committed to producing; and
``(ii) the variety and acreage of crops
that the eligible participants would have grown
if the eligible participants had not committed
to producing the eligible crop.
``(6) Selection criteria.--In selecting from applications
submitted under this subsection, the Secretary shall consider--
``(A) the likelihood that the proposed
establishment of the eligible crop will be viable
within the proposed locale;
``(B) the impact of the proposed eligible crop and
conversion system on wildlife, air, soil, and water
quality and availability; and
``(C) local and regional economic impacts and
benefits, including participation of beginning farmers
or ranchers and socially disadvantaged farmers or
ranchers.
``(7) Eligible crop transition planning grants.--
``(A) In general.--An eligible participant or
member entity (as described in paragraph (3)(B)) may
apply for a project planning grant in an amount of not
more than $50,000 to assist in assessing the viability
for, or assembling of, a regional supply of 1 or more
eligible crops for use by a bioenergy conversion
facility.
``(B) Matching requirement.--To receive a planning
grant under subparagraph (A), an eligible participant
or member entity shall provide matching funding in an
amount equal to 100 percent of the amount of the grant.
``(c) Assistance for Production of Annual Crop of Renewable
Biomass.--
``(1) In general.--The Secretary may provide assistance to
eligible participants to plant an annual crop of renewable
biomass for use in a biomass conversion facility in the form
of--
``(A) technical assistance; and
``(B) cost-share assistance for the cost of
establishing an annual crop of renewable biomass.
``(2) Exclusion.--An agricultural producer shall not be
eligible for assistance under paragraph (1) for the
establishment of any crop that is eligible for benefits under
title I of the Food and Energy Security Act of 2007.
``(3) Compliance.--Eligible participants receiving
assistance under paragraph (1)(B) shall develop and actively
apply a conservation plan that meets the requirements for
highly erodible land conservation and wetlands conservation as
established under subtitles B and C of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.).
``(d) Assistance for Collection, Harvest, Storage, and Transport of
Renewable Biomass.--
``(1) Establishment of program.--The Secretary shall
establish a program to provide assistance to eligible
participants for collecting, harvesting, storing, and
transporting renewable biomass to be used in the production of
advanced biofuels, biobased products, heat, or power from a
biomass conversion facility.
``(2) Payments.--
``(A) In general.--An eligible participant shall
receive payments under this subsection for each ton of
renewable biomass delivered to a biomass conversion
facility, based on a fixed rate to be established by
the Secretary in accordance with subparagraph (B).
``(B) Fixed rate.--The Secretary shall establish a
fixed payment rate for purposes of subparagraph (A) to
reflect--
``(i) the estimated cost of collecting,
harvesting, storing, and transporting the
renewable biomass; and
``(ii) such other factors as the Secretary
determines to be appropriate.
``(e) Assistance for Forest Biomass Planning.--
``(1) In general.--The Secretary shall provide assistance
to eligible participants to develop forest stewardship plans
that involve management of forest biomass for delivery to a
biomass conversion facility through--
``(A) a State forestry agency; or
``(B) a contract or agreement with a third-party
provider in accordance with section 1242 of the Food
Security Act of 1985 (16 U.S.C. 3842).
``(2) Management practices.--The Secretary shall ensure
that any plan developed using assistance provided under
paragraph (1) includes management practices that will protect
soil, water, and wildlife habitat resources on the land covered
by the plan.
``(f) Best Practices.--
``(1) Recordkeeping.--Each eligible participant, and each
biomass conversion facility contracting with the eligible
participant, shall maintain and make available to the
Secretary, at such times as the Secretary may request,
appropriate records of methods used for activities for which
payment is received under this section.
``(2) Information sharing.--From the records maintained
under subparagraph (A), the Secretary shall maintain, and make
available to the public, information regarding--
``(A) the production potential (including
evaluation of the environmental benefits) of a variety
of eligible crops; and
``(B) best practices for producing, collecting,
harvesting, storing, and transporting eligible crops to
be used in the production of advanced biofuels.
``(g) Funding.--
``(1) Biomass crop transition assistance.--Of the funds of
the Commodity Credit Corporation, the Secretary shall use to
carry out subsections (b) and (c) $130,000,000 for fiscal year
2008, to remain available until expended, of which not more
than $5,000,000 may be used to carry out subsection (b)(7).
``(2) Assistance for collection, harvest, storage, and
transport of renewable biomass.--Of the funds of the Commodity
Credit Corporation, the Secretary shall make available to carry
out subsection (d) $10,000,000 for each of fiscal years 2009
through 2011, to remain available until expended.
``(3) Assistance for forest biomass planning.--Of the funds
made available under paragraph (1), the Secretary shall use not
more than 5 percent to carry out subsection (e).
``SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.
``(a) Purpose.--The purpose of this section is to assist in the
development of new or emerging technologies for the use of renewable
biomass or other sources of renewable energy--
``(1) to develop advanced biofuels;
``(2) to increase the energy independence of the United
States by promoting the replacement of energy generated from
fossil fuels with energy generated from a renewable energy
source;
``(3) to promote resource conservation, public health, and
the environment;
``(4) to diversify markets for raw agricultural and
forestry products, and agriculture waste material; and
``(5) to create jobs and enhance the economic development
of the rural economy.
``(b) Definition of Repower.--In this section, the term `repower'
means to substitute the production of heat or power from a fossil fuel
source with heat or power from sources of renewable energy.
``(c) Assistance.--
``(1) In general.--The Secretary shall make available to
eligible entities described in subsection (d)--
``(A) grants to assist in paying the costs of--
``(i) development and construction of
pilot- and demonstration-scale biorefineries
intended to demonstrate the commercial
viability of 1 or more processes for converting
renewable biomass to advanced biofuels;
``(ii) repowering a biomass conversion
facility, power plant, or manufacturing
facility, in whole or in part; or
``(iii) conducting a study to determine the
feasibility of repowering a biomass conversion
facility, power plant, or manufacturing
facility, in whole or in part; and
``(B) guarantees for loans made to fund--
``(i) the development and construction of
commercial-scale biorefineries; or
``(ii) the repowering of a biomass
conversion facility, power plant, or
manufacturing facility, in whole or in part.
``(2) Preference.--In selecting projects to receive grants
and loan guarantees under this section, the Secretary shall
give preference to projects that receive or will receive
financial support from the State in which the project is
carried out.
``(d) Eligible Entities.--An eligible entity under this section
is--
``(1) an individual;
``(2) a corporation;
``(3) a farm cooperative;
``(4) a rural electric cooperative or public power entity;
``(5) an association of agricultural producers;
``(6) a State or local energy agency or office;
``(7) an Indian tribe;
``(8) a consortium comprised of any individuals or entities
described in any of paragraphs (1) through (7); or
``(9) any other similar entity, as determined by the
Secretary.
``(e) Grants.--
``(1) In general.--The Secretary shall award grants under
subsection (c)(1)(A) on a competitive basis.
``(2) Selection criteria.--
``(A) Grants for development and construction of
pilot and demonstration scale biorefineries.--
``(i) In general.--In awarding grants for
development and construction of pilot and
demonstration scale biorefineries under
subsection (c)(1)(A)(i), the Secretary shall
select projects based on the likelihood that
the projects will demonstrate the commercial
viability of a new or emerging process for
converting renewable biomass into advanced
biofuels.
``(ii) Factors.--The factors to be
considered under clause (i) may include--
``(I) the potential market for 1 or
more products;
``(II) the level of financial
participation by the applicants;
``(III) the availability of
adequate funding from other sources;
``(IV) the participation of
producer associations and cooperatives;
``(V) the beneficial impact on
resource conservation, public health,
and the environment;
``(VI) the timeframe in which the
project will be operational;
``(VII) the potential for rural
economic development;
``(VIII) the participation of
multiple eligible entities;
``(IX) the potential for developing
advance industrial biotechnology
approaches; and
``(X) whether the distribution of
funds would have minimal impact on
existing manufacturing and other
facilities that use similar feedstocks.
``(B) Grants for repowering.--In selecting projects
to receive grants for repowering under clauses (ii) and
(iii) of subsection (c)(1)(A), the Secretary shall
consider--
``(i) the change in energy efficiency that
would result from the proposed repowering of
the eligible entity;
``(ii) the reduction in fossil fuel use
that would result from the proposed repowering;
and
``(iii) the volume of renewable biomass
located in such proximity to the eligible
entity as to make local sourcing of feedstock
economically practicable.
``(3) Cost sharing.--
``(A) Limits.--
``(i) Development and construction of pilot
and demonstration scale biorefineries.--The
amount of a grant awarded for development and
construction of a biorefinery under subsection
(c)(1)(A)(i) shall not exceed 50 percent of the
cost of the project.
``(ii) Repowering.--The amount of a grant
awarded for repowering under subsection
(c)(1)(A)(ii) shall not exceed 20 percent of
the cost of the project.
``(iii) Feasibility study for repowering.--
The amount of a grant awarded for a feasibility
study for repowering under subsection
(c)(1)(A)(iii) shall not exceed an amount equal
to the lesser of--
``(I) an amount equal to 50 percent
of the total cost of conducting the
feasibility study; and
``(II) $150,000.
``(B) Form of grantee share.--
``(i) In general.--The grantee share of the
cost of a project may be made in the form of
cash or the provision of services, material, or
other in-kind contributions.
``(ii) Limitation.--The amount of the
grantee share of the cost of a project that is
made in the form of the provision of services,
material, or other in-kind contributions shall
not exceed 15 percent of the amount of the
grantee share determined under subparagraph
(A).
``(f) Loan Guarantees.--
``(1) Conditions.--As a condition of making a loan
guarantee under subsection (c)(1)(B), the Secretary shall
require--
``(A) demonstration of binding commitments to
cover, from sources other than Federal funds, at least
20 percent of the total cost of the project described
in the application;
``(B) in the case of a new or emerging technology,
demonstration that the project design has been
validated through a technical review and subsequent
operation of a pilot or demonstration scale facility
that can be scaled up to commercial size; and
``(C) demonstration that the applicant provided
opportunities to local investors (as determined by the
Secretary) to participate in the financing or ownership
of the biorefinery.
``(2) Local ownership.--The Secretary shall give preference
under subsection (c)(1)(B) to applications for projects with
significant local ownership.
``(3) Approval.--Not later than 90 days after the Secretary
receives an application for a loan guarantee under subsection
(c)(1)(B), the Secretary shall approve or disapprove the
application.
``(4) Limitations.--
``(A) Maximum amount of loan guaranteed.--
``(i) Commercial-scale biorefineries.--
Subject to clause (iii), the principal amount
of a loan guaranteed under subsection
(c)(1)(B)(i) may not exceed $250,000,000.
``(ii) Repowering.--Subject to clause
(iii), the principal amount of a loan
guaranteed under subsection (c)(1)(B)(ii) may
not exceed $70,000,000.
``(iii) Relationship to other federal
funding.--The amount of a loan guaranteed under
subsection (c)(1)(B) shall be reduced by the
amount of other Federal funding that the entity
receives for the same project.
``(B) Maximum percentage of loan guaranteed.--A
loan guaranteed under subsection (c)(1)(B) shall be in
an amount not to exceed 80 percent of the project
costs, as determined by the Secretary.
``(C) Authority to guarantee entire amount of the
loan.--The Secretary may guarantee up to 100 percent of
the principal and interest due on a loan guaranteed
under subsection (c)(1)(B).
``(g) Consultation.--In carrying out this section, the Secretary
shall consult with the Secretary of Energy.
``(h) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use for the cost of grants and loan guarantees to
carry out this section $300,000,000 for fiscal year 2008, to remain
available until expended.
``SEC. 9006. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.
``(a) Definition of Eligible Producer.--In this section, the term
`eligible producer' means a producer of advanced biofuels.
``(b) Payments.--The Secretary shall make payments to eligible
producers to encourage increased purchases of renewable biomass for the
purpose of expanding production of, and supporting new production
capacity for, advanced biofuels.
``(c) Contracts.--To receive a payment, an eligible producer
shall--
``(1) enter into a contract with the Secretary to increase
production of advanced biofuels for 1 or more fiscal years; and
``(2) submit to the Secretary such records as the Secretary
may require as evidence of increased purchase and use of
renewable biomass for the production of advanced biofuels.
``(d) Basis for Payments.--The Secretary shall make payments under
this section to eligible producers based on--
``(1) the level of production by the eligible producer of
an advanced biofuel;
``(2) the price of each renewable biomass feedstock used
for production of the advanced biofuel;
``(3) the net nonrenewable energy content of the advanced
biofuel, if sufficient data is available, as determined by the
Secretary; and
``(4) other appropriate factors, as determined by the
Secretary.
``(e) Overpayments.--If the total amount of payments that an
eligible producer receives for a fiscal year under this section exceeds
the amount that the eligible producer should have received, the
eligible producer shall repay the amount of the overpayment to the
Secretary, with interest (as determined by the Secretary).
``(f) Limitations.--
``(1) Equitable distribution.--The Secretary may limit the
amount of payments that may be received by a single eligible
producer under this section in order to distribute the total
amount of funding available in an equitable manner.
``(2) Ineligibility.--An eligible producer that claims a
credit allowed under section 40(a)(3), 40(a)(4), or 40A(a)(3)
of the Internal Revenue Code of 1986 shall not be eligible to
receive payments under subsection (d).
``(3) Refining capacity.--An eligible producer may not use
any funds received under this section for an advanced biofuel
production facility or other fuel refinery the total refining
capacity of which is more than 150,000,000 gallons per year.
``(g) Other Requirements.--To receive a payment under this section,
an eligible producer shall meet any other requirements of Federal and
State law (including regulations) applicable to the production of
advanced biofuels.
``(h) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out this section $245,000,000 for the
period of fiscal years 2008 through 2012, to remain available until
expended.
``SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.
``(a) Establishment.--The Secretary, in consultation with the
Secretary of Energy, shall establish a Rural Energy for America Program
to promote energy efficiency and renewable energy development for
agricultural producers, cooperatives, rural small businesses, and other
similar entities through--
``(1) grants for energy audits and renewable energy
development assistance;
``(2) financial assistance for energy efficiency
improvements and renewable energy systems; and
``(3) financial assistance for facilities to convert animal
manure to energy.
``(b) Energy Audits and Renewable Energy Development Assistance.--
``(1) In general.--The Secretary shall make competitive
grants to eligible entities to provide assistance to
agricultural producers and rural small businesses--
``(A) to become more energy efficient; and
``(B) to use renewable energy technology and
resources.
``(2) Eligible entities.--An eligible entity under this
subsection is--
``(A) a State agency;
``(B) a regional, State-based, or tribal energy
organization;
``(C) a land-grant college or university or other
institution of higher education;
``(D) a rural electric cooperative or public power
entity;
``(E) a nonprofit organization; and
``(F) any other similar entity, as determined by
the Secretary.
``(3) Merit review.--
``(A) Merit review process.--The Secretary shall
establish a merit review process to review applications
for grants under paragraph (1) that uses the expertise
of other Federal agencies, industry, and
nongovernmental organizations.
``(B) Selection criteria.--In reviewing
applications of eligible entities to receive grants
under paragraph (1), the Secretary shall consider--
``(i) the ability and expertise of the
eligible entity in providing professional
energy audits and renewable energy assessments;
``(ii) the geographic scope of the program
proposed by the eligible entity in relation to
the identified need;
``(iii) the number of agricultural
producers and rural small businesses to be
assisted by the program;
``(iv) the potential for energy savings and
environmental and public health benefits
resulting from the program; and
``(v) the plan of the eligible entity for
providing information to agricultural producers
and rural small businesses on the benefits of
energy efficiency and renewable energy
development.
``(4) Use of grant funds.--
``(A) Required uses.--A recipient of a grant under
paragraph (1) shall use the grant funds to conduct and
promote energy audits for agricultural producers and
rural small businesses to provide recommendations on
how to improve energy efficiency and use renewable
energy technology and resources.
``(B) Permitted uses.--In addition to the uses
described in subparagraph (A), a recipient of a grant
may use the grant funds to make agricultural producers
and rural small businesses aware of--
``(i) financial assistance under subsection
(c); and
``(ii) other Federal, State, and local
financial assistance programs for which the
agricultural producers and rural small
businesses may be eligible.
``(5) Cost sharing.--A recipient of a grant under paragraph
(1) that conducts an energy audit for an agricultural producer
or rural small business under paragraph (4)(A) shall require
that, as a condition of the energy audit, the agricultural
producer or rural small business pay at least 25 percent of the
cost of the energy audit, which shall be retained by the
eligible entity for the cost of the energy audit.
``(c) Financial Assistance for Energy Efficiency Improvements and
Renewable Energy Systems.--
``(1) In general.--In addition to any similar authority,
the Secretary shall provide loan guarantees, grants, and
production-based incentives to agricultural producers and rural
small businesses--
``(A) to purchase renewable energy systems,
including systems that may be used to produce and sell
electricity; and
``(B) to make energy efficiency improvements.
``(2) Award considerations.--In determining the amount of a
grant, loan guarantee, or production-based incentive provided
under this section, the Secretary shall take into
consideration, as applicable--
``(A) the type of renewable energy system to be
purchased;
``(B) the estimated quantity of energy to be
generated by the renewable energy system;
``(C) the expected environmental benefits of the
renewable energy system;
``(D) the quantity of energy savings expected to be
derived from the activity, as demonstrated by an energy
audit comparable to an energy audit under subsection
(b);
``(E) the estimated period of time for the energy
savings generated by the activity to equal the cost of
the activity;
``(F) the expected energy efficiency of the
renewable energy system; and
``(G) other appropriate factors.
``(3) Feasibility studies.--
``(A) In general.--The Secretary may provide
assistance in the form of grants to an agricultural
producer or rural small business to conduct a
feasibility study for a project for which assistance
may be provided under this subsection.
``(B) Limitation.--The Secretary shall use not more
than 10 percent of the funds made available to carry
out this subsection to provide assistance described in
subparagraph (A).
``(C) Avoidance of duplicative assistance.--An
entity shall be ineligible to receive assistance to
carry out a feasibility study for a project under this
paragraph if the entity has received Federal or State
assistance for a feasibility study for the project.
``(4) Limits.--
``(A) Grants.--The amount of a grant under this
subsection shall not exceed 25 percent of the cost of
the activity carried out using funds from the grant.
``(B) Loan guarantees.--
``(i) Maximum amount.--The amount of a loan
guaranteed under this subsection shall not
exceed $25,000,000.
``(ii) Maximum percentage.--A loan
guaranteed under this subsection shall not
exceed 75 percent of the cost of the activity
carried out using funds from the loan.
``(5) Production-based incentive payments in lieu of
grants.--
``(A) In general.--In addition to the authority
under subsection (b), to encourage the production of
electricity from renewable energy systems, the
Secretary, on receipt of a request of an eligible
applicant under this section, shall make production-
based incentive payments to the applicant in lieu of a
grant.
``(B) Contingency.--A payment under subparagraph
(A) shall be contingent on documented energy production
and sales by the renewable energy system of the
eligible applicant to a third party.
``(C) Limitation.--The total net present value of a
production-based incentive payment under this paragraph
shall not exceed the lesser of--
``(i) an amount equal to 25 percent of the
eligible project costs, as determined by the
Secretary; and
``(ii) such other limit as the Secretary
may establish, by rule or guidance.
``(d) Financial Assistance for Facilities To Convert Animal Manure
to Energy.--
``(1) Definition of animal manure.--In this subsection, the
term `animal manure' means agricultural livestock excrement,
including litter, wood shavings, straw, rice hulls, bedding
material, and other materials incidentally collected with the
manure.
``(2) Grants and loan guarantees.--The Secretary shall make
grants and loan guarantees to eligible entities on a
competitive basis for the installation, operation, and
evaluation of facilities described in paragraph (4).
``(3) Eligible entities.--To be eligible to receive a grant
or loan guarantee under this subsection, an entity shall be--
``(A) an agricultural producer;
``(B) a rural small business;
``(C) a rural cooperative; or
``(D) any other similar entity, as determined by
the Secretary.
``(4) Eligible facilities.--
``(A) In general.--Subject to subparagraphs (B)
through (E), an eligible entity may receive a grant or
loan guarantee under this subsection for the
installation, first-year operation, and evaluation of
an on-farm or community facility (such as a digester or
power generator using manure for fuel) the primary
function of which is to convert animal manure into a
useful form of energy (including gaseous or liquid fuel
or electricity).
``(B) Subsystems included.--Funds from a grant and
loan guarantee under subparagraph (A) may be used for
systems that support an on-farm or community facility
described in that subparagraph, which may include
feedstock gathering systems and gas piping systems.
``(C) Conversion of renewable biomass.--An eligible
entity may use a grant or loan guarantee provided under
this subsection to convert renewable biomass other than
animal manure (such as waste materials from food
processing facilities and other green wastes) into
energy at a facility if the majority of materials
converted into energy at the facility is animal manure.
``(D) Development and demonstration of new
technologies.--An eligible entity may use a grant or
loan guarantee provided under this subsection for the
installation, demonstration, and first 2 years of
operation of an on-farm or community facility that uses
manure-to-energy technologies--
``(i) that are not in commercial use, as
determined by the Secretary; and
``(ii) for which sufficient research has
been conducted for the Secretary to determine
that the technology is commercially viable.
``(5) Selection of eligible entities.--In selecting
applications for grants and loan guarantees under this
subsection, the Secretary shall consider--
``(A) the quality of energy produced; and
``(B) the projected net energy conversion
efficiency, which shall be equal to the quotient
obtained by dividing--
``(i) the energy output of the eligible
facility; by
``(ii) the sum of--
``(I) the energy content of animal
manure at the point of collection; and
``(II) the energy consumed in
facility operations, including
feedstock transportation;
``(C) environmental issues, including potential
positive and negative impacts on water quality, air
quality, odor emissions, pathogens, and soil quality
resulting from--
``(i) the use and conversion of animal
manure into energy;
``(ii) the installation and operation of
the facility; and
``(iii) the disposal of any waste products
(including effluent) from the facility;
``(D) the net impact of the facility and any waste
from the facility on greenhouse gas emissions, based on
the estimated emissions from manure storage systems in
use before the installation of the manure-to-energy
facility;
``(E) diversity factors, including diversity of--
``(i) sizes of projects supported; and
``(ii) geographic locations; and
``(F) the proposed project costs and levels of
grants or loan guarantees requested.
``(6) Amount.--
``(A) Grants.--
``(i) Smaller projects.--In the case of a
project with a total eligible cost (as
described in paragraph (4)) of not more than
$500,000, the amount of a grant made under this
subsection shall not exceed 50 percent of the
total eligible cost.
``(ii) Larger projects.--In the case of a
project with a total eligible cost (as
described in paragraph (4)) of more than
$500,000, the amount of a grant made under this
subsection shall not exceed the greater of--
``(I) $250,000; or
``(II) 25 percent of the total
eligible cost.
``(iii) Maximum.--In no case shall the
amount of a grant made under this section
exceed $2,000,000.
``(B) Loan guarantees.--The principal amount and
interest of a loan guaranteed under this subsection may
not exceed the lesser of--
``(i) 80 percent of the difference
between--
``(I) the total cost to install and
operate the eligible facility for the
first year, as determined by the
Secretary; and
``(II) the amount of any Federal,
State, and local funds received to
support the eligible facility; and
``(ii) $25,000,000.
``(7) Prohibition.--A grant or loan guarantee may not be
provided for a project under this subsection that also receives
assistance under subsection (b) or (c).
``(e) Role of State Rural Development Director.--
``(1) Outreach and availability of information.--
``(A) Outreach.--A State rural development
director, acting through local rural development
offices, shall provide outreach regarding the
availability of financial assistance under this
section.
``(B) Availability of information.--A State rural
development director shall make available information
relating to the availability of financial assistance
under this section at all local rural development, Farm
Service Agency, and Natural Resources Conservation
Service offices.
``(2) Application review.--Applications for assistance
under this section shall be reviewed by the appropriate State
rural development director.
``(f) Small Projects.--
``(1) Application and review process.--The Secretary shall
develop a streamlined application and expedited review process
for project applicants seeking less than $20,000 under this
section.
``(2) Percentage of funds.--Not less than 20 percent of the
funds made available under subsection (k)(1) shall be made
available to make grants under this section in an amount of
less than $20,000.
``(g) Preference.--In selecting projects to receive grants under
this section, the Secretary shall give preference to projects that
receive or will receive financial support from the State in which the
project is carried out.
``(h) Rural Energy Star.--The Secretary, in coordination with the
Administrator and the Secretary of Energy, shall extend the Energy Star
program established by section 324A of the Energy Policy and
Conservation Act (42 U.S.C. 6294a) to include a Rural Energy Star
component to promote the development and use of energy-efficient
equipment and facilities in the agricultural sector.
``(i) Reports.--Not later than 4 years after the date of enactment
of the Food and Energy Security Act of 2007, the Secretary shall submit
to Congress a report on the implementation of this section, including
the outcomes achieved by projects funded under this section.
``(j) Funding.--
``(1) Commodity credit corporation.--Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available $230,000,000 to carry out subsections (b), (c), and
(d) for fiscal year 2008, to remain available until expended,
of which--
``(A) not less than 5 percent shall be used to
carry out subsection (b); and
``(B) not less than 15 percent shall be used to
carry out subsection (d).
``(2) Authorization of appropriations.--In addition to any
other funds made available to carry out this section, there are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.
``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.
``(a) Definitions.--In this section:
``(1) Biobased product.--The term `biobased product'
means--
``(A) an industrial product (including chemicals,
materials, and polymers) produced from biomass; and
``(B) a commercial or industrial product (including
animal feed and electric power) derived in connection
with the conversion of biomass to fuel.
``(2) Demonstration.--The term `demonstration' means
demonstration of technology in a pilot plant or semi-works
scale facility, including a plant or facility located on a
farm.
``(3) Initiative.--The term `Initiative' means the Biomass
Research and Development Initiative established under
subsection (e).
``(4) National laboratory.--The term `National Laboratory'
has the meaning given that term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
``(5) Point of contact.--The term `point of contact' means
a point of contact designated under this section.
``(b) Cooperation and Coordination in Biomass Research and
Development.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy shall cooperate with respect to, and
coordinate, policies and procedures that promote research and
development leading to the production of biofuels and biobased
products.
``(2) Points of contact.--
``(A) In general.--To coordinate research and
development programs and activities relating to
biofuels and biobased products that are carried out by
their respective departments--
``(i) the Secretary of Agriculture shall
designate, as the point of contact for the
Department of Agriculture, an officer of the
Department of Agriculture appointed by the
President to a position in the Department
before the date of the designation, by and with
the advice and consent of the Senate; and
``(ii) the Secretary of Energy shall
designate, as the point of contact for the
Department of Energy, an officer of the
Department of Energy appointed by the President
to a position in the Department before the date
of the designation, by and with the advice and
consent of the Senate.
``(B) Duties.--The points of contact shall
jointly--
``(i) assist in arranging interlaboratory
and site-specific supplemental agreements for
research and development projects relating to
biofuels and biobased products;
``(ii) serve as cochairpersons of the
Board;
``(iii) administer the Initiative; and
``(iv) respond in writing to each
recommendation of the Advisory Committee made
under subsection (d).
``(c) Biomass Research and Development Board.--
``(1) Establishment.--There is established the Biomass
Research and Development Board, which shall supersede the
Interagency Council on Biobased Products and Bioenergy
established by Executive Order No. 13134 (7 U.S.C. 8101 note),
to coordinate programs within and among departments and
agencies of the Federal Government for the purpose of promoting
the use of biofuels and biobased products by--
``(A) maximizing the benefits deriving from Federal
grants and assistance; and
``(B) bringing coherence to Federal strategic
planning.
``(2) Membership.--The Board shall consist of--
``(A) the point of contact of the Department of
Energy designated under subsection (b)(2)(A)(ii), who
shall serve as cochairperson of the Board;
``(B) the point of contact of the Department of
Agriculture designated under subsection (b)(2)(A)(i),
who shall serve as cochairperson of the Board;
``(C) a senior officer of each of the Department of
the Interior, the Environmental Protection Agency, the
National Science Foundation, and the Office of Science
and Technology Policy, each of whom shall--
``(i) be appointed by the head of the
respective agency; and
``(ii) have a rank that is equivalent to
the rank of the points of contact; and
``(D) at the option of the Secretary of Agriculture
and the Secretary of Energy, other members appointed by
the Secretaries (after consultation with the members
described in subparagraphs (A) through (C)).
``(3) Duties.--The Board shall--
``(A) coordinate research and development
activities relating to biofuels and biobased products--
``(i) between the Department of Agriculture
and the Department of Energy; and
``(ii) with other departments and agencies
of the Federal Government;
``(B) provide recommendations to the points of
contact concerning administration of this title;
``(C) ensure that--
``(i) solicitations are open and
competitive with awards made annually; and
``(ii) objectives and evaluation criteria
of the solicitations are clearly stated and
minimally prescriptive, with no areas of
special interest; and
``(D) ensure that the panel of scientific and
technical peers assembled under subsection (e) to
review proposals is composed predominantly of
independent experts selected from outside the
Departments of Agriculture and Energy.
``(4) Funding.--Each agency represented on the Board is
encouraged to provide funds for any purpose under this section.
``(5) Meetings.--The Board shall meet at least quarterly to
enable the Board to carry out the duties of the Board under
paragraph (3).
``(d) Biomass Research and Development Technical Advisory
Committee.--
``(1) Establishment.--There is established the Biomass
Research and Development Technical Advisory Committee, which
shall supersede the Advisory Committee on Biobased Products and
Bioenergy established by Executive Order No. 13134 (7 U.S.C.
8101 note)--
``(A) to advise the Secretary of Energy, the
Secretary of Agriculture, and the points of contact
concerning--
``(i) the distribution of funding;
``(ii) the technical focus and direction of
requests for proposals issued under the
Initiative; and
``(iii) procedures for reviewing and
evaluating the proposals;
``(B) to facilitate consultations and partnerships
among Federal and State agencies, agricultural
producers, industry, consumers, the research community,
and other interested groups to carry out program
activities relating to the Initiative; and
``(C) to evaluate and perform strategic planning on
program activities relating to the Initiative.
``(2) Membership.--
``(A) In general.--The Advisory Committee shall
consist of--
``(i) an individual affiliated with the
biofuels industry;
``(ii) an individual affiliated with the
biobased industrial and commercial products
industry;
``(iii) an individual affiliated with an
institution of higher education who has
expertise in biofuels and biobased products;
``(iv) 2 prominent engineers or scientists
from government or academia who have expertise
in biofuels and biobased products;
``(v) an individual affiliated with a
commodity trade association;
``(vi) 2 individuals affiliated with an
environmental or conservation organization;
``(vii) an individual associated with State
government who has expertise in biofuels and
biobased products;
``(viii) an individual with expertise in
energy and environmental analysis;
``(ix) an individual with expertise in the
economics of biofuels and biobased products;
``(x) an individual with expertise in
agricultural economics;
``(xi) an individual with expertise in
plant biology and biomass feedstock
development;
``(xii) an individual with expertise in
agronomy, crop science, or soil science; and
``(xiii) at the option of the points of
contact, other members.
``(B) Appointment.--The members of the Advisory
Committee shall be appointed by the points of contact.
``(3) Duties.--The Advisory Committee shall--
``(A) advise the points of contact with respect to
the Initiative; and
``(B) evaluate whether, and make recommendations in
writing to the Board to ensure that--
``(i) funds authorized for the Initiative
are distributed and used in a manner that is
consistent with the objectives, purposes, and
considerations of the Initiative;
``(ii) solicitations are open and
competitive with awards made annually and that
objectives and evaluation criteria of the
solicitations are clearly stated and minimally
prescriptive, with no areas of special
interest;
``(iii) the points of contact are funding
proposals under this title that are selected on
the basis of merit, as determined by an
independent panel of scientific and technical
peers predominantly from outside the
Departments of Agriculture and Energy; and
``(iv) activities under this section are
carried out in accordance with this section.
``(4) Coordination.--To avoid duplication of effort, the
Advisory Committee shall coordinate the activities of the
Advisory Committee with activities of other Federal advisory
committees working in related areas.
``(5) Meetings.--The Advisory Committee shall meet at least
quarterly to enable the Advisory Committee to carry out the
duties of the Advisory Committee.
``(6) Terms.--Members of the Advisory Committee shall be
appointed for a term of 3 years.
``(e) Biomass Research and Development Initiative.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy, acting through their respective points of
contact and in consultation with the Board, shall establish and
carry out a Biomass Research and Development Initiative under
which competitively awarded grants, contracts, and financial
assistance are provided to, or entered into with, eligible
entities to carry out research on, and development and
demonstration of, biofuels and biobased products, and the
methods, practices, and technologies, for the production of the
fuels and product.
``(2) Objectives.--The objectives of the Initiative are to
develop--
``(A) technologies and processes necessary for
abundant commercial production of biofuels at prices
competitive with fossil fuels;
``(B) high-value biobased products--
``(i) to enhance the economic viability of
biofuels and bioenergy;
``(ii) as substitutes for petroleum-based
feedstocks and products; and
``(iii) to enhance the value of coproducts
produced using the technologies and processes;
and
``(C) a diversity of sustainable domestic sources
of renewable biomass for conversion to biofuels,
bioenergy, and biobased products.
``(3) Purposes.--The purposes of the Initiative are--
``(A) to increase the energy security of the United
States;
``(B) to create jobs and enhance the economic
development of the rural economy;
``(C) to enhance the environment and public health;
and
``(D) to diversify markets for raw agricultural and
forestry products.
``(4) Technical areas.--To advance the objectives and
purposes of the Initiative, the Secretary of Agriculture and
the Secretary of Energy, in consultation with the Administrator
of the Environmental Protection Agency and heads of other
appropriate departments and agencies (referred to in this
subsection as the `Secretaries'), shall direct research,
development, and demonstration toward--
``(A) feedstocks and feedstock systems relevant to
production of raw materials for conversion to biofuels
and biobased products, including--
``(i) development of advanced and dedicated
crops with desired features, including enhanced
productivity, broader site range, low
requirements for chemical inputs, and enhanced
processing;
``(ii) advanced crop production methods to
achieve the features described in clause (i)
and suitable assay techniques for those
features;
``(iii) feedstock harvest, handling,
transport, and storage;
``(iv) strategies for integrating feedstock
production into existing managed land; and
``(v) improving the value and quality of
coproducts, including material used for animal
feeding;
``(B) development of cost-effective technologies
for the use of cellulosic biomass in the production of
biofuels and biobased products, including--
``(i) pretreatment in combination with
enzymatic or microbial hydrolysis;
``(ii) thermochemical approaches, including
gasification and pyrolysis; and
``(iii) self-processing crops that express
enzymes capable of degrading cellulosic
biomass;
``(C) product diversification through technologies
relevant to production of a range of biobased products
(including chemicals, animal feeds, and cogenerated
power) that eventually can increase the feasibility of
fuel production in a biorefinery, including--
``(i) catalytic processing, including
thermochemical fuel production;
``(ii) metabolic engineering, enzyme
engineering, and fermentation systems for
biological production of desired products,
coproducts, or cogeneration of power;
``(iii) product recovery;
``(iv) power production technologies,
including distributed generation;
``(v) integration into existing renewable
biomass processing facilities, including starch
ethanol plants, sugar processing or refining
plants, paper mills, and power plants;
``(vi) enhancement of products and
coproducts, including dried distillers grains;
and
``(vii) technologies that allow for cost-
effective harvest, handling, transport, and
storage; and
``(D) analysis that provides strategic guidance for
the application of renewable biomass technologies in
accordance with realization of improved sustainability
and environmental quality, cost effectiveness,
security, and rural economic development, usually
featuring system-wide approaches, including the
harvest, handling, transport, and storage of renewable
biomass.
``(5) Additional considerations.--Within the technical
areas described in paragraph (4), and in addition to advancing
the purposes described in paragraph (3) and the objectives
described in paragraph (2), the Secretaries shall support
research and development--
``(A) to create continuously expanding
opportunities for participants in existing biofuels
production by seeking synergies and continuity with
current technologies and practices, such as
improvements in dried distillers grains and other
biofuel production coproducts for use as bridge
feedstocks;
``(B) to maximize the environmental, economic, and
social benefits of production of biofuels and biobased
products on a large scale through life-cycle economic
and environmental analysis and other means; and
``(C) to assess the potential of Federal land and
land management programs as feedstock resources for
biofuels and biobased products, consistent with the
integrity of soil and water resources and with other
environmental considerations.
``(6) Eligible entities.--To be eligible for a grant,
contract, or assistance under this subsection, an applicant
shall be--
``(A) an institution of higher education;
``(B) a National Laboratory;
``(C) a Federal research agency;
``(D) a State research agency;
``(E) a private sector entity;
``(F) a nonprofit organization; or
``(G) a consortium of 2 or more entities described
in subparagraphs (A) through (F).
``(7) Administration.--
``(A) In general.--After consultation with the
Board, the points of contact shall--
``(i) publish annually 1 or more joint
requests for proposals for grants, contracts,
and assistance under this subsection;
``(ii) require that grants, contracts, and
assistance under this section be awarded
competitively, on the basis of merit, after the
establishment of procedures that provide for
scientific peer review by an independent panel
of scientific and technical peers;
``(iii) give partial preference to
applications that--
``(I) involve a consortia of
experts from multiple institutions;
``(II) encourage the integration of
disciplines and application of the best
technical resources; and
``(III) increase the geographic
diversity of demonstration projects;
and
``(iv) require that not less than 15
percent of funds made available to carry out
this section is used for research and
development relating to each of the technical
areas described in paragraph (4).
``(B) Matching funds.--
``(i) In general.--The non-Federal share of
the cost of a demonstration project under this
section shall be not less than 20 percent.
``(ii) Commercial applications.--The non-
Federal share of the cost of a commercial
application project under this section shall be
not less than 50 percent.
``(C) Technology and information transfer to
agricultural users.--The Administrator of the National
Institute of Food and Agriculture and the Chief of the
Natural Resources Conservation Service shall ensure
that applicable research results and technologies from
the Initiative are--
``(i) adapted, made available, and
disseminated through those services, as
appropriate; and
``(ii) included in the best practices
database established under section 220 of the
Department of Agriculture Reorganization Act of
1994 (7 U.S.C. 6920).
``(f) Administrative Support and Funds.--
``(1) In general.--To the extent administrative support and
funds are not provided by other agencies under paragraph (2),
the Secretary of Energy and the Secretary of Agriculture may
provide such administrative support and funds of the Department
of Energy and the Department of Agriculture to the Board and
the Advisory Committee as are necessary to enable the Board and
the Advisory Committee to carry out their duties under this
section.
``(2) Other agencies.--The heads of the agencies referred
to in subsection (c)(2)(C), and the other members of the Board
appointed under subsection (c)(2)(D), may, and are encouraged
to, provide administrative support and funds of their
respective agencies to the Board and the Advisory Committee.
``(3) Limitation.--Not more than 4 percent of the amount
made available for each fiscal year under subsection (h) may be
used to pay the administrative costs of carrying out this
section.
``(g) Reports.--
``(1) Annual reports.--For each fiscal year for which funds
are made available to carry out this section, the Secretary of
Energy and the Secretary of Agriculture shall jointly submit to
Congress a detailed report on--
``(A) the status and progress of the Initiative,
including a report from the Advisory Committee on
whether funds appropriated for the Initiative have been
distributed and used in a manner that--
``(i) is consistent with the objectives,
purposes, and additional considerations
described in paragraphs (2) through (5) of
subsection (e);
``(ii) uses the set of criteria established
in the initial report submitted under title III
of the Agricultural Risk Protection Act of 2000
(7 U.S.C. 7624 note; Public Law 106-224) (as in
effect on the date before the date of enactment
of the Food and Energy Security Act of 2007);
and
``(iii) takes into account any
recommendations that have been made by the
Advisory Committee;
``(B) the general status of cooperation and
research and development efforts carried out at each
agency with respect to biofuels and biobased products,
including a report from the Advisory Committee on
whether the points of contact are funding proposals
that are selected under subsection (d)(3)(B)(iii); and
``(C) the plans of the Secretary of Energy and the
Secretary of Agriculture for addressing concerns raised
in the report, including concerns raised by the
Advisory Committee.
``(2) Updates.--The Secretary of Agriculture and the
Secretary of Energy shall update the Vision and Roadmap
documents prepared for Federal biomass research and development
activities.
``(h) Funding.--
``(1) Commodity credit corporation funds.--Of the funds of
the Commodity Credit Corporation, the Secretary of Agriculture,
to the maximum extent practicable, shall use to carry out this
section, to remain available until expended--
``(A) $15,000,000 for fiscal year 2008;
``(B) $25,000,000 for fiscal year 2009; and
``(C) $35,000,000 for fiscal year 2010.
``(2) Additional funding.--In addition to amounts described
in paragraph (1), there is authorized to be appropriated to
carry out this section $85,000,000 for each of fiscal years
2008 through 2012.
``SEC. 9009. SUN GRANT PROGRAM.
``(a) Purposes.--The purposes of the programs established under
this section are--
``(1) to enhance national energy security through the
development, distribution, and implementation of biobased
energy technologies;
``(2) to promote diversification in, and the environmental
sustainability of, agricultural production in the United States
through biobased energy and product technologies;
``(3) to promote economic diversification in rural areas of
the United States through biobased energy and product
technologies; and
``(4) to enhance the efficiency of bioenergy and biomass
research and development programs through improved coordination
and collaboration between the Department of Agriculture, the
Department of Energy, and the land-grant colleges and
universities.
``(b) Definition of Land-Grant Colleges and Universities.--The term
`land-grant colleges and universities' means--
``(1) 1862 Institutions (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7601));
``(2) 1890 Institutions (as defined in section 2 of that
Act) and West Virginia State College; and
``(3) 1994 Institutions (as defined in section 2 of that
Act).
``(c) Establishment.--To carry out the purposes described in
subsection (a), the Secretary shall provide grants to sun grant centers
specified in subsection (d).
``(d) Grants to Centers.--The Secretary shall use amounts made
available for a fiscal year under subsection (j) to provide a grants in
equal amounts to each of the following sun grant centers:
``(1) North-central center.--A north-central sun grant
center at South Dakota State University for the region composed
of the States of Illinois, Indiana, Iowa, Minnesota, Montana,
Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming.
``(2) Southeastern center.--A southeastern sun grant center
at the University of Tennessee at Knoxville for the region
composed of--
``(A) the States of Alabama, Florida, Georgia,
Kentucky, Mississippi, North Carolina, South Carolina,
Tennessee, and Virginia;
``(B) the Commonwealth of Puerto Rico; and
``(C) the United States Virgin Islands.
``(3) South-central center.--A south-central sun grant
center at Oklahoma State University for the region composed of
the States of Arkansas, Colorado, Kansas, Louisiana, Missouri,
New Mexico, Oklahoma, and Texas.
``(4) Western center.--A western sun grant center at Oregon
State University for the region composed of--
``(A) the States of Alaska, Arizona, California,
Hawaii, Idaho, Nevada, Oregon, Utah, and Washington;
and
``(B) territories and possessions of the United
States (other than the territories referred to in
subparagraphs (B) and (C) of paragraph (2)).
``(5) Northeastern center.--A northeastern sun grant center
at Cornell University for the region composed of the States of
Connecticut, Delaware, Massachusetts, Maryland, Maine,
Michigan, New Hampshire, New Jersey, New York, Ohio,
Pennsylvania, Rhode Island, Vermont, and West Virginia.
``(6) Western insular pacific subcenter.--A western insular
Pacific subcenter at the University of Hawaii for the region
composed of the State of Alaska, the State of Hawaii, Guam,
American Samoa, the Commonwealth of the Northern Mariana
Islands, the Federated States of Micronesia, the Republic of
the Marshall Islands, and the Republic of Palau.
``(e) Use of Funds.--
``(1) Centers of excellence.--Of the amount of funds that
are made available for a fiscal year to a sun grant center
under subsection (d), the center shall use not more than 25
percent of the amount to support excellence in science,
engineering, and economics at the center to promote the
purposes described in subsection (a) through the State
agricultural experiment station, cooperative extension
services, and relevant educational programs of the university.
``(2) Grants to land-grant colleges and universities.--
``(A) In general.--The sun grant center established
for a region shall use the funds that remain available
for a fiscal year after expenditures made under
paragraph (1) to provide competitive grants to land-
grant colleges and universities in the region of the
sun grant center to conduct, consistent with the
purposes described in subsection (a), multi-
institutional and multistate--
``(i) research, extension, and educational
programs on technology development; and
``(ii) integrated research, extension, and
educational programs on technology
implementation.
``(B) Programs.--Of the amount of funds that are
used to provide grants for a fiscal year under
subparagraph (A), the center shall use--
``(i) not less than 30 percent of the funds
to carry out programs described in subparagraph
(A)(i); and
``(ii) not less than 30 percent of the
funds to carry out programs described in
subparagraph (A)(ii).
``(3) Indirect costs.--A sun grant center may not recover
the indirect costs of making grants under paragraph (2) to
other land-grant colleges and universities.
``(f) Plan.--
``(1) In general.--Subject to the availability of funds
under subsection (j), in cooperation with other land-grant
colleges and universities and private industry in accordance
with paragraph (2), the sun grant centers shall jointly develop
and submit to the Secretary, for approval, a plan for
addressing at the State and regional levels the bioenergy,
biomass, and gasification research priorities of the Department
of Agriculture and the Department of Energy for the making of
grants under paragraphs (1) and (2) of subsection (e).
``(2) Gasification coordination.--
``(A) In general.--In developing the plan under
paragraph (1) with respect to gasification research,
the sun grant centers identified in paragraphs (1) and
(2) of subsection (d) shall coordinate with land grant
colleges and universities in their respective regions
that have ongoing research activities with respect to
the research.
``(B) Funding.--Funds made available under
subsection (d) to the sun grant center identified in
subsection (e)(2) shall be available to carry out
planning coordination under paragraph (1) of this
subsection.
``(g) Grants to Other Land-Grant Colleges and Universities.--
``(1) Priority for grants.--In making grants under
subsection (e)(2), a sun grant center shall give a higher
priority to programs that are consistent with the plan approved
by the Secretary under subsection (f).
``(2) Term of grants.--The term of a grant provided by a
sun grant center under subsection (e)(2) shall not exceed 5
years.
``(h) Grant Information Analysis Center.--The sun grant centers
shall maintain a Sun Grant Information Analysis Center at the sun grant
center specified in subsection (d)(1) to provide sun grant centers
analysis and data management support.
``(i) Annual Reports.--Not later than 90 days after the end of a
year for which a sun grant center receives a grant under subsection
(d), the sun grant center shall submit to the Secretary a report that
describes the policies, priorities, and operations of the program
carried out by the center during the year, including a description of
progress made in facilitating the priorities described in subsection
(f).
``(j) Funding.--
``(1) Commodity credit corporation.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use to carry
out this section, to remain available until expended--
``(A) $5,000,000 for fiscal year 2008;
``(B) $10,000,000 for fiscal year 2009; and
``(C) $10,000,000 for fiscal year 2010.
``(2) Authorization of appropriations.--
``(A) In general.--In addition to any other funds
made available to carry out this section, there is
authorized to be appropriated to carry out this section
$70,000,000 for each of fiscal years 2008 through 2012.
``(B) Grant information analysis center.--Of
amounts made available under subparagraph (A), not more
than $4,000,000 for each fiscal year shall be made
available to carry out subsection (h).
``SEC. 9010. REGIONAL BIOMASS CROP EXPERIMENTS.
``(a) Purpose.--The purpose of this section is to initiate multi-
region side-by-side crop experiments to provide a sound knowledge base
on all aspects of the production of biomass energy crops, including
crop species, nutrient requirements, management practices,
environmental impacts, greenhouse gas implications, and economics.
``(b) Crop Experiments.--
``(1) In general.--The Secretary, in consultation with the
Board, based on the recommendations of the Advisory Committee,
shall award 10 competitive grants to land-grant colleges and
universities (as defined in section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)) to establish regional biomass crop
research experiments (including experiments involving annuals,
perennials, and woody biomass species).
``(2) Selection of grant recipients.--Grant recipients
shall be selected on the basis of applications submitted in
accordance with guidelines issued by the Secretary.
``(3) Selection criteria.--In selecting grant recipients,
the Secretary shall consider--
``(A) the capabilities and experience of the
applicant, including--
``(i) in conducting side-by-side crop
experiments;
``(ii) engineering and research knowledge
and experience relating to biofuels or the
production of inputs for biofuel production;
and
``(iii) demonstrated willingness to
contribute significant in-kind resources;
``(B) the range of species types and cropping
practices proposed for study;
``(C) the quality of the proposed crop experiment
plan;
``(D) the commitment of the applicant of adequate
acreage and necessary resources for, and continued
participation in, the crop experiments;
``(E) the need for regional diversity among the 10
institutions selected; and
``(F) such other factors as the Secretary may
determine.
``(c) Grants.--The Secretary shall make a grant to each land-grant
college or university selected under subsection (b) in the amount of--
``(1) $1,000,000 for fiscal year 2008;
``(2) $2,000,000 for fiscal year 2009; and
``(3) $1,000,000 for fiscal year 2010.
``(d) Coordination.--The Secretary shall coordinate with
participants under this section--
``(1) to provide coordination regarding biomass crop
research approaches; and
``(2) to ensure coordination between biomass crop research
activities carried out by land-grant colleges and universities
under this section and by sun grant centers under section 9009.
``(e) Funding.--
``(1) Commodity credit corporation.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use to carry
out this section, to remain available until expended--
``(A) $10,000,000 for fiscal year 2008;
``(B) $20,000,000 for fiscal year 2009; and
``(C) $10,000,000 for fiscal year 2010.
``(2) Authorization of appropriations.--In addition to any
other funds made available to carry out this section, there are
authorized to be appropriated such sums are necessary to carry
out this section for each of fiscal years 2008 through 2012.
``SEC. 9011. NEW CENTURY FARM PROJECT.
``There is authorized to be appropriated to the Secretary to
support the development and operation of an integrated and sustainable
biomass, feedstock, and biofuels production system to serve as a model
for a new century farm $15,000,000 for the period of fiscal years 2008
through 2012, to remain available until expended.
``SEC. 9012. BIOCHAR RESEARCH, DEVELOPMENT, AND DEMONSTRATION.
``(a) Purpose.--The purpose of this section is to support research,
development, and demonstration of biochar as a coproduct of bioenergy
production, as a soil enhancement practice, and as a carbon management
strategy.
``(b) Definition of Biochar.--In this section, the term `biochar'
means charcoal or biomass-derived black carbon that is added to soil to
improve soil fertility, nutrient retention, and carbon content.
``(c) Grants.--The Secretary shall award competitive grants to
eligible entities to support biochar research, development, and
demonstration projects on multiple scales, including laboratory biochar
research and field trials, and biochar systems on a single farm scale,
local community scale, and agricultural cooperative scale.
``(d) Eligible Entities.--To be eligible to receive a grant under
this section, an entity shall be an eligible entity described in
section 9005(d).
``(e) Areas of Biochar Research, Development, and Demonstration.--
In carrying out this section, the Secretary shall solicit proposals for
activities that include--
``(1) the installation and use of biochar production
systems, including pyrolysis and thermocombustion systems, and
the integration of biochar production with bioenergy and
bioproducts production;
``(2) the study of agronomic effects of biochar usage in
soils, including plant growth and yield effects for different
application rates and soil types, and implications for water
and fertilizer needs;
``(3) biochar characterization, including analysis of
physical properties, chemical structure, product consistency
and quality, and the impacts of those properties on the soil-
conditioning effects of biochar in different soil types;
``(4) the study of effects of the use of biochar on the
carbon content of soils, with an emphasis on the potential for
biochar applications to sequester carbon;
``(5) the study of effects of biochar on greenhouse gas
emissions relating to crop production, including nitrous oxide
and carbon dioxide emissions from cropland;
``(6) the study of the integration of renewable energy and
bioenergy production with biochar production;
``(7) the study of the economics of biochar production and
use, including considerations of feedstock competition,
synergies of coproduction with bioenergy, the value of soil
enhancements, and the value of soil carbon sequestration; and
``(8) such other topics as are identified by the Secretary.
``(f) Funding.--There is authorized to be appropriated to carry out
this section $3,000,000 for each of fiscal years 2008 through 2012.
``SEC. 9013. RENEWABLE WOODY BIOMASS FOR ENERGY.
``(a) In General.--The Secretary, acting through the Chief of the
Forest Service (referred to in this section as the `Secretary'), shall
conduct a competitive research, technology development, and technology
application program to encourage the use of renewable woody biomass for
energy.
``(b) Eligible Entities.--Entities eligible to compete under the
program shall include--
``(1) the Forest Service (through Research and
Development);
``(2) other Federal agencies;
``(3) State and local governments;
``(4) federally recognized Indian tribes;
``(5) colleges and universities; and
``(6) private entities.
``(c) Priority for Project Selection.--The Secretary shall give
priority under the program to projects that--
``(1) develop technology and techniques to use low-value
woody biomass sources, such as byproducts of forest health
treatments and hazardous fuels reduction, for the production of
energy;
``(2) develop processes that integrate production of energy
from woody biomass into biorefineries or other existing
manufacturing streams;
``(3) develop new transportation fuels from woody biomass;
and
``(4) improve the growth and yield of trees intended for
renewable energy production.
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2008 through 2012.
``SEC. 9014. COMMUNITY WOOD ENERGY PROGRAM.
``(a) Definitions.--In this section:
``(1) Community wood energy plan.--The term `community wood
energy plan' means a plan that identifies how local forests can
be accessed in a sustainable manner to help meet the wood
supply needs of a community wood energy system.
``(2) Community wood energy system.--
``(A) In general.--The term `community wood energy
system' means an energy system that--
``(i) services schools, town halls,
libraries, and other public buildings; and
``(ii) uses woody biomass as the primary
fuel.
``(B) Inclusions.--The term `community wood energy
system' includes single facility central heating,
district heating, combined heat and energy systems, and
other related biomass energy systems.
``(b) Grant Program.--
``(1) In general.--The Secretary, acting through the Chief
of the Forest Service, shall establish a program to be known as
the `Community Wood Energy Program' to provide--
``(A) grants of up to $50,000 to State and local
governments (or designees)--
``(i) to conduct feasibility studies
related to community wood energy plans; and
``(ii) to develop community wood energy
plans; and
``(B) competitive grants to State and local
governments--
``(i) to acquire or upgrade community wood
energy systems for public buildings; and
``(ii) to implement a community wood energy
plan.
``(2) Considerations.--In selecting applicants for grants
under paragraph (1)(B), the Secretary shall consider--
``(A) the energy efficiency of the proposed system;
and
``(B) other conservation and environmental criteria
that the Secretary considers appropriate.
``(c) Community Wood Energy Plan.--
``(1) In general.--A State or local government that
receives a grant under subsection (b)(1)(A), shall use the
grant, and the technical assistance of the State forester, to
create a community wood energy plan to meet the wood supply
needs of the community wood energy system, in a sustainable
manner, that the State or local government proposes to purchase
under this section.
``(2) Use of plan.--A State or local government applying to
receive a competitive grant described in subsection (b)(1)(B)
shall submit to the Secretary as part of the grant application
the applicable community wood energy plan described in
paragraph (1).
``(3) Requirement.--To be included in a community wood
energy plan, property shall be subject to a forest management
plan.
``(d) Use in Public Buildings.--A State or local government that
receives a grant under subsection (b)(1)(B) shall use a community wood
energy system acquired, in whole or in part, with the use of the grant
funds for primary use in a public facility owned by the State or local
government.
``(e) Limitation.--A community wood energy system acquired with
grant funds provided under subsection (b)(1)(B) shall not exceed an
output of--
``(1) 50,000,000 Btu per hour for heating; and
``(2) 2 megawatts for electric power production.
``(f) Matching Funds.--A State or local government that receives a
grant under subsection (b) shall contribute an amount of non-Federal
funds towards the feasibility study, development of the community wood
energy plan, or acquisition of the community wood energy systems that
is at least equal to the amount of grant funds received by the State or
local government under that subsection.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2008 through 2012.
``SEC. 9015. RURAL ENERGY SYSTEMS RENEWAL.
``(a) Purpose.--The purpose of this section is to establish a
Federal program--
``(1) to encourage communities in rural areas of the United
States to establish energy systems renewal strategies for their
communities;
``(2) to provide the information, analysis assistance, and
guidance that the communities need; and
``(3) to provide financial resources to partially fund the
costs of carrying out community energy systems renewal
projects.
``(b) Program Authority.--The Secretary shall establish and carry
out a program of competitive grants to support communities in rural
areas in carrying out rural energy systems renewal projects.
``(c) Use of Grants.--A community may use a grant provided under
this section to carry out a project--
``(1) to conduct an energy assessment that assesses total
energy usage by all members and activities of the community,
including an assessment of--
``(A) energy used in community facilities,
including energy for heating, cooling, lighting, and
all other building and facility uses;
``(B) energy used in transportation by community
members;
``(C) current sources and types of energy used;
``(D) energy embedded in other materials and
products;
``(E) the major impacts of the energy usage
(including the impact on the quantity of oil imported,
total costs, the environment, and greenhouse gas
emissions); and
``(F) such other activities as are determined
appropriate by the community, consistent with the
purposes described in subsection (a);
``(2) to formulate and analyze ideas for reducing
conventional energy usage and greenhouse gas emissions by the
community, including reduction of energy usage through--
``(A) housing insulation, automatic controls on
lighting and electronics, zone energy usage, and home
energy conservation practices;
``(B) transportation alternatives, vehicle options,
transit options, transportation conservation, and walk-
and bike-to-school programs;
``(C) community configuration alternatives to
provide pedestrian access to regular services; and
``(D) community options for alternative energy
systems (including alternative fuels, photovoltaic
electricity, wind energy, geothermal heat pump systems,
and combined heat and power);
``(3) to formulate and implement community strategies for
reducing conventional energy usage and greenhouse gas emissions
by the community;
``(4) to conduct assessments and to track and record the
results of energy system changes; and
``(5) to train rural community energy professionals to
provide expert support to community energy systems renewal
projects.
``(d) Federal Share.--The Federal cost of carrying out a project
under this section shall be 50 percent of the total cost of the
project.
``(e) Administration.--The Secretary shall--
``(1) issue, an annual basis, requests for proposals from
communities in rural areas for energy systems renewal projects;
and
``(2) in consultation with the Secretary of Energy and the
Secretary of Transportation, as appropriate, establish criteria
for program participation and evaluation of projects carried
out under this section, including criteria based on--
``(A) the quality of the renewal projects proposed;
``(B) the probability of success of the community
in meeting the energy systems renewal goals of the
community;
``(C) the projected energy savings (including oil
savings) resulting from the proposed projects; and
``(D) projected greenhouse gas emission reductions
resulting from the proposed projects.
``(f) Technical Assistance.--The Secretary, in consultation with
the Secretary of Energy and the Secretary of Transportation, shall--
``(1) develop, and provide through the National Institute
of Food and Agriculture or State Energy Offices, information
and tools that communities in rural areas can use--
``(A) to assess the current energy systems of the
communities, including sources, uses, and impacts;
``(B) to identify and evaluate options for changes;
``(C) to develop strategies and plans for changes;
and
``(D) to implement changes and assess the impact of
the changes; and
``(2) provide technical assistance and support to
communities in rural areas that receive grants under this
section to assist the communities in carrying out projects
under this section.
``(g) Report.--Not later than December 31, 2011, and biennially
thereafter, the Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry, the Committee on Commerce, Science, and
Transportation, and the Committee on Energy and Natural Resources of
the Senate a report that documents the best practices and approaches
used by communities in rural areas that receive funds under this
section.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to make grants under this section
$5,000,000 for each of fiscal years 2008 through 2012.
``SEC. 9016. VOLUNTARY RENEWABLE BIOMASS CERTIFICATION PROGRAM.
``(a) Establishment.--The Secretary, in consultation with
Administrator, shall establish a voluntary program to certify renewable
biomass that meets sustainable growing standards designed--
``(1) to reduce greenhouse gases and improve soil carbon
content;
``(2) to protect wildlife habitat, and
``(3) to protect air, soil, and water quality.
``(b) Voluntary Certification Requirements.--To qualify for
certification under the program established under subsection (a), a
biomass crop shall be inspected and certified as meeting the standards
adopted under subsection (c) by an inspector designated under
subsection (d).
``(c) Production Standards.--
``(1) In general.--The Secretary shall adopt standards for
the certification of renewable biomass under subsection (b)
that will apply to those producers who elect to participate in
the voluntary certification program.
``(2) Requirement.--The standards under paragraph (1) shall
provide measurement of a numerical reduction in greenhouse
gases, improvement to soil carbon content, and reduction in
soil and water pollutants, based on the recommendations of an
advisory committee jointly established by the Secretary and the
Administrator.
``(d) Inspectors.--The Secretary shall designate inspectors that
the Secretary determines are qualified to carry out inspections and
certifications under subsection (b) in order to certify renewable
biomass under this section.
``(e) Designation.--A product produced from renewable biomass that
is certified under this section may be designated as having been
produced from certified renewable biomass if--
``(1) the producer of the product verifies that the product
was produced from renewable biomass; and
``(2) the verification includes a copy of the certification
obtained in accordance with subsection (b).
``SEC. 9017. ADMINISTRATION.
``The Secretary shall designate an entity within the Department of
Agriculture to--
``(1) provide oversight and coordination of all activities
relating to renewable energy and biobased product development
within the Department;
``(2) act as a liaison between the Department and other
Federal, State, and local agencies to ensure coordination among
activities relating to renewable energy and biobased product
development;
``(3) assist agriculture researchers by evaluating the
market potential of new biobased products in the initial phase
of development;
``(4) collect and disseminate information relating to
renewable energy and biobased product development programs,
including research, within the Federal Government; and
``(5) establish and maintain a public database of best
practices to facilitate information sharing relating to--
``(A) renewable energy and biobased product
development from programs under this title and other
programs; and
``(B) best practices for producing, collecting,
harvesting, storing, and transporting crops of
renewable biomass, as described under section
9004(d)(3)(B) of the Farm Security and Rural Investment
Act of 2002.
``SEC. 9018. BIOFUELS INFRASTRUCTURE STUDY.
``(a) In General.--The Secretary, in collaboration with the
Secretary of Energy, the Administrator, and the Secretary of
Transportation, shall--
``(1) conduct an assessment of the infrastructure needs for
expanding the domestic production, transport, and marketing of
biofuels and bioenergy;
``(2) formulate recommendations for infrastructure
development needs and approaches; and
``(3) submit a report describing the assessment and
recommendations to--
``(A) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
``(B) the Committee on Commerce, Science, and
Transportation of the Senate;
``(C) the Committee on Energy and Natural Resources
of the Senate; and
``(D) the Committee on Environment and Public Works
of the Senate.
``(b) Infrastructure Areas.--In carrying out subsection (a), the
Secretary shall consider--
``(1) biofuel transport and delivery infrastructure issues,
including shipment by rail, truck, pipeline, or barge;
``(2) biofuel storage needs;
``(3) biomass feedstock delivery needs, including adequacy
of rural roads;
``(4) biomass feedstock storage needs;
``(5) water resource needs, including water requirements
for biorefineries;
``(6) education and outreach for agricultural producers
transitioning to cellulosic feedstocks; and
``(7) such other infrastructure issues as the Secretary may
determine.
``(c) Considerations.--In carrying out subsection (a), the
Secretary shall consider--
``(1) estimated future biofuels production levels of--
``(A) 20,000,000,000 gallons per year to
40,000,000,000 gallons per year by 2020; and
``(B) 50,000,000,000 gallons per year to
75,000,000,000 gallons per year by 2030;
``(2) the feasibility of shipping biofuels through existing
pipelines;
``(3) the development of new biofuels pipelines, including
siting, financing, timing, and other economic issues;
``(4) the environmental implications of alternative
approaches to infrastructure development;
``(5) the resource use and conservation characteristics of
alternative approaches to infrastructure development;
``(6) the impact on the development of renewable energy
when public and private utilities do not pay competitive rates
for wind, solar, and biogas energy from agricultural sources;
and
``(7) the environmental benefits of planting perennial
grasses for the production of cellulosic ethanol.
``(d) Implementation.--In carrying out this section, the
Secretary--
``(1) shall consult with individuals and entities with
interest or expertise in the areas described in subsections (b)
and (c); and
``(2) may issue a solicitation for a competition to select
a contractor to support the Secretary.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,000,000 for each of fiscal
years 2008 and 2009.
``SEC. 9019. RURAL NITROGEN FERTILIZER STUDY.
``(a) Purposes.--The purposes of this section are--
``(1) to assess the feasibility of producing nitrogen
fertilizer from renewable energy resources in rural areas; and
``(2) to formulate recommendations for a program to promote
rural nitrogen fertilizer production from renewable energy
resources in the future.
``(b) Study.--The Secretary shall--
``(1) conduct a study to assess and summarize the current
state of knowledge regarding the potential for the production
of nitrogen fertilizer from renewable energy sources in rural
areas;
``(2) identify the critical challenges to commercialization
of rural production of nitrogen fertilizer from renewables; and
``(3) not later than 270 days after the date of enactment
of this section, submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry and the Committee on Commerce, Science,
and Transportation of the Senate a report that summarizes the
results of the activities described in paragraphs (1) and (2).
``(c) Needs.--
``(1) In general.--Based on the results of the study
described in subsection (b), the Secretary shall identify the
critical needs to commercializing the rural production of
nitrogen fertilizer from renewables, including--
``(A) identifying alternative processes for
renewables-to-nitrogen fertilizer production;
``(B) identifying efficiency improvements that are
necessary for each component of renewables-to-nitrogen
fertilizer production processes to produce cost-
competitive nitrogen fertilizer;
``(C) identifying research and technology
priorities for the most promising technologies;
``(D) identifying economic analyses needed to
better understand the commercial potential of rural
nitrogen production from renewables;
``(E) identifying additional challenges impeding
commercialization, including--
``(i) cost competition from nitrogen
fertilizer produced using natural gas and coal;
``(ii) modifications or expansion needed to
the currently-installed nitrogen fertilizer
(anhydrous ammonia) pipeline and storage tank
system to enable interconnection of on-farm or
rural renewables-to-nitrogen fertilizer
systems;
``(iii) impact on nitrogen fertilizer
(anhydrous ammonia) transportation
infrastructure, safety, and security;
``(iv) supply of competitively-priced
renewable electricity; and
``(v) impacts on domestic water supplies;
and
``(F) determining greenhouse gas reduction benefits
of producing nitrogen fertilizer from renewable energy.
``(d) Program Recommendations.--As part of the report described in
subsection (b)(3) and based on the needs identified in subsection (c),
the Secretary shall provide recommendations on--
``(1) the establishment of a research, development, and
demonstration program to support commercialization of rural
nitrogen production using renewables;
``(2) the appropriate contents of the program;
``(3) the appropriate approach to implementing the program,
including participants and funding plans; and
``(4) legislation to support commercialization of rural
nitrogen production using renewables.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,000,000 for fiscal year 2008.
``SEC. 9020. STUDY OF LIFE-CYCLE ANALYSIS OF BIOFUELS.
``(a) In General.--The Secretary, in consultation with the
Secretary of Energy and the Administrator, shall conduct a study of--
``(1) published methods for evaluating the lifecycle
greenhouse gas emissions of conventional fuels and biofuels;
and
``(2) methods for performing simplified, streamlined
lifecycle analyses of the greenhouse gas emissions of
conventional fuels and biofuels.
``(b) Report.--Not later than 1 year after the date of enactment of
this section, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report that
describes the results of the study conducted under subsection (a),
including recommendations for a method for performing a simplified,
streamlined lifecycle analysis of the greenhouse gas emissions of
biofuels and fossil fuels that includes--
``(1) greenhouse gas emissions relating to the production,
extraction, transportation, storage, and waste disposal of the
fuels and the feedstocks of the fuels, including the greenhouse
gases associated with electrical and thermal energy inputs;
``(2) greenhouse gas emissions relating to the
distribution, marketing, and use of the fuels; and
``(3) to the maximum extent practicable, direct and
indirect greenhouse gas emissions from changes in land use and
land cover that occur domestically or internationally as a
result of biofuel feedstock production.
``(c) Update.--Not later than 2 years after the date on which the
Secretary submits the report under subsection (b), the Secretary shall
submit to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
an update containing recommendations for an improved method for
conducting lifecycle analysis of the greenhouse gas emissions of
biofuels and fossil fuels that takes into account advances in the
understanding of the emissions.
``SEC. 9021. E-85 FUEL PROGRAM.
``(a) Definitions.--In this section:
``(1) E-85 fuel.--The term `E-85 fuel' means a blend of
gasoline at least 85 percent (or any other percentage, but not
less than 70 percent, as determined by the Secretary, by rule,
to provide for requirements relating to cold start, safety, or
vehicle functions) of the content of which is derived from
ethanol.
``(2) Eligible facility.--The term `eligible facility'
means an ethanol production facility, the majority ownership of
which is comprised of agricultural producers.
``(b) Program.--The Secretary shall make grants under this section
to eligible facilities--
``(1) to install E-85 fuel infrastructure, including
infrastructure necessary--
``(A) for the direct retail sale of E-85 fuel,
including E-85 fuel pumps and storage tanks; and
``(B) to directly market E-85 fuel to gas
retailers, including in-line blending equipment, pumps,
storage tanks, and load-out equipment; and
``(2) to provide subgrants to direct retailers of E-85 fuel
that are located in a rural area (as defined in section 343(a)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a))) for the purpose of installing E-85 fuel
infrastructure for the direct retail sale of E-85 fuel,
including E-85 fuel pumps and storage tanks.
``(c) Cost Sharing.--
``(1) Grants.--The amount of a grant under this section
shall be equal to 20 percent of the total costs of the
installation of the E-85 fuel infrastructure, as determined by
the Secretary.
``(2) Relationship to other federal funding.--The amount of
a grant that an eligible facility receives under this section
shall be reduced by the amount of other Federal funding that
the eligible facility receives for the same purpose, as
determined by the Secretary.
``(3) Limitation.--Not more than 70 percent of the total
costs of E-85 fuel infrastructure provided assistance under
this section shall be provided by the Federal Government and
State and local governments.
``(d) Authorization of Appropriations.--Subject to the availability
of appropriations, there is authorized to be appropriated to carry out
this section $20,000,000 for the period of fiscal years 2008 through
2012, to remain available until expended.
``SEC. 9022. RESEARCH AND DEVELOPMENT OF RENEWABLE ENERGY.
``(a) In General.--The Secretary, in conjunction with the Colorado
Renewable Energy Collaboratory, shall carry out a research and
development program relating to renewable energy--
``(1) to conduct research on and develop high-quality
energy crops that--
``(A) have high energy production values;
``(B) are cost efficient for producers and
refiners;
``(C) are well suited to high yields with minimal
inputs in arid and semiarid regions; and
``(D) are regionally appropriate;
``(2) to conduct research on and develop biorefining and
biofuels through multidisciplinary research, including research
relating to--
``(A) biochemical engineering;
``(B) process engineering;
``(C) thermochemical engineering;
``(D) product engineering; and
``(E) systems engineering;
``(3) to develop cost-effective methods for the harvesting,
handling, transport, and storage of cellulosic biomass
feedstocks;
``(4) to conduct research on and develop fertilizers from
biobased sources other than hydrocarbon fuels;
``(5) to develop energy- and water-efficient irrigation
systems;
``(6) to research and develop water-efficient biofuel
production technologies;
``(7) to research and develop additional biobased products;
``(8) in cooperation with the Department of Energy and the
Department of Defense, to develop storage and conversion
technologies for wind- and solar-generated power for small-
scale and utility-scale generation facilities; and
``(9) in cooperation with the Department of Energy, to
research fuel cell technologies for use in farm, ranch, and
rural applications.
``(b) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section $5,000,000 for each of fiscal years
2008 through 2012, to remain available until expended.
``(2) Additional funds.--In addition to funds made
available under paragraph (1), there are authorized to be
appropriated--
``(A) $110,000,000 to the Under Secretary for
Research, Education, and Economics, acting through the
Agricultural Research Service, for cellulosic biofuel
research for each of fiscal years 2008 through 2012;
and
``(B) $110,000,000 to the Secretary and the
Secretary of Energy for the development of smaller-
scale biorefineries and biofuel plants for each of
fiscal years 2008 through 2012.
``SEC. 9023. NORTHEAST DAIRY NUTRIENT MANAGEMENT AND ENERGY DEVELOPMENT
PROGRAM.
``(a) Definitions.--In this section:
``(1) Consortium.--The term `consortium' means a
collaboration of land-grant colleges or universities in the
Northeast region that have programs devoted to dairy manure
nutrient management and energy conversion from dairy manure.
``(2) Land-grant colleges and universities.--The term
`land-grant colleges and universities' has the meaning given
the term in section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)).
``(3) Northeast region.--The term `Northeast region' means
the States of Connecticut, Delaware, Massachusetts, Maryland,
Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode
Island, Vermont, and West Virginia.
``(4) Program.--The term `program' means the dairy nutrient
management and energy development program established under
subsection (b).
``(b) Establishment.--The Secretary shall establish a dairy
nutrient management and energy development program under which the
Secretary shall provide funds to the consortium to carry out
multistate, integrated research, extension, and demonstration projects
for nutrient management and energy development in the Northeast Region.
``(c) Steering Committee.--
``(1) In general.--The consortium shall establish a
steering committee to administer the program.
``(2) Chairperson.--For each calendar year, or for such
other period as the consortium determines to be appropriate,
the consortium shall select a chairperson of the steering
committee in a manner that ensures that each member of the
consortium is represented by a chairperson on a rotating basis.
``(3) Board.--
``(A) In general.--The steering committee shall
establish a board of directors to assist in the
administration of the program.
``(B) Composition.--The board shall consist of
representatives of--
``(i) dairy cooperatives and other producer
groups;
``(ii) State departments of agriculture;
``(iii) conservation organizations; and
``(iv) other appropriate Federal and State
agencies.
``(d) Use of Funds.--
``(1) Administrative costs.--The consortium may use not
more than 10 percent of the total amount of funds provided to
the consortium under this section to pay the administrative
costs of the program.
``(2) Grant program.--
``(A) In general.--The consortium shall use the
amounts provided under this section to provide grants
to applicants, including dairy cooperatives, producers
and producer groups, State departments of agriculture
and other appropriate State agencies, and institutions
of higher education, to carry out integrated research,
extension, and demonstration projects in the Northeast
region to address manure nutrient management and energy
development.
``(B) Applications.--The steering committee
established under subsection (c)(1), in coordination
with the board established by the steering committee,
shall annually publish 1 or more requests to receive
applications for grants under this paragraph.
``(C) Selection.--
``(i) In general.--The board of the
steering committee shall select applications
submitted under subparagraph (B) for grants
under this paragraph--
``(I) on a competitive basis;
``(II) in accordance with such
priority technical areas and
distribution requirements as the
steering committee may establish; and
``(III) in a manner that ensures,
to the maximum extent practicable, that
an equal quantity of resources is
provided to each member of the
consortium.
``(ii) Review.--Before selecting any
application under clause (i), the board shall
ensure that the program proposed in the
application is subject to a merit review by an
independent panel of scientific experts with
experience relating to the program.
``(iii) Priority.--In selecting
applications under clause (i), the board shall
give priority to applications for programs
that--
``(I) include multiorganizational
partnerships, especially partnerships
that include producers; and
``(II) attract the most current and
applicable science for nutrient
management and energy development that
can be applied in the Northeast region.
``(D) Cost sharing.--An applicant that receives a
grant under this paragraph shall provide not less than
20 percent of the cost of the project carried out by
the applicant.
``(e) Availability of Results.--The consortium shall ensure that
the results of each project carried out pursuant to the program are
made publicly available.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
``SEC. 9024. REPORT ON THE GROWTH POTENTIAL FOR CELLULOSIC MATERIAL.
``Not later than 18 months after the date of enactment of this Act,
the Secretary shall submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a comprehensive report that, on a State-by-State
basis--
``(1) identifies the range of cellulosic feedstock
materials that can be grown and are viable candidates for
renewable fuel production;
``(2) estimates the acreage available for growing the
cellulosic feedstock materials identified under paragraph (1);
``(3) estimates the quantity of available energy per acre
for each cellulosic feedstock material identified under
paragraph (1);
``(4) calculates the development potential for growing
cellulosic feedstock materials, based on--
``(A) the range of cellulosic materials available
for growth;
``(B) soil quality;
``(C) climate variables;
``(D) the quality and availability of water;
``(E) agriculture systems that are in place as of
the date of enactment of this Act;
``(F) available acreage; and
``(G) other relevant factors identified by the
Secretary; and
``(5) rates the development potential for growing
cellulosic feedstock material, with the ratings displayed on
maps of the United States that indicate the development
potential of each State, as calculated by the Secretary under
paragraph (4).
``SEC. 9025. FUTURE FARMSTEADS PROGRAM.
``(a) Establishment.--The Secretary shall establish a program to
equip, in each of 5 regions of the United States chosen to represent
different farming practices, a farm house and its surrounding fields,
facilities, and forested areas with technologies to--
``(1) improve farm energy production and energy use
efficiencies;
``(2) provide working examples to farmers; and
``(3) serve as an education, demonstration, and research
facility that will teach graduate students whose focus of
research is related to either renewable energy or energy
conservation technologies.
``(b) Goals.--The goals of the program established under subsection
(a) shall be to--
``(1) advance farm energy use efficiencies and the on-farm
production of renewable energies, along with advanced
communication and control technologies with the latest in
energy capture and conversion techniques, thereby enhancing
rural energy independence and creating new revenues for rural
economies;
``(2) accelerate private sector and university research
into the efficient on-farm production of renewable fuels and
help educate the farming industry, students, and the general
public; and
``(3) accelerate energy independence, including the
production and the conservation of renewable energies on farms.
``(c) Collaboration Partners.--The program under this section shall
be carried out in partnership with regional land grant institutions,
agricultural commodity commissions, biofuels companies, sensor and
controls companies, and internet technology companies.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
SEC. 9002. SENSE OF THE SENATE CONCERNING HIGHER LEVELS OF ETHANOL
BLENDED GASOLINE.
(a) Findings.--The Senate finds that, as of the date of enactment
of this Act--
(1) annual ethanol production capacity totals 6,800,000,000
gallons;
(2) current and planned construction of ethanol refineries
will likely increase annual ethanol production capacity to
12,000,000,000 to 13,000,000,000 gallons by December 31, 2009;
(3) under existing regulations, only gasoline blended with
up to 10 percent ethanol (commonly known as ``E-10'') may be
consumed by nonflexible fuel vehicles;
(4) the total market demand for E-10--
(A) is limited to 10 percent of domestic motor fuel
consumption; and
(B) is further constrained by State-administered
reformulated gasoline regulations and regional
infrastructure constraints;
(5) beyond the market demand for E-10, insufficient E-85
infrastructure exists to absorb the increased ethanol
production beyond 12,000,000,000 to 13,000,000,000 gallons in
the short term;
(6) the approval of intermediate blends of ethanol-blended
gasoline, such as E-13, E-15, E-20, and higher blends, is
critical to the uninterrupted growth of the United States
biofuels industry; and
(7) maintaining the growth of the United States biofuels
industry is a matter of national security and sustainable
economic growth.
(b) Sense of the Senate.--It is the sense of the Senate that the
Secretary should--
(1) collaborate with the Secretary of Energy, the Secretary
of Transportation, and the Administrator of the Environmental
Protection Agency in conducting a study of the economic and
environmental effects of intermediate blends of ethanol in
United States fuel supply;
(2) ensure that the approval of intermediate blends of
ethanol occurs after the appropriate tests have successfully
concluded proving the drivability, compatibility, emissions,
durability, and health effects of higher blends of ethanol-
blended gasoline; and
(3) ensure that the approval of intermediate blends of
ethanol-blended gasoline occurs by not later than 1 year after
the date of enactment of this Act.
SEC. 9003. CONFORMING AMENDMENTS.
(a) Biomass Research and Development Act of 2000.--Title III of the
Agricultural Risk Protection Act of 2000 (7 U.S.C. 7624 note; Public
Law 106-224) is repealed.
(b) Marketing Program for Biobased Products.--
(1) Implementation.--
(A) In general.--The Secretary shall continue to
carry out the designation and labeling of biobased
products in accordance with section 9002 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
8102) as in effect on the day before the date of
enactment of this Act until the date on which the
Secretary is able to begin carrying out section 9002(a)
of that Act (as amended by section 9001), which shall
begin not later than 90 days after the date of
enactment of this Act.
(B) Existing listings.--Biobased products
designated and labeled under section 9002 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C.
8102) as in effect on the day before the date of
enactment of this Act shall continue to be considered
designated and labeled biobased products after the date
of enactment of this Act.
(C) Proposed item designations.--Notwithstanding
any other provision of this Act or an amendment made by
this Act, the Secretary shall have the authority to
finalize the listings of any item proposed (prior to
the date of enactment of this Act) to be designated in
accordance with section 9002 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8102) as in
effect on the day before the date of enactment of this
Act.
(2) Bioenergy education and awareness campaign.--Section
947 of the Energy Policy Act of 2005 (42 U.S.C. 16256) is
repealed.
SEC. 9004. SENSE OF CONGRESS REGARDING COOPERATIVE REGIONAL RESEARCH,
EXTENSION, AND EDUCATION PROGRAMS ON BIOFUELS AND
BIOPRODUCTS.
It is the sense of Congress that the Secretary shall continue to
allow and support efforts of regional consortiums of public
institutions, including land grant universities and State departments
of agriculture, to jointly support the bioeconomy through research,
extension, and education activities, including--
(1) expanding the use of biomass;
(2) improving the efficiency and sustainability of
bioenergy;
(3) supporting local ownership in the bioeconomy;
(4) communicating about the bioeconomy;
(5) facilitating information sharing; and
(6) assisting to coordinate regional approaches.
TITLE X--LIVESTOCK MARKETING, REGULATORY, AND RELATED PROGRAMS
Subtitle A--Marketing
SEC. 10001. LIVESTOCK MANDATORY REPORTING.
(a) Mandatory Reporting for Swine.--Section 232(c)(3) of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1635j(c)(3)) is amended--
(1) in subparagraph (A), by striking ``2:00 p.m.'' and
inserting ``3:00 p.m.''; and
(2) in subparagraph (B), by striking ``3:00 p.m.'' and
inserting ``4:00 p.m.''.
(b) Mandatory Packer Reporting of Pork Products Sales.--
(1) In general.--Section 232 of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1635j) is amended by adding at the end
the following:
``(f) Mandatory Packer Reporting of Pork Products Sales.--
``(1) In general.--Beginning not earlier than the date on
which the report under section 10001(b)(2)(C) of the Food and
Energy Security Act of 2007 is submitted, the Secretary may
require the corporate officers or officially designated
representative of each packer processing plant to report to the
Secretary at least twice each reporting day (not less than once
before, and once after, 12:00 noon Central Time) information on
total pork products sales, including price and volume
information as specified by the Secretary.
``(2) Publication.--The Secretary shall make available to
the public any information required to be reported under
subparagraph (A) (including information on pork cuts and
retail-ready pork products) not less than twice each reporting
day.''.
(2) Study and report.--
(A) Study.--The Secretary shall conduct a study on
the effects of requiring packer processing plants to
report to the Secretary information on total pork
products sales (including price and volume
information), including--
(i) the positive or negative economic
effects on producers and consumers; and
(ii) the effects of a confidentiality
requirement on mandatory reporting.
(B) Information.--The Secretary may collect such
information as is necessary to enable the Secretary to
conduct the study required under subparagraph (A).
(C) Report.--Not later than 180 days after the date
of enactment of this Act, the Secretary shall submit to
the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report on the
results of the study conducted under subparagraph (A).
(c) Publication of Information on Retail Purchase Prices for
Representative Meat Products.--Section 257(a) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1636f(a)) is amended by inserting ``and
continuing not less than each month thereafter'' after ``this
subtitle''.
SEC. 10002. GRADING AND INSPECTION.
(a) Grading.--Section 203 of the Agricultural Marketing Act of 1946
(7 U.S.C. 1622) is amended--
(1) by redesignating subsection (n) as subsection (o); and
(2) by inserting after subsection (m) the following:
``(n) Grading Program.--To establish, within the Agricultural
Marketing Service, a voluntary grading program for farm-raised animals
described in section 10806(a)(1) of the Farm Security and Rural
Investment Act of 2002 (21 U.S.C. 321d(a)(1)).''.
(b) Amenable Species.--Section 1(w) of the Federal Meat Inspection
Act (21 U.S.C. 601(w)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) farm-raised animals described in section 10806(a)(1)
of the Farm Security and Rural Investment Act of 2002 (21
U.S.C. 321d(a)(1)); and''.
(c) Existing Activities.--The Secretary shall ensure that nothing
in an amendment made by this section duplicates, impedes, or undermines
any of the food safety or product grading activities conducted by the
Department of Commerce or the Food and Drug Administration, and shall
consult with the Secretary of Commerce before implementing any new food
safety or grading activity authorized under this section.
SEC. 10003. COUNTRY OF ORIGIN LABELING.
Subtitle D of the Agricultural Marketing Act of 1946 (7 U.S.C. 1638
et seq.) is amended--
(1) in section 281(2)(A)--
(A) in clause (v), by striking ``and'';
(B) in clause (vi), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(vii) meat produced from goats;
``(viii) chicken, in whole and in part; and
``(ix) macadamia nuts.'';
(2) in section 282--
(A) in subsection (a), by striking paragraphs (2)
and (3) and inserting the following:
``(2) Designation of country of origin for beef, lamb,
pork, chicken, and goat meat.--
``(A) United states country of origin.--A retailer
of a covered commodity that is beef, lamb, pork,
chicken, or goat meat may designate the covered
commodity as exclusively having a United States country
of origin only if the covered commodity is derived from
an animal that was--
``(i) exclusively born, raised, and
slaughtered in the United States;
``(ii) born and raised in Alaska or Hawaii
and transported for a period of not more than
60 days through Canada to the United States and
slaughtered in the United States; or
``(iii) present in the United States on or
before January 1, 2008, and once present in the
United States, remained continuously in the
United States.
``(B) Multiple countries of origin.--
``(i) In general.--A retailer of a covered
commodity that is beef, lamb, pork, chicken, or
goat meat that is derived from an animal that
is--
``(I) not exclusively born, raised,
and slaughtered in the United States,
``(II) born, raised, or slaughtered
in the United States, and
``(III) not imported into the
United States for immediate slaughter,
may designate the country of origin of such
covered commodity as all of the countries in
which the animal may have been born, raised, or
slaughtered.
``(ii) Relation to general requirement.--
Nothing in this subparagraph alters the
mandatory requirement to inform consumers of
the country of origin of covered commodities
under paragraph (1).
``(C) Imported for immediate slaughter.--A retailer
of a covered commodity that is beef, lamb, pork,
chicken, or goat meat that is derived from an animal
that is imported into the United States for immediate
slaughter shall designate the origin of such covered
commodity as--
``(i) the country from which the animal was
imported; and
``(ii) the United States.
``(D) Foreign country of origin.--A retailer of a
covered commodity that is beef, lamb, pork, chicken, or
goat meat that is derived from an animal that is not
born, raised, or slaughtered in the United States shall
designate a country other than the United States as the
country of origin of such commodity.
``(E) Ground beef, pork, lamb, chicken, and goat.--
The notice of country of origin for ground beef, ground
pork, ground lamb, ground chicken, or ground goat shall
include--
``(i) a list of all countries of origin of
such ground beef, ground pork, ground lamb,
ground chicken, or ground goat; or
``(ii) a list of all reasonably possible
countries of origin of such ground beef, ground
pork, ground lamb, ground chicken, or ground
goat.
``(3) Designation of country of origin for fish.--
``(A) In general.--A retailer of a covered
commodity that is farm-raised fish or wild fish may
designate the covered commodity as having a United
States country of origin only if the covered
commodity--
``(i) in the case of farm-raised fish, is
hatched, raised, harvested, and processed in
the United States; and
``(ii) in the case of wild fish, is--
``(I) harvested in the United
States, a territory of the United
States, or a State, or by a vessel that
is documented under chapter 121 of
title 46, United States Code, or
registered in the United States; and
``(II) processed in the United
States, a territory of the United
States, or a State, including the
waters thereof.
``(B) Designation of wild fish and farm-raised
fish.--The notice of country of origin for wild fish
and farm-raised fish shall distinguish between wild
fish and farm-raised fish.
``(4) Designation of country of origin for perishable
agricultural commodities, peanuts, and macadamia nuts.--
``(A) In general.--A retailer of a covered
commodity that is a perishable agricultural commodity,
peanut, or macadamia nut may designate the covered
commodity as having a United States country of origin
only if the covered commodity is exclusively produced
in the United States.
``(B) State, region, locality of the united
states.--With respect to a covered commodity that is a
perishable agricultural commodity produced exclusively
in the United States, designation by a retailer of the
State, region, or locality of the United States where
such commodity was produced shall be sufficient to
identify the United States as the country of origin.'';
and
(B) by striking subsection (d) and inserting the
following:
``(d) Audit Verification System.--
``(1) In general.--The Secretary may conduct an audit of
any person that prepares, stores, handles, or distributes a
covered commodity for retail sale to verify compliance with
this subtitle (including the regulations promulgated under
section 284(b)).
``(2) Record requirements.--
``(A) In general.--A person subject to an audit
under paragraph (1) shall provide the Secretary with
verification of the country of origin of covered
commodities. Records maintained in the course of the
normal conduct of the business of such person,
including animal health papers, import or customs
documents, or producer affidavits, may serve as such
verification.
``(B) Prohibition on requirement of additional
records.--The Secretary may not require a person that
prepares, stores, handles, or distributes a covered
commodity to maintain a record of the country of origin
of a covered commodity other than those maintained in
the course of the normal conduct of the business of
such person.'';
(3) in section 283--
(A) by striking subsections (a) and (c);
(B) by redesignating subsection (b) as subsection
(a);
(C) in subsection (a) (as so redesignated), by
striking ``retailer'' and inserting ``retailer or
person engaged in the business of supplying a covered
commodity to a retailer''; and
(D) by adding at the end the following new
subsection:
``(b) Fines.--If, on completion of the 30-day period described in
subsection (a)(2), the Secretary determines that the retailer or person
engaged in the business of supplying a covered commodity to a retailer
has--
``(1) not made a good faith effort to comply with section
282, and
``(2) continues to willfully violate section 282 with
respect to the violation about which the retailer or person
received notification under subsection (a)(1),
after providing notice and an opportunity for a hearing before the
Secretary with respect to the violation, the Secretary may fine the
retailer or person in an amount of not more than $1,000 for each
violation.''.
SEC. 10004. DISCLOSURE OF COUNTRY OF HARVEST FOR GINSENG.
(a) In General.--The Agricultural Marketing Act of 1946 (7 U.S.C.
1621 et seq.) is amended by adding at the end the following:
``Subtitle E--Ginseng
``SEC. 291. DISCLOSURE OF COUNTRY OF HARVEST.
``(a) Definitions.--In this section:
``(1) Ginseng.--The term `ginseng' means a plant classified
within the genus Panax.
``(2) Raw agricultural commodity.--The term `raw
agricultural commodity' has the meaning given the term in
section 201 of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 321).
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(b) Disclosure.--
``(1) In general.--A person that offers ginseng for sale as
a raw agricultural commodity or dehydrated whole root shall
disclose to a potential purchaser the country of harvest of the
ginseng.
``(2) Importation.--A person that imports ginseng as a raw
agricultural commodity or dehydrated whole root into the United
States shall disclose at the point of entry into the United
States, in accordance with section 304 of the Tariff Act of
1930 (19 U.S.C. 1304), the country in which the ginseng was
harvested.
``(c) Manner of Disclosure.--
``(1) In general.--The disclosure required by subsection
(b) shall be provided to a potential purchaser by means of a
label, stamp, mark, placard, or other easily legible and
visible sign on the ginseng or on the package, display, holding
unit, or bin containing the ginseng.
``(2) Retailers.--A retailer of ginseng as a raw
agricultural commodity shall--
``(A) retain the means of disclosure provided under
subsection (b); and
``(B) provide the received means of disclosure to a
consumer of ginseng.
``(3) Regulations.--The Secretary shall by regulation
prescribe with specificity the manner in which disclosure shall
be made in a transaction at the wholesale or retail level
(including a transaction by mail, telephone, internet, or in
retail stores).
``(d) Fines.--The Secretary may, after providing notice and an
opportunity for a hearing before the Secretary, fine a person subject
to subsection (b), or a person supplying ginseng to such a person, in
an amount of not more than $1,000 for each violation if the Secretary
determines that the person--
``(1) has not made a good faith effort to comply with
subsection (b); and
``(2) continues to willfully violate subsection (b).
``(e) Information.--The Secretary shall make information available
to wholesalers, importers, retailers, trade associations, and other
interested persons concerning the requirements of this section
(including regulations promulgated to carry out this section).''.
(b) Effective Date.--This section and the amendments made by this
section take effect on the date that is 180 days after the date of
enactment of this Act.
Subtitle B--Agricultural Fair Practices
SEC. 10101. DEFINITIONS.
Section 3 of the Agricultural Fair Practices Act of 1967 (7 U.S.C.
2302) is amended--
(1) by striking ``When used in this Act--'' and inserting
``In this Act:'';
(2) in subsection (a)--
(A) by redesignating paragraphs (1) through (4) as
clauses (i) through (iv), respectively; and
(B) in clause (iv) (as so redesignated), by
striking ``clause (1), (2), or (3) of this paragraph''
and inserting ``clause (i), (ii), or (iii)'';
(3) by striking subsection (d);
(4) by redesignating subsections (a), (b), (c), and (e) as
paragraphs (3), (4), (2), (1), respectively, indenting
appropriately, and moving those paragraphs so as to appear in
numerical order;
(5) in each paragraph (as so redesignated) that does not
have a heading, by inserting a heading, in the same style as
the heading in the amendment made by paragraph (6), the text of
which is comprised of the term defined in the paragraph;
(6) in paragraph (2) (as so redesignated)--
(A) by striking ``The term `association of
producers' means'' and inserting the following:
``(2) Association of producers.--
``(A) In general.--The term `association of
producers' means''; and
(B) by adding at the end the following:
``(B) Inclusion.--The term `association of
producers' includes an organization of agricultural
producers dedicated to promoting the common interest
and general welfare of producers of agricultural
products.'';
(7) in paragraph (3) (as so redesignated)--
(A) by striking ``The term'' and inserting the
following:
``(3) Handler.--
``(A) In general.--The term''; and
(B) by inserting after clause (iv) of subparagraph
(A) (as redesignated by subparagraph (A) and paragraph
(2)) the following:
``(B) Exclusion.--The term `handler' does not
include--
``(i) a producer; or
``(ii) a person, other than a packer (as
defined in section 201 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 191)), that
provides custom feeding services for a
producer.''; and
(8) by adding at the end the following:
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.''.
SEC. 10102. PROHIBITED PRACTICES.
Section 4 of the Agricultural Fair Practices of 1967 (7 U.S.C.
2303) is amended--
(1) by redesignating subsections (a), (b), (c), (d), (e),
and (f) as paragraphs (1), (2), (3), (4), (5), and (7),
respectively, and indenting appropriately;
(2) in paragraph (1) (as so redesignated)--
(A) by striking ``join and belong'' each place it
appears and inserting ``form, join, and belong''; and
(B) by striking ``joining or belonging'' and
inserting ``forming, joining, or belonging''; and
(3) by inserting after paragraph (5) (as so redesignated)
the following:
``(6) To fail to bargain in good faith with an association
of producers; or''.
SEC. 10103. ENFORCEMENT.
The Agricultural Fair Practices Act of 1967 is amended--
(1) by striking sections 5 and 6 (7 U.S.C. 2304, 2305); and
(2) by inserting after section 4 the following:
``SEC. 5. ENFORCEMENT.
``(a) Civil Actions by the Secretary Against Handlers.--In any case
in which the Secretary has reasonable cause to believe that a handler
or group of handlers has engaged in any act or practice that violates
this Act, the Secretary may bring a civil action in United States
district court by filing a complaint requesting preventive relief,
including an application for a permanent or temporary injunction,
restraining order, or other order, against the handler.
``(b) Civil Actions Against Handlers.--
``(1) Preventive relief.--
``(A) In general.--In any case in which any handler
has engaged, or there are reasonable grounds to believe
that any handler is about to engage, in any act or
practice prohibited by this Act, a civil action for
preventive relief, including an application for a
permanent or temporary injunction, restraining order,
or other order, may be instituted by the person
aggrieved in United States district court.
``(B) Security.--The court may provide that no
restraining order or preliminary injunction shall issue
unless security is provided by the applicant, in such
sum as the court determines to be appropriate, for the
payment of such costs and damages as may be incurred or
suffered by any party that is found to have been
wrongfully enjoined or restrained.
``(2) Damages.--
``(A) In general.--Any person injured in the
business or property of the person by reason of any
violation of, or combination or conspiracy to violate,
this Act may bring a civil action in United States
district court to recover--
``(i) damages sustained by the person as a
result of the violation; and
``(ii) any additional penalty that the
court may allow, but not more than $1,000 per
violation.
``(B) Limitation on actions.--A civil action under
subparagraph (A) shall be barred unless commenced
within 4 years after the cause of action accrues.
``(3) Attorneys' fees.--In any action commenced under
paragraph (1) or (2), any person that has violated this Act
shall be liable to any person injured as a result of the
violation for the full amount of the damages sustained as a
result of the violation, including costs of the litigation and
reasonable attorneys' fees.
``(c) Jurisdiction of District Courts.--The district courts of the
United States shall--
``(1) have jurisdiction of proceedings instituted pursuant
to this section; and
``(2) exercise that jurisdiction without regard to whether
the aggrieved party shall have exhausted any administrative or
other remedies that may be provided by law.
``(d) Liability for Acts of Agents.--In the construction and
enforcement of this Act, the act, omission, or failure of any officer,
agent, or person acting for or employed by any other person within the
scope of the employment or office of the officer, agent, or person,
shall be considered to be the act, omission, or failure of the other
person.
``(e) Relationship to State Law.--Nothing in this Act--
``(1) changes or modifies State law in effect on the date
of enactment of this subsection; or
``(2) deprives a State court of jurisdiction.''.
SEC. 10104. RULES AND REGULATIONS.
The Agricultural Fair Practices Act of 1967 is amended by inserting
after section 5 (as added by section 10103) the following:
``SEC. 6. RULES AND REGULATIONS.
``The Secretary may promulgate such rules and regulations as are
necessary to carry out this Act, including rules or regulations
necessary to clarify what constitutes fair and normal dealing for
purposes of the selection of customers by handlers.''.
Subtitle C--Packers and Stockyards
SEC. 10201. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.
(a) In General.--The Packers and Stockyards Act, 1921 (7 U.S.C. 181
et seq.) is amended--
(1) by striking the title I heading and all that follows
through ``This Act'' and inserting the following:
``TITLE I--GENERAL PROVISIONS
``Subtitle A--Definitions
``SEC. 1. SHORT TITLE.
``This Act''; and
(2) by inserting after section 2 (7 U.S.C. 183) the
following:
``Subtitle B--Special Counsel for Agricultural Competition
``SEC. 11. SPECIAL COUNSEL FOR AGRICULTURAL COMPETITION.
``(a) Establishment.--
``(1) In general.--There is established within the
Department of Agriculture an office to be known as the `Office
of Special Counsel for Agricultural Competition' (referred to
in this section as the `Office').
``(2) Duties.--The Office shall--
``(A) have responsibility for all duties and
functions of the Packers and Stockyards programs of the
Department of Agriculture;
``(B) investigate and prosecute violations of this
Act and the Agricultural Fair Practices Act of 1967 (7
U.S.C. 2301 et seq.);
``(C) serve as a liaison between, and act in
consultation with, the Department of Agriculture, the
Department of Justice, and the Federal Trade Commission
with respect to competition and trade practices in the
food and agricultural sector; and
``(D) maintain a staff of attorneys and other
professionals with the appropriate expertise.
``(b) Special Counsel for Agricultural Competition.--
``(1) In general.--The Office shall be headed by the
Special Counsel for Agricultural Competition (referred to in
this section as the `Special Counsel'), who shall be appointed
by the President, by and with the advice and consent of the
Senate.
``(2) Independence of special authority.--
``(A) In general.--The Special Counsel shall report
to and be under the general supervision of the
Secretary.
``(B) Direction, control, and support.--The Special
Counsel shall be free from the direction and control of
any person in the Department of Agriculture other than
the Secretary.
``(C) Prohibition on delegation.--The Secretary may
not delegate any duty described in subsection (a)(2) to
any other officer or employee of the Department other
than the Special Counsel.
``(D) Reporting requirement.--
``(i) In general.--Twice each year, the
Special Counsel shall submit to the Committee
on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that shall
include, for the relevant reporting period, a
description of--
``(I) the number of complaints that
the Special Counsel has received and
closed;
``(II)(aa) the number of
investigations and civil and
administrative actions that the Special
Counsel has initiated, carried out, and
completed, including the number of
notices given to regulated entities for
violations of this Act or the
Agricultural Fair Practices Act of 1967
(7 U.S.C. 2301 et seq.);
``(bb) the number and types of
decisions agreed to; and
``(cc) the number of stipulation
agreements; and
``(III) the number of
investigations and civil and
administrative actions that the
Secretary objected to or prohibited
from being carried out, and the stated
purpose of the Secretary for each
objection or prohibition.
``(ii) Requirement.--The basis for each
complaint, investigation, or civil or
administrative action described in a report
under clause (i) shall--
``(I) be organized by species; and
``(II) indicate if the complaint,
investigation, or civil or
administration action was for anti-
competitive, unfair, or deceptive
practices under this Act or was a
violation of the Agricultural Fair
Practices Act of 1967 (7 U.S.C. 2301 et
seq.).
``(E) Removal.--
``(i) In general.--The Special Counsel may
be removed from office by the President.
``(ii) Communication.--The President shall
communicate the reasons for any such removal to
both Houses of Congress.
``(3) Prosecutorial authority.--Subject to paragraph (4),
the Special Counsel may commence, defend, or intervene in, and
supervise the litigation of, any civil or administrative action
authorized under this Act or the Agricultural Fair Practices
Act of 1967 (7 U.S.C. 2301 et seq.).
``(4) Procedure for exercise of authority to litigate or
appeal.--
``(A) In general.--Prior to commencing, defending,
or intervening in any civil action under this Act or
the Agricultural Fair Practices Act of 1967 (7 U.S.C.
2301 et seq.), the Special Counsel shall give written
notification to, and attempt to consult with, the
Attorney General with respect to the proposed action.
``(B) Failure to respond.--If, not later than 45
days after the date of provision of notification under
subparagraph (A), the Attorney General has failed to
commence, defend, or intervene in the proposed action,
the Special Counsel may commence, defend, or intervene
in, and supervise the litigation of, the action and any
appeal of the action in the name of the Special
Counsel.
``(C) Authority of attorney general to intervene.--
Nothing in this paragraph precludes the Attorney
General from intervening on behalf of the United States
in any civil action under this Act or the Agricultural
Fair Practices Act of 1967 (7 U.S.C. 2301 et seq.), or
in any appeal of such action, as may be otherwise
provided by law.
``(c) Relationship to Other Provisions.--Nothing in this section
modifies or otherwise effects subsections (a) and (b) of section
406.''.
(b) Conforming Amendment.--Section 5315 of title 5, United States
Code, is amended by adding at the end the following:
``Special Counsel for Agricultural Competition.''.
SEC. 10202. INVESTIGATION OF LIVE POULTRY DEALERS.
(a) Removal of Poultry Slaughter Requirement From Definitions.--
Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)),
is amended--
(1) by striking paragraph (8) and inserting the following:
``(8) Poultry grower.--
``(A) In general.--The term `poultry grower' means
any person engaged in the business of raising or caring
for live poultry under a poultry growing arrangement,
regardless of whether the poultry is owned by the
person or by another person.
``(B) Exclusion.--The term `poultry grower' does
not include an employee of the owner of live poultry
described in subparagraph (A).'';
(2) in paragraph (9), by striking ``and cares for live
poultry for delivery, in accord with another's instructions,
for slaughter'' and inserting ``or cares for live poultry in
accordance with the instructions of another person''; and
(3) in paragraph (10), by striking ``for the purpose of
either slaughtering it or selling it for slaughter by
another''.
(b) Administrative Enforcement Authority Over Live Poultry
Dealers.--Sections 203, 204, and 205 of the Packers and Stockyards Act,
1921 (7 U.S.C. 193, 194, 195), are amended by inserting ``or live
poultry dealer'' after ``packer'' each place it appears.
(c) Authority To Request Temporary Injunction or Restraining
Order.--Section 408 of the Packers and Stockyards Act, 1921 (7 U.S.C.
228a), is amended in the first sentence by striking ``on account of
poultry'' and inserting ``on account of poultry or poultry care''.
(d) Violations by Live Poultry Dealers.--
(1) Penalty.--Section 203(b) of the Packers and Stockyards
Act, 1921 (7 U.S.C. 193(b)) is amended in the third sentence by
striking ``$10,000'' and inserting ``$22,000''.
(2) Repeals.--Sections 411, 412, and 413 of the Packers and
Stockyards Act, 1921 (7 U.S.C. 228b-2, 228b-3, 228b-4)), are
repealed.
SEC. 10203. PRODUCTION CONTRACTS.
(a) Definitions.--Section 2(a) of the Packers and Stockyards Act,
1921 (7 U.S.C. 182(a)) is amended--
(1) by striking ``When used in this Act--'' and inserting
``In this Act:'';
(2) by striking paragraph (1);
(3) by redesignating paragraphs (2), (3), (4), (5), (6),
(7), (8), (9), (10), (11), (12), (13), and (14) as paragraphs
(15), (6), (8), (9), (10), (13), (11), (12), (7), (2), (16),
(17), and (18), respectively, indenting appropriately, and
moving those paragraphs so as to appear in numerical order;
(4) in each paragraph (as so redesignated) that does not
have a heading, by inserting a heading, in the same style as
the heading in the amendment made by paragraph (5), the text of
which is comprised of the term defined in the paragraph;
(5) by inserting before paragraph (2) (as so designated)
the following:
``(1) Capital investment.--The term `capital investment'
means an investment in--
``(A) a structure, such as a building or manure
storage structure; or
``(B) machinery or equipment associated with
producing livestock or poultry that has a useful life
of more than 1 year.'';
(6) by inserting after paragraph (2) (as so redesignated)
the following:
``(3) Contractor.--
``(A) In general.--The term `contractor' means a
person that, in accordance with a production contract,
obtains livestock or poultry that is produced by a
contract producer.
``(B) Inclusions.--The term `contractor' includes--
``(i) a live poultry dealer; and
``(ii) a swine contractor.
``(4) Contract producer.--
``(A) In general.--The term `contract producer'
means a producer that produces livestock or poultry
under a production contract.
``(B) Inclusions.--The term `contract producer'
includes--
``(i) a poultry grower; and
``(ii) a swine production contract grower.
``(5) Investment requirement.--The term `investment
requirement' means--
``(A) a provision in a production contract that
requires a contract producer to make a capital
investment associated with producing livestock or
poultry that, but for the production contract, the
contract producer would not have made; or
``(B) a representation by a contractor that results
in a contract producer making a capital investment.'';
and
(7) by inserting after paragraph (13) (as so redesignated)
the following:
``(14) Production contract.--
``(A) In general.--The term `production contract'
means a written agreement that provides for--
``(i) the production of livestock or
poultry by a contract producer; or
``(ii) the provision of a management
service relating to the production of livestock
or poultry by a contract producer.
``(B) Inclusions.--The term `production contract'
includes--
``(i) a poultry growing arrangement;
``(ii) a swine production contract;
``(iii) any other contract between a
contractor and a contract producer for the
production of livestock or poultry; and
``(iv) a contract between a live poultry
dealer and poultry grower, swine contractor and
swine production contract grower, or contractor
and contract producer for the provision of a
management service in the production of
livestock or poultry.''.
(b) Prohibitions Involving Production Contracts.--Title II of the
Packers and Stockyards Act, 1921 (7 U.S.C. 198 et seq.), is amended by
adding at the end the following:
``SEC. 208. PRODUCTION CONTRACTS.
``(a) Right of Contract Producers to Cancel Production Contracts.--
``(1) In general.--A contract producer may cancel a
production contract by mailing a cancellation notice to the
contractor not later than the later of--
``(A) the date that is 3 business days after the
date on which the production contract is executed; or
``(B) any cancellation date specified in the
production contract.
``(2) Disclosure.--A production contract shall clearly
disclose--
``(A) the right of the contract producer to cancel
the production contract;
``(B) the method by which the contract producer may
cancel the production contract; and
``(C) the deadline for canceling the production
contract.
``(b) Production Contracts Involving Investment Requirements.--
``(1) Applicability.--This subsection applies only to a
production contract between a contract producer and a
contractor if the contract producer detrimentally relied on a
representation by the contractor or a provision in the
production contract that resulted in the contract producer
making a capital investment of $100,000 or more.
``(2) Restrictions on contract termination.--
``(A) Notice of termination.--Except as provided in
subparagraph (C), a contractor shall not terminate or
cancel a production contract unless the contractor
provides the contract producer with written notice of
the intention of the contractor to terminate or cancel
the production contract at least 90 days before the
effective date of the termination or cancellation.
``(B) Requirements.--The written notice required
under subparagraph (A) shall include alleged causes of
the termination.
``(C) Exceptions.--A contractor may terminate or
cancel a production contract at any time without notice
as required under subparagraph (A) if the basis for the
termination or cancellation is--
``(i) a voluntary abandonment of the
contractual relationship by the contract
producer, such as a failure of the contract
producer to substantially perform under the
production contract;
``(ii) the conviction of the contract
producer of an offense of fraud or theft
committed against the contractor;
``(iii) the natural end of the production
contract in accordance with the terms of the
production contract; or
``(iv) because the well-being of the
livestock or poultry subject to the contract is
in jeopardy once under the care of the contract
producer.
``(D) Right to cure.--
``(i) In general.--If, not later than 90
days after the date on which the contract
producer receives written notice under
subparagraph (A), the contract producer
remedies each cause of the breach of contract
alleged in the written notice, the contractor
may not terminate or cancel a production
contract under this paragraph.
``(ii) No admission of breach.--The remedy
or attempt to remedy the causes for the breach
of contract by the contract producer under
clause (i) does not constitute an admission of
breach of contract.
``(c) Additional Capital Investments in Production Contracts.--
``(1) In general.--A contractor shall not require a
contract producer to make additional capital investments in
connection with a production contract that exceed the initial
investment requirements of the production contract.
``(2) Exceptions.--Notwithstanding paragraph (1), a
contractor may require additional capital investments if--
``(A)(i) the additional capital investments are
offset by reasonable additional consideration,
including compensation or a modification to the terms
of the production contract; and
``(ii) the contract producer agrees in writing that
there is acceptable and satisfactory consideration for
the additional capital investment; or
``(B) without the additional capital investments
the well-being of the livestock or poultry subject to
the contract would be in jeopardy.
``(d) No Effect on State Law.--Nothing in this section preempts or
otherwise affects any State law relating to production contracts that
establishes a requirement or standard that is more stringent than a
requirement or standard under this section.
``SEC. 209. CHOICE OF LAW, JURISDICTION, AND VENUE.
``(a) Choice of Law.--Any provision in a livestock or poultry
production or marketing contract requiring the application of the law
of a State other than the State in which the production occurs is void
and unenforceable.
``(b) Jurisdiction.--A packer, live poultry dealer, or swine
contractor that enters into a production or marketing contract with a
producer shall be subject to personal jurisdiction in the State in
which the production occurs.
``(c) Venue.--Venue shall be determined on the basis of the
location of the production, unless the producer selects a venue that is
otherwise permitted by law.
``(d) Application.--This section shall apply to any production or
marketing contract entered into, amended, altered, modified, renewed,
or extended after the date of enactment of this section.
``SEC. 210. ARBITRATION.
``(a) In General.--If a livestock or poultry contract provides for
the use of arbitration to resolve a controversy under the livestock or
poultry contract, arbitration may be used to settle the controversy
only if, after the controversy arises, both parties consent in writing
to use arbitration to settle the controversy.
``(b) Application.--Subsection (a) shall apply to any contract
entered into, amended, altered, modified, renewed, or extended after
the date of enactment of this section.''.
SEC. 10204. RIGHT TO DISCUSS TERMS OF CONTRACT.
Section 10503(b) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 229b(b)) is amended--
(1) in paragraph (6), by striking ``or'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(8) a business associate of the party; or
``(9) a neighbor of the party or other producer.''.
SEC. 10205. ATTORNEYS' FEES.
Section 308(a) of the Packers and Stockyards Act, 1921 (7 U.S.C.
209(a)) is amended by inserting before the period at the end the
following: ``and for the costs of the litigation, including reasonable
attorneys' fees''.
SEC. 10206. APPOINTMENT OF OUTSIDE COUNSEL.
Section 407 of the Packers and Stockyards Act, 1921 (7 U.S.C. 228),
is amended--
(1) in subsection (a), by inserting ``obtain the services
of attorneys who are not employees of the Federal Government,''
before ``and make such expenditures''; and
(2) in subsection (c), by striking ``Senate Committee on
Agriculture and Forestry'' and inserting ``the Committee on
Agriculture, Nutrition, and Forestry of the Senate''.
SEC. 10207. PROHIBITION ON PACKERS OWNING, FEEDING, OR CONTROLLING
LIVESTOCK.
(a) In General.--Section 202 of the Packers and Stockyards Act,
1921 (7 U.S.C. 192), is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f) Own or feed livestock directly, through a subsidiary, or
through an arrangement that gives the packer operational, managerial,
or supervisory control over the livestock, or over the farming
operation that produces the livestock, to such an extent that the
producer is no longer materially participating in the management of the
operation with respect to the production of the livestock, except that
this subsection shall not apply to--
``(1) an arrangement entered into within 14 days (excluding
any Saturday or Sunday) before slaughter of the livestock by a
packer, a person acting through the packer, or a person that
directly or indirectly controls, or is controlled by or under
common control with, the packer;
``(2) a cooperative or entity owned by a cooperative, if a
majority of the ownership interest in the cooperative is held
by active cooperative members that--
``(A) own, feed, or control livestock; and
``(B) provide the livestock to the cooperative for
slaughter;
``(3) a packer that is not required to report to the
Secretary on each reporting day (as defined in section 212 of
the Agricultural Marketing Act of 1946 (7 U.S.C. 1635a))
information on the price and quantity of livestock purchased by
the packer; or
``(4) a packer that owns 1 livestock processing plant;
or''.
(b) Effective Date.--
(1) In general.--Subject to paragraph (2), the amendments
made by subsection (a) take effect on the date of enactment of
this Act.
(2) Transition rules.--In the case of a packer that on the
date of enactment of this Act owns, feeds, or controls
livestock intended for slaughter in violation of section 202(f)
of the Packers and Stockyards Act, 1921 (as amended by
subsection (a)), the amendments made by subsection (a) apply to
the packer--
(A) in the case of a packer of swine, beginning on
the date that is 18 months after the date of enactment
of this Act; and
(B) in the case of a packer of any other type of
livestock, beginning as soon as practicable, but not
later than 180 days, after the date of enactment of
this Act, as determined by the Secretary.
SEC. 10208. REGULATIONS.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall promulgate
regulations to implement the amendments made by this title, including--
(1) regulations providing a definition of the term
``unreasonable preference or advantage'' for purposes of
section 202(b) of the Packers and Stockyards Act, 1921 (7
U.S.C. 192(b)); and
(2) regulations requiring live poultry dealers to provide
written notice to poultry growers if the live poultry dealer
imposes an extended layout period in excess of 30 days, prior
to removal of the previous flock.
(b) Requirements.--The Secretary shall ensure that regulations
promulgated pursuant to subsection (a)(1) prevent discrimination
against producers with a smaller volume of business. Nothing in this
subsection shall be construed to require any person to enter into a
business transaction with a producer due solely to that producer's
volume of business.
Subtitle D--Related Programs
SEC. 10301. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION
PROGRAM.
It is the sense of Congress that--
(1) the Secretary should recognize the threat that feral
swine pose to the domestic swine population and the entire
livestock industry;
(2) keeping the United States commercial swine herd free of
pseudorabies is essential to maintaining and growing pork
export markets;
(3) pseudorabies surveillance funding is necessary to
assist the swine industry in the monitoring, surveillance, and
eradication of pseudorabies, including the monitoring and
surveillance of other diseases effecting swine production and
trade; and
(4) pseudorabies eradication is a high priority that the
Secretary should carry out under the Animal Health Protection
Act (7 U.S.C. 8301 et seq.).
SEC. 10302. SENSE OF CONGRESS REGARDING CATTLE FEVER TICK ERADICATION
PROGRAM.
It is the sense of Congress that--
(1) the cattle fever tick and the southern cattle tick are
vectors of the causal agent of babesiosis, a severe and often
fatal disease of cattle; and
(2) implementing a national strategic plan for the cattle
fever tick eradication program is a high priority that the
Secretary should carry out--
(A) to prevent the entry of cattle fever ticks into
the United States;
(B) to enhance and maintain an effective
surveillance program to rapidly detect any fever tick
incursions; and
(C) to research, identify, and procure the tools
and knowledge necessary to prevent and eradicate cattle
ticks in the United States.
SEC. 10303. NATIONAL SHEEP AND GOAT INDUSTRY IMPROVEMENT CENTER.
(a) Name Change.--Section 375 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008j) is amended--
(1) in the section heading, by inserting ``and goat'' after
``national sheep''; and
(2) by inserting ``and Goat'' after ``National Sheep'' each
place it appears.
(b) Funding.--Section 375(e)(6) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008j(e)(6)) is amended by striking
subparagraphs (B) and (C) and inserting the following:
``(B) Mandatory funding.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use
to carry out this section $1,000,000 for fiscal year
2008, to remain available until expended.
``(C) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary to carry
out this section $10,000,000 for each of fiscal years
2008 through 2012.''.
(c) Repeal of Requirement To Privatize Revolving Fund.--
(1) In general.--Section 375 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008j) is amended by striking
subsection (j).
(2) Effective date.--The amendment made by paragraph (1)
takes effect on May 1, 2007.
SEC. 10304. TRICHINAE CERTIFICATION PROGRAM.
Section 10409 of the Animal Health Protection Act (7 U.S.C. 8308)
is amended by adding at the end the following:
``(c) Trichinae Certification Program.--
``(1) Establishment.--Not later than 60 days after the date
of enactment of this subsection, the Secretary shall issue
final regulations to implement a trichinae certification
program.
``(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out the program
$1,250,000 for each of fiscal years 2008 through 2012.''.
SEC. 10305. PROTECTION OF INFORMATION IN THE ANIMAL IDENTIFICATION
SYSTEM.
Not later than 180 days after the date of enactment of this Act,
the Secretary shall promulgate regulations consistent with the Freedom
of Information Act, 5 U.S.C. 552, et. seq., regarding the disclosure of
information submitted by farmers and ranchers who participate in the
National Animal Identification System. The regulations promulgated,
which shall be subject to a public comment period before finalizing,
should address the protection of trade secrets and other proprietary
and/or confidential business information that farmers and ranchers
disclose in the course of participation in National Animal
Identification System.
SEC. 10306. LOW PATHOGENIC AVIAN INFLUENZA.
Section 10407(d)(2) of the Animal Health Protection Act (7 U.S.C.
8306(d)(2)) is amended--
(1) in subparagraph (A), by striking ``subparagraphs (B)
and (C),'' and inserting ``subparagraphs (B), (C), and (D),'';
(2) by redesignating subparagraph (C) as subparagraph (D);
and
(3) by inserting after subparagraph (B) the following:
``(C) Low pathogenic avian influenza.--
``(i) Definition of eligible costs.--In
this subparagraph, the term `eligible costs'
means costs determined eligible for indemnity
under part 56 of title 9, Code of Federal
Regulations, as in effect on the date of
enactment of this clause.
``(ii) Indemnities.--Subject to
subparagraphs (B) and (D), compensation to any
owner or contract grower of poultry
participating in the voluntary control program
for low pathogenic avian influenza under the
National Poultry Improvement Plan, and payments
to cooperating State agencies, shall be made in
an amount equal to 100 percent of the eligible
costs.''.
SEC. 10307. STUDY ON BIOENERGY OPERATIONS.
Not later than 180 days after the date of enactment of this Act,
the Secretary, acting through the Office of the Chief Economist, shall
submit to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report describing the potential economic issues (including potential
costs) associated with animal manure used in normal agricultural
operations and as a feedstock in bioenergy production.
SEC. 10308. SENSE OF THE SENATE ON INDEMNIFICATION OF LIVESTOCK
PRODUCERS.
It is the sense of the Senate that the Secretary should partner
with the private insurance industry to implement an approach for
expediting the indemnification of livestock producers in the case of
catastrophic disease outbreaks.
SEC. 10309. COORDINATION OF DAIRY OVERSIGHT.
(a) In General.--The Secretary shall select an official within the
Department of Agriculture to coordinate the sharing of information on
oversight of the dairy industry to ensure fair competition.
(b) Duties.--The official selected under subsection (a) shall--
(1) serve as a liaison among the Agricultural Marketing
Service, Farm Service Agency, and National Agricultural
Statistics Service;
(2) coordinate and maintain informal communications as
appropriate with other Federal agencies with an involvement or
interest in the dairy industry or fair competition;
(3) hold at least 1 formal annual meeting during each
calendar year; and
(4) submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, and make available to the public,
an annual report that describes issues of concern in the dairy
industry that threaten fair competition, including an
evaluation of dairy markets with respect to the impact of those
markets on--
(A) reported dairy prices;
(B) Federal milk marketing order prices; and
(C) other Federal dairy programs.
TITLE XI--MISCELLANEOUS
Subtitle A--Agricultural Security
SEC. 11011. DEFINITIONS.
In this subtitle:
(1) Agent.--The term ``agent'' means a chemical,
biological, radiological, or nuclear substance that causes an
agricultural disease or adulteration of food products under the
jurisdiction of the Department.
(2) Agricultural biosecurity.--The term ``agricultural
biosecurity'' means protection from an agent that poses a
threat to--
(A) plant or animal health;
(B) public health, with respect to direct exposure
to an agricultural disease; or
(C) the environment, with respect to agriculture
facilities, farmland, air, and water in the immediate
vicinity of an area associated with an agricultural
disease or outbreak.
(3) Agricultural countermeasure.--
(A) In general.--The term ``agricultural
countermeasure'' means a product, practice, or
technology that is intended to enhance or maintain the
agricultural biosecurity of the United States.
(B) Exclusions.--The term ``agricultural
countermeasure'' does not include any product,
practice, or technology used solely for human medical
incidents or public health emergencies not related to
agriculture.
(4) Agricultural disease.--The term ``agricultural
disease'' has the meaning given the term by the Secretary.
(5) Agriculture.--The term ``agriculture'' means--
(A) the science and practice of activities relating
to food, feed, fiber, and energy production,
processing, marketing, distribution, use, and trade;
(B) nutrition, food science and engineering, and
agricultural economics;
(C) forestry, wildlife science, fishery science,
aquaculture, floriculture, veterinary medicine, and
other related natural resource sciences; and
(D) research and development activities relating to
plant- and animal-based products carried out by the
Department.
(6) Agroterrorist act.--The term ``agroterrorist act''
means an act that--
(A) causes or attempts to cause--
(i) damage to agriculture; or
(ii) injury to a person associated with
agriculture; and
(B) is committed--
(i) to intimidate or coerce; or
(ii) to disrupt the agricultural industry.
(7) Animal.--The term ``animal'' means any member of the
animal kingdom (except a human).
(8) Department.--The term ``Department'' means the
Department of Agriculture.
(9) Development.--The term ``development'' means--
(A) research leading to the identification of
products or technologies intended for use as
agricultural countermeasures;
(B) the formulation, production, and subsequent
modification of those products or technologies;
(C) the conduct of preclinical and clinical in vivo
and in vitro studies;
(D) the conduct of field, efficacy, and safety
studies;
(E) the preparation of an application for marketing
approval for submission to applicable agencies; and
(F) other actions taken by an applicable agency in
a case in which an agricultural countermeasure is
procured or used prior to issuance of a license or
other form of approval.
(10) Plant.--
(A) In general.--The term ``plant'' means any plant
(including any plant part) for or capable of
propagation.
(B) Inclusions.--The term ``plant'' includes--
(i) a tree;
(ii) a tissue culture;
(iii) a plantlet culture;
(iv) pollen;
(v) a shrub;
(vi) a vine;
(vii) a cutting;
(viii) a graft;
(ix) a scion;
(x) a bud;
(xi) a bulb;
(xii) a root; and
(xiii) a seed.
(11) Qualified agricultural countermeasure.--The term
``qualified agricultural countermeasure'' means an agricultural
countermeasure that the Secretary, in consultation with the
Secretary of Homeland Security, determines to be a priority in
order to address an agricultural biosecurity threat from--
(A) an agent placed on the Select Agents and Toxins
list of the Department;
(B) an agent placed on the Plant Protection and
Quarantine Select Agents and Toxins list of the
Department; or
(C) an applicable agent placed on the Overlap
Select Agents and Toxins list of the Department and the
Department of Health and Human Services, in accordance
with--
(i) part 331 of title 7, Code of Federal
Regulations; and
(ii) part 121 of title 9, Code of Federal
Regulations.
SEC. 11012. NATIONAL PLANT DISEASE RECOVERY SYSTEM AND NATIONAL
VETERINARY STOCKPILE.
(a) National Plant Disease Recovery System.--
(1) Establishment.--The Secretary, in coordination with the
Secretary of Homeland Security, and in consultation with the
Administrator of the Environmental Protection Agency, shall
work with State and local governments and the private sector to
establish a national plant disease recovery system to be used
to respond to an outbreak of plant disease that poses a
significant threat to agricultural biosecurity.
(2) Requirements.--The national plant disease recovery
system shall include agricultural countermeasures to be made
available within a single growing season for crops of
particular economic significance, as determined by the
Secretary, in coordination with the Secretary of Homeland
Security.
(b) National Veterinary Stockpile.--The Secretary, in coordination
with the Secretary of Homeland Security, and in consultation with the
Secretary of Health and Human Services and the Administrator of the
Environmental Protection Agency, shall work with State and local
governments and the private sector to establish a national veterinary
stockpile, which shall be used by the Secretary, in coordination with
the Secretary of Homeland Security to make agricultural countermeasures
available to any State veterinarian not later than 24 hours after
submission of an official request for assistance by the State
veterinarian, unless the Secretary and the Secretary of Homeland
Security cannot accommodate such a request due to an emergency, lack of
available resources, or other reason for disapproval of the request as
determined the Secretary.
SEC. 11013. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.
(a) Grant Program.--
(1) In general.--The Secretary shall establish a grant
program to stimulate basic and applied research and development
activity for qualified agricultural countermeasures.
(2) Competitive grants.--In carrying out this section, the
Secretary shall develop a process through which to award grants
on a competitive basis.
(3) Waiver in emergencies.--The Secretary may waive the
requirement in paragraph (2), if--
(A) the Secretary has declared a plant or animal
disease emergency under the Plant Protection Act (7
U.S.C. 7701 et seq.) or the Animal Health Protection
Act (7 U.S.C. 8301 et seq.); and
(B) the waiver would lead to the rapid development
of a qualified agricultural countermeasure, as
determined by the Secretary.
(b) Use of Foreign Disease Permissible.--The Secretary may permit
the use of foreign animal and plant disease agents, and accompanying
data, in research and development activities funded under this section
if the Secretary determines that the diseases or data are necessary to
demonstrate the safety and efficacy of an agricultural countermeasure
in development.
(c) Coordination on Advanced Development.--The Secretary shall
ensure that the Secretary of Homeland Security is provided information,
on a quarterly basis, describing each grant provided by the Secretary
for the purpose of facilitating the acceleration and expansion of the
advanced development of agricultural countermeasures.
(d) Scope.--Nothing in this section impedes the ability of the
Secretary of Homeland Security to administer grants for basic and
applied research and advanced development activities for qualified
agricultural countermeasures.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2008 through 2012.
SEC. 11014. VETERINARY WORKFORCE GRANT PROGRAM.
(a) In General.--The Secretary shall establish a grant program to
increase the number of veterinarians trained in agricultural
biosecurity.
(b) Considerations for Funding Awarded.--The Secretary shall
establish procedures to ensure that grants are competitively awarded
under the program based on--
(1) the ability of an applicant to increase the number of
veterinarians who are trained in agricultural biosecurity
practice areas determined by the Secretary;
(2) the ability of an applicant to increase research
capacity in areas of agricultural biosecurity determined by the
Secretary to be a priority; or
(3) any other consideration the Secretary determines to be
appropriate.
(c) Use of Funds.--Amounts received under this section may be used
by a grantee to pay--
(1) costs associated with construction and the acquisition
of equipment, and other capital costs relating to the expansion
of schools of veterinary medicine, departments of comparative
medicine, departments of veterinary science, or entities
offering residency training programs; or
(2) capital costs associated with the expansion of academic
programs that offer postgraduate training for veterinarians or
concurrent training for veterinary students in specific areas
of specialization.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.
SEC. 11015. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL
BIOSECURITY PLANNING, PREPAREDNESS, AND RESPONSE.
(a) Advanced Training Programs.--
(1) Grant assistance.--The Secretary shall provide grant
assistance to support the development and expansion of advanced
training programs in agricultural biosecurity planning and
response for food science professionals and veterinarians.
(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as are necessary
to carry out this subsection for each of fiscal years 2008
through 2012.
(b) Assessment of Response Capability.--
(1) Grant and loan assistance.--The Secretary shall provide
grant and low-interest loan assistance to States for use in
assessing agricultural disease response and food emergency
response capabilities.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $25,000,000 for
each of fiscal years 2008 through 2012.
SEC. 11016. LIVE VIRUS OF FOOT AND MOUTH DISEASE RESEARCH.
(a) In General.--The Secretary shall issue a permit required under
section 12 of the Act of May 29, 1884 (21 U.S.C. 113a) to the Secretary
of Homeland Security for work on the live virus of foot and mouth
disease at the National Bio and Agro-Defense Laboratory (referred to in
this section as the ``NBAF'').
(b) Limitation.--The permit shall be valid unless the Secretary
finds that the study of live foot and mouth disease virus at the NBAF
is not being carried out in accordance with the regulations issued by
the Secretary pursuant to the Agricultural Bioterrorism Protection Act
of 2002 (7 U.S.C. 8401 et seq.).
(c) Authority.--The suspension, revocation, or other impairment of
the permit issued under this section--
(1) shall be made by the Secretary; and
(2) is a nondelegable function.
SEC. 11017. PLANT PROTECTION.
(a) Civil Penalties for Violations.--Section 424(b)(1) of the Plant
Protection Act (7 U.S.C. 7734(b)(2)) is amended by striking
subparagraphs (A) and (B) and inserting the following:
``(A) $50,000 in the case of any individual (except
that the civil penalty may not exceed $1,000 in the
case of an initial violation of this title by an
individual moving regulated articles not for monetary
gain);
``(B) $250,000 in the case of any other person for
each violation;
``(C) $500,000 for each violation adjudicated in a
single proceeding;
``(D) $1,000,000 for each violation adjudicated in
a single proceeding involving a genetically modified
organism (as determined by the Secretary); or
``(E) twice the gross gain or gross loss for any
violation, forgery, counterfeiting, unauthorized use,
defacing, or destruction of a certificate, permit, or
other document provided for in this title that results
in the person deriving pecuniary gain or causing
pecuniary loss to another.''.
(b) Time for Commencing Proceedings.--Subtitle B of the Plant
Protection Act (7 U.S.C. 7731 et seq.) is amended by adding at the end
the following:
``SEC. 427. TIME FOR COMMENCING PROCEEDINGS.
``An action, suit, or proceeding with respect to an alleged
violation of this title shall not be considered unless the action,
suit, or proceeding is commenced not later than 5 years after the date
the violation is initially discovered by the Secretary.''.
Subtitle B--Other Programs
SEC. 11051. FORECLOSURE.
(a) In General.--Section 307 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927) is amended by adding at the end the
following:
``(f) Moratorium.--
``(1) In general.--Effective beginning on the date of
enactment of this subsection, there shall be in effect a
moratorium on all loan acceleration and foreclosure proceedings
instituted by the Department of Agriculture against any farmer
or rancher who--
``(A) has pending against the Department a claim of
discrimination; or
``(B) files a claim of discrimination against the
Department.
``(2) Waiver of interest and offsets.--During the period of
the moratorium, the Secretary shall waive the accrual of
interest and offsets on all loans made under this subtitle for
which loan acceleration or foreclosure proceedings have been
instituted as described in paragraph (1).
``(3) Termination of moratorium.--The moratorium shall
terminate with respect to a claim of discrimination by a farmer
or rancher on the earlier of--
``(A) the date the Secretary resolves the claim; or
``(B) if the farmer or rancher appeals the decision
of the Secretary on the claim to a court of competent
jurisdiction, the date that the court renders a final
decision on the claim.
``(4) Failure to prevail.--If a farmer or rancher does not
prevail on a claim of discrimination described in paragraph
(1), the farmer or rancher shall be liable for any interest and
offsets that accrued during the period that the loan was in
abeyance.''.
(b) Foreclosure Report.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Inspector General of the Department
of Agriculture (referred to in this subsection as the
``Inspector General'') shall determine whether decisions of the
Department to implement foreclosure proceedings with respect to
loans made under subtitle A of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1922 et seq.) to socially
disadvantaged farmers or ranchers during the 5-year period
preceding the date of enactment of this Act were consistent and
in conformity with the applicable laws (including regulations)
governing loan foreclosures.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Inspector General shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the determination of the
Inspector General under paragraph (1).
SEC. 11052. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY
DISADVANTAGED FARMERS AND RANCHERS.
(a) In General.--Section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279)) is amended--
(1) in subsection (a)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Requirements.--The outreach and technical assistance
program under paragraph (1) shall be used exclusively--
``(A) to enhance coordination of the outreach,
technical assistance, and education efforts authorized
under agriculture programs; and
``(B) to assist the Secretary in--
``(i) reaching socially disadvantaged
farmers and ranchers and prospective socially
disadvantaged farmers and ranchers in a
culturally and linguistically appropriate
manner; and
``(ii) improving the participation of those
farmers and ranchers in Department programs, as
determined under section 2501A.'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking
``entity to provide information'' and inserting
``entity that has demonstrated an ability to
carry out the requirements described in
paragraph (2) to provide outreach''; and
(ii) by adding at the end the following:
``(D) Renewal of contracts.--The Secretary may
provide for renewal of a grant, contract, or other
agreement under this section with an eligible entity
that--
``(i) has previously received funding under
this section;
``(ii) has demonstrated an ability to carry
out the requirements described in paragraph
(2); and
``(iii) demonstrates to the satisfaction of
the Secretary that the entity will continue to
fulfill the purposes of this section.
``(E) Review of proposals.--Notwithstanding
subparagraph (D), the Secretary shall promulgate a
regulation to establish criteria for the review process
for grants and cooperative agreements (including
multiyear grants), which shall include a review
eligible entities on an individual basis.
``(F) Report.--The Secretary shall submit to
Congress, and make publically available, an annual
report that describes--
``(i) the accomplishments of the program
under this section; and
``(ii) any gaps or problems in service
delivery as reported by grantees.''; and
(C) in paragraph (4)--
(i) by striking subparagraph (A), and
inserting the following:
``(A) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $50,000,000 for each of fiscal years 2008
through 2012.''; and
(ii) by adding at the end the following:
``(C) Limitation on use of funds for administrative
expenses.--Not more than 5 percent of the amounts made
available under this paragraph for a fiscal year may be
used for expenses related to administering the program
under this section.''; and
(2) in subsection (e)(5)(A)--
(A) in clause (i), by striking ``has demonstrated
experience in'' and inserting ``has a reputation for,
and has demonstrated experience in,''; and
(B) in clause (ii)--
(i) by inserting ``and on behalf of''
before ``socially''; and
(ii) by striking ``2-year'' and inserting
``3-year''.
(b) Coordination With Outreach.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall develop a plan to
join and relocate--
(A) the outreach and technical assistance program
established under section 2501 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279); and
(B) the Office of Outreach of the Department of
Agriculture.
(2) Consultation.--In preparing the plan under paragraph
(1), the Secretary shall, in consultation with eligible
entities under section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279)--
(A) decide the most appropriate permanent location
for the programs described in paragraph (1); and
(B) locate both programs together at that location.
(3) Report.--After the relocation described in this
subsection is completed, the Secretary shall submit to Congress
a report that includes information describing the new location
of the programs.
SEC. 11053. ADDITIONAL CONTRACTING AUTHORITY.
Section 2501(a)(3) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279(a)(3)) (as amended by section
11052(a)(1)(B)(ii)) is amended by adding at the end the following:
``(G) Additional contracting authority.--
``(i) In general.--The Secretary shall
provide to the Office of Outreach of the
Department of Agriculture, the Natural
Resources Conservation Service, the Farm
Service Agency, the Risk Management Agency, the
Forest Service, the Food Safety and Inspection
Service, and such other agencies and programs
as the Secretary determines to be necessary,
the authority to make grants and enter into
contracts and cooperative agreements with
community-based organizations that meet the
definition of an eligible entity under
subsection (e).
``(ii) Matching funds.--The Secretary is
not required to require matching funds for a
grant made, or a contract or cooperative
agreement entered into, under this
subparagraph.
``(iii) Interagency funding.--
Notwithstanding any other provision of law
(including regulations), any Federal agency may
participate in any grant made, or contract or
cooperative agreement entered into, under this
subsection by contributing funds, if the head
of the agency determines that the objectives of
the grant, contract, or cooperative agreement
will further the authorized programs of the
contributing agency.''.
SEC. 11054. IMPROVED PROGRAM DELIVERY BY THE DEPARTMENT OF AGRICULTURE
ON INDIAN RESERVATIONS.
Section 2501(g)(1) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended by striking the
second sentence.
SEC. 11055. ACCURATE DOCUMENTATION IN THE CENSUS OF AGRICULTURE AND
CERTAIN STUDIES.
Section 2501 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279) is amended by adding at the end the following:
``(h) Accurate Documentation.--The Secretary shall ensure, to the
maximum extent practicable, that the Census of Agriculture and studies
carried out by the Economic Research Service accurately document the
number, location, and economic contributions of socially disadvantaged
farmers and ranchers in agricultural production.''.
SEC. 11056. IMPROVED DATA REQUIREMENTS.
Section 2501A of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279-1) is amended by striking subsection (c) and
inserting the following:
``(c) Compilation of Program Participation Data.--
``(1) Annual requirement.--For each county and State in the
United States, the Secretary of Agriculture (referred to in
this section as the `Secretary') shall annually compile program
application and participation rate data regarding socially
disadvantaged farmers and ranchers by computing for each
program of the Department of Agriculture that serves
agricultural producers or landowners--
``(A) raw numbers of applicants and participants by
race, ethnicity, and gender, subject to appropriate
privacy protections, as determined by the Secretary;
and
``(B) the application and participation rate, by
race, ethnicity, and gender, as a percentage of the
total participation rate of all agricultural producers
and landowners.
``(2) Authority to collect data.--The heads of the agencies
of the Department of Agriculture shall collect and transmit to
the Secretary any data, including data on race, gender, and
ethnicity, that the Secretary determines to be necessary to
carry out paragraph (1).
``(3) Report.--Using the technologies and systems of the
National Agricultural Statistics Service, the Secretary shall
compile and present the data required under paragraph (1) for
each program described in that paragraph in a manner that
includes the raw numbers and participation rates for--
``(A) the entire United States;
``(B) each State; and
``(C) each county in each State.
``(d) Limitations on Use of Data.--
``(1) In general.--In carrying out this section, the
Secretary shall not disclose the names or individual data of
any program participant.
``(2) Authorized uses.--The data under this section shall
be used exclusively for the purposes described in subsection
(a).
``(3) Limitation.--Except as otherwise provided, the data
under this section shall not be used for the evaluation of
individual applications for assistance.''.
SEC. 11057. RECEIPT FOR SERVICE OR DENIAL OF SERVICE.
Section 2501A of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279-1) (as amended by section 11056) is amended by
adding at the end the following:
``(e) Receipt for Service or Denial of Service.--In any case in
which a farmer or rancher, or a prospective farmer or rancher, in
person or in writing, requests from the Farm Service Agency or the
Natural Resources Conservation Service of the Department of Agriculture
any benefit or service offered by the Department to agricultural
producers or landowners, and at the time of the request requests a
receipt, the Secretary of Agriculture shall issue, on the date of the
request, a receipt to the farmer or rancher, or prospective farmer or
rancher, that contains--
``(1) the date, place, and subject of the request; and
``(2) the action taken, not taken, or recommended to the
farmer or rancher or prospective farmer or rancher.''.
SEC. 11058. NATIONAL APPEALS DIVISION.
Section 280 of the Department of Agriculture Reorganization Act of
1994 (7 U.S.C. 7000) is amended--
(1) by striking ``On the return'' and inserting the
following:
``(a) In General.--On the return''; and
(2) by adding at the end the following:
``(b) Reports.--
``(1) In general.--Not later than 180 days after the date
of enactment of this subsection, and every 180 days thereafter,
the head of each agency shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate, and
publish on the website of the Department, a report that
includes--
``(A) a description of all cases returned to the
agency during the period covered by the report pursuant
to a final determination of the Division;
``(B) the status of implementation of each final
determination; and
``(C) if the final determination has not been
implemented--
``(i) the reason that the final
determination has not been implemented; and
``(ii) the projected date of implementation
of the final determination.
``(2) Updates.--Each month, the head of each agency shall
publish on the website of the Department any updates to the
reports submitted under paragraph (1).''.
SEC. 11059. FARMWORKER COORDINATOR.
(a) In General.--Subtitle B of title II of the Department of
Agriculture Reorganization Act of 1994 is amended by inserting after
section 226A (7 U.S.C. 6933) the following:
``SEC. 226B. FARMWORKER COORDINATOR.
``(a) Establishment.--The Secretary shall establish within the
Department the position of Farmworker Coordinator (referred to in this
section as the `Coordinator').
``(b) Duties.--The Secretary shall delegate to the Coordinator
responsibility for--
``(1) assisting in administering the program established by
section 2281 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (42 U.S.C. 5177a);
``(2) serving as a liaison to community-based nonprofit
organizations that represent and have demonstrated experience
serving low-income migrant and seasonal farmworkers;
``(3) coordinating with the Department, other Federal
agencies, and State and local governments to ensure that
farmworker needs are assessed and met during declared disasters
and other emergencies;
``(4) consulting with the Office of Small Farm
Coordination, Office of Outreach, Outreach Coordinators, and
other entities to better integrate farmworker perspectives,
concerns, and interests into the ongoing programs of the
Department;
``(5) consulting with appropriate institutions on research,
program improvements, or agricultural education opportunities
that assist low-income and migrant seasonal farmworkers; and
``(6) ensuring that farmworkers have access to services and
support to enter agriculture as producers.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
(b) Conforming Amendment.--Section 296(b) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) (as amended
by section 7401(c)(1)) is amended by adding at the end the following:
``(7) the authority of the Secretary to establish in the
Department a position of Farmworker Coordinator in accordance
with section 226B.''.
SEC. 11060. CONGRESSIONAL BIPARTISAN FOOD SAFETY COMMISSION.
(a) Commission.--
(1) Establishment.--
(A) In general.--There is established a commission
to be known as the ``Congressional Bipartisan Food
Safety Commission'' (referred to in this section as the
``Commission'').
(B) Purpose.--The purpose of the Commission shall
be to act in a bipartisan, consensus-driven fashion--
(i) to review the food safety system of the
United States;
(ii) to prepare a report that--
(I) summarizes information about
the food safety system as in effect as
of the date of enactment of this Act;
and
(II) makes recommendations on
ways--
(aa) to modernize the food
safety system of the United
States;
(bb) to harmonize and
update food safety statutes;
(cc) to improve Federal,
State, local, and interagency
coordination of food safety
personnel, activities, budgets,
and leadership;
(dd) to best allocate
scarce resources according to
risk;
(ee) to ensure that
regulations, directives,
guidance, and other standards
and requirements are based on
best-available science and
technology;
(ff) to emphasize
preventative rather than
reactive strategies; and
(gg) to provide to Federal
agencies funding mechanisms
necessary to effectively carry
out food safety
responsibilities; and
(iii) to draft specific statutory language,
including detailed summaries of the language
and budget recommendations, that would
implement the recommendations of the
Commission.
(2) Membership.--
(A) Composition.--The Commission shall be composed
of 19 members.
(B) Eligibility.--Members of the Commission shall--
(i) have specialized training, education,
or significant experience in at least 1 of the
areas of--
(I) food safety research;
(II) food safety law and policy;
and
(III) program design and
implementation;
(ii) consist of--
(I) the Secretary of Agriculture
(or a designee);
(II) the Secretary of Health and
Human Services (or a designee);
(III) 1 Member of the House of
Representatives; and
(IV) 1 Member of the Senate; and
(V) 15 additional members that
include, to the maximum extent
practicable, representatives of--
(aa) consumer
organizations;
(bb) agricultural and
livestock production;
(cc) public health
professionals;
(dd) State regulators;
(ee) Federal employees; and
(ff) the livestock and food
manufacturing and processing
industry.
(C) Appointments.--
(i) In general.--The appointment of the
members of the Commission shall be made not
later than 60 days after the date of enactment
of this Act.
(ii) Certain appointments.--Of the members
of the Commission described in subparagraph
(B)(ii)(V)--
(I) 2 shall be appointed by the
President;
(II) 7 shall be appointed by a
working group consisting of--
(aa) the Chairman of each
of the Committee on
Agriculture, Nutrition, and
Forestry and the Committee on
Health, Education, Labor, and
Pensions of the Senate;
(bb) the Chairman of each
of the Committee on Agriculture
and the Committee on Energy and
Commerce of the House of
Representatives;
(cc) the Speaker of the
House of Representatives; and
(dd) the Majority Leader of
the Senate; and
(III) 6 shall be appointed by a
working group consisting of--
(aa) the Ranking Member of
each of the Committees
described in items (aa) and
(bb) of subclause (II);
(bb) the Minority Leader of
the House of Representatives;
and
(cc) the Minority Leader of
the Senate.
(D) Term.--A member of the Commission shall be
appointed for the life of the Commission.
(E) Vacancies.--A vacancy on the Commission--
(i) shall not affect the powers of the
Commission; and
(ii) shall be filled in the same manner as
the original appointment was made.
(3) Meetings.--
(A) Initial meeting.--Except as provided in
subparagraph (B), the initial meeting of the Commission
shall be conducted in Washington, District of Columbia,
not later than 30 days after the date of appointment of
the final member of the Commission under paragraph
(2)(C).
(B) Meeting for partial appointment.--If, as of the
date that is 90 days after the date of enactment of
this Act, all members of the Commission have not been
appointed under paragraph (2)(C), but at least 8
members have been appointed, the Commission may hold
the initial meeting of the Commission.
(C) Other meetings.--The Commission shall--
(i) hold a series of at least 5 stakeholder
meetings to solicit public comment, including--
(I) at least 1 stakeholder meeting,
to be held in Washington, District of
Columbia; and
(II) at least 4 stakeholder
meetings, to be held in various regions
of the United States; and
(ii) meet at the call of--
(I) the Chairperson;
(II) the Vice-Chairperson; or
(III) a majority of the members of
the Commission.
(D) Public participation; information.--To the
maximum extent practicable--
(i) each meeting of the Commission shall be
open to the public; and
(ii) all information from a meeting of the
Commission shall be recorded and made available
to the public.
(E) Quorum.--With respect to meetings of the
Commission--
(i) a majority of the members of the
Commission shall constitute a quorum for the
conduct of business of the Commission; but
(ii) for the purpose of a stakeholder
meeting described in subparagraph (C)(i), 4 or
more members of the Commission shall constitute
a quorum.
(F) Facilitator.--The Commission shall contract
with a nonpolitical, disinterested third-party entity
to serve as a meeting facilitator.
(4) Chairperson and vice-chairperson.--At the initial
meeting of the Commission, the members of the Commission shall
select from among the members a Chairperson and Vice-
Chairperson of the Commission.
(b) Duties.--
(1) Recommendations.--The Commission shall review and
consider the statutes, studies, and reports described in
paragraph (2) for the purpose of understanding the food safety
system of the United States in existence as of the date of
enactment of this Act.
(2) Statutes, studies, and reports.--The statutes, studies,
and reports referred to in paragraph (1) include--
(A) with respect with respect to laws administered
by the Secretary of Agriculture--
(i) the Federal Seed Act (7 U.S.C. 1551 et
seq.);
(ii) the Agricultural Marketing Act of 1946
(7 U.S.C. 1621 et seq.);
(iii) the Animal Health Protection Act (7
U.S.C. 8301 et seq.);
(iv) the Lacey Act Amendments of 1981 (16
U.S.C. 3371 et seq.);
(v) the Poultry Products Inspection Act (21
U.S.C. 451 et seq.);
(vi) the Federal Meat Inspection Act (21
U.S.C. 601 et seq.); and
(vii) the Egg Products Inspection Act (21
U.S.C. 1031 et seq.);
(B) with respect to laws administered by the
Secretary of the Treasury, the Federal Alcohol
Administration Act (27 U.S.C. 201 et seq.);
(C) with respect to laws administered by the
Federal Trade Commission, the Act of September 26, 1914
(15 U.S.C. 41 et seq.);
(D) with respect to laws administered by the
Secretary of Health and Human Services--
(i) chapters I through IV of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 301 et
seq.);
(ii) the Public Health Service Act (42
U.S.C. 201 et seq.);
(iii) the Import Milk Act (21 U.S.C. 141 et
seq.);
(iv) the Food Additives Amendment of 1958
(Public Law 85-929; 52 Stat. 1041);
(v) the Fair Packaging and Labeling Act
(Public Law 89-755; 80 Stat. 1296);
(vi) the Infant Formula Act of 1980 (21
U.S.C. 301 note; Public Law 96-359);
(vii) the Pesticide Monitoring Improvements
Act of 1988 (Public Law 100-418; 102 Stat.
1411);
(viii) the Nutrition Labeling and Education
Act of 1990 (21 U.S.C. 301 note; Public Law
101-535);
(ix) the Food and Drug Administration
Modernization Act of 1997 (21 U.S.C. 301 note;
Public Law 105-115); and
(x) the Public Health Security and
Bioterrorism Preparedness and Response Act of
2002 (21 U.S.C. 201 note; Public Law 107-188);
(E) with respect to laws administered by the
Attorney General, the Federal Anti-Tampering Act (18
U.S.C. 1365 note; Public Law 98-127);
(F) with respect to laws administered by the
Administrator of the Environmental Protection Agency--
(i) the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. 136 et seq.);
(ii) the Food Quality Protection Act of
1996 (7 U.S.C. 136 note; Public Law 104-170);
(iii) the Toxic Substances Control Act (15
U.S.C. 2601 et seq.); and
(iv) the Safe Drinking Water Act of 1974
(42 U.S.C. 201 note; Public Law 93-523); and
(G) with respect to laws administered by the
Secretary of Transportation, chapter 57 of subtitle II
of title 49, United States Code (relating to sanitary
food transportation); and
(H) with respect to Government studies on food
safety--
(i) the report of the National Academies of
Science entitled ``Ensuring Safe Food from
Production to Consumption'' and dated 1998;
(ii) the report of the National Academies
of Science entitled ``Scientific Criteria to
Ensure Safe Food'' and dated 2003;
(iii) reports of the Office of the
Inspector General of the Department of
Agriculture, including--
(I) report 24601-0008-CH, entitled
``Egg Products Processing Inspection''
and dated September 18, 2007;
(II) report 24005-1-AT, entitled
``Food Safety and Inspection Service--
State Meat and Poultry Inspection
Programs'' and dated September 27,
2006;
(III) report 24601-06-CH, entitled
``Food Safety and Inspection Service's
In-Plant Performance System'' and dated
March 28, 2006;
(IV) report 24601-05-AT, entitled
``Hazard Analysis and Critical Control
Point Implementation at Very Small
Plants'' and dated June 24, 2005;
(V) report 24601-04-HY, entitled
``Food Safety and Inspection Service
Oversight of the 2004 Recall by Quaker
Maid Meats, Inc.'' and dated May 18,
2005;
(VI) report 24501-01-FM, entitled
``Food Safety and Inspection Service
Application Controls--Performance Based
Inspection System'' and dated November
24, 2004;
(VII) report 24601-03-CH, entitled
``Food Safety and Inspection Service
Use of Food Safety Information'' and
dated September 30, 2004;
(VIII) report 24601-03-HY, entitled
``Food Safety and Inspection Service
Effectiveness Checks for the 2002
Pilgrim's Pride Recall'' and dated June
29, 2004;
(IX) report 24601-02-HY, entitled
``Food Safety and Inspection Service
Oversight of the Listeria Outbreak in
the Northeastern United States'' and
dated June 9, 2004;
(X) report 24099-05-HY, entitled
``Food Safety and Inspection Service
Imported Meat and Poultry Equivalence
Determinations Phase III'' and dated
December 29, 2003;
(XI) report 24601-2-KC, entitled
``Food Safety and Inspection Service--
Oversight of Production Process and
Recall at Conagra Plant (Establishment
969)'' and dated September 30, 2003;
(XII) report 24601-1-Ch, entitled
``Laboratory Testing Of Meat And
Poultry Products'' and dated June 21,
2000;
(XIII) report 24001-3-At, 24601-1-
Ch, 24099-3-Hy, 24601-4-At, entitled
``Food Safety and Inspection Service:
HACCP Implementation, Pathogen Testing
Program, Foreign Country Equivalency,
Compliance Activities'' and dated June
21, 2000; and
(XIV) report 24001-3-At, entitled
``Implementation of the Hazard Analysis
and Critical Control Point System'' and
dated June 21, 2000; and
(I) with respect to reports prepared by the
Government Accountability Office, the reports
designated--
(i) GAO-05-212;
(ii) GAO-02-47T;
(iii) GAO/T-RCED-94-223;
(iv) GAO/RCED-99-80;
(v) GAO/T-RCED-98-191;
(vi) GAO/RCED-98-103;
(vii) GAO-07-785T;
(viii) GAO-05-51;
(ix) GAO/T-RCED-94-311;
(x) GAO/RCED-92-152;
(xi) GAO/T-RCED-99-232;
(xii) GAO/T-RCED-98-271;
(xiii) GAO-07-449T;
(xiv) GAO-05-213;
(xv) GAO-04-588T;
(xvi) GAO/RCED-00-255;
(xvii) GAO/RCED-00-195; and
(xviii) GAO/T-RCED-99-256.
(3) Report.--Not later than 360 days after the date on
which the Commission first meets, the Commission shall submit
to the President and Congress a report that includes the report
and summaries, statutory language recommendations, and budget
recommendations described in clauses (ii) and (iii) of
subsection (a)(1)(B).
(c) Powers of the Commission.--
(1) Hearings.--The Commission or, at the direction of the
Commission, any member of the Commission, may, for the purpose
of carrying out this section--
(A) hold such hearings, meet and act at such times
and places, take such testimony, receive such evidence,
and administer such oaths; and
(B) require the attendance and testimony of such
witnesses and the production of such books, records,
correspondence, memoranda, papers, documents, tapes,
and materials;
as the Commission or member considers advisable.
(2) Information from federal agencies.--
(A) In general.--The Commission may secure
directly, from any Federal agency, such information as
the Commission considers necessary to carry out this
section.
(B) Provision of information.--
(i) In general.--Subject to subparagraph
(C), on the request of the Commission, the head
of a Federal agency described in subparagraph
(A) shall expeditiously furnish information
requested by the Commission to the Commission.
(ii) Administration.--The furnishing of
information by a Federal agency to the
Commission shall not be considered a waiver of
any exemption available to the agency under
section 552 of title 5, United States Code.
(C) Information to be kept confidential.--For
purposes of section 1905 of title 18, United States
Code--
(i) the Commission shall be considered an
agency of the Federal Government; and
(ii) any individual employed by an
individual, entity, or organization that is a
party to a contract with the Commission under
this section shall be considered an employee of
the Commission.
(d) Commission Personnel Matters.--
(1) Members.--
(A) Non-federal employees.--A member of the
Commission who is not an officer or employee of the
Federal Government shall be compensated at a rate equal
to the daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under
section 5315 of title 5, United States Code, for each
day (including travel time) during which the member is
engaged in the performance of the duties of the
Commission.
(B) Federal employees.--A member of the Commission
who is an officer or employee of the Federal Government
shall serve without compensation in addition to the
compensation received for the services of the member as
an officer or employee of the Federal Government.
(C) Travel expenses.--A member of the Commission
shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized for an
employee of an agency under subchapter I of chapter 57
of title 5, United States Code, while away from the
home or regular place of business of the member in the
performance of the duties of the Commission.
(2) Staff.--
(A) Executive director.--Not later than 30 days
after the Chairperson and Vice-Chairperson of the
Commission are selected under subsection (a)(4), the
Chairperson and Vice-Chairperson shall jointly select
an individual to serve as executive director of the
Commission.
(B) Additional staff.--The Chairperson of the
Commission may, without regard to the civil service
laws (including regulations), appoint and terminate the
appointment of such other additional personnel as are
necessary to enable the Commission to perform the
duties of the Commission.
(C) Confirmation of executive director.--The
employment of an executive director under this
paragraph shall be subject to confirmation by the
Commission.
(D) Compensation.--
(i) In general.--Except as provided in
clause (ii), the Chairperson of the Commission
may fix the compensation of the executive
director and other personnel without regard to
the provisions of chapter 51 and subchapter III
of chapter 53 of title 5, United States Code,
relating to classification of positions and
General Schedule pay rates.
(ii) Maximum rate of pay.--The rate of pay
for the executive director and other personnel
shall not exceed the rate payable for level II
of the Executive Schedule under section 5316 of
title 5, United States Code.
(3) Detail of federal government employees.--
(A) In general.--An employee of the Federal
Government may be detailed to the Commission, without
reimbursement, for such period of time as is permitted
by law.
(B) Civil service status.--The detail of the
employee shall be without interruption or loss of civil
service status or privilege.
(4) Procurement of temporary and intermittent services.--
The Chairperson, Vice-Chairperson, and executive director of
the Commission may procure temporary and intermittent services
in accordance with section 3109(b) of title 5, United States
Code, at rates for individuals that do not exceed the daily
equivalent of the annual rate of basic pay prescribed for level
IV of the Executive Schedule under section 5316 of that title.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
(f) Termination.--The Commission shall terminate on the date that
is 60 days after the date on which the Commission submits the report
under subsection (b)(2).
SEC. 11061. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL
FARMWORKERS.
Section 2281 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (42 U.S.C. 5177a) is amended to read as follows:
``SEC. 2281. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL
FARMWORKERS.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means a
public agency, community-based organization, or network of
community-based organizations with tax-exempt status under
section 501(c)(3) of the Internal Revenue Code of 1986, that
has at least 5 years of demonstrated experience in representing
and providing emergency services to low-income migrant or
seasonal farmworkers.
``(2) Low-income migrant or seasonal farmworker.--The term
`low-income migrant or seasonal farmworker' means an
individual--
``(A) who has, during any consecutive 12-month
period within the preceding 24-month period, performed
farm work for wages;
``(B) who has received not less than \1/2\ of the
total income of the individual from, or been employed
at least \1/2\ of total work time in, farm work; and
``(C) whose annual family income during the 12-
month period described in paragraph (1) does not exceed
the higher of, as determined by the Secretary--
``(i) 185 percent of the most recent annual
Federal Poverty Income Guidelines published by
the Department of Health and Human Services; or
``(ii) 70 percent of the lower living
standard income level.
``(3) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(b) Grants Available.--The Secretary may make grants to eligible
entities if the Secretary determines that a local, State, or national
emergency or disaster has caused low-income migrant or seasonal
farmworkers--
``(1) to lose income;
``(2) to be unable to work; or
``(3) to stay home or return home in anticipation of work
shortages.
``(c) Use of Funds.--As a condition of receiving a grant under
subsection (b), an eligible entity shall use the grant to provide
emergency services to low-income migrant or seasonal farmworkers, with
a focus on--
``(1) assistance that allows low-income migrant or seasonal
farmworkers to meet or access other resources to meet short-
term emergency family needs for food, clothing, employment,
transportation, and housing;
``(2) assistance that allows low-income and migrant
seasonal farmworkers to remain in a disaster area; and
``(3) such other priorities that the Secretary determines
to be appropriate.
``(d) Disaster Fund.--
``(1) In general.--The Secretary shall maintain a disaster
fund of $2,000,000 to be used for immediate assistance for
events described in subsection (b).
``(2) Funding.--There are authorized to be appropriated to
the Secretary such sums as are necessary to maintain the
disaster fund at $2,000,000 for each of fiscal years 2008
through 2012.''.
SEC. 11062. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES FROM
ANHYDROUS AMMONIA.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a producer of agricultural commodities;
(B) a cooperative association, a majority of the
members of which produce or process agricultural
commodities; or
(C) a person in the trade or business of--
(i) selling an agricultural product
(including an agricultural chemical) at retail,
predominantly to farmers and ranchers; or
(ii) aerial and ground application of an
agricultural chemical.
(2) Nurse tank.--The term ``nurse tank'' shall be
considered to be a cargo tank (within the meaning of section
173.315(m) of title 49, Code of Federal Regulations, as in
effect as of the date of the enactment of this Act).
(b) Grant Authority.--The Secretary may make a grant to an eligible
entity to enable the eligible entity to obtain and add to an anhydrous
ammonia fertilizer nurse tank a physical lock or a substance to reduce
the amount of methamphetamine that can be produced from any anhydrous
ammonia removed from the nurse tank.
(c) Grant Amount.--The amount of a grant made under this section to
an eligible entity shall be the product obtained by multiplying--
(1) an amount not less than $40 and not more than $60, as
determined by the Secretary; and
(2) the number of fertilizer nurse tanks of the eligible
entity.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to make grants under this section
$15,000,000 for the period of fiscal years 2008 through 2012.
SEC. 11063. INVASIVE SPECIES MANAGEMENT, HAWAII.
(a) Definitions.--In this section:
(1) Secretaries.--The term ``Secretaries'' means--
(A) the Secretary of the Interior;
(B) the Secretary of Agriculture; and
(C) the Secretary of Homeland Security.
(2) Secretary concerned.--The term ``Secretary concerned''
means--
(A) the Secretary of the Interior, with respect to
matters under the jurisdiction of the Department of the
Interior;
(B) the Secretary of Agriculture, with respect to
matters under the jurisdiction of the Department of
Agriculture; and
(C) the Secretary of Homeland Security, with
respect to matters under the jurisdiction of the
Department of Homeland Security.
(3) State.--The term ``State'' means the State of Hawaii.
(b) Controlling Introduction and Spread of Invasive Species and
Diseases in the State.--
(1) Consultation and cooperation.--The Secretaries
concerned shall--
(A) with respect to restricting the introduction or
movement of invasive species and diseases into the
State, consult and cooperate with the State; and
(B) in carrying out the activities described in
this subsection, consult and cooperate with appropriate
agencies and officers with experience relating to
quarantine procedures, natural resources, conservation,
and law enforcement of--
(i) the Department of Homeland Security;
(ii) the Department of Commerce;
(iii) the United States Treasury; and
(iv) the State.
(2) Development of collaborative federal and state
procedures.--The Secretaries, in collaboration with the State,
shall--
(A) develop procedures to minimize the introduction
of invasive species into the State; and
(B) submit to Congress annual reports describing
progress made and results achieved in carrying out the
procedures.
(3) Expedited consideration of state and local control
proposals.--
(A) Expedited process.--Not later than 1 year after
the date of enactment of this Act, the Secretaries
shall establish an expedited process for the State and
political subdivisions of the State under which the
State and political subdivisions may, through the
submission of an application, seek approval of the
Secretary concerned to impose a general or specific
prohibition or restriction on the introduction or
movement of invasive species or diseases from domestic
or foreign locations to the State that is in addition
to the applicable prohibition or restriction imposed by
the Secretary concerned.
(B) Review period.--Not later than 60 days after
the date of receipt by the Secretary concerned of an
application under subparagraph (A) that the Secretary
concerned determines to be a completed application, the
Secretary concerned shall--
(i) review the completed application;
(ii) assess each potential risk with
respect to the completed application; and
(iii) approve or disapprove the completed
application.
(4) Response to emergency threats.--
(A) In general.--The State may carry out an
emergency action to impose a prohibition or restriction
on the entry of an invasive species or disease that is
in addition to the applicable prohibition or
restriction imposed by the Secretary concerned if--
(i) the State has submitted to the
Secretary concerned a completed application
under paragraph (3) that is pending approval by
the Secretary concerned; and
(ii) an emergency or imminent threat from
an invasive species or disease occurs in the
State during the period in which the completed
application described in clause (i) is pending
approval by the Secretary concerned.
(B) Notice.--Before carrying out an emergency
action under subparagraph (A), the State shall provide
written notice to the Secretary concerned.
(C) Period of emergency action.--If, by the date
that is 10 days after the date of receipt of a written
notice under subparagraph (B), the Secretary concerned
does not object to the emergency action that is the
subject of the notice, the State may carry out the
emergency action during the 60-day period beginning on
that date.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretaries such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.
SEC. 11064. OVERSIGHT AND COMPLIANCE.
The Secretary, acting through the Assistant Secretary for Civil
Rights of the Department of Agriculture, shall use the reports
described in subsection (c) of section 2501A of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279-1) (as amended by
section 11056) in the conduct of oversight and evaluation of civil
rights compliance.
SEC. 11065. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS, AND
ACTIONS.
Each year, the Secretary shall--
(1) prepare a report that describes, for each agency of the
Department of Agriculture--
(A) the number of civil rights complaints filed
that relate to the agency, including whether a
complaint is a program complaint or an employment
complaint;
(B) the length of time the agency took to process
each civil rights complaint;
(C) the number of proceedings brought against the
agency, including the number of complaints described in
paragraph (1) that were resolved with a finding of
discrimination; and
(D) the number and type of personnel actions taken
by the agency following resolution of civil rights
complaints;
(2) submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a copy of the report; and
(3) make the report available to the public by posting the
report on the website of the Department.
SEC. 11066. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING
OF AGRICULTURAL LABOR FORCE.
(a) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means a nonprofit, community-based organization, or
a consortium of nonprofit, community-based organizations, agricultural
labor organizations, farmer or rancher cooperatives, and public
entities, that has the capacity (including demonstrated experience in
providing training, housing, or emergency services to migrant and
seasonal farmworkers) to assist agricultural employers and farmworkers
with improvements in the supply, stability, safety, and training of the
agricultural labor force.
(b) Grants.--
(1) In general.--The Secretary may provide grants to
eligible entities for use in providing services to assist
farmworkers in securing, retaining, upgrading, or returning
from agricultural jobs.
(2) Eligible services.--The services referred to in
paragraph (1) include--
(A) agricultural upgrading and cross training;
(B) the provision of agricultural labor market
information;
(C) transportation;
(D) short-term housing, including housing for
unaccompanied farmworkers and at migrant rest stops;
(E) travelers' aid;
(F) workplace literacy and assistance with English
as a second language;
(G) health and safety instruction, including ways
of safeguarding the food supply of the United States;
and
(H) limited emergency and financial assistance, in
cases in which the Secretary determines that a
national, State, or local emergency or disaster has
caused migrant or seasonal farmworkers to lose income
or employment.
(3) Emergency assistance.--Any emergency services provided
using funds from a grant in accordance with paragraph (2)(H)--
(A) shall be consistent with section 2281 of the
Food, Agriculture, Conservation, and Trade Act of 1990
(as amended by section 11061);
(B) shall be focused on assistance to allow low-
income farmworkers and their families to meet short-
term needs for such food, clothing, employment,
transportation, and housing as are necessary to regain
employment or return home; and
(C) may include such other types of assistance as
the Secretary determines to be appropriate.
(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.
SEC. 11067. INTERSTATE SHIPMENT OF MEAT AND POULTRY INSPECTED BY
FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL
ESTABLISHMENTS.
(a) Meat and Meat Products.--The Federal Meat Inspection Act (21
U.S.C. 601 et seq.) is amended by adding at the end the following:
``TITLE V--INSPECTIONS BY FEDERAL AND STATE AGENCIES
``SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL AND STATE
AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.
``(a) Definitions.--
``(1) Appropriate state agency.--The term `appropriate
State agency' means a State agency described in section 301(b).
``(2) Designated personnel.--The term `designated
personnel' means inspection personnel of a State agency that
have undergone all necessary inspection training and
certification to assist the Secretary in the administration and
enforcement of this Act, including regulations.
``(3) Eligible establishment.--The term `eligible
establishment' means an establishment that is in compliance
with--
``(A) the State inspection program of the State in
which the establishment is located; and
``(B) this Act.
``(4) Meat item.--The term `meat item' means--
``(A) a portion of meat; and
``(B) a meat food product.
``(5) Selected establishment.--The term `selected
establishment' means an eligible establishment that is selected
by the Secretary, in coordination with the appropriate State
agency of the State in which the eligible establishment is
located, under subsection (b) to ship carcasses, portions of
carcasses, and meat items in interstate commerce.
``(b) Authority of Secretary To Allow Shipments.--
``(1) In general.--Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the State
in which an establishment is located, may select the
establishment to ship carcasses, portions of carcasses, and
meat items in interstate commerce, and place on each carcass,
portion of a carcass, and meat item shipped in interstate
commerce a Federal mark, stamp, tag, or label of inspection, if
the establishment--
``(A) is an eligible establishment; and
``(B) is located in a State that has designated
personnel to inspect the eligible establishment.
``(2) Prohibited establishments.--In carrying out paragraph
(1), the Secretary, in coordination with an appropriate State
agency, shall not select an establishment that--
``(A) on average, employs more than 25 employees
(including supervisory and nonsupervisory employees),
as defined by the Secretary;
``(B) as of the date of enactment of this section,
ships in interstate commerce carcasses, portions of
carcasses, or meat items that are inspected by the
Secretary in accordance with this Act;
``(C)(i) is a Federal establishment;
``(ii) was a Federal establishment that was
reorganized on a later date under the same name or a
different name or person by the person, firm, or
corporation that controlled the establishment as of the
date of enactment of this section; or
``(iii) was a State establishment as of the date of
enactment of this section that--
``(I) as of the date of enactment of this
section, employed more than 25 employees; and
``(II) was reorganized on a later date by
the person, firm, or corporation that
controlled the establishment as of the date of
enactment of this section;
``(D) is in violation of this Act;
``(E) is located in a State that does not have a
State inspection program; or
``(F) is the subject of a transition carried out in
accordance with a procedure developed by the Secretary
under paragraph (3)(A).
``(3) Establishments that employ more than 25 employees.--
``(A) Development of procedure.--The Secretary may
develop a procedure to transition to a Federal
establishment any establishment under this section
that, on average, consistently employs more than 25
employees.
``(B) Eligibility of certain establishments.--
``(i) In general.--A State establishment
that employs more than 25 employees but less
than 35 employees as of the date of enactment
of this section may be selected as a selected
establishment under this subsection.
``(ii) Procedures.--A State establishment
shall be subject to the procedures established
under subparagraph (A) beginning on the date
that is 3 years after the effective date
described in subsection (j).
``(c) Reimbursement of State Costs.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall reimburse a State for costs related to the
inspection of selected establishments in the State in
accordance with Federal requirements in an amount of not less
than 60 percent of eligible State costs.
``(2) Microbiological verification testing.--The Secretary
may reimburse a State for 100 percent of eligible State costs
relating to the inspection of selected establishments in the
State, if the State provides additional microbiological
verification testing of the selected establishments, using
standards under this Act, that is in excess of the typical
verification testing frequency of the Federal Government with
respect to Federal establishments.
``(d) Coordination Between Federal and State Agencies.--
``(1) In general.--The Secretary shall designate an
employee of the Federal Government as State coordinator for
each appropriate State agency--
``(A) to provide oversight and enforcement of this
title; and
``(B) to oversee the training and inspection
activities of designated personnel of the State agency.
``(2) Supervision.--A State coordinator shall be under the
direct supervision of the Secretary.
``(3) Duties of state coordinator.--
``(A) In general.--A State coordinator shall visit
selected establishments with a frequency that is
appropriate to ensure that selected establishments are
operating in a manner that is consistent with this Act
(including regulations and policies under this Act).
``(B) Quarterly reports.--A State coordinator
shall, on a quarterly basis, submit to the Secretary a
report that describes the status of each selected
establishment that is under the jurisdiction of the
State coordinator with respect to the level of
compliance of each selected establishment with the
requirements of this Act.
``(C) Immediate notification requirement.--If a
State coordinator determines that any selected
establishment that is under the jurisdiction of the
State coordinator is in violation of any requirement of
this Act, the State coordinator shall--
``(i) immediately notify the Secretary of
the violation; and
``(ii) deselect the selected establishment
or suspend inspection at the selected
establishment.
``(4) Performance evaluations.--Performance evaluations of
State coordinators designated under this subsection shall be
conducted by the Secretary as part of the Federal agency
management control system.
``(e) Audits.--
``(1) Periodic audits conducted by inspector general of the
department of agriculture.--Not later than 2 years after the
effective date described in subsection (j), and not less often
than every 2 years thereafter, the Inspector General of the
Department of Agriculture shall conduct an audit of each
activity taken by the Secretary under this section for the
period covered by the audit to determine compliance with this
section.
``(2) Audit conducted by comptroller general of the united
states.--Not earlier than 3 years, nor later than 5 years,
after the date of enactment of this section, the Comptroller
General of the United States shall conduct an audit of the
implementation of this section to determine--
``(A) the effectiveness of the implementation of
this section; and
``(B) the number of selected establishments
selected by the Secretary under this section.
``(f) Inspection Training Division.--
``(1) Establishment.--Not later than 180 days after the
effective date described in subsection (j), the Secretary shall
establish in the Food Safety and Inspection Service of the
Department of Agriculture an inspection training division to
coordinate the initiatives of any other appropriate agency of
the Department of Agriculture to provide--
``(A) outreach, education, and training to very
small or certain small establishments (as defined by
the Secretary); and
``(B) grants to appropriate State agencies to
provide outreach, technical assistance, education, and
training to very small or certain small establishments
(as defined by the Secretary).
``(2) Personnel.--The inspection training division shall be
comprised of individuals that, as determined by the Secretary--
``(A) are of a quantity sufficient to carry out the
duties of the inspection training division; and
``(B) possess appropriate qualifications and
expertise relating to the duties of the inspection
training division.
``(g) Transition Grants.--The Secretary may provide grants to
appropriate State agencies to assist the appropriate State agencies in
helping establishments covered by title III to transition to selected
establishments.
``(h) Violations.--Any selected establishment that the Secretary
determines to be in violation of any requirement of this Act shall be
transitioned to a Federal establishment in accordance with a procedure
developed by the Secretary under subsection (b)(3)(A).
``(i) Effect.--Nothing in this section limits the jurisdiction of
the Secretary with respect to the regulation of meat and meat products
under this Act.
``(j) Effective Date.--
``(1) In general.--This section takes effect on the date on
which the Secretary, after providing a period of public comment
(including through the conduct of public meetings or hearings),
promulgates final regulations to carry out this section.
``(2) Requirement.--Not later than 18 months after the date
of enactment of this section, the Secretary shall promulgate
final regulations in accordance with paragraph (1).''.
(b) Poultry and Poultry Products.--The Poultry Products Inspection
Act (21 U.S.C. 451 et seq.) is amended by adding at the end the
following:
``SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY FEDERAL AND
STATE AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.
``(a) Definitions.--
``(1) Appropriate state agency.--The term `appropriate
State agency' means a State agency described in section
5(a)(1).
``(2) Designated personnel.--The term `designated
personnel' means inspection personnel of a State agency that
have undergone all necessary inspection training and
certification to assist the Secretary in the administration and
enforcement of this Act, including regulations.
``(3) Eligible establishment.--The term `eligible
establishment' means an establishment that is in compliance
with--
``(A) the State inspection program of the State in
which the establishment is located; and
``(B) this Act.
``(4) Poultry item.--The term `poultry item' means--
``(A) a portion of poultry; and
``(B) a poultry product.
``(5) Selected establishment.--The term `selected
establishment' means an eligible establishment that is selected
by the Secretary, in coordination with the appropriate State
agency of the State in which the eligible establishment is
located, under subsection (b) to ship poultry items in
interstate commerce.
``(b) Authority of Secretary To Allow Shipments.--
``(1) In general.--Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the State
in which an establishment is located, may select the
establishment to ship poultry items in interstate commerce, and
place on each poultry item shipped in interstate commerce a
Federal mark, stamp, tag, or label of inspection, if the
establishment--
``(A) is an eligible establishment; and
``(B) is located in a State that has designated
personnel to inspect the eligible establishment.
``(2) Prohibited establishments.--In carrying out paragraph
(1), the Secretary, in coordination with an appropriate State
agency, shall not select an establishment that--
``(A) on average, employs more than 25 employees
(including supervisory and nonsupervisory employees),
as defined by the Secretary;
``(B) as of the date of enactment of this section,
ships in interstate commerce carcasses, poultry items
that are inspected by the Secretary in accordance with
this Act;
``(C)(i) is a Federal establishment;
``(ii) was a Federal establishment as of the date
of enactment of this section, and was reorganized on a
later date under the same name or a different name or
person by the person, firm, or corporation that
controlled the establishment as of the date of
enactment of this section; or
``(iii) was a State establishment as of the date of
enactment of this section that--
``(I) as of the date of enactment of this
section, employed more than 25 employees; and
``(II) was reorganized on a later date by
the person, firm, or corporation that
controlled the establishment as of the date of
enactment of this section;
``(D) is in violation of this Act;
``(E) is located in a State that does not have a
State inspection program; or
``(F) is the subject of a transition carried out in
accordance with a procedure developed by the Secretary
under paragraph (3)(A).
``(3) Establishments that employ more than 25 employees.--
``(A) Development of procedure.--The Secretary may
develop a procedure to transition to a Federal
establishment any establishment under this section
that, on average, consistently employs more than 25
employees.
``(B) Eligibility of certain establishments.--
``(i) In general.--A State establishment
that employs more than 25 employees but less
than 35 employees as of the date of enactment
of this section may be selected as a selected
establishment under this subsection.
``(ii) Procedures.--A State establishment
shall be subject to the procedures established
under subparagraph (A) beginning on the date
that is 3 years after the effective date
described in subsection (i).
``(c) Reimbursement of State Costs.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall reimburse a State for costs related to the
inspection of selected establishments in the State in
accordance with Federal requirements in an amount of not less
than 60 percent of eligible State costs.
``(2) Microbiological verification testing.--The Secretary
may reimburse a State for 100 percent of eligible State costs
relating to the inspection of selected establishments in the
State, if the State provides additional microbiological
verification testing of the selected establishments, using
standards under this Act, that is in excess of the typical
verification testing frequency of the Federal Government with
respect to Federal establishments.
``(d) Coordination Between Federal and State Agencies.--
``(1) In general.--The Secretary shall designate an
employee of the Federal Government as State coordinator for
each appropriate State agency--
``(A) to provide oversight and enforcement of this
section; and
``(B) to oversee the training and inspection
activities of designated personnel of the State agency.
``(2) Supervision.--A State coordinator shall be under the
direct supervision of the Secretary.
``(3) Duties of state coordinator.--
``(A) In general.--A State coordinator shall visit
selected establishments with a frequency that is
appropriate to ensure that selected establishments are
operating in a manner that is consistent with this Act
(including regulations and policies under this Act).
``(B) Quarterly reports.--A State coordinator
shall, on a quarterly basis, submit to the Secretary a
report that describes the status of each selected
establishment that is under the jurisdiction of the
State coordinator with respect to the level of
compliance of each selected establishment with the
requirements of this Act.
``(C) Immediate notification requirement.--If a
State coordinator determines that any selected
establishment that is under the jurisdiction of the
State coordinator is in violation of any requirement of
this Act, the State coordinator shall--
``(i) immediately notify the Secretary of
the violation; and
``(ii) deselect the selected establishment
or suspend inspection at the selected
establishment.
``(4) Performance evaluations.--Performance evaluations of
State coordinators designated under this subsection shall be
conducted by the Secretary as part of the Federal agency
management control system.
``(e) Audits.--
``(1) Periodic audits conducted by inspector general of the
department of agriculture.--Not later than 2 years after the
effective date described in subsection (i), and not less often
than every 2 years thereafter, the Inspector General of the
Department of Agriculture shall conduct an audit of each
activity taken by the Secretary under this section for the
period covered by the audit to determine compliance with this
section.
``(2) Audit conducted by comptroller general of the united
states.--Not earlier than 3 years, nor later than 5 years,
after the date of enactment of this section, the Comptroller
General of the United States shall conduct an audit of the
implementation of this section to determine--
``(A) the effectiveness of the implementation of
this section; and
``(B) the number of selected establishments
selected by the Secretary under this section.
``(f) Transition Grants.--The Secretary may provide grants to
appropriate State agencies to assist the appropriate State agencies in
helping establishments covered by this Act to transition to selected
establishments.
``(g) Violations.--Any selected establishment that the Secretary
determines to be in violation of any requirement of this Act shall be
transitioned to a Federal establishment in accordance with a procedure
developed by the Secretary under subsection (b)(3)(A).
``(h) Effect.--Nothing in this section limits the jurisdiction of
the Secretary with respect to the regulation of poultry and poultry
products under this Act.
``(i) Effective Date.--
``(1) In general.--This section takes effect on the date on
which the Secretary, after providing a period of public comment
(including through the conduct of public meetings or hearings),
promulgates final regulations to carry out this section.
``(2) Requirement.--Not later than 18 months after the date
of enactment of this section, the Secretary shall promulgate
final regulations in accordance with paragraph (1).''.
SEC. 11068. AMENDMENT TO THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978.
Section 1113(k) of the Right to Financial Privacy Act of 1978 (12
U.S.C. 3413(k)) is amended--
(1) by striking the subsection heading and inserting the
following:
``(k) Disclosure Necessary for Proper Administration of Programs of
Certain Government Authorities.--''; and
(2) by striking paragraph (2) and inserting the following:
``(2) Nothing in this title shall apply to the disclosure
by the financial institution of information contained in the
financial records of any customer to any Government authority
that certifies, disburses, or collects payments, where the
disclosure of such information is necessary to, and such
information is used solely for the purpose of--
``(A) verification of the identity of any person or
proper routing and delivery of funds in connection with
the issuance of a Federal payment or collection of
funds by a Government authority; or
``(B) the investigation or recovery of an improper
Federal payment or collection of funds or an improperly
negotiated Treasury check.
``(3) Notwithstanding any other provision of law, a request
authorized by paragraph (1) or (2) (and the information
contained therein) may be used by the financial institution or
its agents solely for the purpose of providing information
contained in the financial records of the customer to the
Government authority requesting the information, and the
financial institution and its agents shall be barred from
redisclosure of such information. Any Government authority
receiving information pursuant to paragraph (1) or (2) may not
disclose or use the information, except for the purposes set
forth in such paragraph.''.
SEC. 11069. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE TO
COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.
(a) Elimination.--Section 3716 of title 31, United States Code, is
amended by striking subsection (e) and inserting the following:
``(e)(1) Notwithstanding any other provision of law, regulation, or
administrative limitation, no limitation on the period within which an
offset may be initiated or taken pursuant to this section shall be
effective.
``(2) This section does not apply when a statute explicitly
prohibits using administrative offset or setoff to collect the claim or
type of claim involved.''.
(b) Application of Amendment.--The amendment made by subsection (a)
shall apply to any debt outstanding on or after the date of the
enactment of this Act.
SEC. 11070. REPORT ON STORED QUANTITIES OF PROPANE.
(a) Report.--
(1) In general.--Not later than 240 days after the date of
enactment of this Act, the Secretary of Homeland Security
(referred to in this section as the ``Secretary'') shall submit
to the Committee on Agriculture, Nutrition, and Forestry and
the Committee on Homeland Security and Government Affairs of
the Senate and the Committee on Agriculture and the Committee
on Homeland Security of the House of Representatives a report
describing the effect of interim or final regulations issued by
the Secretary pursuant to section 550(a) of the Department of
Homeland Security Appropriations Act, 2007 (6 U.S.C. 121 note;
Public Law 109-295), with respect to possession of quantities
of propane that meet or exceed the screening threshold quantity
for propane established in the final rule under that section.
(2) Inclusions.--The report under paragraph (1)--
(A) shall include, at a minimum, a description of--
(i) the number of facilities that completed
a top screen consequence assessment due to
possession of quantities of propane that meet
or exceed the listed screening threshold
quantity for propane;
(ii) the number of agricultural facilities
that completed the top screen consequence
assessment due to possession of quantities of
propane that meet or exceed the listed
screening threshold quantity for propane;
(iii) the number of propane facilities
initially determined to be high risk by the
Secretary;
(iv) the number of propane facilities--
(I) required to complete a security
vulnerability assessment or a site
security plan; or
(II) that submit to the Secretary
an alternative security program;
(v) the number of propane facilities that
file an appeal of a finding under the final
rule described in paragraph (1); and
(vi) to the extent available, the average
cost of--
(I) completing a top screen
consequence assessment requirement;
(II) completing a security
vulnerability assessment; and
(III) completing and implementing a
site security plan; and
(B) may include a classified annex, as the
Secretary determines to be appropriate.
(b) Educational Outreach.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall conduct educational
outreach activities for rural facilities that may be required
to complete a top screen consequence assessment due to
possession of propane in a quantity that meets or exceeds the
listed screening threshold quantity for propane.
(2) Use of council.--In conducting outreach activities
under paragraph (1), the Secretary may use the Food and
Agricultural Sector Coordinating Council established under the
national infrastructure protection plan to facilitate the
provision of education to rural areas regarding the top screen
consequence assessment requirement.
SEC. 11071. CLOSURE OF CERTAIN COUNTY FSA OFFICES.
(a) Definition of Critical Access County FSA Office.--
(1) In general.--In this section, the term ``critical
access county FSA office'' means an office of the Farm Service
Agency that, during the period described in paragraph (2), is--
(A) proposed to be closed;
(B) proposed to be closed with the closure delayed
until after January 1, 2008, due to additional review
pursuant to the third proviso of matter under the
heading ``salaries and expenses'' under the heading
``Farm Service Agency'' of the Agriculture, Rural
Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2006 (Public Law 109-97;
119 Stat. 2131); or
(C) included on a list of critical access county
FSA offices determined in accordance with that Act and
submitted to the Committee on Agriculture, Nutrition,
and Forestry of the Senate by the Secretary on October
24, 2007.
(2) Description of period.--The period referred to in
paragraph (1) is the period beginning on November 10, 2005, and
ending on December 31, 2007.
(3) Exception.--The term ``critical access county FSA
office'' does not include any office of the Farm Service Agency
that--
(A) is located not more than 20 miles from another
office of the Farm Service Agency; or
(B) employs no full-time equivalent employees as of
the date of enactment of this Act.
(b) Extension of Period of Operation.--
(1) In general.--Notwithstanding any other provision of
law, except as provided in paragraph (3), none of the funds
made available to the Secretary by any Act may be used to pay
the salaries or expenses of any officer or employee of the
Department of Agriculture to close any critical access county
FSA office during the period beginning on date of enactment and
ending on September 30, 2012.
(2) Number of employees.--
(A) In general.--Subject to subparagraphs (B) and
(C), the Secretary shall ensure that each critical
access county FSA office in each State maintains a
staff level of not less than 3 full-time equivalent
employees during the period described in paragraph (1).
(B) Staffing flexibility.--Notwithstanding
subparagraph (A) and subject to subparagraph (C), an
employee required to meet the staff level of a critical
access county FSA office in a State as described in
subparagraph (A) may be employed at any other county
office of the Farm Service Agency in that State, as the
Secretary determines to be appropriate.
(C) Minimum staffing level.--A critical access
county FSA office shall be staffed by not less than 1
full-time equivalent employee during the period
described in paragraph (1).
(3) Exception.--The Secretary may close a critical access
county FSA office only on concurrence in the determination to
close the critical access county FSA office by--
(A) Congress; and
(B) the applicable State Farm Service Agency
committee.
SEC. 11072. ACTION BY PRESIDENT AND CONGRESS BASED ON REPORT.
(a) President.--Not later than 180 days after the date on which the
Congressional Bipartisan Food Safety Commission established by section
11060(a)(1)(A) submits to the President and Congress the report
required under section 11060(b)(3), the President shall--
(1) review the report; and
(2) submit to Congress proposed legislation based on the
recommendations for statutory language contained in the report,
together with an explanation of the differences, if any,
between the recommendations for statutory language contained in
the report and the proposed legislation.
(b) Congress.--On receipt of the proposed legislation described in
subsection (a), the appropriate committees of Congress may hold such
hearings and carry out such other activities as are necessary for
appropriate consideration of the recommendations for statutory language
contained in the report and the proposed legislation.
(c) Sense of Senate.--It is the sense of the Senate that--
(1) it is vital for Congress to provide to food safety
agencies of the Federal Government, including the Department of
Agriculture and the Food and Drug Administration, additional
resources, and direction with respect to ensuring the safety of
the food supply of the United States;
(2) additional inspectors are required to improve the
ability of the Federal Government to safeguard the food supply
of the United States;
(3) because of the increasing volume of international trade
in food products, the Federal Government should give priority
to entering into agreements with trading partners of the United
States with respect to food safety; and
(4) based on the report of the Commission referred to in
subsection (a) and the proposed legislation referred to in
subsection (b), Congress should work toward a comprehensive
legislative response to the issue of food safety.
SEC. 11073. PAYMENTS TO DECEASED INDIVIDUALS AND ESTATES.
(a) In General.--Notwithstanding any other provision of law, the
Secretary shall not provide to any deceased individual or estate of
such an individual any agricultural payment under this Act, or an Act
amended by this Act, after the date that is 2 program years (as
determined by the Secretary with respect to the applicable payment
program) after the date of death of the individual.
(b) Report.--As soon as practicable after the date of enactment of
this Act, and annually thereafter, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate, and
post on the website of the Department of Agriculture, a report that
describes, for the period covered by the report--
(1) the number and aggregate amount of agricultural
payments described in subsection (a) provided to deceased
individuals and estates of deceased individuals; and
(2) for each such payment, the length of time the estate of
the deceased individual that received the payment has been
open.
SEC. 11074. GAO REPORT ON ACCESS TO HEALTH CARE FOR FARMERS.
(a) Report.--Not later than November 30, 2008, the Comptroller
General of the United States shall submit to Congress a report on
access to health care for rural Americans and farmers.
(b) Consultation.--The report shall be done in consultation with
the Rural Health Research Centers in the Department of Health and Human
Services Office of Rural Health Policy.
(c) Elements.--The report required by subsection (a) shall include
the following:
(1) Assessment.--An assessment of access to health care for
rural Americans, including the following:
(A) An overview of the rates of the uninsured among
people living in rural areas in the United States and
possible factors that cause the uninsurance,
specifically--
(i) a synthesis of existing research on the
uninsured living in rural America; and
(ii) a detailed analysis of the uninsured
and the factors that contribute in uninsurance
in 3 to 4 rural areas.
(2) Second assessment.--An assessment of access to health
care for farmers, including the following:
(A) An overview of the rates of the uninsured among
farmers in the United States and the factors that cause
the uninsurance, specifically--
(i) factors, such as land assets, that keep
low-income farmers from qualifying for public
insurance programs;
(ii) the effects of the high price of
health insurance for individuals purchasing in
the individual, non-group market; and
(iii) any other significant factor that
contributes to the rates of uninsurance among
farmers.
(B) The extent to which farmers depend on a
spouse's off-farm job for health care coverage.
(C) The effects of uninsurance on farmers and their
families.
(3) Role of congress.--Recommendations regarding the
potential role of Congress in supporting increased access to
health insurance for farmers and their families, and rural
Americans.
SEC. 11075. CONVEYANCE OF LAND TO CHIHUAHUAN DESERT NATURE PARK.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Chihuahuan Desert
Nature Park Board.
(2) Nature park.--The term ``Nature Park'' means the
Chihuahuan Desert Nature Park, Inc., a nonprofit corporation in
the State of New Mexico.
(b) Conveyance of Land.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, subject to valid existing rights and
subsection (c), the Secretary shall convey to the Nature Park,
by quitclaim deed, for no consideration, all right, title, and
interest of the United States in and to the land described in
paragraph (2)
(2) Description of land.--
(A) In general.--The parcel of land referred to in
paragraph (1) consists of the approximately 935.62
acres of land in Dona Ana County, New Mexico, which is
more particularly described--
(i) as sections 17, 20, and 21 of T. 21 S.,
R. 2 E., N.M.P.M.; and
(ii) in an easement deed dated May 14,
1998, from the Department of Agriculture to the
Nature Park.
(B) Modifications.--The Secretary may modify the
description of the land under subparagraph (A) to--
(i) correct errors in the description; or
(ii) facilitate management of the land.
(c) Conditions.--The conveyance of land under subsection (b) shall
be subject to--
(1) the reservation by the United States of all mineral and
subsurface rights to the land, including any geothermal
resources;
(2) the condition that the Board pay any costs relating to
the conveyance;
(3) any rights-of-way reserved by the Secretary;
(4) a covenant or restriction in the deed to the land
requiring that--
(A) the land may be used only for educational or
scientific purposes; and
(B) if the land is no longer used for the purposes
described in subparagraph (A), the land may, at the
discretion of the Secretary, revert to the United
States in accordance with subsection (d); and
(5) any other terms and conditions that the Secretary
determines to be appropriate.
(d) Reversion.--If the land conveyed under subsection (b) is no
longer used for the purposes described in subsection (c)(4)(A)--
(1) the land may, at the discretion of the Secretary,
revert to the United States; and
(2) if the Secretary chooses to have the land revert to the
United States, the Secretary shall--
(A) determine whether the land is environmentally
contaminated, including contamination from hazardous
wastes, hazardous substances, pollutants, contaminants,
petroleum, or petroleum by-products; and
(B) if the Secretary determines that the land is
environmentally contaminated, the Nature Park, the
successor to the Nature Park, or any other person
responsible for the contamination shall be required to
remediate the contamination.
(e) Withdrawal.--All federally owned mineral and subsurface rights
to the land described in subsection (b)(2) are withdrawn from--
(1) location, entry, and patent under the mining laws; and
(2) the operation of the mineral leasing laws, including
the geothermal leasing laws.
(f) Water Rights.--Nothing in this section authorizes the
conveyance of water rights to the Nature Park.
SEC. 11076. PROHIBITIONS ON DOG FIGHTING VENTURES.
(a) In General.--Section 26 of the Animal Welfare Act (7 U.S.C.
2156) is amended--
(1) in subsection (a)(1)--
(A) by striking ``any person to knowingly sponsor''
and inserting ``any person--
``(A) to knowingly sponsor'';
(B) by striking the period at the end and inserting
``; or''; and
(C) by adding at the end the following:
``(B) to knowingly sponsor or exhibit an animal in
a dog fighting venture.'';
(2) in subsection (b)--
(A) by striking ``any person to knowingly sell''
and inserting ``any person--
``(1) to knowingly sell'';
(B) by striking the period at the end and inserting
``; or''; and
(C) by adding at the end the following:
``(2) to knowingly sell, buy, possess, train, transport,
deliver, or receive for purposes of transportation, any dog or
other animal, for the purposes of having the dog or other
animal, or offspring of the dog or other animal, participate in
a dog fighting venture.'';
(3) in the last sentence of subsection (f), by striking
``by the United States''; and
(4) in subsection (g) --
(A) in paragraph (5), by striking ``and'' at the
end;
(B) by redesignating paragraph (6) as paragraph
(7); and
(C) by inserting after paragraph (5) the following:
``(6) the term `dog fighting venture'--
``(A) means any event that--
``(i) involves a fight between at least 2
animals;
``(ii) includes at least 1 dog; and
``(iii) is conducted for purposes of sport,
wagering, or entertainment; and
``(B) does not include any activity the primary
purpose of which involves the use of 1 or more animals
to hunt another animal; and''.
(b) Enforcement of Animal Fighting Prohibitions.--Section 49 of
title 18, United States Code, is amended to read as follows:
``Sec. 49. Enforcement of animal fighting prohibitions
``(a) Animal Fighting Ventures.--Whoever violates subsection
(a)(1)(A), (b)(1), (c), or (e) of section 26 of the Animal Welfare Act
(7 U.S.C. 2156) shall be fined under this title, imprisoned for not
more than 3 years, or both, for each violation.
``(b) Dog Fighting Ventures.--Whoever violates subsection (a)(1)(B)
or (b)(2) of section 26 of the Animal Welfare Act shall be fined under
this title, imprisoned for not more than 5 years, or both, for each
violation.''.
SEC. 11077. REGULATIONS TO IMPROVE MANAGEMENT AND OVERSIGHT OF CERTAIN
REGULATED ARTICLES.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall promulgate regulations--
(1) to implement, as appropriate, each issue identified in
the document entitled ``Lessons Learned and Revisions under
Consideration for APHIS' Biotechnology Framework'', dated
October 4, 2007; and
(2) to improve the management and oversight of articles
regulated under the Plant Protection Act (7 U.S.C. 7701 et
seq.).
(b) Inclusions.--In promulgating regulations under subsection (a),
the Secretary shall include provisions that are designed to enhance--
(1) the quality and completeness of records;
(2) the availability of representative samples;
(3) the maintenance of identity and control in the event of
an unauthorized release;
(4) corrective actions in the event of an unauthorized
release;
(5) protocols for conducting molecular forensics;
(6) clarity in contractual agreements;
(7) the use of the latest scientific techniques for
isolation and confinement;
(8) standards for quality management systems and effective
research (including laboratory, greenhouse, and field
research); and
(9) the design of electronic permits to store documents and
other information relating to the permit and notification
processes.
(c) Consideration.--In promulgating regulations under subsection
(a), the Secretary shall consider--
(1) establishing--
(A) a system of risk-based categories to classify
each regulated article;
(B) a means to identify regulated articles
(including the retention of seed samples); and
(C) standards for isolation and containment
distances; and
(2) requiring permit holders--
(A) to maintain a positive chain of custody;
(B) to provide for the maintenance of records;
(C) to provide for the accounting of material;
(D) to conduct periodic audits;
(E) to establish an appropriate training program;
(F) to provide contingency and corrective action
plans; and
(G) to submit reports as the Secretary considers to
be appropriate.
SEC. 11078. INVASIVE PEST AND DISEASE EMERGENCY RESPONSE FUNDING
CLARIFICATION.
The Secretary may provide funds on an emergency basis to States to
assist the States in combating invasive pest and disease outbreaks for
any appropriate period of years after the date of initial detection by
a State of an invasive pest or disease outbreak, as determined by the
Secretary.
SEC. 11079. PROTECTION OF PETS.
(a) Short Title.--This section may be cited as the ``Pet Safety and
Protection Act of 2007''.
(b) Research Facilities.--Section 7 of the Animal Welfare Act (7
U.S.C. 2137) is amended to read as follows:
``SEC. 7. SOURCES OF DOGS AND CATS FOR RESEARCH FACILITIES.
``(a) Definition of Person.--In this section, the term `person'
means any individual, partnership, firm, joint stock company,
corporation, association, trust, estate, pound, shelter, or other legal
entity.
``(b) Use of Dogs and Cats.--No research facility or Federal
research facility may use a dog or cat for research or educational
purposes if the dog or cat was obtained from a person other than a
person described in subsection (d).
``(c) Selling, Donating, or Offering Dogs and Cats.--No person,
other than a person described in subsection (d), may sell, donate, or
offer a dog or cat to any research facility or Federal research
facility.
``(d) Permissible Sources.--A person from whom a research facility
or a Federal research facility may obtain a dog or cat for research or
educational purposes under subsection (b), and a person who may sell,
donate, or offer a dog or cat to a research facility or a Federal
research facility under subsection (c), shall be--
``(1) a dealer licensed under section 3 that has bred and
raised the dog or cat;
``(2) a publicly owned and operated pound or shelter that--
``(A) is registered with the Secretary;
``(B) is in compliance with section 28(a)(1) and
with the requirements for dealers in subsections (b)
and (c) of section 28; and
``(C) obtained the dog or cat from its legal owner,
other than a pound or shelter;
``(3) a person that is donating the dog or cat and that--
``(A) bred and raised the dog or cat; or
``(B) owned the dog or cat for not less than 1 year
immediately preceding the donation;
``(4) a research facility licensed by the Secretary; and
``(5) a Federal research facility licensed by the
Secretary.
``(e) Penalties.--
``(1) In general.--A person that violates this section
shall be fined $1,000 for each violation.
``(2) Additional penalty.--A penalty under this subsection
shall be in addition to any other applicable penalty.
``(f) No Required Sale or Donation.--Nothing in this section
requires a pound or shelter to sell, donate, or offer a dog or cat to a
research facility or Federal research facility.
``(g) Limitation.--The Secretary shall phase out, by the date that
is 5 years after the date of enactment of this subsection, the use of
random source dogs and cats from class B dealers in accordance with a
schedule established by the Secretary.''.
(c) Federal Research Facilities.--Section 8 of the Animal Welfare
Act (7 U.S.C. 2138) is amended--
(1) by striking ``sec. 8. No department'' and inserting the
following:
``SEC. 8. FEDERAL RESEARCH FACILITIES.
``Except as provided in section 7, no department'';
(2) by striking ``research or experimentation or''; and
(3) by striking ``such purposes'' and inserting ``that
purpose''.
(d) Certification.--Section 28(b)(1) of the Animal Welfare Act (7
U.S.C. 2158(b)(1)) is amended by striking ``individual or entity'' and
inserting ``research facility or Federal research facility''.
SEC. 11080. EXEMPTION FROM AQI USER FEES.
(a) In General.--Notwithstanding any other provision of law
(including regulations), the owner or operator of any commercial truck
described in subsection (b) shall be exempt from the payment of any
agricultural quarantine and inspection user fee.
(b) Commercial Trucks.--A commercial truck referred to in
subsection (a) is a commercial truck that--
(1) originates in the State of Alaska and reenters the
customs territory of the United States directly from Canada; or
(2) originates in the customs territory of the United
States (other than the State of Alaska) and transits through
the customs territory of Canada directly before entering the
State of Alaska.
(c) Sealed Cargo Areas.--A cargo area of any commercial truck
carrying an agricultural product shall remain sealed during transit
through Canada.
SEC. 11081. DEPARTMENT OF AGRICULTURE CONFERENCE TRANSPARENCY.
(a) Reports on Conference Expenditures.--For fiscal year 2008 and
each fiscal year thereafter, the Secretary shall submit to the
Inspector General of the Department of Agriculture quarterly reports
that describe the costs and contracting procedures relating to each
conference or meeting held by the Department of Agriculture during the
quarter covered by the report for which the cost to the Federal
Government was more than $10,000.
(b) Requirements.--Each report submitted under subsection (a) shall
include, for each conference and meeting covered by the report--
(1) a description of the number participants attending, and
the purpose of those participants for attending, the conference
or meeting;
(2) a detailed statement of the costs incurred by the
Federal Government relating to that conference or meeting,
including--
(A) the cost of any food or beverages;
(B) the cost of any audio-visual services;
(C) the cost of all related travel; and
(D) a discussion of the methodology used to
determine which costs relate to that conference or
meeting; and
(3) a description of the contracting procedures relating to
that conference or meeting, including--
(A) whether contracts were awarded on a competitive
basis; and
(B) a discussion of any cost comparison conducted
by the Department of Agriculture in evaluating
potential contractors for any conference or meeting.
(c) Travel Expenses.--
(1) Definition of conference.--In this subsection, the term
``conference'' means a meeting that--
(A) is held for consultation, education, awareness,
or discussion;
(B) includes participants who are not all employees
of the same agency;
(C) is not held entirely at an agency facility;
(D) involves costs associated with travel and
lodging for some participants; and
(E) is sponsored by 1 or more agencies, 1 or more
organizations that are not agencies, or a combination
of those agencies or organizations.
(2) Report.--Not later than September 30 of each fiscal
year, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate, and post
on the public website of the Department of Agriculture in a
searchable, electronic format, a report on each conference for
which the Department of Agriculture paid travel expenses during
the fiscal year covered by the report, including--
(A) a description of--
(i) the itemized expenses paid by the
Department of Agriculture, including travel
expenses and any other expenditures to support
the conference;
(ii) the primary sponsor of the conference;
and
(iii) the location of the conference; and
(B) in the case of a conference for which the
Department of Agriculture was the primary sponsor, a
statement that--
(i) justifies the location selected;
(ii) demonstrates the cost efficiency of
the location;
(iii) specifies the date or dates of the
conference;
(iv) includes a brief explanation of the
ways in which the conference advanced the
mission of the Department of Agriculture; and
(v) specifies the total number of
individuals whose travel or attendance at the
conference was paid for, in whole or in part,
by the Department of Agriculture.
SEC. 11082. REPORT RELATING TO THE ENDING OF CHILDHOOD HUNGER IN THE
UNITED STATES.
(a) Findings.--Congress finds that--
(1) the United States has the highest rate of childhood
poverty in the industrialized world, with over \1/5\ of all
children of the United States living in poverty, and almost
half of those children living in extreme poverty;
(2) childhood poverty in the United States is growing
rather than diminishing;
(3) households with children experience hunger at more than
double the rate as compared to households without children;
(4) hunger is a major problem in the United States, with
the Department of Agriculture reporting that 12 percent of the
citizens of the United States (approximately 35,000,000
citizens) could not put food on the table of those citizens at
some point during 2006;
(5) of the 35,000,000 citizens of the United States that
have very low food security--
(A) 98 percent of those citizens worried that money
would run out before those citizens acquired more money
to buy more food;
(B) 96 percent of those citizens had to cut the
size of the meals of those citizens or even go without
meals because those citizens did not have enough money
to purchase appropriate quantities of food; and
(C) 94 percent of those citizens could not afford
to eat balanced meals;
(6) the phrase ``people with very low food security'', a
new phrase in our national lexicon, in simple terms means
``people who are hungry'';
(7) 30 percent of black and Hispanic children, and 40
percent of low income children, live in households that do not
have access to nutritionally adequate diets that are necessary
for an active and healthy life;
(8) the increasing lack of access of the citizens of the
United States to nutritionally adequate diets is a significant
factor from which the Director of the Centers for Disease
Control and Prevention concluded that ``during the past 20
years there has been a dramatic increase in obesity in the
United States'';
(9) during the last 3 decades, childhood obesity has--
(A) more than doubled for preschool children and
adolescents; and
(B) more than tripled for children between the ages
of 6 and 11 years;
(10) as of the date of enactment of this Act, approximately
9,000,000 children who are 6 years old or older are considered
obese;
(11) scientists have demonstrated that there is an inverse
relation between obesity and doing well in school; and
(12) a study published in Pediatrics found that ``6- to 11-
year-old food-insufficient children had significantly lower
arithmetic scores and were more likely to have repeated a
grade, have seen a psychologist, and have had difficulty
getting along with other children''.
(b) Sense of Congress.--It is the sense of Congress that--
(1) it is a national disgrace that many millions of
citizens of the United States, a disproportionate number of
whom are children, are going hungry in this great nation, which
is the wealthiest country in the history of the world;
(2) because the strong commitment of the United States to
family values is deeply undermined when families and children
go hungry, the United States has a moral obligation to abolish
hunger; and
(3) through a variety of initiatives (including large
funding increases in nutrition programs of the Federal
Government), the United States should abolish child hunger and
food insufficiency in the United States by the 2013.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit to the relevant committees of
Congress a report that describes the best and most cost-effected manner
by which the Federal Government could allocate an increased amount of
funds to new programs and programs in existence as of the date of
enactment of this Act to achieve the goal of abolishing child hunger
and food insufficiency in the United States by 2013.
SEC. 11083. NATIONAL EMERGENCY GRANT TO ADDRESS EFFECTS OF GREENSBURG,
KANSAS TORNADO.
(a) Definitions.--In this section:
(1) Covered funds.--The term ``covered funds'' means funds
provided under section 173 of the Workforce Investment Act of
1998 (29 U.S.C. 2918) to a State that submits an application
under that section not earlier than May 4, 2007, for a national
emergency grant to address the effects of the May 4, 2007,
Greensburg, Kansas tornado.
(2) Professional municipal services.--The term
``professional municipal services'' means services that are
necessary to facilitate the recovery of Greensburg, Kansas from
that tornado, and necessary to plan for or provide basic
management and administrative services, which may include--
(A) the overall coordination of disaster recovery
and humanitarian efforts, oversight, and enforcement of
building code compliance, and coordination of health
and safety response units; or
(B) the delivery of humanitarian assistance to
individuals affected by that tornado.
(b) Temporary Public Sector Employment and Services.--Covered funds
may be used to provide temporary public sector employment and services
authorized under section 173 of such Act to individuals affected by
such tornado, including individuals who were unemployed on the date of
the tornado, or who are without employment history, in addition to
individuals who are eligible for disaster relief employment under
section 173(d)(2) of such Act.
(c) Professional Municipal Services.--Covered funds may be used to
provide professional municipal services for a period of not more than
24 months, by hiring or contracting with individuals or organizations
(including individuals employed by contractors) that the State involved
determines are necessary to provide professional municipal services.
(d) Limitation.--Covered funds expended under this section may be
spent on costs incurred not earlier than May 4, 2007.
SEC. 11084. REPORT ON PROGRAM RESULTS.
Not later than 180 days after the date of enactment of this Act,
the Secretary shall submit to Congress a report that describes--
(1) each program of the Department of Agriculture that has
received a Program Assessment Rating Tool score of ``results
not demonstrated''; and
(2) for each such program--
(A) the reasons that the program has not been able
to demonstrate results;
(B) the steps being taken by the program to address
those reasons; and
(C) a description of anything that might be
necessary to facilitate the demonstration of results.
SEC. 11085. SENSE OF THE SENATE ON THE U.S. DEPARTMENT OF AGRICULTURE'S
WILDLIFE SERVICES COMPETING AGAINST PRIVATE INDUSTRY FOR
NUISANCE BIRD CONTROL WORK.
(a) Findings.--The Senate finds that:
(1) The Wildlife Services Division of the Animal and Plant
Health Inspection Service of the Department of Agriculture
(referred to in this section as ``Wildlife Services'' helps
agricultural producers manage nuisance wildlife problems;
(2) Wildlife Services personnel also manage nuisance
wildlife in non-agricultural settings, including urban areas;
(3) Congress granted the Secretary the authority to engage
in wildlife animal damage activities in the Act of March 2,
1931, and the Rural Development, Agriculture and Related
Agencies Appropriations Act, 1988;
(4) Title I of the Rural Development, Agriculture and
Related Agencies Appropriations Act, 1988 expressly prohibits
the Secretary from performing ``urban rodent'' control but does
not define the term;
(5) There are more than 19,000 professional pest management
companies in the United States, a significant percentage of
which manage nuisance birds such as European starlings, house
sparrows, and pigeons in urban areas;
(6) The industry employs more than 115,000 service
personnel who perform over 60,000,000 services annually for
residential and commercial clients in every market of the
United States;
(7) In areas where the private sector has the capacity to
provide nuisance wildlife services, the limited resources of
Wildlife Services would be better used to assist agricultural
producers with management of predators and other depredatory
species that prey on livestock and sport and farm fish, and
damage crops.
(b) Sense of the Senate.--It is the Sense of the Senate that--
(1) Wildlife Services should neither compete nor condone
competition with the private sector for business regarding the
management of nuisance wildlife problems in urban areas where
private sector services are available;
(2) Wildlife Services, prior to entering into any
cooperative agreement for wildlife damage management
activities, should inform cooperators of the availability of
and their right to acquire services from private service
providers;
(3) the Secretary of Agriculture should ensure that
Wildlife Services does not aggressively compete with the
private pest management industry for European starling, house
sparrow, and pigeon control work in urban areas where private
sector services are available;
(4) the Secretary of Agriculture should rely on scientific
and widely accepted definitions to define the term ``urban
rodent,'' as used in the Rural Development, Agriculture and
Related Agencies Appropriations Act of 1988, in order to
clarify the express restrictions in that law on Wildlife
Services activities;
(5) the Secretary should direct Wildlife Services to work
with private industry, through a Memorandum of Understanding,
to delineate common areas of cooperation so that issues of
competition are addressed, taking into account the interests of
the wildlife resources and the need to manage damage caused by
that resource.
SEC. 11086. OVERSIGHT OF NATIONAL AQUATIC ANIMAL HEALTH PLAN.
(a) Definitions.--In this section:
(1) Advisory committee.--The term ``advisory committee''
means the General Advisory Committee for Oversight of National
Aquatic Animal Health established under subsection (b)(1).
(2) Plan.--The term ``plan'' means the national aquatic
animal health plan developed by the National Aquatic Animal
Health Task Force, composed of representatives of the
Department of Agriculture, the Department of Commerce
(including the National Oceanic and Atmospheric
Administration), and the Department of the Interior (including
the United States Fish and Wildlife Service).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Administrator of the Animal
and Plant Health Inspection Service.
(b) General Advisory Committee for Oversight of National Aquatic
Animal Health.--
(1) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Secretary, in consultation with
States and the private sector, shall establish an advisory
committee, to be known as the ``General Advisory Committee for
Oversight of National Aquatic Animal Health''.
(2) Membership.--
(A) Composition.--The advisory committee shall--
(i) be composed equally of representatives
of--
(I) State and tribal governments;
and
(II) commercial aquaculture
interests; and
(ii) consist of not more than 20 members,
to be appointed by the Secretary, of whom--
(I) not less than 3 shall be
representatives of Federal departments
or agencies;
(II) not less than 6 shall be
representatives of State or tribal
governments that elect to participate
in the plan under subsection (d);
(III) not less than 6 shall be
representatives of affected commercial
aquaculture interests; and
(IV) not less than 2 shall be
aquatic animal health experts, as
determined by the Secretary, of whom at
least 1 shall be a doctor of veterinary
medicine.
(B) Nominations.--The Secretary shall publish in
the Federal Register a solicitation for, and may
accept, nominations for members of the advisory
committee from appropriate entities, as determined by
the Secretary.
(c) Recommendations.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the advisory committee shall develop and
submit to the Secretary recommendations regarding--
(A) the establishment and membership of appropriate
expert and representative commissions to efficiently
implement and administer the plan;
(B) disease- and species-specific best management
practices relating to activities carried out under the
plan; and
(C) the establishment and administration of the
indemnification fund under subsection (e).
(2) Factors for consideration.--In developing
recommendations under paragraph (1), the advisory committee
shall take into consideration all emergency aquaculture-related
projects that have been or are being carried out under the plan
as of the date of submission of the recommendations.
(3) Regulations.--After consideration of the
recommendations submitted under this subsection, the Secretary
shall promulgate regulations to establish a national aquatic
animal health improvement program, in accordance with the
Animal Health Protection Act (7 U.S.C. 8301 et seq.).
(d) Participation by State and Tribal Governments and Private
Sector.--
(1) In general.--Any State or tribal government, and any
entity in the private sector, may elect to participate in the
plan.
(2) Duties.--On election by a State or tribal government or
entity in the private sector to participate in the plan under
paragraph (1), the State or tribal government or entity shall--
(A) submit to the Secretary--
(i) a notification of the election; and
(ii) nominations for members of the
advisory committee, as appropriate; and
(B) as a condition of participation, enter into an
agreement with the Secretary under which the State or
tribal government or entity--
(i) assumes responsibility for a portion of
the non-Federal share of the costs of carrying
out the plan, as described in paragraph (3);
and
(ii) agrees to act in accordance with
applicable disease- and species-specific best
management practices relating to activities
carried out under the plan by the State or
tribal government or entity, as the Secretary
determines to be appropriate.
(3) Non-federal share.--
(A) In general.--Subject to subparagraph (B), the
non-Federal share of the cost of carrying out the
plan--
(i) shall be determined--
(I) by the Secretary, in
consultation with the advisory
committee; and
(II) on a case-by-case basis for
each project carried out under the
plan; and
(ii) may be provided by State and tribal
governments and entities in the private sector
in cash or in-kind.
(B) Deposits into indemnification fund.--The non-
Federal share of amounts in the indemnification fund
provided by each State or tribal government or entity
in the private sector shall be--
(i) zero with respect to the initial
deposit into the fund; and
(ii) determined on a case-by-case basis for
each project carried out under the plan.
(e) Indemnification Fund.--
(1) Establishment.--The Secretary, in consultation with the
advisory committee, shall establish a fund, to be known as the
``indemnification fund'', consisting of such amounts as are
initially deposited into the fund by the Secretary under
subsection (g)(1).
(2) Uses.--The Secretary shall use amounts in the
indemnification fund only to compensate aquatic farmers--
(A) the entire inventory of livestock or gametes of
which is eradicated as a result of a disease control or
eradication measure carried out under the plan; or
(B) for the cost of disinfecting, destruction, and
cleaning products or equipment in response to a
depopulation order carried out under the plan.
(3) Unused amounts.--Amounts remaining in the
indemnification fund on September 30 of the fiscal year for
which the amounts were appropriated--
(A) shall remain in the fund;
(B) may be used in any subsequent fiscal year in
accordance with paragraph (2); and
(C) shall not be reprogrammed by the Secretary for
any other use.
(f) Review.--Not later than 2 years after the date of enactment of
this Act, the Secretary, in consultation with the advisory committee,
shall review, and submit to Congress a report regarding--
(1) activities carried out under the plan during the
preceding 2 years;
(2) activities carried out by the advisory committee; and
(3) recommendations for funding for subsequent fiscal years
to carry out this section.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $15,000,000 for each of fiscal
years 2008 and 2009, of which--
(1) not less than 50 percent shall be deposited into the
indemnification fund established under subsection (e) for use
in accordance with that subsection; and
(2) not more than 50 percent shall be used for the costs of
carrying out the plan, including the costs of--
(A) administration of the plan;
(B) implementation of the plan;
(C) training and laboratory testing;
(D) cleaning and disinfection associated with
depopulation orders; and
(E) public education and outreach activities.
SEC. 11087. FOOD SAFETY IMPROVEMENT.
(a) Reportable Food Registries.--
(1) Federal meat inspection.--The Federal Meat Inspection
Act is amended--
(A) by redesignating section 411 (21 U.S.C. 680) as
section 412; and
(B) by inserting after section 410 (21 U.S.C. 679a)
the following:
``SEC. 411. REPORTABLE FOOD EVENT.
``(a) Definitions.--In this section:
``(1) Reportable food.--The term `reportable food' means
meat or a meat food product under this Act for which there is a
reasonable probability that the use of, or exposure to, the
meat or meat food product will cause serious adverse health
consequences or death to humans or animals.
``(2) Registry.--The term `Registry' means the registry
established under subsection (b).
``(3) Responsible party.--The term `responsible party',
with respect to a reportable food, means an operator of an
establishment subject to inspection under this Act at which the
reportable food is manufactured, processed, packed, or held.
``(b) Establishment.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Food and Energy Security Act of 2007, the
Secretary shall establish within the Department of Agriculture
a Reportable Meat Registry to which information concerning
reportable food may be submitted via an electronic portal,
from--
``(A) employees of the Food Safety and Inspection
Service;
``(B) Federal, State, and local public health
officials; and
``(C) responsible parties.
``(2) Review by secretary.--The Secretary shall promptly
review and assess the information submitted under paragraph (1)
for the purposes of--
``(A) identifying reportable food;
``(B) submitting entries to the Registry;
``(C) taking actions under subsection (c); and
``(D) exercising other food safety authority of the
Secretary to protect the health and safety of humans
and animals.
``(c) Issuance of an Alert by the Secretary.--
``(1) In general.--The Secretary shall issue, or cause to
be issued, an alert or a notification with respect to a
reportable food using information from the Registry as the
Secretary considers necessary to protect the health and safety
of humans and animals.
``(2) Effect.--Paragraph (1) shall not affect the authority
of the Secretary to issue an alert or a notification under any
other provision of law.
``(d) Reporting and Notification.--
``(1) In general.--Except as provided in paragraph (2), as
soon as practicable, but in no case later than 24 hours after a
responsible party determines that meat or meat food product is
a reportable food, the responsible party shall--
``(A) submit a report to the Secretary through the
Registry that includes information described in
subsection (e) (other than the information described in
paragraphs (7), (8), and (9) of that subsection); and
``(B) investigate the cause of the event that
caused the meat or meat food product to be a reportable
food, if the reportable food originated with the
responsible party.
``(2) No report required.--A responsible party shall not be
required to submit a report under paragraph (1) if--
``(A) the adulteration or misbranding originated
with the responsible party;
``(B) the responsible party detected the
adulteration or misbranding prior to any transfer to
another person of the meat or meat food product; and
``(C) the responsible party--
``(i) corrected the adulteration or
misbranding; or
``(ii) destroyed or caused the destruction
of the meat or meat food product.
``(3) Report number.--The Secretary shall ensure that, upon
submission of a report under paragraph (1), a unique number is
issued through the Registry to the person submitting the
report, by which the Secretary is able--
``(A) to link reports about the reportable food
submitted and amended under this subsection; and
``(B) identify the supply chain for the reportable
food.
``(4) Response to report submitted by a responsible
party.--After consultation with the responsible party that
submitted a report under paragraph (1), the Secretary may
require the responsible party to perform, as soon as
practicable, but in no case later than a time specified by the
Secretary, 1 or more of the following, as determined by the
Secretary:
``(A) Amend the report submitted by the responsible
party under paragraph (1) to include the information
described in subsection (e)(8).
``(B) Provide a notification--
``(i) to the immediate previous source of
the reportable food;
``(ii) to the immediate subsequent
recipient of the reportable food; and
``(iii) that includes--
``(I) the information described in
subsection (e) that the Secretary
considers necessary;
``(II) the actions described under
paragraph (5) that the recipient of the
notification shall perform, as required
by the Secretary; and
``(III) any other information that
the Secretary may require.
``(5) Subsequent reports and notifications.--Except as
provided in paragraph (6), the Secretary may require a
responsible party to perform, as soon as practicable, but in no
case later than a time specified by the Secretary, after the
responsible party receives a notification under subparagraph
(C) or paragraph (4)(B), 1 or more of the following:
``(A) Submit a report to the Secretary through the
Registry established under subsection (b) that includes
the information described in subsection (e) and other
information that the Secretary considers necessary.
``(B) Investigate the cause of the adulteration or
misbranding if the adulteration or misbranding of the
reportable food may have originated with the
responsible party.
``(C) Provide a notification--
``(i) to the immediate previous source of
the reportable food;
``(ii) to the immediate subsequent
recipient of the reportable food; and
``(iii) that includes--
``(I) the information described in
subsection (e) that the Secretary
considers necessary;
``(II) the actions described under
this paragraph that the recipient of
the notification shall perform, as
required by the Secretary; and
``(III) any other information that
the Secretary may require.
``(6) Amended report.--If a responsible party receives a
notification under paragraph (4)(B) or paragraph (5)(C) with
respect to a reportable food after the responsible party has
submitted a report to the Secretary under paragraph (1) with
respect to the reportable food, the responsible party--
``(A) shall not be required to submit an additional
report or make a notification under paragraph (5); and
``(B) the responsible party shall amend the report
submitted by the responsible party under paragraph (1)
to include the information described in paragraph (7),
and, with respect to both the notification and the
report, paragraph (10) of subsection (e).
``(e) Information.--The information described in this subsection is
the following:
``(1) The date on which the meat or meat food product was
determined to be a reportable food.
``(2) A description of the reportable food, including the
quantity of the reportable food.
``(3) The extent and nature of the adulteration or
misbranding.
``(4) If the adulteration or misbranding of the reportable
food may have originated with the responsible party, the
results of the investigation required under paragraph (1)(B) or
(5)(B) of subsection (d), as applicable, and when known.
``(5) The disposition of the reportable food, if known.
``(6) Product information typically found on packaging
including product codes, use-by dates, and the names of
manufacturers, packers, or distributors sufficient to identify
the reportable food.
``(7) Contact information for the responsible party.
``(8) The contact information for parties directly linked
in the supply chain and notified under paragraph (4)(B) or
(5)(C) of subsection (d), as applicable.
``(9) The information required by the Secretary to be
included in a notification provided by the responsible party
involved under paragraph (4)(B) or (5)(C) of subsection (d) or
required in a report under subsection (d)(5)(A).
``(10) The unique number described in subsection (d)(3).
``(f) Coordination of Federal, State, and Local Efforts.--
``(1) Food and drug administration.--In carrying out this
section, the Secretary shall--
``(A) share information and coordinate regulatory
efforts with the Commissioner of Food and Drugs; and
``(B) if the Secretary receives a report submitted
about a food within the jurisdiction of the
Commissioner, promptly provide the report to the
Commissioner.
``(2) States and localities.--In carrying out this section,
the Secretary shall work with the State and local public health
officials to share information that is not confidential
commercial or financial information protected under section
552(b)(4) of title 5, United States Code, and coordinate
regulatory efforts, in order to--
``(A) help to ensure coverage of the safety of the
food supply chain, including those establishments
regulated by the States and localities that are not
regulated under this Act; and
``(B) reduce duplicative regulatory efforts.
``(g) Maintenance and Inspection of Records.--
``(1) In general.--The responsible party shall maintain
records related to each report received, notification made, and
report submitted to the Secretary under this section for at
least 2 years.
``(2) Inspection.--A responsible party shall, at the
request of the Secretary, permit inspection of records
maintained under paragraph (1).
``(h) Request for Information.--Section 552 of title 5, United
States Code, shall apply to any request for information regarding a
record in the Registry.
``(i) Safety Report.--A report or notification under subsection (d)
may be accompanied by a statement, which shall be part of any report
released for public disclosure, that denies that the report or the
notification constitutes an admission that the product involved caused
or contributed to a death, serious injury, or serious illness.
``(j) Admission.--A report or notification under this section shall
not be considered an admission that the reportable food involved is
adulterated, misbranded, or caused or contributed to a death, serious
injury, or serious illness.
``(k) Homeland Security Notification.--If, after receiving a report
under subsection (d), the Secretary believes the reportable food may
have been deliberately adulterated or misbranded, the Secretary shall--
``(1) immediately notify the Secretary of Homeland
Security; and
``(2) make relevant information from the Registry available
to the Secretary of Homeland Security.
``(l) Violations.--A responsible party that fails to comply with
any requirement of this section shall be subject to an appropriate
penalty under section 406.''.
(2) Poultry products inspection act.--The Poultry Products
Inspection Act is amended by inserting after section 10 (21
U.S.C. 459) the following:
``SEC. 10A. REPORTABLE FOOD EVENT.
``(a) Definitions.--In this section:
``(1) Reportable food.--The term `reportable food' means
poultry or a poultry product under this Act for which there is
a reasonable probability that the use of, or exposure to, the
poultry or poultry product will cause serious adverse health
consequences or death to humans or animals.
``(2) Registry.--The term `Registry' means the registry
established under subsection (b).
``(3) Responsible party.--The term `responsible party',
with respect to a reportable food, means an operator of an
official establishment.
``(b) Establishment.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Food and Energy Security Act of 2007, the
Secretary shall establish within the Department of Agriculture
a Reportable Poultry Registry to which information concerning
reportable food may be submitted via an electronic portal,
from--
``(A) employees of the Food Safety and Inspection
Service;
``(B) Federal, State, and local public health
officials; and
``(C) responsible parties.
``(2) Review by secretary.--The Secretary shall promptly
review and assess the information submitted under paragraph (1)
for the purposes of--
``(A) identifying reportable food;
``(B) submitting entries to the Registry;
``(C) taking actions under subsection (c); and
``(D) exercising other food safety authority of the
Secretary to protect the health and safety of humans
and animals.
``(c) Issuance of an Alert by the Secretary.--
``(1) In general.--The Secretary shall issue, or cause to
be issued, an alert or a notification with respect to a
reportable food using information from the Registry as the
Secretary considers necessary to protect the health and safety
of humans and animals.
``(2) Effect.--Paragraph (1) shall not affect the authority
of the Secretary to issue an alert or a notification under any
other provision of law.
``(d) Reporting and Notification.--
``(1) In general.--Except as provided in paragraph (2), as
soon as practicable, but in no case later than 24 hours after a
responsible party determines that poultry or poultry product is
a reportable food, the responsible party shall--
``(A) submit a report to the Secretary through the
Registry that includes information described in
subsection (e) (other than the information described in
paragraphs (7), (8), and (9) of that subsection); and
``(B) investigate the cause of the event that
caused the poultry or poultry product to be a
reportable food, if the reportable food originated with
the responsible party.
``(2) No report required.--A responsible party shall not be
required to submit a report under paragraph (1) if--
``(A) the adulteration or misbranding originated
with the responsible party;
``(B) the responsible party detected the
adulteration or misbranding prior to any transfer to
another person of the poultry or poultry product; and
``(C) the responsible party--
``(i) corrected the adulteration or
misbranding; or
``(ii) destroyed or caused the destruction
of the poultry or poultry product.
``(3) Report number.--The Secretary shall ensure that, upon
submission of a report under paragraph (1), a unique number is
issued through the Registry to the person submitting the
report, by which the Secretary is able--
``(A) to link reports about the reportable food
submitted and amended under this subsection; and
``(B) identify the supply chain for the reportable
food.
``(4) Response to report submitted by a responsible
party.--After consultation with the responsible party that
submitted a report under paragraph (1), the Secretary may
require the responsible party to perform, as soon as
practicable, but in no case later than a time specified by the
Secretary, 1 or more of the following, as determined by the
Secretary:
``(A) Amend the report submitted by the responsible
party under paragraph (1) to include the information
described in subsection (e)(8).
``(B) Provide a notification--
``(i) to the immediate previous source of
the reportable food;
``(ii) to the immediate subsequent
recipient of the reportable food; and
``(iii) that includes--
``(I) the information described in
subsection (e) that the Secretary
considers necessary;
``(II) the actions described under
paragraph (5) that the recipient of the
notification shall perform, as required
by the Secretary; and
``(III) any other information that
the Secretary may require.
``(5) Subsequent reports and notifications.--Except as
provided in paragraph (6), the Secretary may require a
responsible party to perform, as soon as practicable, but in no
case later than a time specified by the Secretary, after the
responsible party receives a notification under subparagraph
(C) or paragraph (4)(B), 1 or more of the following:
``(A) Submit a report to the Secretary through the
Registry established under subsection (b) that includes
the information described in subsection (e) and other
information that the Secretary considers necessary.
``(B) Investigate the cause of the adulteration or
misbranding if the adulteration or misbranding of the
reportable food may have originated with the
responsible party.
``(C) Provide a notification--
``(i) to the immediate previous source of
the reportable food;
``(ii) to the immediate subsequent
recipient of the reportable food; and
``(iii) that includes--
``(I) the information described in
subsection (e) that the Secretary
considers necessary;
``(II) the actions described under
this paragraph that the recipient of
the notification shall perform, as
required by the Secretary; and
``(III) any other information that
the Secretary may require.
``(6) Amended report.--If a responsible party receives a
notification under paragraph (4)(B) or paragraph (5)(C) with
respect to a reportable food after the responsible party has
submitted a report to the Secretary under paragraph (1) with
respect to the reportable food, the responsible party--
``(A) shall not be required to submit an additional
report or make a notification under paragraph (5); and
``(B) the responsible party shall amend the report
submitted by the responsible party under paragraph (1)
to include the information described in paragraph (7),
and, with respect to both the notification and the
report, paragraph (10) of subsection (e).
``(e) Information.--The information described in this subsection is
the following:
``(1) The date on which the poultry or poultry product was
determined to be a reportable food.
``(2) A description of the reportable food, including the
quantity of the reportable food.
``(3) The extent and nature of the adulteration or
misbranding.
``(4) If the adulteration or misbranding of the reportable
food may have originated with the responsible party, the
results of the investigation required under paragraph (1)(B) or
(5)(B) of subsection (d), as applicable, and when known.
``(5) The disposition of the reportable food, if known.
``(6) Product information typically found on packaging
including product codes, use-by dates, and the names of
manufacturers, packers, or distributors sufficient to identify
the reportable food.
``(7) Contact information for the responsible party.
``(8) The contact information for parties directly linked
in the supply chain and notified under paragraph (4)(B) or
(5)(C) of subsection (d), as applicable.
``(9) The information required by the Secretary to be
included in a notification provided by the responsible party
involved under paragraph (4)(B) or (5)(C) of subsection (d) or
required in a report under subsection (d)(5)(A).
``(10) The unique number described in subsection (d)(3).
``(f) Coordination of Federal, State, and Local Efforts.--
``(1) Food and drug administration.--In carrying out this
section, the Secretary shall--
``(A) share information and coordinate regulatory
efforts with the Commissioner of Food and Drugs; and
``(B) if the Secretary receives a report submitted
about a food within the jurisdiction of the
Commissioner, promptly provide the report to the
Commissioner.
``(2) States and localities.--In carrying out this section,
the Secretary shall work with the State and local public health
officials to share information that is not confidential
commercial or financial information protected under section
552(b)(4) of title 5, United States Code, and coordinate
regulatory efforts, in order to--
``(A) help to ensure coverage of the safety of the
food supply chain, including those establishments
regulated by the States and localities that are not
regulated under this Act; and
``(B) reduce duplicative regulatory efforts.
``(g) Maintenance and Inspection of Records.--
``(1) In general.--The responsible party shall maintain
records related to each report received, notification made, and
report submitted to the Secretary under this section for at
least 2 years.
``(2) Inspection.--A responsible party shall, at the
request of the Secretary, permit inspection of records
maintained under paragraph (1).
``(h) Request for Information.--Section 552 of title 5, United
States Code, shall apply to any request for information regarding a
record in the Registry.
``(i) Safety Report.--A report or notification under subsection (d)
may be accompanied by a statement, which shall be part of any report
released for public disclosure, that denies that the report or the
notification constitutes an admission that the product involved caused
or contributed to a death, serious injury, or serious illness.
``(j) Admission.--A report or notification under this section shall
not be considered an admission that the reportable food involved is
adulterated, misbranded, or caused or contributed to a death, serious
injury, or serious illness.
``(k) Homeland Security Notification.--If, after receiving a report
under subsection (d), the Secretary believes the reportable food may
have been deliberately adulterated or misbranded, the Secretary shall--
``(1) immediately notify the Secretary of Homeland
Security; and
``(2) make relevant information from the Registry available
to the Secretary of Homeland Security.
``(l) Penalties.--A responsible party that fails to comply with any
requirement of this section shall be subject to an appropriate penalty
under section 12.''.
(3) Conforming amendment.--Section 12(a) of the Poultry
Products Inspection Act (21 U.S.C. 461(a)) is amended by
inserting ``10A,'' after ``10,''.
(4) Effective date.--The amendments made by the subsection
take effect on the date that is 1 year after the date of
enactment of this Act.
(5) Guidance.--Not later than 270 days after the date of
enactment of this Act, the Secretary shall issue a guidance to
industry relating to--
(A) the submission of reports to the registries
established under section 411 of the Federal Meat
Inspection Act (as amended by paragraph (1)) and
section 10A of the Poultry Products Inspection Act (as
amended by paragraph (2)); and
(B) the provision of notification to other persons
in the supply chain of reportable food under those
sections.
(6) Effect.--Nothing in this subsection, or an amendment
made by this subsection, alters the jurisdiction between the
Secretary and the Secretary of Health and Human Services, under
applicable law (including regulations).
(b) Supplemental Plans and Reassessments.--The Secretary shall
require that each establishment required by the Secretary to have a
hazard analysis and critical control point plan in accordance with the
final rule of the Secretary (61 Fed. Reg. 38806 (July 25, 1996)) shall
submit to the Secretary, in writing--
(1) at a minimum, a recall plan described in Directive
8080.1, Rev. 4 (May 24, 2004) of the Food Safety and Inspection
Service (or a successor directive); and
(2) for beef products, an E. coli reassessment described in
the supplementary information relating to E. coli O157: H7
Contamination of Beef Products (67 Fed. Reg. 62325 (October 7,
2002); part 417 of title 9, Code of Federal Regulations).
(c) Sanitary Transportation of Food.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Health and Human
Services shall promulgate regulations described in section
416(b) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
350e(b)).
(2) Memorandum of understanding.--Not later than 180 days
after the date of enactment of this Act, the Secretary, the
Secretary of Health and Human Services, and the Secretary of
Transportation shall enter into a memorandum of understanding
to ensure that the Secretaries work together effectively to
ensure the safety and security of the food supply of the United
States, particularly in relation to distribution channels
involving transportation (as described in the withdrawal of
notices of proposed rulemaking (70 Fed. Reg. 76228 (December
23, 2005))).
SEC. 11088. OFFICE OF SMALL FARMS AND BEGINNING FARMERS AND RANCHERS.
(a) In General.--Subtitle B of title II of the Department of
Agriculture Reorganization Act of 1994 (as amended by section 11059(a))
is amended by inserting after section 226B the following:
``SEC. 226C. OFFICE OF SMALL FARMS AND BEGINNING FARMERS AND RANCHERS.
``(a) Establishment.--Not less than 180 days after the date of
enactment of this section, the Secretary shall establish and maintain
within the executive operations of the Department an office, to be
known as the `Office of Small Farms and Beginning Farmers and Ranchers'
(referred to in this section as the `Office').
``(b) Purposes.--The purposes of the Office are--
``(1) to ensure coordination across all agencies of the
Department--
``(A) to improve use of the programs and services
of the Department; and
``(B) to enhance the viability of small, beginning,
and socially disadvantaged farmers and ranchers and
others, as the Secretary determines to be necessary;
``(2) to ensure small, beginning, and socially
disadvantaged farmers and ranchers access to, and equitable
participation in, commodity, credit, risk management and
disaster protection, conservation, marketing, nutrition, value-
added, rural development, and other programs and services of
the Department;
``(3) to ensure that the number and economic contributions
of small, limited-resource, beginning, and socially
disadvantaged farmers and ranchers are accurately reflected in
the Census of Agriculture and in other reports; and
``(4) to assess and enhance the effectiveness of outreach
and programs of the Department--
``(A) to reduce barriers to program participation;
``(B) to improve service provided through programs
of the Department to small, beginning, and socially
disadvantaged farmers and ranchers; and
``(C) by suggesting to the Secretary new
initiatives and programs to better serve the needs of
small, socially disadvantaged, and beginning farmers
and ranchers.
``(c) Director.--
``(1) In general.--The Office shall be headed by a
Director.
``(2) Assumption of duties.--Effective on the date of
establishment of the Office under subsection (a), the Director
shall assume the duties and personnel of the Director of Small
Farms Coordination, as in existence on the day before the date
of enactment of this section.
``(d) Duties.--The Office shall--
``(1) in collaboration with such other agencies and offices
of the Department as the Secretary determines to be necessary,
develop and implement a plan to coordinate the activities
established under Departmental Regulation 9700-1 (August 3,
2006), including activities of the Small and Beginning Farmers
and Ranchers Council and services provided by the Department to
small farms and beginning farmers and ranchers;
``(2) coordinate with the Office of Outreach to provide
consultation, training, and liaison activities with eligible
entities (as defined in section 2501(e) of the Food,
Agriculture, Conservation, and Trade Act of 1990 7 U.S.C.
2279(e));
``(3) cooperate with, and monitor, agencies and offices of
the Department to ensure that the Department is meeting the
needs of small farms and of beginning farmers and ranchers;
``(4) establish cross-cutting and strategic departmental
goals and objectives for small farms and beginning farmers and
ranchers and for each associated program;
``(5) provide input to agencies and offices of the
Department on program and policy decisions to ensure that the
interests of small farms and of beginning farmers and ranchers
are represented;
``(6) measure outcomes of all small farm programs and
beginning farmer and rancher programs and track progress made
in achieving the goals of the programs;
``(7) supervise data collection by agencies and offices of
the Department regarding characteristics of small farms and
beginning farmers and ranchers to ensure that the goals and
objectives, and measures carried out to achieve those goals and
objectives, can be measured and evaluated; and
``(8) carry out any other related duties that the Secretary
determines to be appropriate.
``(e) Outreach.--The Office shall establish and maintain an
Internet website--
``(1) to share information with interested producers; and
``(2) to collect and respond to comments from small and
beginning farmers and ranchers, including comments of the Small
and Beginning Farmers and Ranchers Council.
``(f) Resources.--Using funds made available to the Secretary in
appropriations Acts, the Secretary shall provide to the Office such
human and capital resources as are sufficient to allow the Office to
carry out the duties of the Office under this section in a timely and
efficient manner.
``(g) Annual Report.--The Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate annual reports that
describe actions taken by the Office during the preceding calendar year
to advance the interests of small farms and beginning farmers and
ranchers.''.
(b) Conforming Amendment.--Section 296(b) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
(1) in paragraph (6) (as added by section 7401(c)(1)), by
striking ``or'' at the end;
(2) in paragraph (7) (as added by section 11059(b)), by
striking the period at the end and inserting ``; or''; and
(3) by adding at the end the following:
``(8) the authority of the Secretary to establish in the
Department the Office of Small Farms and Beginning Farmers and
Ranchers in accordance with section 226C.''.
SEC. 11089. STUDY OF IMPACTS OF LOCAL FOOD SYSTEMS AND COMMERCE.
(a) Study.--The Secretary shall conduct a study on the impacts of
local food systems and commerce that shall, at a minimum--
(1) develop a working definition of local food systems and
commerce; and
(2) identify indicators, and include an assessment of--
(A) the market share of local food systems and
commerce throughout the United States and by region;
(B) the potential community, economic, health and
nutrition, environmental, food safety, and food
security impacts of advancing local food systems and
commerce;
(C) the potential energy, transportation, water
resource, and climate change impacts of local food
systems and commerce;
(D) the structure of agricultural considerations
and impacts throughout the United States and by region;
(E) the interest of agricultural producers in
diversifying to access local markets and the barriers
and opportunities confronted by agricultural producers
in the process of diversification;
(F) the current availability and present and future
need of independent processing plants that cater to
local food commerce, including difficulty in meeting
regulatory requirements;
(G) the key gaps in food processing, distribution,
marketing, and economic development, including regional
differences in infrastructure gaps and other barriers;
(H) the role of public and private institutions and
institutional and governmental buying systems and
procurement policies in purchasing products through
local food systems;
(I) the benefits and challenges for children and
families in the most vulnerable rural and urban sectors
of the United States; and
(J) the challenges that prevent local foods from
comprising a larger share of the per capita food
consumption in the United States, and existing and
potential strategies, policies, and programs to address
those challenges.
(b) Collaboration.--
(1) In general.--The Secretary shall appoint a
collaborative study team to oversee and conduct the research
necessary to conduct the study described in subsection (a) and
the case studies described in subsection (c).
(2) Membership.--The study team shall include
representatives of--
(A) the Economic Research Service, Agricultural
Marketing Service, and other appropriate agencies of
the Department of Agriculture or other Federal
agencies;
(B) the Environmental Protection Agency;
(C) institutions of higher education, including at
least 1 institution of higher education representative
from each of the regions studied;
(D) small farmers;
(E) nongovernmental organizations with appropriate
expertise; and
(F) State and local governments.
(c) Case Studies.--
(1) In general.--The study team appointed by the Secretary
under subsection (b) shall carry out case studies in
representative production and marketing regions in the United
States to address the issues being studied under subsection
(a).
(2) Requirements.--In carrying out case studies, the study
team shall--
(A) identify opportunities for primary research;
and
(B) to the maximum extent practicable, use existing
surveys, data, and research.
(3) Components.--Each case study shall--
(A) identify and, to the maximum extent
practicable, evaluate the success of relevant Federal,
State, and local policies that are intended to induce
local food purchasing and commerce;
(B) examine the agricultural structure in each
region to account for the impact of farm size and type
of production on local economies and barriers to
accessing local markets;
(C) determine regional market trends and the share
of the market supplied by current agricultural
producers in the region; and
(D) assess the potential for local food system
value chains and supply networks and map the supply
chain factors in each region involved in agricultural
production, processing, and distribution of locally
grown produce, meat, dairy, and other products.
(d) Reports.--Not later than 2 years after the date of enactment of
this Act, and thereafter as the Secretary considers appropriate, the
Secretary shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that--
(1) describes the results of the study conducted under
subsection (a) and the case studies under subsection (c); and
(2) includes such recommendations for legislative action as
the Secretary considers appropriate.
SEC. 11090. INVASIVE SPECIES REVOLVING LOAN FUND.
(a) Definitions.--In this section:
(1) Authorized equipment.--
(A) In general.--The term ``authorized equipment''
means any equipment necessary for the management of
forest land.
(B) Inclusions.--The term ``authorized
equipment''includes--
(i) cherry pickers;
(ii) equipment necessary for--
(I) the construction of staging and
marshalling areas;
(II) the planting of trees; and
(III) the surveying of forest land;
(iii) vehicles capable of transporting
harvested trees;
(iv) wood chippers; and
(v) any other appropriate equipment, as
determined by the Secretary.
(2) Fund.--The term ``Fund'' means the Invasive Species
Revolving Loan Fund established by subsection (b).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Deputy Chief of the State
and Private Forestry organization.
(b) Establishment of Fund.--There is established in the Treasury of
the United States a revolving fund, to be known as the ``Invasive
Species Revolving Loan Fund'', consisting of such amounts as are
appropriated to the Fund under subsection (f).
(c) Expenditures From Fund.--
(1) In general.--Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to provide loans under subsection (e).
(2) Administrative expenses.--An amount not exceeding 10
percent of the amounts in the Fund shall be available for each
fiscal year to pay the administrative expenses necessary to
carry out this section.
(d) Transfers of Amounts.--
(1) In general.--The amounts required to be transferred to
the Fund under this section shall be transferred at least
monthly from the general fund of the Treasury to the Fund on
the basis of estimates made by the Secretary of the Treasury.
(2) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior estimates
were in excess of or less than the amounts required to be
transferred.
(e) Uses of Fund.--
(1) Loans.--
(A) In general.--The Secretary shall use amounts in
the Fund to provide loans to eligible units of local
government to finance purchases of authorized equipment
to monitor, remove, dispose of, and replace infested
trees that are located--
(i) on land under the jurisdiction of the
eligible units of local government; and
(ii) within the borders of quarantine areas
infested by invasive species.
(B) Maximum amount.--The maximum amount of a loan
that may be provided by the Secretary to an eligible
unit of local government under this subsection shall be
the lesser of--
(i) the amount that the eligible unit of
local government has appropriated--
(I) to finance purchases of
authorized equipment to monitor,
remove, dispose of, and replace
infested trees that are located--
(aa) on land under the
jurisdiction of the eligible
unit of local government; and
(bb) within the borders of
a quarantine area infested by
invasive species; and
(II) to enter into contracts with
appropriate individuals and entities to
monitor, remove, dispose of, and
replace infested trees that are located
in each area described in subclause
(I); or
(ii) $5,000,000.
(C) Interest rate.--The interest rate on any loan
made by the Secretary under this paragraph shall be a
rate equal to 2 percent.
(D) Report.--Not later than 180 days after the date
on which an eligible unit of local government receives
a loan provided by the Secretary under subparagraph
(A), the eligible unit of local government shall submit
to the Secretary a report that describes each purchase
made by the eligible unit of local government using
assistance provided through the loan.
(2) Loan repayment schedule.--
(A) In general.--To be eligible to receive a loan
from the Secretary under paragraph (1), in accordance
with each requirement described in subparagraph (B), an
eligible unit of local government shall enter into an
agreement with the Secretary to establish a loan
repayment schedule relating to the repayment of the
loan.
(B) Requirements relating to loan repayment
schedule.--A loan repayment schedule established under
subparagraph (A) shall require the eligible unit of
local government--
(i) to repay to the Secretary of the
Treasury, not later than 1 year after the date
on which the eligible unit of local government
receives a loan under paragraph (1), and
semiannually thereafter, an amount equal to the
quotient obtained by dividing--
(I) the principal amount of the
loan (including interest); by
(II) the total quantity of payments
that the eligible unit of local
government is required to make during
the repayment period of the loan; and
(ii) not later than 20 years after the date
on which the eligible unit of local government
receives a loan under paragraph (1), to
complete repayment to the Secretary of the
Treasury of the loan made under this section
(including interest).
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Fund such sums as are necessary to carry out this
section.
SEC. 11091. COOPERATIVE AGREEMENTS RELATING TO INVASIVE SPECIES
PREVENTION ACTIVITIES.
Any cooperative agreement entered into after the date of enactment
of this Act between the Secretary and a State relating to the
prevention of invasive species infestation shall allow the State to
provide any cost-sharing assistance or financing mechanism provided to
the State under the cooperative agreement to a unit of local government
of the State that--
(1) is engaged in any activity relating to the prevention
of invasive species infestation; and
(2) is capable of documenting each invasive species
infestation prevention activity generally carried out by--
(A) the Department of Agriculture; or
(B) the State department of agriculture that has
jurisdiction over the unit of local government.
SEC. 11092. SOUTHWEST REGIONAL DAIRY, ENVIRONMENT, AND PRIVATE LAND
PROGRAM.
(a) Definitions.--In this section:
(1) Eligible institution of higher education.--The term
``eligible institution of higher education'' means an
institution of higher education that--
(A) is located in--
(i) the State of Arizona;
(ii) the State of Colorado;
(iii) the State of New Mexico;
(iv) the State of Oklahoma; and
(v) the State of Texas;
(B) has facilities that are necessary for the
facilitation of research on issues relating to the
dairy industry in a practical setting;
(C) has a dairy research program and an institution
for applied environmental research;
(D) has a university laboratory that is--
(i) located on the campus of the
institution of higher education; and
(ii) accredited by the National
Environmental Laboratory Accreditation Council
to ensure the quality of any proposed research
activities;
(E) has the capability to enter into a partnership
with representatives of the dairy industry and other
public and private entities and institutions of higher
education;
(F) has experience in conducting watershed modeling
(including the conduct of cost-benefit analyses, policy
applications, and long-term watershed monitoring); and
(G) works with--
(i) producer-run advocacy groups (including
Industry-Led Solutions); and
(ii) private land coalitions.
(2) Program.--The term ``program'' means the Southwest
regional dairy, environment, and private land program
established under subsection (b).
(b) Establishment.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish a
Southwest regional dairy, environment, and private land
program.
(2) Required activities.--In carrying out the program, the
Secretary shall--
(A) identify challenges and develop solutions to
enhance the economic and environmental sustainability,
growth, and expansion of the dairy industry in the
Southwest region of the United States;
(B) research, develop, and implement programs--
(i) to recover energy and other useful
products from dairy waste;
(ii) to identify best management practices;
and
(iii) to assist the dairy industry in
ensuring that animal waste emissions and
discharges of the dairy industry are maintained
at levels below applicable regulatory
standards;
(C) offer technical assistance (including research
activities conducted by a university laboratory that is
accredited by the National Environmental Laboratory
Accreditation Council), training, applied research, and
watershed water quality programs monitoring to
applicable entities;
(D) develop--
(i) watershed modeling through the
development of innovative modeling tools and
data mining to develop cost-efficient and
environmentally effective programs in the dairy
industry; and
(ii) an international modeling application
clearinghouse to coordinate watershed modeling
tools in the United States and in other
countries, to be carried out by the Secretary;
and
(E) collaborate with a private land coalition to
use input gathered from landowners in the United States
through a program of industry led solutions to work
with the Federal Government (including Federal
agencies) in the development of conservation,
environmental credit trading, and watershed programs to
help private landowners and agricultural producers meet
applicable water quality standards.
(c) Contracts.--
(1) In general.--In carrying out the program, the Secretary
shall offer to enter into contracts with eligible institutions
of higher education.
(2) Application.--
(A) Submission of application.--To enter into a
contract with the Secretary under paragraph (1), an
eligible institution of higher education shall submit
to the Secretary an application at such time, in such
manner, and containing such information as the
Secretary may require.
(B) Guidelines.--As soon as practicable after the
date of enactment of this Act, the Secretary shall
promulgate guidelines describing each requirement of
the Secretary with respect to the application
requirements described in subparagraph (A).
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012, to remain available until
expended.
SEC. 11093. ENFORCEMENT OF UNITED STATES-CANADA SOFTWOOD LUMBER
AGREEMENT.
(a) Findings.--The Senate finds that--
(1) the Federal Government has repeatedly found that
Canadian softwood lumber shipped to the United States is
unfairly subsidized and dumped into the United States market
and materially injures softwood lumber producers in the United
States;
(2) in September 2006, the United States and Canada entered
into the United States-Canada Softwood Lumber Agreement
(referred to in this section as the ``Agreement'') to address
Canada's unfair lumber trade practices;
(3) the Agreement obligates Canada to apply export taxes
and quotas to Canadian softwood lumber exports to the United
States and to forego new subsidies to Canadian lumber
producers;
(4) Canada has consistently violated the Agreement,
including by failing to apply export taxes and quotas as
required by the Agreement and by providing new subsidies to
Canadian lumber companies;
(5) Canadian violations of the Agreement are contributing
to market conditions that are resulting in significant job
losses in the United States lumber mills;
(6) the United States is challenging some of the Canadian
violations of the Agreement through arbitral proceedings;
(7) as of the date of enactment of this Act, Federal
enforcement of the Agreement has not resulted; and
(8) Federal executive agencies have been considering
proposals to enforce the Agreement.
(b) Sense of the Senate.--It is the sense of the Senate that the
President should take all actions necessary to ensure that imports of
Canadian softwood lumber are consistent with the provisions of the
United States-Canada Softwood Lumber Agreement.
Subtitle C--DOMESTIC PET TURTLE MARKET ACCESS
SEC. 11101. SHORT TITLE.
This title may be cited as the ``Domestic Pet Turtle Equality
Act''.
SEC. 11102. FINDINGS.
Congress makes the following findings:
(1) Pet turtles less than 10.2 centimeters in diameter have
been banned for sale in the United States by the Food and Drug
Administration since 1975 due to health concerns.
(2) The Food and Drug Administration does not ban the sale
of iguanas or other lizards, snakes, frogs, or other amphibians
or reptiles that are sold as pets in the United States that
carry salmonella bacteria. The Food and Drug Administration
also does not require that these animals be treated for
salmonella bacteria before being sold as pets.
(3) The technology to treat turtles for salmonella, and
make them safe for sale, has greatly advanced since 1975.
Treatments exist that can eradicate salmonella from turtles up
until the point of sale, and individuals are more aware of the
causes of salmonella, how to treat salmonella poisoning, and
the seriousness associated with salmonella poisoning.
(4) University research has shown that these turtles can be
treated in such a way that they can be raised, shipped, and
distributed without having a recolonization of salmonella.
(5) University research has also shown that pet owners can
be equipped with a treatment regimen that allows the turtle to
be maintained safe from salmonella.
(6) The Food and Drug Administration and the Department of
Agriculture should allow the sale of turtles less than 10.2
centimeters in diameter as pets as long as the sellers are
required to use proven methods to treat these turtles for
salmonella.
SEC. 11103. REVIEW, REPORT, AND ACTION ON THE SALE OF BABY TURTLES.
(a) Pet Turtle.--In this section, the term ``pet turtle'' means a
turtle that is less than 10.2 centimeters in diameter.
(b) Prevalence of Salmonella.--Not later than 60 days after the
date of enactment of this title, the Secretary of Health and Human
Services, acting through the Commissioner of Food and Drugs, shall
determine the prevalence of salmonella in each species of reptile and
amphibian sold legally as a pet in the United States in order to
determine whether the prevalence of salmonella in reptiles and
amphibians sold legally as pets in the United States on average is not
more than 10 percent less than the percentage of salmonella in pet
turtles.
(c) Action if Prevalence Is Similar.--If the prevalence of
salmonella in reptiles and amphibians sold legally as pets in the
United States on average is not more than 10 percent less than the
percentage of salmonella in pet turtles--
(1) the Secretary of Agriculture shall--
(A) conduct a study to determine how pet turtles
can be sold safely as pets in the United States and
provide recommendations to Congress not later than 150
days after the date of such determination;
(B) in conducting such study, consult with all
relevant stakeholders, such as the Centers for Disease
Control and Prevention, the turtle farming industry,
academia, and the American Academy of Pediatrics; and
(C) examine the safety measures taken to protect
individuals from salmonella-related dangers involved
with reptiles and amphibians sold legally in the United
States that contain a similar or greater presence of
salmonella than that of pet turtles; and
(2) the Secretary of Agriculture--
(A) may not prohibit the sale of pet turtles in the
United States; or
(B) shall prohibit the sale in the United States of
any reptile or amphibian that contains a similar or
greater prevalence of salmonella than that of pet
turtles.
Subtitle D--Disaster Loan Program
SEC. 11111. SHORT TITLE.
This subtitle may be cited as the ``Small Business Disaster
Response and Loan Improvements Act of 2007''.
SEC. 11112. DEFINITIONS.
In this subtitle--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``Small Business Act catastrophic national
disaster'' means a Small Business Act catastrophic national
disaster declared under section 7(b)(11) of the Small Business
Act (15 U.S.C. 636(b)), as added by this Act;
(3) the term ``declared disaster'' means a major disaster
or a Small Business Act catastrophic national disaster;
(4) the term ``disaster area'' means an area affected by a
natural or other disaster, as determined for purposes of
paragraph (1) or (2) of section 7(b) of the Small Business Act
(15 U.S.C. 636(b)), during the period of such declaration;
(5) the term ``disaster loan program of the
Administration'' means assistance under section 7(b) of the
Small Business Act (15 U.S.C. 636(b));
(6) the term ``disaster update period'' means the period
beginning on the date on which the President declares a major
disaster or a Small Business Act catastrophic national disaster
and ending on the date on which such declaration terminates;
(7) the term ``major disaster'' has the meaning given that
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122);
(8) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632); and
(9) the term ``State'' means any State of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Northern Mariana Islands, the Virgin Islands, Guam,
American Samoa, and any territory or possession of the United
States.
PART I--DISASTER PLANNING AND RESPONSE
SEC. 11121. DISASTER LOANS TO NONPROFITS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting immediately after paragraph (3) the following:
``(4) Loans to nonprofits.--In addition to any other loan
authorized by this subsection, the Administrator may make such
loans (either directly or in cooperation with banks or other
lending institutions through agreements to participate on an
immediate or deferred basis) as the Administrator determines
appropriate to a nonprofit organization located or operating in
an area affected by a natural or other disaster, as determined
under paragraph (1) or (2), or providing services to persons
who have evacuated from any such area.''.
SEC. 11122. DISASTER LOAN AMOUNTS.
(a) Increased Loan Caps.--Section 7(b) of the Small Business Act
(15 U.S.C. 636(b)) is amended by inserting immediately after paragraph
(4), as added by this Act, the following:
``(5) Increased loan caps.--
``(A) Aggregate loan amounts.--Except as provided
in subparagraph (B), and notwithstanding any other
provision of law, the aggregate loan amount outstanding
and committed to a borrower under this subsection may
not exceed $2,000,000.
``(B) Waiver authority.--The Administrator may, at
the discretion of the Administrator, increase the
aggregate loan amount under subparagraph (A) for loans
relating to a disaster to a level established by the
Administrator, based on appropriate economic indicators
for the region in which that disaster occurred.''.
(b) Disaster Mitigation.--
(1) In general.--Section 7(b)(1)(A) of the Small Business
Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the
aggregate costs of such damage or destruction (whether or not
compensated for by insurance or otherwise)'' after ``20 per
centum''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to a loan or guarantee made after the
date of enactment of this Act.
(c) Technical Amendments.--Section 7(b) of the Small Business Act
(15 U.S.C. 636(b)) is amended--
(1) in the matter preceding paragraph (1), by striking
``the, Administration'' and inserting ``the Administration'';
(2) in paragraph (2)(A), by striking ``Disaster Relief and
Emergency Assistance Act'' and inserting ``Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.) (in this subsection referred to as a `major disaster')'';
and
(3) in the undesignated matter at the end--
(A) by striking ``, (2), and (4)'' and inserting
``and (2)''; and
(B) by striking ``, (2), or (4)'' and inserting
``(2)''.
SEC. 11123. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY GRANTS.
Section 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C.
648(a)(4)(C)(viii)) is amended--
(1) in the first sentence, by striking ``as a result of a
business or government facility down sizing or closing, which
has resulted in the loss of jobs or small business
instability'' and inserting ``due to events that have resulted
or will result in, business or government facility downsizing
or closing''; and
(2) by adding at the end ``At the discretion of the
Administrator, the Administrator may make an award greater than
$100,000 to a recipient to accommodate extraordinary
occurrences having a catastrophic impact on the small business
concerns in a community.''.
SEC. 11124. ASSISTANCE TO OUT-OF-STATE BUSINESSES.
Section 21(b)(3) of the Small Business Act (15 U.S.C. 648(b)(3)) is
amended--
(1) by striking ``At the discretion'' and inserting the
following: ``Small business development centers.--
``(A) In general.--At the discretion''; and
(2) by adding at the end the following:
``(B) During disasters.--
``(i) In general.--At the discretion of the
Administrator, the Administrator may authorize
a small business development center to provide
such assistance to small business concerns
located outside of the State, without regard to
geographic proximity, if the small business
concerns are located in a disaster area
declared under section 7(b)(2)(A).
``(ii) Continuity of services.--A small
business development center that provides
counselors to an area described in clause (i)
shall, to the maximum extent practicable,
ensure continuity of services in any State in
which such small business development center
otherwise provides services.
``(iii) Access to disaster recovery
facilities.--For purposes of providing disaster
recovery assistance under this subparagraph,
the Administrator shall, to the maximum extent
practicable, permit small business development
center personnel to use any site or facility
designated by the Administrator for use to
provide disaster recovery assistance.''.
SEC. 11125. OUTREACH PROGRAMS.
(a) In General.--Not later than 30 days after the date of the
declaration of a disaster area, the Administrator may establish a
contracting outreach and technical assistance program for small
business concerns which have had a primary place of business in, or
other significant presence in, such disaster area.
(b) Administrator Action.--The Administrator may carry out
subsection (a) by acting through--
(1) the Administration;
(2) the Federal agency small business officials designated
under section 15(k)(1) of the Small Business Act (15 U.S.C.
644(k)(1)); or
(3) any Federal, State, or local government entity, higher
education institution, procurement technical assistance center,
or private nonprofit organization that the Administrator may
determine appropriate, upon conclusion of a memorandum of
understanding or assistance agreement, as appropriate, with the
Administrator.
SEC. 11126. SMALL BUSINESS BONDING THRESHOLD.
(a) In General.--Except as provided in subsection (b), and
notwithstanding any other provision of law, for any procurement related
to a major disaster, the Administrator may, upon such terms and
conditions as the Administrator may prescribe, guarantee and enter into
commitments to guarantee any surety against loss resulting from a
breach of the terms of a bid bond, payment bond, performance bond, or
bonds ancillary thereto, by a principal on any total work order or
contract amount at the time of bond execution that does not exceed
$5,000,000.
(b) Increase of Amount.--Upon request of the head of any Federal
agency other than the Administration involved in reconstruction efforts
in response to a major disaster, the Administrator may guarantee and
enter into a commitment to guarantee any security against loss under
subsection (a) on any total work order or contract amount at the time
of bond execution that does not exceed $10,000,000.
SEC. 11127. TERMINATION OF PROGRAM.
Section 711(c) of the Small Business Competitive Demonstration
Program Act of 1988 (15 U.S.C. 644 note) is amended by inserting after
``January 1, 1989'' the following: ``, and shall terminate on the date
of enactment of the Small Business Disaster Response and Loan
Improvements Act of 2007''.
SEC. 11128. INCREASING COLLATERAL REQUIREMENTS.
Section 7(c)(6) of the Small Business Act (15 U.S.C. 636(c)(6)) is
amended by striking ``$10,000 or less'' and inserting ``$14,000 or less
(or such higher amount as the Administrator determines appropriate in
the event of a Small Business Act catastrophic national disaster
declared under subsection (b)(11))''.
SEC. 11129. PUBLIC AWARENESS OF DISASTER DECLARATION AND APPLICATION
PERIODS.
(a) In General.--Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting immediately after paragraph (5), as
added by this Act, the following:
``(6) Coordination with fema.--
``(A) In general.--Notwithstanding any other
provision of law, for any disaster (including a Small
Business Act catastrophic national disaster) declared
under this subsection or major disaster, the
Administrator, in consultation with the Administrator
of the Federal Emergency Management Agency, shall
ensure, to the maximum extent practicable, that all
application periods for disaster relief under this Act
correspond with application deadlines established under
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.), or as extended
by the President.
``(B) Deadlines.--Notwithstanding any other
provision of law, not later than 10 days before the
closing date of an application period for a major
disaster (including a Small Business Act catastrophic
national disaster), the Administrator, in consultation
with the Administrator of the Federal Emergency
Management Agency, shall submit to the Committee on
Small Business and Entrepreneurship of the Senate and
the Committee on Small Business of the House of
Representatives a report that includes--
``(i) the deadline for submitting
applications for assistance under this Act
relating to that major disaster;
``(ii) information regarding the number of
loan applications and disbursements processed
by the Administrator relating to that major
disaster for each day during the period
beginning on the date on which that major
disaster was declared and ending on the date of
that report; and
``(iii) an estimate of the number of
potential applicants that have not submitted an
application relating to that major disaster.
``(7) Public awareness of disasters.--If a disaster
(including a Small Business Act catastrophic national disaster)
is declared under this subsection, the Administrator shall make
every effort to communicate through radio, television, print,
and web-based outlets, all relevant information needed by
disaster loan applicants, including--
``(A) the date of such declaration;
``(B) cities and towns within the area of such
declaration;
``(C) loan application deadlines related to such
disaster;
``(D) all relevant contact information for victim
services available through the Administration
(including links to small business development center
websites);
``(E) links to relevant Federal and State disaster
assistance websites, including links to websites
providing information regarding assistance available
from the Federal Emergency Management Agency;
``(F) information on eligibility criteria for
Administration loan programs, including where such
applications can be found; and
``(G) application materials that clearly state the
function of the Administration as the Federal source of
disaster loans for homeowners and renters.''.
(b) Marketing and Outreach.--Not later than 90 days after the date
of enactment of this Act, the Administrator shall create a marketing
and outreach plan that--
(1) encourages a proactive approach to the disaster relief
efforts of the Administration;
(2) makes clear the services provided by the
Administration, including contact information, application
information, and timelines for submitting applications, the
review of applications, and the disbursement of funds;
(3) describes the different disaster loan programs of the
Administration, including how they are made available and the
eligibility requirements for each loan program;
(4) provides for regional marketing, focusing on disasters
occurring in each region before the date of enactment of this
Act, and likely scenarios for disasters in each such region;
and
(5) ensures that the marketing plan is made available at
small business development centers and on the website of the
Administration.
SEC. 11130. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS AND STANDARD
OPERATING PROCEDURES.
(a) In General.--The Administrator shall, promptly following the
date of enactment of this Act, conduct a study of whether the standard
operating procedures of the Administration for loans offered under
section 7(b) of the Small Business Act (15 U.S.C. 636(b)) are
consistent with the regulations of the Administration for administering
the disaster loan program.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Administration shall submit to Congress a report
containing all findings and recommendations of the study conducted
under subsection (a).
SEC. 11131. PROCESSING DISASTER LOANS.
(a) Authority for Qualified Private Contractors To Process Disaster
Loans.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting immediately after paragraph (7), as added by this
Act, the following:
``(8) Authority for qualified private contractors.--
``(A) Disaster loan processing.--The Administrator
may enter into an agreement with a qualified private
contractor, as determined by the Administrator, to
process loans under this subsection in the event of a
major disaster or a Small Business Act catastrophic
national disaster declared under paragraph (11), under
which the Administrator shall pay the contractor a fee
for each loan processed.
``(B) Loan loss verification services.--The
Administrator may enter into an agreement with a
qualified lender or loss verification professional, as
determined by the Administrator, to verify losses for
loans under this subsection in the event of a major
disaster or a Small Business Act catastrophic national
disaster declared under paragraph (11), under which the
Administrator shall pay the lender or verification
professional a fee for each loan for which such lender
or verification professional verifies losses.''.
(b) Coordination of Efforts Between the Administrator and the
Internal Revenue Service To Expedite Loan Processing.--The
Administrator and the Commissioner of Internal Revenue shall, to the
maximum extent practicable, ensure that all relevant and allowable tax
records for loan approval are shared with loan processors in an
expedited manner, upon request by the Administrator.
SEC. 11132. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER RESPONSE
PLAN.
(a) In General.--Not later than 3 months after the date of
enactment of this Act, the Administrator shall--
(1) by rule, amend the 2006 Atlantic hurricane season
disaster response plan of the Administration (in this section
referred to as the ``disaster response plan'') to apply to
major disasters; and
(2) submit a report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives detailing the
amendments to the disaster response plan.
(b) Contents.--The report required under subsection (a)(2) shall
include--
(1) any updates or modifications made to the disaster
response plan since the report regarding the disaster response
plan submitted to Congress on July 14, 2006;
(2) a description of how the Administrator plans to utilize
and integrate District Office personnel of the Administration
in the response to a major disaster, including information on
the utilization of personnel for loan processing and loan
disbursement;
(3) a description of the disaster scalability model of the
Administration and on what basis or function the plan is
scaled;
(4) a description of how the agency-wide Disaster Oversight
Council is structured, which offices comprise its membership,
and whether the Associate Deputy Administrator for
Entrepreneurial Development of the Administration is a member;
(5) a description of how the Administrator plans to
coordinate the disaster efforts of the Administration with
State and local government officials, including recommendations
on how to better incorporate State initiatives or programs,
such as State-administered bridge loan programs, into the
disaster response of the Administration;
(6) recommendations, if any, on how the Administration can
better coordinate its disaster response operations with the
operations of other Federal, State, and local entities;
(7) any surge plan for the disaster loan program of the
Administration in effect on or after August 29, 2005 (including
surge plans for loss verification, loan processing, mailroom,
customer service or call center operations, and a continuity of
operations plan);
(8) the number of full-time equivalent employees and job
descriptions for the planning and disaster response staff of
the Administration;
(9) the in-service and preservice training procedures for
disaster response staff of the Administration;
(10) information on the logistical support plans of the
Administration (including equipment and staffing needs, and
detailed information on how such plans will be scalable
depending on the size and scope of the major disaster;
(11) a description of the findings and recommendations of
the Administrator, if any, based on a review of the response of
the Administration to Hurricane Katrina of 2005, Hurricane Rita
of 2005, and Hurricane Wilma of 2005; and
(12) a plan for how the Administrator, in consultation with
the Administrator of the Federal Emergency Management Agency,
will coordinate the provision of accommodations and necessary
resources for disaster assistance personnel to effectively
perform their responsibilities in the aftermath of a major
disaster.
(c) Exercises.--Not later than 6 months after the date of the
submission of the report under subsection (a)(2), the Administrator
shall develop and execute simulation exercises to demonstrate the
effectiveness of the amended disaster response plan required under this
section.
SEC. 11133. DISASTER PLANNING RESPONSIBILITIES.
(a) Assignment of Small Business Administration Disaster Planning
Responsibilities.--The Administrator shall specifically assign the
disaster planning responsibilities described in subsection (b) to an
employee of the Administration who--
(1) is not an employee of the Office of Disaster Assistance
of the Administration;
(2) shall report directly to the Administrator; and
(3) has a background and expertise demonstrating
significant experience in the area of disaster planning.
(b) Responsibilities.--The responsibilities described in this
subsection are--
(1) creating and maintaining the comprehensive disaster
response plan of the Administration;
(2) ensuring in-service and pre-service training procedures
for the disaster response staff of the Administration;
(3) coordinating and directing Administration training
exercises, including mock disaster responses, with other
Federal agencies; and
(4) other responsibilities, as determined by the
Administrator.
(c) Report.--Not later than 30 days after the date of enactment of
this Act, the Administrator shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report containing--
(1) a description of the actions of the Administrator to
assign an employee under subsection (a);
(2) information detailing the background and expertise of
the employee assigned under subsection (a); and
(3) information on the status of the implementation of the
responsibilities described in subsection (b).
SEC. 11134. ADDITIONAL AUTHORITY FOR DISTRICT OFFICES OF THE
ADMINISTRATION.
(a) In General.--Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting immediately after paragraph (8), as
added by this Act, the following:
``(9) Use of district offices.--In the event of a major
disaster, the Administrator may authorize a district office of
the Administration to process loans under paragraph (1) or
(2).''.
(b) Designation.--
(1) In general.--The Administrator may designate an
employee in each district office of the Administration to act
as a disaster loan liaison between the disaster processing
center and applicants under the disaster loan program of the
Administration.
(2) Responsibilities.--Each employee designated under
paragraph (1) shall--
(A) be responsible for coordinating and
facilitating communications between applicants under
the disaster loan program of the Administration and
disaster loan processing staff regarding documentation
and information required for completion of an
application; and
(B) provide information to applicants under the
disaster loan program of the Administration regarding
additional services and benefits that may be available
to such applicants to assist with recovery.
(3) Outreach.--In providing outreach to disaster victims
following a declared disaster, the Administrator shall make
disaster victims aware of--
(A) any relevant employee designated under
paragraph (1); and
(B) how to contact that employee.
SEC. 11135. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER
ASSISTANCE AND DISASTER CADRE.
(a) In General.--Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting immediately after paragraph (9), as
added by this Act, the following:
``(10) Disaster assistance employees.--
``(A) In general.--In carrying out this section,
the Administrator may, where practicable, ensure that
the number of full-time equivalent employees--
``(i) in the Office of the Disaster
Assistance is not fewer than 800; and
``(ii) in the Disaster Cadre of the
Administration is not fewer than 750.
``(B) Report.--In carrying out this subsection, if
the number of full-time employees for either the Office
of Disaster Assistance or the Disaster Cadre of the
Administration is below the level described in
subparagraph (A) for that office, not later than 21
days after the date on which that staffing level
decreased below the level described in subparagraph
(A), the Administrator shall submit to the Committee on
Appropriations and the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Appropriations and Committee on Small Business of the
House of Representatives, a report--
``(i) detailing staffing levels on that
date;
``(ii) requesting, if practicable and
determined appropriate by the Administrator,
additional funds for additional employees; and
``(iii) containing such additional
information, as determined appropriate by the
Administrator.''.
PART II--DISASTER LENDING
SEC. 11141. SMALL BUSINESS ACT CATASTROPHIC NATIONAL DISASTER
DECLARATION.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting immediately after paragraph (10), as added by this
Act, the following:
``(11) Small business act catastrophic national
disasters.--
``(A) In general.--The President may make a Small
Business Act catastrophic national disaster declaration
in accordance with this paragraph.
``(B) Promulgation of rules.--
``(i) In general.--Not later than 6 months
after the date of enactment of this paragraph,
the Administrator, with the concurrence of the
Secretary of Homeland Security and the
Administrator of the Federal Emergency
Management Agency, shall promulgate regulations
establishing a threshold for a Small Business
Act catastrophic national disaster declaration.
``(ii) Considerations.--In promulgating the
regulations required under clause (i), the
Administrator shall establish a threshold
that--
``(I) requires that the incident
for which the President declares a
Small Business Act catastrophic
national disaster declaration under
this paragraph has resulted in
extraordinary levels of casualties or
damage or disruption severely affecting
the population (including mass
evacuations), infrastructure,
environment, economy, national morale,
or government functions in an area and
the disaster should be similar in size
and scope to the events relating to the
terrorist attacks of September 11,
2001, and the Hurricane Katrina of
2005;
``(II) requires that the President
declares a major disaster before making
a Small Business Act catastrophic
national disaster declaration under
this paragraph;
``(III) requires consideration of--
``(aa) the dollar amount
per capita of damage to the
State, its political
subdivisions, or a region;
``(bb) the number of small
business concerns damaged,
physically or economically, as
a direct result of the event;
``(cc) the number of
individuals and households
displaced from their
predisaster residences by the
event;
``(dd) the severity of the
impact on employment rates in
the State, its political
subdivisions, or a region;
``(ee) the anticipated
length and difficulty of the
recovery process;
``(ff) whether the events
leading to the relevant major
disaster declaration are of an
unusually large and calamitous
nature that is orders of
magnitude larger than for an
average major disaster; and
``(gg) any other factor
determined relevant by the
Administrator.
``(C) Authorization.--If the President makes a
Small Business Act catastrophic national disaster
declaration under this paragraph, the Administrator may
make such loans under this paragraph (either directly
or in cooperation with banks or other lending
institutions through agreements to participate on an
immediate or deferred basis) as the Administrator
determines appropriate to small business concerns
located anywhere in the United States that are
economically adversely impacted as a result of that
Small Business Act catastrophic national disaster.
``(D) Loan terms.--A loan under this paragraph
shall be made on the same terms as a loan under
paragraph (2).''.
SEC. 11142. PRIVATE DISASTER LOANS.
(a) In General.--Section 7 of the Small Business Act (15 U.S.C.
636) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Private Disaster Loans.--
``(1) Definitions.--In this subsection--
``(A) the term `disaster area' means any area for
which the President declared a major disaster (as that
term is defined in section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5122)) that subsequently results in the
President making a Small Business Act catastrophic
national disaster declaration under subsection (b)(11);
``(B) the term `eligible small business concern'
means a business concern that is--
``(i) a small business concern, as defined
in this Act; or
``(ii) a small business concern, as defined
in section 103 of the Small Business Investment
Act of 1958; and
``(C) the term `qualified private lender' means any
privately-owned bank or other lending institution that
the Administrator determines meets the criteria
established under paragraph (9).
``(2) Authorization.--The Administrator may guarantee
timely payment of principal and interest, as scheduled on any
loan issued by a qualified private lender to an eligible small
business concern located in a disaster area.
``(3) Use of loans.--A loan guaranteed by the Administrator
under this subsection may be used for any purpose authorized
under subsection (b).
``(4) Online applications.--
``(A) Establishment.--The Administrator may
establish, directly or through an agreement with
another entity, an online application process for loans
guaranteed under this subsection.
``(B) Other federal assistance.--The Administrator
may coordinate with the head of any other appropriate
Federal agency so that any application submitted
through an online application process established under
this paragraph may be considered for any other Federal
assistance program for disaster relief.
``(C) Consultation.--In establishing an online
application process under this paragraph, the
Administrator shall consult with appropriate persons
from the public and private sectors, including private
lenders.
``(5) Maximum amounts.--
``(A) Guarantee percentage.--The Administrator may
guarantee not more than 85 percent of a loan under this
subsection.
``(B) Loan amounts.--The maximum amount of a loan
guaranteed under this subsection shall be $2,000,000.
``(6) Loan term.--The longest term of a loan for a loan
guaranteed under this subsection shall be--
``(A) 15 years for any loan that is issued without
collateral; and
``(B) 25 years for any loan that is issued with
collateral.
``(7) Fees.--
``(A) In general.--The Administrator may not
collect a guarantee fee under this subsection.
``(B) Origination fee.--The Administrator may pay a
qualified private lender an origination fee for a loan
guaranteed under this subsection in an amount agreed
upon in advance between the qualified private lender
and the Administrator.
``(8) Documentation.--A qualified private lender may use
its own loan documentation for a loan guaranteed by the
Administrator, to the extent authorized by the Administrator.
The ability of a lender to use its own loan documentation for a
loan guaranteed under this subsection shall not be considered
part of the criteria for becoming a qualified private lender
under the regulations promulgated under paragraph (9).
``(9) Implementation regulations.--
``(A) In general.--Not later than 1 year after the
date of enactment of the Small Business Disaster
Response and Loan Improvements Act of 2007, the
Administrator shall issue final regulations
establishing permanent criteria for qualified private
lenders.
``(B) Report to congress.--Not later than 6 months
after the date of enactment of the Small Business
Disaster Response and Loan Improvements Act of 2007,
the Administrator shall submit a report on the progress
of the regulations required by subparagraph (A) to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House
of Representatives.
``(10) Authorization of appropriations.--
``(A) In general.--Amounts necessary to carry out
this subsection shall be made available from amounts
appropriated to the Administration to carry out
subsection (b).
``(B) Authority to reduce interest rates.--Funds
appropriated to the Administration to carry out this
subsection, may be used by the Administrator, to the
extent available, to reduce the rate of interest for
any loan guaranteed under this subsection by not more
than 3 percentage points.
``(11) Purchase of loans.--The Administrator may enter into
an agreement with a qualified private lender to purchase any
loan issued under this subsection.''.
(b) Effective Date.--The amendments made by this section shall
apply to disasters declared under section 7(b)(2) of the Small Business
Act (631 U.S.C. 636(b)(2)) before, on, or after the date of enactment
of this Act.
SEC. 11143. TECHNICAL AND CONFORMING AMENDMENTS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) in section 4(c)--
(A) in paragraph (1), by striking ``7(c)(2)'' and
inserting ``7(d)(2)''; and
(B) in paragraph (2)--
(i) by striking ``7(c)(2)'' and inserting
``7(d)(2)''; and
(ii) by striking ``7(e),''; and
(2) in section 7(b), in the undesignated matter following
paragraph (3)--
(A) by striking ``That the provisions of paragraph
(1) of subsection (c)'' and inserting ``That the
provisions of paragraph (1) of subsection (d)''; and
(B) by striking ``Notwithstanding the provisions of
any other law the interest rate on the Administration's
share of any loan made under subsection (b) except as
provided in subsection (c),'' and inserting
``Notwithstanding any other provision of law, and
except as provided in subsection (d), the interest rate
on the Administration's share of any loan made under
subsection (b)''.
SEC. 11144. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.
(a) Definitions.--In this section--
(1) the term ``immediate disaster assistance'' means
assistance provided during the period beginning on the date on
which the President makes a Small Business Act catastrophic
disaster declaration under paragraph (11) of section 7(b) of
the Small Business Act (15 U.S.C. 636(b)), as added by this
Act, and ending on the date that an impacted small business
concern is able to secure funding through insurance claims,
Federal assistance programs, or other sources; and
(2) the term ``program'' means the expedited disaster
assistance business loan program established under subsection
(b).
(b) Creation of Program.--The Administrator shall take such
administrative action as is necessary to establish and implement an
expedited disaster assistance business loan program to provide small
business concerns with immediate disaster assistance under paragraph
(11) of section 7(b) of the Small Business Act (15 U.S.C. 636(b)), as
added by this Act.
(c) Consultation Required.--In establishing the program, the
Administrator shall consult with--
(1) appropriate personnel of the Administration (including
District Office personnel of the Administration);
(2) appropriate technical assistance providers (including
small business development centers);
(3) appropriate lenders and credit unions;
(4) the Committee on Small Business and Entrepreneurship of
the Senate; and
(5) the Committee on Small Business of the House of
Representatives.
(d) Rules.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall issue rules in
final form establishing and implementing the program in
accordance with this section. Such rules shall apply as
provided for in this section, beginning 90 days after their
issuance in final form.
(2) Contents.--The rules promulgated under paragraph (1)
shall--
(A) identify whether appropriate uses of funds
under the program may include--
(i) paying employees;
(ii) paying bills and other financial
obligations;
(iii) making repairs;
(iv) purchasing inventory;
(v) restarting or operating a small
business concern in the community in which it
was conducting operations prior to the declared
disaster, or to a neighboring area, county, or
parish in the disaster area; or
(vi) covering additional costs until the
small business concern is able to obtain
funding through insurance claims, Federal
assistance programs, or other sources; and
(B) set the terms and conditions of any loan made
under the program, subject to paragraph (3).
(3) Terms and conditions.--A loan made by the
Administration under this section--
(A) shall be for not more than $150,000;
(B) shall be a short-term loan, not to exceed 180
days, except that the Administrator may extend such
term as the Administrator determines necessary or
appropriate on a case-by-case basis;
(C) shall have an interest rate not to exceed 1
percentage point above the prime rate of interest that
a private lender may charge;
(D) shall have no prepayment penalty;
(E) may only be made to a borrower that meets the
requirements for a loan under section 7(b) of the Small
Business Act (15 U.S.C. 636(b));
(F) may be refinanced as part of any subsequent
disaster assistance provided under section 7(b) of the
Small Business Act;
(G) may receive expedited loss verification and
loan processing, if the applicant is--
(i) a major source of employment in the
disaster area (which shall be determined in the
same manner as under section 7(b)(3)(B) of the
Small Business Act (15 U.S.C. 636(b)(3)(B)));
or
(ii) vital to recovery efforts in the
region (including providing debris removal
services, manufactured housing, or building
materials); and
(H) shall be subject to such additional terms as
the Administrator determines necessary or appropriate.
(e) Report to Congress.--Not later than 5 months after the date of
enactment of this Act, the Administrator shall report to the Committee
on Small Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives on the progress of
the Administrator in establishing the program.
(f) Authorization.--There are authorized to be appropriated to the
Administrator such sums as are necessary to carry out this section.
SEC. 11145. HUBZONES.
(a) In General.--Section 3(p) of the Small Business Act (15 U.S.C.
632(p)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking ``or'';
(B) in subparagraph (E), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following:
``(F) areas in which the President has declared a
major disaster (as that term is defined in section 102
of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122)) as a result of
Hurricane Katrina of August 2005 or Hurricane Rita of
September 2005, during the time period described in
paragraph (8); or
``(G) Small Business Act catastrophic national
disaster areas.'';
(2) in paragraph (4), by adding at the end the following:
``(E) Small business act catastrophic national
disaster area.--
``(i) In general.--The term `Small Business
Act catastrophic national disaster area' means
an area--
``(I) affected by a Small Business
Act catastrophic national disaster
declared under section 7(b)(11), during
the time period described in clause
(ii); and
``(II) for which the Administrator
determines that designation as a
HUBZone would substantially contribute
to the reconstruction and recovery
effort in that area.
``(ii) Time period.--The time period for
the purposes of clause (i)--
``(I) shall be the 2-year period
beginning on the date that the
applicable Small Business Act
catastrophic national disaster was
declared under section 7(b)(11); and
``(II) may, at the discretion of
the Administrator, be extended to be
the 3-year period beginning on the date
described in subclause (I).''; and
(3) by adding at the end the following:
``(8) Time period.--The time period for the purposes of
paragraph (1)(F)--
``(A) shall be the 2-year period beginning on the
later of the date of enactment of this paragraph and
August 29, 2007; and
``(B) may, at the discretion of the Administrator,
be extended to be the 3-year period beginning on the
later of the date of enactment of this paragraph and
August 29, 2007.''.
(b) Tolling of Graduation.--Section 7(j)(10)(C) of the Small
Business Act (15 U.S.C. 636(j)(10)(C)) is amended by adding at the end
the following:
``(iii)(I) For purposes of this subparagraph, if
the Administrator designates an area as a HUBZone under
section 3(p)(4)(E)(i)(II), the Administrator shall not
count the time period described in subclause (II) of
this clause for any small business concern--
``(aa) that is participating in any
program, activity, or contract under section
8(a); and
``(bb) the principal place of business of
which is located in that area.
``(II) The time period for purposes of subclause
(I)--
``(aa) shall be the 2-year period beginning
on the date that the applicable Small Business
Act catastrophic national disaster was declared
under section 7(b)(11); and
``(bb) may, at the discretion of the
Administrator, be extended to be the 3-year
period beginning on the date described in item
(aa).''.
(c) Study of HUBZone Disaster Areas.--Not later than 1 year after
the date of enactment of this Act, the Comptroller General of the
United States shall submit a report to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small Business
of the House of Representatives evaluating the designation by the
Administrator of Small Business Act catastrophic national disaster
areas, as that term is defined in section 3(p)(4)(E) of the Small
Business Act (as added by this Act), as HUBZones.
PART III--DISASTER ASSISTANCE OVERSIGHT
SEC. 11161. CONGRESSIONAL OVERSIGHT.
(a) Monthly Accounting Report to Congress.--
(1) Reporting requirements.--Not later than the fifth
business day of each month during the applicable period for a
major disaster, the Administrator shall provide to the
Committee on Small Business and Entrepreneurship and the
Committee on Appropriations of the Senate and to the Committee
on Small Business and the Committee on Appropriations of the
House of Representatives a report on the operation of the
disaster loan program authorized under section 7 of the Small
Business Act (15 U.S.C. 636) for that major disaster during the
preceding month.
(2) Contents.--Each report under paragraph (1) shall
include--
(A) the daily average lending volume, in number of
loans and dollars, and the percent by which each
category has increased or decreased since the previous
report under paragraph (1);
(B) the weekly average lending volume, in number of
loans and dollars, and the percent by which each
category has increased or decreased since the previous
report under paragraph (1);
(C) the amount of funding spent over the month for
loans, both in appropriations and program level, and
the percent by which each category has increased or
decreased since the previous report under paragraph
(1);
(D) the amount of funding available for loans, both
in appropriations and program level, and the percent by
which each category has increased or decreased since
the previous report under paragraph (1), noting the
source of any additional funding;
(E) an estimate of how long the available funding
for such loans will last, based on the spending rate;
(F) the amount of funding spent over the month for
staff, along with the number of staff, and the percent
by which each category has increased or decreased since
the previous report under paragraph (1);
(G) the amount of funding spent over the month for
administrative costs, and the percent by which such
spending has increased or decreased since the previous
report under paragraph (1);
(H) the amount of funding available for salaries
and expenses combined, and the percent by which such
funding has increased or decreased since the previous
report under paragraph (1), noting the source of any
additional funding; and
(I) an estimate of how long the available funding
for salaries and expenses will last, based on the
spending rate.
(b) Daily Disaster Updates to Congress for Presidentially Declared
Disasters.--
(1) In general.--Each day during a disaster update period,
excluding Federal holidays and weekends, the Administration
shall provide to the Committee on Small Business and
Entrepreneurship of the Senate and to the Committee on Small
Business of the House of Representatives a report on the
operation of the disaster loan program of the Administration
for the area in which the President declared a major disaster.
(2) Contents.--Each report under paragraph (1) shall
include--
(A) the number of Administration staff performing
loan processing, field inspection, and other duties for
the declared disaster, and the allocations of such
staff in the disaster field offices, disaster recovery
centers, workshops, and other Administration offices
nationwide;
(B) the daily number of applications received from
applicants in the relevant area, as well as a breakdown
of such figures by State;
(C) the daily number of applications pending
application entry from applicants in the relevant area,
as well as a breakdown of such figures by State;
(D) the daily number of applications withdrawn by
applicants in the relevant area, as well as a breakdown
of such figures by State;
(E) the daily number of applications summarily
declined by the Administration from applicants in the
relevant area, as well as a breakdown of such figures
by State;
(F) the daily number of applications declined by
the Administration from applicants in the relevant
area, as well as a breakdown of such figures by State;
(G) the daily number of applications in process
from applicants in the relevant area, as well as a
breakdown of such figures by State;
(H) the daily number of applications approved by
the Administration from applicants in the relevant
area, as well as a breakdown of such figures by State;
(I) the daily dollar amount of applications
approved by the Administration from applicants in the
relevant area, as well as a breakdown of such figures
by State;
(J) the daily amount of loans dispersed, both
partially and fully, by the Administration to
applicants in the relevant area, as well as a breakdown
of such figures by State;
(K) the daily dollar amount of loans disbursed,
both partially and fully, from the relevant area, as
well as a breakdown of such figures by State;
(L) the number of applications approved, including
dollar amount approved, as well as applications
partially and fully disbursed, including dollar
amounts, since the last report under paragraph (1); and
(M) the declaration date, physical damage closing
date, economic injury closing date, and number of
counties included in the declaration of a major
disaster.
(c) Notice of the Need for Supplemental Funds.--On the same date
that the Administrator notifies any committee of the Senate or the
House of Representatives that supplemental funding is necessary for the
disaster loan program of the Administration in any fiscal year, the
Administrator shall notify in writing the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small Business
of the House of Representatives regarding the need for supplemental
funds for that loan program.
(d) Report on Contracting.--
(1) In general.--Not later than 6 months after the date on
which the President declares a major disaster, and every 6
months thereafter until the date that is 18 months after the
date on which the major disaster was declared, the
Administrator shall submit a report to the Committee on Small
Business and Entrepreneurship of the Senate and to the
Committee on Small Business of the House of Representatives
regarding Federal contracts awarded as a result of that major
disaster.
(2) Contents.--Each report submitted under paragraph (1)
shall include--
(A) the total number of contracts awarded as a
result of that major disaster;
(B) the total number of contracts awarded to small
business concerns as a result of that major disaster;
(C) the total number of contracts awarded to women
and minority-owned businesses as a result of that major
disaster; and
(D) the total number of contracts awarded to local
businesses as a result of that major disaster.
(e) Report on Loan Approval Rate.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Administrator shall submit a report
to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives detailing how the Administration can improve
the processing of applications under the disaster loan program
of the Administration.
(2) Contents.--The report submitted under paragraph (1)
shall include--
(A) recommendations, if any, regarding--
(i) staffing levels during a major
disaster;
(ii) how to improve the process for
processing, approving, and disbursing loans
under the disaster loan program of the
Administration, to ensure that the maximum
assistance is provided to victims in a timely
manner;
(iii) the viability of using alternative
methods for assessing the ability of an
applicant to repay a loan, including the credit
score of the applicant on the day before the
date on which the disaster for which the
applicant is seeking assistance was declared;
(iv) methods, if any, for the
Administration to expedite loss verification
and loan processing of disaster loans during a
major disaster for businesses affected by, and
located in the area for which the President
declared, the major disaster that are a major
source of employment in the area or are vital
to recovery efforts in the region (including
providing debris removal services, manufactured
housing, or building materials);
(v) legislative changes, if any, needed to
implement findings from the Accelerated
Disaster Response Initiative of the
Administration; and
(vi) a description of how the
Administration plans to integrate and
coordinate the response to a major disaster
with the technical assistance programs of the
Administration; and
(B) the plans of the Administrator for implementing
any recommendation made under subparagraph (A).
TITLE XII--TRADE AND TAX PROVISIONS
SEC. 12001. SHORT TITLE; ETC.
(a) Short Title.--This title may be cited as the ``Heartland,
Habitat, Harvest, and Horticulture Act of 2007''.
(b) Amendments to 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
Subtitle A--Supplemental Agricultural Disaster Assistance From the
Agriculture Disaster Relief Trust Fund
SEC. 12101. SUPPLEMENTAL AGRICULTURE DISASTER ASSISTANCE.
(a) In General.--The Trade Act of 1974 (19 U.S.C. 2101 et seq.) is
amended by adding at the end the following:
``TITLE IX--SUPPLEMENTAL AGRICULTURE DISASTER ASSISTANCE
``SEC. 901. PERMANENT AUTHORITY FOR SUPPLEMENTAL REVENUE ASSISTANCE.
``(a) Definitions.--In this section:
``(1) Actual production history yield.--The term `actual
production history yield' means the weighted average actual
production history for each insurable commodity or noninsurable
commodity, as calculated under the Federal Crop Insurance Act
(7 U.S.C. 1501 et seq.) or the noninsured crop disaster
assistance program, respectively.
``(2) Counter-cyclical program payment yield.--The term
`counter-cyclical program payment yield' means the weighted
average payment yield established under section 1102 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912).
``(3) Disaster county.--
``(A) In general.--The term `disaster county' means
a county included in the geographic area covered by a
qualifying natural disaster declaration.
``(B) Inclusion.--The term `disaster county'
includes--
``(i) a county contiguous to a county
described in subparagraph (A); and
``(ii) any farm in which, during a calendar
year, the total loss of production of the farm
relating to weather is greater than 50 percent
of the normal production of the farm, as
determined by the Secretary.
``(4) Eligible producer on a farm.--
``(A) In general.--The term `eligible producer on a
farm' means an individual or entity described in
subparagraph (B) that, as determined by the Secretary,
assumes the production and market risks associated with
the agricultural production of crops or livestock.
``(B) Description.--An individual or entity
referred to in subparagraph (A) is--
``(i) a citizen of the United States;
``(ii) a resident alien;
``(iii) a partnership of citizens of the
United States; or
``(iv) a corporation, limited liability
corporation, or other farm organizational
structure organized under State law.
``(5) Farm.--
``(A) In general.--The term `farm' means, in
relation to an eligible producer on a farm, the sum of
all crop acreage in all counties that--
``(i) is used for grazing by the eligible
producer; or
``(ii) is planted or intended to be planted
for harvest by the eligible producer.
``(B) Aquaculture.--In the case of aquaculture, the
term `farm' means, in relation to an eligible producer
on a farm, all fish being produced in all counties that
are intended to be harvested for sale by the eligible
producer.
``(C) Honey.--In the case of honey, the term `farm'
means, in relation to an eligible producer on a farm,
all bees and beehives in all counties that are intended
to be harvested for a honey crop by the eligible
producer.
``(6) Farm-raised fish.--The term `farm-raised fish' means
any aquatic species (including any species of finfish, mollusk,
crustacean, or other aquatic invertebrate, amphibian, reptile,
or aquatic plant) that is propagated and reared in a controlled
or semicontrolled environment.
``(7) Insurable commodity.--The term `insurable commodity'
means an agricultural commodity (excluding livestock) for which
the producer on a farm is eligible to obtain a policy or plan
of insurance under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.).
``(8) Livestock.--The term `livestock' includes--
``(A) cattle (including dairy cattle);
``(B) bison;
``(C) poultry;
``(D) sheep;
``(E) swine;
``(F) horses; and
``(G) other livestock, as determined by the
Secretary.
``(9) Moving 5-year olympic average county yield.--The term
`moving 5-year Olympic average county yield' means the weighted
average yield obtained from the 5 most recent years of yield
data provided by the National Agriculture Statistics Service
obtained from data after dropping the highest and the lowest
yields.
``(10) Noninsurable commodity.--The term `noninsurable
commodity' means a crop for which the eligible producers on a
farm are eligible to obtain assistance under the noninsured
crop assistance program.
``(11) Noninsured crop assistance program.--The term
`noninsured crop assistance program' means the program carried
out under section 196 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333).
``(12) Qualifying natural disaster declaration.--The term
`qualifying natural disaster declaration' means a natural
disaster declared by the Secretary for production losses under
section 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1961(a)).
``(13) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(14) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the
United States.
``(15) Trust fund.--The term `Trust Fund' means the
Agriculture Disaster Relief Trust Fund established under
section 902.
``(16) United states.--The term `United States' when used
in a geographical sense, means all of the States.
``(b) Supplemental Revenue Assistance Payments.--
``(1) In general.--The Secretary shall use such sums as are
necessary from the Trust Fund to make crop disaster assistance
payments to eligible producers on farms in disaster counties
that have incurred crop production losses or crop quality
losses, or both, during the crop year.
``(2) Amount.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall provide crop disaster assistance
payments under this section to an eligible producer on
a farm in an amount equal to 52 percent of the
difference between--
``(i) the disaster assistance program
guarantee, as described in paragraph (3); and
``(ii) the total farm revenue for a farm,
as described in paragraph (4).
``(B) Limitation.--The disaster assistance program
guarantee for a crop used to calculate the payments for
a farm under subparagraph (A)(i) may not be greater
than 90 percent of the sum of the expected revenue, as
described in paragraph (5) for each of the crops on a
farm, as determined by the Secretary.
``(3) Supplemental revenue assistance program guarantee.--
``(A) In general.--Except as otherwise provided in
this paragraph, the supplemental assistance program
guarantee shall be the sum obtained by adding--
``(i) for each insurable commodity on the
farm, the product obtained by multiplying--
``(I) the greatest of--
``(aa) the actual
production history yield;
``(bb) 90 percent of the
moving 5-year Olympic average
county yield; and
``(cc) the counter-cyclical
program payment yield for each
crop;
``(II) the percentage of the crop
insurance yield guarantee;
``(III) the percentage of crop
insurance price elected by the eligible
producer;
``(IV) the crop insurance price;
and
``(V) 115 percent; and
``(ii) for each noninsurable commodity on a
farm, the product obtained by multiplying--
``(I) the weighted noninsured crop
assistance program yield guarantee;
``(II) except as provided in
subparagraph (B), 100 percent of the
noninsured crop assistance program
established price; and
``(III) 115 percent.
``(B) Supplemental buy-up noninsured assistance
program.--Beginning on the date that the Secretary
makes available supplemental buy-up coverage under the
noninsured assistance program in accordance with
subsection (h), the percentage described in subclause
(II) of subparagraph (A)(ii) shall be equal to the
percentage of the noninsured assistance program price
guarantee elected by the producer.
``(C) Adjustment insurance guarantee.--
Notwithstanding subparagraph (A), in the case of an
insurable commodity for which a plan of insurance
provides for an adjustment in the guarantee, such as in
the case of prevented planting, the adjusted insurance
guarantee shall be the basis for determining the
disaster assistance program guarantee for the insurable
commodity.
``(D) Adjusted assistance level.--Notwithstanding
subparagraph (A), in the case of a noninsurable
commodity for which the noninsured crop assistance
program provides for an adjustment in the level of
assistance, such as in the case of prevented
harvesting, the adjusted assistance level shall be the
basis for determining the disaster assistance program
guarantee for the noninsurable commodity.
``(E) Equitable treatment for non-yield based
policies.--The Secretary shall establish equitable
treatment for non-yield based policies and plans of
insurance, such as the Adjusted Gross Revenue Lite
insurance program.
``(F) Public managed land.--Notwithstanding
subparagraph (A), if rangeland is managed by a Federal
agency and the carrying capacity of the managed
rangeland is reduced as a result of a disaster in the
preceding year that was the basis for a qualifying
natural disaster declaration--
``(i) the calculation for the supplemental
assistance program guarantee determined under
subparagraph (A) as the guarantee applies to
the managed rangeland shall be not less than 75
percent of the guarantee for the preceding
year; and
``(ii) the requirement for a designation by
the Secretary for the current year is waived.
``(4) Farm revenue.--
``(A) In general.--For purposes of this subsection,
the total farm revenue for a farm, shall equal the sum
obtained by adding--
``(i) the estimated actual value for
grazing and for each crop produced on a farm by
using the product obtained by multiplying--
``(I) the actual crop acreage
grazed or harvested by an eligible
producer on a farm;
``(II) the estimated actual yield
of the grazing land or crop production;
and
``(III) subject to subparagraphs
(B) and (C), the average market price
received or value of the production
during the first 5 months of the
marketing year for the county in which
the farm or portion of a farm is
located;
``(ii) 20 percent of amount of any direct
payments made to the producer under section
1103 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7913) or of any fixed
direct payments made at the election of the
producer in lieu of that section or a
subsequent section;
``(iii) the amount of payments for
prevented planting on a farm;
``(iv) the amount of crop insurance
indemnities received by an eligible producer on
a farm for each crop on a farm, including
indemnities for grazing losses;
``(v) the amount of payments an eligible
producer on a farm received under the
noninsured crop assistance program for each
crop on a farm, including grazing losses; and
``(vi) the value of any other natural
disaster assistance payments provided by the
Federal Government to an eligible producer on a
farm for each crop on a farm for the same loss
for which the eligible producer is seeking
assistance.
``(B) Adjustment.--The Secretary shall adjust the
average market price received by the eligible producer
on a farm--
``(i) to reflect the average quality
discounts applied to the local or regional
market price of a crop, hay, or forage due to a
reduction in the intrinsic characteristics of
the production resulting from adverse weather,
as determined annually by the State office of
the Farm Service Agency; and
``(ii) to account for a crop the value of
which is reduced due to excess moisture
resulting from a disaster-related condition.
``(C) Maximum amount for certain crops.--With
respect to a crop for which an eligible producer on a
farm receives assistance under the noninsured crop
assistance program, the average market price received
or value of the production during the first 5 months of
the marketing year for the county in which the farm or
portion of a farm is located shall be an amount not
more than 100 percent of the price of the crop
established under the noninsured crop assistance
program.
``(5) Expected revenue.--The expected revenue for each crop
on a farm shall equal the sum obtained by adding--
``(A) the expected value of grazing;
``(B) the product obtained by multiplying--
``(i) the greatest of--
``(I) the actual production history
yield of the eligible producer on a
farm;
``(II) the moving 5-year Olympic
average county yield; and
``(III) the counter-cyclical
program payment yield;
``(ii) the acreage planted or intended to
be planted for each crop; and
``(iii) 100 percent of the insurance price
guarantee; and
``(C) the product obtained by multiplying--
``(i) 100 percent of the noninsured crop
assistance program yield; and
``(ii) 100 percent of the noninsured crop
assistance program price for each of the crops
on a farm.
``(c) Livestock Indemnity Payments.--
``(1) In general.--The Secretary shall use such sums as are
necessary from the Trust Fund to make livestock indemnity
payments to eligible producers on farms that have incurred
livestock death losses in excess of the normal mortality due to
adverse weather, as determined by the Secretary, during the
calendar year, including losses due to hurricanes, floods,
blizzards, disease, wildfires, extreme heat, and extreme cold.
``(2) Payment rates.--Indemnity payments to an eligible
producer on a farm under paragraph (1) shall be made at a rate
of 75 percent of the market value of the applicable livestock
on the day before the date of death of the livestock, as
determined by the Secretary.
``(d) Emergency Assistance for Livestock, Honey Bees, and Farm-
Raised Fish.--
``(1) In general.--The Secretary shall use up to
$35,000,000 per year from the Trust Fund to provide emergency
relief to eligible producers of livestock, honey bees, and
farm-raised fish to aid in the reduction of losses due to
adverse weather or other environmental conditions, such as
blizzards and wildfires, as determined by the Secretary, that
are not covered under the authority of the Secretary to make
qualifying natural disaster declarations.
``(2) Use of funds.--Funds made available under this
subsection shall be used to reduce losses caused by feed or
water shortages, disease, or other factors as determined by the
Secretary.
``(3) Availability of funds.--Any funds made available
under this subsection and not used in a crop year shall remain
available until expended.
``(e) Tree Assistance Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible orchardist.--The term `eligible
orchardist' means a person that produces annual crops
from trees for commercial purposes.
``(B) Natural disaster.--The term `natural
disaster' means plant disease, insect infestation,
drought, fire, freeze, flood, earthquake, lightning, or
other occurrence, as determined by the Secretary.
``(C) Nursery tree grower.--The term `nursery tree
grower' means a person who produces nursery,
ornamental, fruit, nut, or Christmas trees for
commercial sale, as determined by the Secretary.
``(D) Tree.--The term `tree' includes a tree, bush,
and vine.
``(2) Eligibility.--
``(A) Loss.--Subject to subparagraph (B), the
Secretary shall provide assistance under paragraph (3)
to eligible orchardists and nursery tree growers that
planted trees for commercial purposes but lost the
trees as a result of a natural disaster, as determined
by the Secretary.
``(B) Limitation.--An eligible orchardist or
nursery tree grower shall qualify for assistance under
subparagraph (A) only if the tree mortality of the
eligible orchardist or nursery tree grower, as a result
of damaging weather or related condition, exceeds 15
percent (adjusted for normal mortality).
``(3) Assistance.--Subject to paragraph (4), the assistance
provided by the Secretary to eligible orchardists and nursery
tree growers for losses described in paragraph (2) shall
consist of--
``(A)(i) reimbursement of 75 percent of the cost of
replanting trees lost due to a natural disaster, as
determined by the Secretary, in excess of 15 percent
mortality (adjusted for normal mortality); or
``(ii) at the option of the Secretary, sufficient
seedlings to reestablish a stand; and
``(B) reimbursement of 50 percent of the cost of
pruning, removal, and other costs incurred by an
eligible orchardist or nursery tree grower to salvage
existing trees or, in the case of tree mortality, to
prepare the land to replant trees as a result of damage
or tree mortality due to a natural disaster, as
determined by the Secretary, in excess of 15 percent
damage or mortality (adjusted for normal tree damage
and mortality).
``(4) Limitations on assistance.--
``(A) Amount.--The total amount of payments that a
person shall be entitled to receive under this
subsection may not exceed $100,000 per year, or an
equivalent value in tree seedlings.
``(B) Acres.--The total quantity of acres planted
to trees or tree seedlings for which a person shall be
entitled to receive payments under this subsection may
not exceed 500 acres.
``(C) Regulations.--The Secretary shall promulgate
--
``(i) regulations defining the term
`person' for the purposes of this subsection,
which shall conform, to the maximum extent
practicable, to the regulations defining the
term `person' promulgated under section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308);
and
``(ii) such regulations as the Secretary
determines necessary to ensure a fair and
reasonable application of the limitation
established under this paragraph.
``(f) Plant Pest and Disease Management and Disaster Prevention.--
``(1) Definitions.--In this subsection:
``(A) Early plant pest detection and
surveillance.--The term `early plant pest detection and
surveillance' means the full range of activities
undertaken to find newly introduced plant pests,
whether the plant pests are new to the United States or
new to certain areas of the United States, before--
``(i) the plant pests become established;
or
``(ii) the plant pest infestations become
too large and costly to eradicate or control.
``(B) Plant pest.--The term `plant pest' has the
meaning given such term in section 403 of the Plant
Protection Act (7 U.S.C. 7702).
``(C) Specialty crop.--The term `specialty crop'
has the meaning given the term in section 3 of the
Specialty Crops Competitiveness Act of 2004 (7 U.S.C.
1621 note; Public Law 108-465).
``(D) State department of agriculture.--The term
`State department of agriculture' means an agency of a
State that has a legal responsibility to perform early
plant pest detection and surveillance activities.
``(2) Early plant pest detection and surveillance
improvement program.--
``(A) Cooperative agreements.--The Secretary shall
enter into a cooperative agreement with each State
department of agriculture that agrees to conduct early
plant pest detection and surveillance activities.
``(B) Consultation.--In carrying out this
paragraph, the Secretary shall consult with--
``(i) the National Plant Board;
``(ii) the National Association of State
Departments of Agriculture; and
``(iii) stakeholders.
``(C) Funds under agreements.--Each State
department of agriculture with which the Secretary
enters into a cooperative agreement under this
paragraph shall receive funding for each of fiscal
years 2008 through 2012 in an amount to be determined
by the Secretary.
``(D) Use of funds.--
``(i) Plant pest detection and surveillance
activities.--A State department of agriculture
that receives funds under this paragraph shall
use the funds to carry out early plant pest
detection and surveillance activities to
prevent the introduction of a plant pest or
facilitate the eradication of a plant pest,
pursuant to a cooperative agreement.
``(ii) Subagreements.--Nothing in this
paragraph prevents a State department of
agriculture from using funds received under
subparagraph (C) to enter into subagreements
with political subdivisions of the State that
have legal responsibilities relating to
agricultural plant pest and disease
surveillance.
``(iii) Non-federal share.--The non-Federal
share of the cost of carrying out a cooperative
agreement under this section may be provided
in-kind, including through provision of such
indirect costs of the cooperative agreement as
the Secretary considers to be appropriate.
``(E) Special funding considerations.--The
Secretary shall provide funds to a State department of
agriculture if the Secretary determines that--
``(i) the State department of agriculture
is in a State that has a high risk of being
affected by 1 or more plant pests; and
``(ii) the early plant pest detection and
surveillance activities supported with the
funds will likely--
``(I) prevent the introduction and
establishment of plant pests; and
``(II) provide a comprehensive
approach to compliment Federal
detection efforts.
``(F) Reporting requirement.--Not later than 180
days after the date of completion of an early plant
pest detection and surveillance activity conducted by a
State department of agriculture using funds provided
under this subsection, the State department of
agriculture shall submit to the Secretary a report that
describes the purposes and results of the activities.
``(3) Threat identification and mitigation program.--
``(A) Establishment.--The Secretary, acting through
the Administrator of the Animal and Plant Health
Inspection Service (referred to in this section as the
`Secretary'), shall establish a threat identification
and mitigation program to determine and prioritize
foreign threats to the domestic production of crops.
``(B) Requirements.--In conducting the program
established under subparagraph (A), the Secretary
shall--
``(i) consult with the Director of the
Center for Plant Health Science and Technology;
``(ii) conduct, in partnership with States,
early plant pest detection and surveillance
activities;
``(iii) develop risk assessments of the
potential threat to the agricultural industry
of the United States from foreign sources;
``(iv) collaborate with the National Plant
Board on the matters described in subparagraph
(C);
``(v) implement action plans developed
under subparagraph (C)(ii)(I) immediately after
development of the action plans--
``(I) to test the effectiveness of
the action plans; and
``(II) to assist in preventing the
introduction and widespread
dissemination of new foreign and
domestic plant pest and disease threats
in the United States; and
``(vi) as appropriate, consult with, and
use the expertise of, the Administrator of the
Agricultural Research Service in the
development of plant pest and disease
detection, control, and eradication strategies.
``(C) Matters described.--The matters described in
this subparagraph are--
``(i) the prioritization of foreign threats
to the agricultural industry; and
``(ii) the development, in consultation
with State departments of agriculture and other
State or regional resource partnerships, of--
``(I) action plans that effectively
address the foreign threats, including
pathway analysis, offshore mitigation
measures, and comprehensive exclusion
measures at ports of entry and other
key distribution centers; and
``(II) strategies to employ if a
foreign plant pest or disease is
introduced;
``(D) Reports.--Not later than 1 year after the
date of enactment of this paragraph, and annually
thereafter, the Secretary shall update and submit to
Congress the priority list and action plans described
in subparagraph (C), including an accounting of funds
expended on the action plans.
``(4) Specialty crop certification and risk management
systems.--The Secretary shall provide funds and technical
assistance to specialty crop growers, organizations
representing specialty crop growers, and State and local
agencies working with specialty crop growers and organizations
for the development and implementation of--
``(A) audit-based certification systems, such as
best management practices--
``(i) to address plant pests; and
``(ii) to mitigate the risk of plant pests
in the movement of plants and plant products;
and
``(B) nursery plant pest risk management systems,
in collaboration with the nursery industry, research
institutions, and other appropriate entities--
``(i) to enable growers to identify and
prioritize nursery plant pests and diseases of
regulatory significance;
``(ii) to prevent the introduction,
establishment, and spread of those plant pests
and diseases; and
``(iii) to reduce the risk of, mitigate,
and eradicate those plant pests and diseases.
``(5) Funding.--The Secretary shall use from the Trust Fund
to carry out this subsection--
``(A) $10,000,000 for fiscal year 2008;
``(B) $25,000,000 for fiscal year 2009;
``(C) $40,000,000 for fiscal year 2010;
``(D) $50,000,000 for fiscal year 2011; and
``(E) $64,000,000 for fiscal year 2012.
``(g) Risk Management Purchase Requirement.--
``(1) In general.--Except as otherwise provided in this
subsection, the eligible producers on a farm shall not be
eligible for assistance under this section with respect to
losses to an insurable commodity or noninsurable commodity if
the eligible producers on the farm--
``(A) in the case of an insurable commodity, did
not obtain a policy or plan of insurance for the
insurable commodity under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) (excluding a crop insurance
pilot program under that Act) for the crop incurring
the losses; or
``(B) in the case of a noninsurable commodity, did
not file the required paperwork, and pay the
administrative fee by the applicable State filing
deadline, for the noninsurable commodity under the
noninsured crop assistance program for the crop
incurring the losses.
``(2) Minimum.--To be considered to have obtained insurance
under paragraph (1), an eligible producer on a farm shall have
obtained a policy or plan of insurance with not less than 50
percent yield coverage at 55 percent of the insurable price for
each crop grazed, planted, or intended to be planted for
harvest on a whole farm.
``(3) Waiver.--With respect to eligible producers that are
limited resource, minority, or beginning farmers or ranchers,
as determined by the Secretary, the Secretary may--
``(A) waive paragraph (1); and
``(B) provide disaster assistance under this
section at a level that the Secretary determines to be
equitable and appropriate.
``(4) Equitable relief.--The Secretary may provide
equitable relief to eligible producers on a farm that
unintentionally fail to meet the requirements of paragraph (1)
for 1 or more crops on a farm on a case-by-case basis, as
determined by the Secretary.
``(h) Supplemental Buy-up Noninsured Assistance Program.--
``(1) In general.--The Secretary shall establish a program
under which eligible producers on a farm may purchase under the
noninsured crop assistance program additional yield and price
coverage for a crop, including a forage, hay, or honey crop,
of--
``(A) 60 or 65 percent (as elected by the producers
on the farm) of the yield established for the crop
under the program; and
``(B) 100 percent of the price established for the
crop under the program.
``(2) Fees.--The Secretary shall establish and collect fees
from eligible producers on a farm participating in the program
established under paragraph (1) to offset all of the costs of
the program, as determined by the Secretary.
``(i) Payment Limitations.--
``(1) In general.--The total amount of disaster assistance
that an eligible producer on a farm may receive under this
section may not exceed $100,000.
``(2) AGI limitation.--Section 1001D of the Food Security
Act of 1985 (7 U.S.C. 1308-3a or any successor provision) shall
apply with respect to assistance provided under this section.
``(j) Period of Effectiveness.--This section shall be effective
only for losses that are incurred as the result of a disaster, adverse
weather, or other environmental condition that occurs on or before
September 30, 2012, as determined by the Secretary.
``(k) No Duplicative Payments.--In implementing any other program
which makes disaster assistance payments (except for indemnities made
under the Federal Crop Insurance Act and section 196 of the Federal
Agriculture Improvement and Reform Act of 1996), the Secretary shall
prevent duplicative payments with respect to the same loss for which a
person receives a payment under subsections (b), (c), (d), or (e).
``SEC. 902. AGRICULTURE DISASTER RELIEF TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Agriculture
Disaster Relief Trust Fund', consisting of such amounts as may be
appropriated or credited to such Trust Fund as provided in this
section.
``(b) Transfer to Trust Fund.--
``(1) In general.--There are appropriated to the
Agriculture Disaster Relief Trust Fund amounts equivalent to
3.34 percent of the amounts received in the general fund of the
Treasury of the United States during fiscal years 2008 through
2012 attributable to the duties collected on articles entered,
or withdrawn from warehouse, for consumption under the
Harmonized Tariff Schedule of the United States.
``(2) Amounts based on estimates.--The amounts appropriated
under this section shall be transferred at least monthly from
the general fund of the Treasury of the United States to the
Agriculture Disaster Relief Trust Fund on the basis of
estimates made by the Secretary of the Treasury. Proper
adjustments shall be made in the amounts subsequently
transferred to the extent prior estimates were in excess of or
less than the amounts required to be transferred.
``(c) Administration.--
``(1) Reports.--The Secretary of the Treasury shall be the
trustee of the Agriculture Disaster Relief Trust Fund and shall
submit an annual report to Congress each year on the financial
condition and the results of the operations of such Trust Fund
during the preceding fiscal year and on its expected condition
and operations during the 5 fiscal years succeeding such fiscal
year. Such report shall be printed as a House document of the
session of Congress to which the report is made.
``(2) Investment.--
``(A) In general.--The Secretary of the Treasury
shall invest such portion of the Agriculture Disaster
Relief Trust Fund as is not in his judgment required to
meet current withdrawals. Such investments may be made
only in interest bearing obligations of the United
States. For such purpose, such obligations may be
acquired--
``(i) on original issue at the issue price,
or
``(ii) by purchase of outstanding
obligations at the market price.
``(B) Sale of obligations.--Any obligation acquired
by the Agriculture Disaster Relief Trust Fund may be
sold by the Secretary of the Treasury at the market
price.
``(C) Interest on certain proceeds.--The interest
on, and the proceeds from the sale or redemption of,
any obligations held in the Agriculture Disaster Relief
Trust Fund shall be credited to and form a part of such
Trust Fund.
``(d) Expenditures From Trust Fund.--Amounts in the Agriculture
Disaster Relief Trust Fund shall be available for the purposes of
making expenditures to meet those obligations of the United States
incurred under section 901.
``(e) Authority To Borrow.--
``(1) In general.--There are authorized to be appropriated,
and are appropriated, to the Agriculture Disaster Relief Trust
Fund, as repayable advances, such sums as may be necessary to
carry out the purposes of such Trust Fund.
``(2) Repayment of advances.--
``(A) In general.--Advances made to the Agriculture
Disaster Relief Trust Fund shall be repaid, and
interest on such advances shall be paid, to the general
fund of the Treasury when the Secretary determines that
moneys are available for such purposes in such Trust
Fund.
``(B) Rate of interest.--Interest on advances made
pursuant to this subsection shall be--
``(i) at a rate determined by the Secretary
of the Treasury (as of the close of the
calendar month preceding the month in which the
advance is made) to be equal to the current
average market yield on outstanding marketable
obligations of the United States with remaining
periods to maturity comparable to the
anticipated period during which the advance
will be outstanding, and
``(ii) compounded annually.''.
(b) Technical Provisions Relating to the Plant Protection Act.--
(1) Section 442(c) of the Plant Protection Act (7 U.S.C.
7772(c)) is amended by striking ``of longer than 60 days''.
(2) Congress disapproves the rule submitted by the
Secretary of Agriculture relating to cost-sharing for animal
and plant health emergency programs (68 Fed. Reg. 40541
(2003)), and such rule shall have no force or effect.
Subtitle B--Conservation Provisions
PART I--LAND AND SPECIES PRESERVATION PROVISIONS
SEC. 12201. CONSERVATION RESERVE TAX CREDIT.
(a) Allowance of Credit.--
(1) In general.--Subpart B of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 30D. CONSERVATION RESERVE CREDIT.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to the
rental value of any land enrolled in the conservation reserve program.
``(b) Limitations.--
``(1) Limitation based on amount of tax.--The credit
allowed under this section for any taxable year shall not
exceed the excess of--
``(A) the regular tax liability for the taxable
year reduced by the sum of the credits allowable under
subpart A and sections 27, 30, 30B, and 30C, over
``(B) the tentative minimum tax for the taxable
year.
``(2) Limitation based on allocated portion of national
limitation.--The credit allowed under subsection (a) for any
taxpayer for any taxable year shall not exceed the excess of--
``(A) the amount of the national credit limitation
allocated to such taxpayer under subsection (c) for the
fiscal year in which such taxable year ends and all
prior fiscal years, over
``(B) the credit allowed under subsection (a) for
all prior taxable years.
``(c) Conservation Reserve Credit Limitation.--
``(1) In general.--There is a conservation reserve credit
limitation for each fiscal year of the United States. Such
limitation is--
``(A) $750,000,000 for each of fiscal years 2009
through 2012, and
``(B) zero thereafter.
``(2) Allocation.--
``(A) In general.--The Secretary, in consultation
with the Secretary of Agriculture, shall allocate the
conservation reserve credit limitation to taxpayers--
``(i) who are owners or operators of land
enrolled in the conservation reserve program,
and
``(ii) who have made an election under
section 1234(c)(6) of the Food Security Act of
1985 to receive an allocation under this
paragraph in lieu of a rental payment for such
year under 1233(2) of such Act.
``(B) Allocation limitation.--The Secretary may not
allocate more than $50,000 to any 1 taxpayer for any
fiscal year.
``(3) Carryforward of limitation.--
``(A) In general.--If for any fiscal year the
limitation under paragraph (1) (after the application
of this paragraph) exceeds the amount allocated to all
eligible taxpayers for such fiscal year, the limitation
amount for the following fiscal year shall be increased
by the amount of such excess.
``(B) Special rule for 2012.--Notwithstanding
subparagraph (A), no amount of the conservation reserve
credit limitation may be carried to any fiscal year
following fiscal year 2012.
``(d) Carryforward.--If the amount of the credit allowable under
subsection (a) for any taxpayer for any taxable year (determined
without regard to subsection (b)(1)) exceeds the limitation under
subsection (b)(1), such excess may be carried forward to the succeeding
taxable year and added to the credit allowable under subsection (a) for
such succeeding taxable year.
``(e) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Conservation reserve program.--For purposes of this
subsection, the term `conservation reserve program' means the
conservation reserve program established under subchapter B of
chapter 1 of subtitle D of title XII of the Food Security Act
of 1985.
``(2) Denial of double benefit.--No deduction or other
credit shall be allowed under this chapter for any amount with
respect to which a credit is allowed under subsection (a).
``(3) Recapture of allocation.--If a taxpayer terminates a
contract under the conservation reserve program before the end
of the fiscal year with respect to which an allocation under
subsection (c)(2) is made, the Secretary shall recapture the
amount of the credit allowed under this section which bears the
same ratio to the amount so allocated as the number of days in
the fiscal year during which the contract was not in effect
bears to 365.
``(4) Treatment of credit under income tax and self-
employment income tax.--For purposes of this chapter and
chapter 2, the amount of any credit received under this section
shall not be treated as income.''.
(2) Clerical amendment.--The table of sections for subpart
B of part IV of subchapter A of chapter 1 is amended by
inserting after the item relating to section 30C the following
new item:
``Sec. 30D. Conservation reserve credit.''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years ending after the date of the
enactment of this Act.
(b) Conforming Amendments to the Food Security Act of 1985.--
(1) Election to receive tax credits in lieu of payments.--
Section 1234(c) of the Food Security Act of 1985 (16 U.S.C.
3834(c)), as amended by this Act, is amended by adding at the
end the following new paragraph:
``(6) Election to receive tax credits in lieu of
payments.--
``(A) In general.--In lieu of an annual rental
payment for any year, an owner or operator with land
enrolled under the program established under this
subchapter may elect to receive for such year an
allocation of tax credits under section 30D(c)(2) of
the Internal Revenue Code of 1986.
``(B) Election.--Any election under this paragraph
shall be made in such form and at such time as the
Secretary shall prescribe and shall apply to all
contracts of the owner or operator under this
subchapter.
``(C) Limitation.--Any election under this
paragraph shall not apply with respect to payments
under the emergency forestry conservation reserve
program under section 1231(k).''.
(2) Payment limitation.--Paragraph (1) of section 1234(e)
of such Act (16 U.S.C. 3834(e)(1)) is amended by inserting
``and allocations of tax credits under section 30D(c)(2) of the
Internal Revenue Code of 1986'' after ``in-kind commodities''.
SEC. 12202. EXCLUSION OF CONSERVATION RESERVE PROGRAM PAYMENTS FROM
SECA TAX FOR CERTAIN INDIVIDUALS.
(a) Internal Revenue Code.--Section 1402(a)(1) (defining net
earnings from self-employment) is amended by inserting ``, and
including payments under section 1233(2) of the Food Security Act of
1985 (16 U.S.C. 3833(2)) to individuals receiving benefits under
section 202 or 223 of the Social Security Act'' after ``crop shares''.
(b) Social Security Act.--Section 211(a)(1) of the Social Security
Act is amended by inserting ``, and including payments under section
1233(2) of the Food Security Act of 1985 (16 U.S.C. 3833(2)) to
individuals receiving benefits under section 202 or 223'' after ``crop
shares''.
(c) Effective Date.--The amendments made by this section shall
apply to payments made before, on, or after the date of the enactment
of this Act.
SEC. 12203. PERMANENT EXTENSION OF SPECIAL RULE ENCOURAGING
CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY FOR
CONSERVATION PURPOSES.
(a) In General.--
(1) Individuals.--Subparagraph (E) of section 170(b)(1)
(relating to contributions of qualified conservation
contributions) is amended by striking clause (vi).
(2) Corporations.--Subparagraph (B) of section 170(b)(2)
(relating to qualified conservation contributions by certain
corporate farmers and ranchers) is amended by striking clause
(iii).
(b) Effective Date.--The amendments made by this section shall
apply to contributions made in taxable years beginning after December
31, 2007.
SEC. 12204. TAX CREDIT FOR RECOVERY AND RESTORATION OF ENDANGERED
SPECIES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1,
as amended by this Act, is amended by adding at the end the following
new section:
``SEC. 30E. ENDANGERED SPECIES RECOVERY AND RESTORATION CREDIT.
``(a) In General.--In the case of an eligible taxpayer, there shall
be allowed as a credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of--
``(1) the habitat protection easement credit, plus
``(2) the habitat restoration credit.
``(b) Limitation.--
``(1) In general.--The credit allowed under subsection (a)
for any taxpayer for any taxable year shall not exceed the
endangered species recovery credit limitation allocated to the
eligible taxpayer under subsection (f) for the calendar year in
which the taxpayer's taxable year ends.
``(2) Carryforwards.--
``(A) In general.--If the amount of the credit
allowable under subsection (a) for any taxpayer for any
taxable year (determined without regard to paragraph
(1)) exceeds the endangered species recovery credit
limitation allocated under subsection (f) to such
taxpayer for the calendar year in which the taxpayer's
taxable year ends, such excess may be carried forward
to the next taxable year for which an allocation is
made to such taxpayer under subsection (f). Any amount
carried to another taxable year under this subparagraph
shall be treated as added to the credit allowable under
subsection (a)(1) or (a)(2), whichever is appropriate,
for such taxable year.
``(B) Carryforward of allocation amount.--If the
amount of the endangered species recovery credit
limitation allocated to a taxpayer for any calendar
year under subsection (f) exceeds the amount of the
credit allowed to the taxpayer under subsection (a) for
the taxable year ending in such calendar year, such
excess may be carried forward to the next taxable year
of the taxpayer. Any amount carried to another taxable
year under this subparagraph shall be treated as
allocated to the taxpayer for use in such taxable year
under subsection (f).
``(c) Eligible Taxpayer; Qualified Agreements.--For purposes of
this section--
``(1) In general.--The term `eligible taxpayer' means--
``(A) a taxpayer who--
``(i) owns real property which contains the
habitat of a qualified species, and
``(ii) enters into a qualified perpetual
habitat protection agreement, a qualified 30-
year habitat protection agreement, or a
qualified habitat protection agreement with
respect to such real property, and
``(B) any other taxpayer who--
``(i) is a party to a qualified perpetual
habitat protection agreement, a qualified 30-
year habitat protection agreement, or a
qualified habitat protection agreement, and
``(ii) as part of any such agreement,
agrees to assume responsibility for costs paid
or incurred as a result of implementing such
agreement.
``(2) Qualified perpetual habitat protection agreement.--
The term `qualified perpetual habitat protection agreement'
means an agreement--
``(A) under which a taxpayer described in paragraph
(1)(A) grants to the appropriate Secretary, the
Secretary of Agriculture, the Secretary of Defense, or
a State an easement in perpetuity for the protection of
the habitat of a qualified species, and
``(B) which meets the requirements of paragraph
(5).
``(3) Qualified 30-year habitat protection agreement.--The
term `qualified 30-year habitat protection agreement' means an
agreement not described in paragraph (2)--
``(A) under which a taxpayer described in paragraph
(1)(A) grants to the appropriate Secretary, the
Secretary of Agriculture, the Secretary of Defense, or
a State an easement for a period of 30 years or greater
for the protection of the habitat of a qualified
species, and
``(B) which meets the requirements of paragraph
(5).
``(4) Qualified habitat protection agreement.--The term
`qualified habitat protection agreement' means an agreement--
``(A) under which a taxpayer described in paragraph
(1)(A) enters into an agreement not described in
paragraph (2) or (3) with the appropriate Secretary,
the Secretary of Agriculture, the Secretary of Defense,
or a State to protect the habitat of a qualified
species for a specified period of time, and
``(B) which meets the requirements of paragraph
(5).
``(5) Requirements.--An agreement meets the requirements of
this paragraph if the agreement--
``(A) is consistent with any recovery plan which is
applicable and which has been approved for a qualified
species under section 4 of the Endangered Species Act
of 1973,
``(B) includes a habitat management plan agreed to
by the appropriate Secretary and the eligible taxpayer,
and
``(C) requires that technical assistance with
respect to the duties under the habitat management plan
be provided to the taxpayer by the appropriate
Secretary or an entity approved by the appropriate
Secretary.
``(d) Habitat Protection Easement Credit.--
``(1) In general.--For purposes of subsection (a)(1), the
habitat protection easement credit for any taxable year is an
amount equal to--
``(A) in the case of a taxpayer described in
subsection (c)(1)(A) who has entered into a qualified
perpetual habitat protection agreement during such
taxable year, 100 percent of the excess (if any) of--
``(i) the fair market value of the real
property with respect to which the qualified
perpetual habitat protection agreement is made,
determined on the day before such agreement is
entered into, over
``(ii) the fair market value of such
property, determined on the day after such
agreement is entered into,
``(B) in the case of a taxpayer described in
subsection (c)(1)(A) who has entered into a qualified
30-year habitat protection agreement during such
taxable year, 75 percent of such excess, and
``(C) in the case of any other taxpayer, zero.
``(2) Reduction for amount received for easement.--The
amount determined under paragraph (1) shall be reduced by any
amount received by the taxpayer in connection with the
easement.
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a)(1) for any taxable year shall not
exceed the sum of--
``(A) the taxpayer's regular tax liability for the
taxable year reduced by the sum of the credits
allowable under subpart A and sections 27, 30, 30B,
30C, and 30D, and
``(B) the tax imposed by section 55(a) for the
taxable year.
``(4) Carryforward of unused credit.--If the credit
allowable under subsection (a)(1) for any taxable year exceeds
the limitation imposed by paragraph (3) for such taxable year,
such excess shall be carried to the succeeding taxable year and
added to the credit allowable under subsection (a)(1) for such
succeeding taxable year.
``(5) Qualified appraisals required.--No amount shall be
taken into account under this subsection unless the eligible
taxpayer includes with the taxpayer's return for the taxable
year a qualified appraisal (within the meaning of section
170(f)(11)(E)) of the real property.
``(e) Habitat Restoration Credit.--
``(1) In general.--For purposes of subsection (a)(2), the
habitat restoration credit for any taxable year shall be an
amount equal to--
``(A) in the case of a qualified perpetual habitat
protection agreement, 100 percent of the costs paid or
incurred by an eligible taxpayer during such taxable
year pursuant to the habitat management plan under such
agreement,
``(B) in the case of a qualified 30-year habitat
protection agreement, 75 percent of the costs paid or
incurred by an eligible taxpayer during such taxable
year pursuant to the habitat management plan under such
agreement, and
``(C) in the case of a qualified habitat protection
agreement, 50 percent of the costs paid or incurred by
an eligible taxpayer during such taxable year pursuant
to the habitat management plan under such agreement.
``(2) Limitation based on amount of tax.--The credit
allowed under subsection (a)(2) for any taxable year shall not
exceed the excess (if any) of--
``(A) the regular tax liability for the taxable
year reduced by the sum of the credits allowable under
subpart A, sections 27, 30, 30B, 30C, 30D, and
subsection (a)(1), over
``(B) the tentative minimum tax for the taxable
year.
``(3) Carryforward of unused credit.--If the credit
allowable under subsection (a)(2) for any taxable year exceeds
the limitation imposed by paragraph (2) for such taxable year,
such excess shall be carried to the succeeding taxable year and
added to the credit allowable under subsection (a)(2) for such
succeeding taxable year.
``(4) Special rules.--
``(A) Certain costs not included.--No amount shall
be taken into account with respect to any cost which is
paid or incurred by a taxpayer to comply with any
requirement of a Federal, State, or local government
(other than costs required under an agreement described
in subsection (c)).
``(B) Subsidized financing.--For purposes of
paragraph (1), the amount of costs paid or incurred by
an eligible taxpayer pursuant to any habitat management
plan described in subsection (c)(5)(B) shall be reduced
by the amount of any financing provided under any
Federal or State program a principal purpose of which
is to subsidize financing for the conservation of the
habitat of a qualified species.
``(f) Endangered Species Recovery Credit Limitation.--
``(1) In general.--There is an endangered species recovery
credit limitation for each calendar year. Such limitation is--
``(A) for 2008, 2009, 2010, 2011, and 2012--
``(i) with respect to allocations described
in paragraph (2)(A)--
``(I) $5,000,000 with respect to
qualified perpetual habitat protection
agreements,
``(II) $2,000,000 with respect to
qualified 30-year habitat protection
agreements, and
``(III) $1,000,000 with respect to
qualified habitat protection
agreements, and
``(ii) with respect to allocations
described in paragraph (2)(B)--
``(I) $290,000,000 with respect to
qualified perpetual habitat protection
agreements,
``(II) $55,000,000 with respect to
qualified 30-year habitat protection
agreements, and
``(III) $35,000,000 with respect to
qualified habitat protection
agreements, and
``(B) except as provided in paragraph (3), zero
thereafter.
``(2) Allocation of limitation.--
``(A) Allocations in coordination with the
secretary of agriculture.--The limitations described in
paragraph (1)(A)(i) shall be allocated to eligible
taxpayers by the Secretary in consultation with the
Secretary of Agriculture.
``(B) Other allocations.--
``(i) In general.--The limitations
described in paragraph (1)(A)(ii) shall be
allocated to eligible taxpayers in consultation
with the Secretary of the Interior and the
Secretary of Commerce.
``(ii) Establishment of allocation
program.--Not later than 180 days after the
date of the enactment of this Act, the
Secretary, in consultation with the Secretary
of the Interior and the Secretary of Commerce,
shall, by regulation, establish a program to
process applications from eligible taxpayers
and to determine how to best allocate the
credit limitations under clause (i) taking into
account the considerations described in clause
(iii).
``(iii) Considerations.--In accepting
applications to make allocations to eligible
taxpayers under this section, priority shall be
given to taxpayers with agreements--
``(I) relating to habitats that
will significantly increase the
likelihood of recovering and delisting
a species as an endangered species or a
threatened species (as defined under
section 2 of the Endangered Species Act
of 1973),
``(II) that are cost-effective and
maximize the benefits to a qualified
species per dollar expended,
``(III) relating to habitats of
species which have a federally approved
recovery plan pursuant to section 4 of
the Endangered Species Act of 1973,
``(IV) relating to habitats with
the potential to contribute
significantly to the improvement of the
status of a qualified species,
``(V) relating to habitats with the
potential to contribute significantly
to the eradication or control of
invasive species that are imperiling a
qualified species,
``(VI) with habitat management
plans that will manage multiple
qualified species,
``(VII) with habitat management
plans that will create adjacent or
proximate habitat for the recovery of a
qualified species,
``(VIII) relating to habitats for
qualified species with an urgent need
for protection,
``(IX) with habitat management
plans that assist in preventing the
listing of a species as endangered or
threatened under the Endangered Species
Act of 1973 or a similar State law,
``(X) with habitat management plans
that may resolve conflicts between the
protection of qualified species and
otherwise lawful human activities, and
``(XI) with habitat management
plans that may resolve conflicts
between the protection of a qualified
species and military training or other
military operations.
``(3) Carryover of unused limitation.--If for any calendar
year any of the limitations under paragraph (1) (after the
application of this paragraph) exceeds the amount allocated to
eligible taxpayers for such calendar year, such limitation
amount for the following calendar year shall be increased by
the amount of such excess.
``(g) Other Definitions and Special Rules.--
``(1) Appropriate secretary.--The term `appropriate
Secretary' has the meaning given to the term `Secretary' under
section 3(15) of the Endangered Species Act of 1973.
``(2) Habitat management plan.--The term `habitat
management plan' means, with respect to any habitat, a plan
which--
``(A) identifies one or more qualified species to
which the plan applies,
``(B) is designed to--
``(i) restore or enhance the habitat of the
qualified species, or
``(ii) reduce threats to the qualified
species through the management of the habitat,
``(C) describes the current condition of the
habitat to be restored or enhanced,
``(D) describes the threats to the qualified
species that are intended to be reduced through the
plan,
``(E) describes the management practices to be
undertaken by the taxpayer,
``(F) provides a schedule of deadlines for
undertaking such management practices and the expected
responses of the habitat and the species,
``(G) requires monitoring of the management
practices and the status of the qualified species and
its habitat, and
``(H) describes the technical assistance to be
provided to the taxpayer and identifies the entity that
will provide such assistance.
``(3) Qualified species.--The term `qualified species'
means--
``(A) any species listed as an endangered species
or threatened species under the Endangered Species Act
of 1973, or
``(B) any species for which a finding has been made
under section 4(b)(3) of the Endangered Species Act of
1973 that listing under such Act may be warranted.
``(4) Taking.--The term `taking' has the meaning given to
such term under the Endangered Species Act of 1973.
``(5) Reduction in basis.--For purposes of this subtitle--
``(A) Habitat protection easement credit.--The
basis of any property for which a credit is allowed
under subsection (a)(1) shall be reduced by the amount
of basis which is allocated, under regulations
prescribed by the Secretary, to the easement granted as
part of a qualified perpetual habitat protection
agreement or a qualified 30-year habitat protection
agreement.
``(B) Habitat restoration credit.--If a credit is
allowed under subsection (a)(2) for any expenditure
with respect to any property, the increase in the basis
of such property which would (but for this
subparagraph) result from such expenditure shall be
reduced by the amount of the credit so allowed.
``(6) Denial of double benefit.--No deduction or other
credit shall be allowed under this chapter for any amount with
respect to which a credit is allowed under subsection (a).
``(7) Certification.--No credit shall be allowed under
subsection (a) unless the appropriate Secretary certifies that
any agreement described in subsection (c) will contribute to
the recovery of a qualified species.
``(8) Request for authorization of incidental takings.--The
Secretary shall request the appropriate Secretary to consider
whether to authorize under the Endangered Species Act of 1973
takings by an eligible taxpayer of a qualified species to which
an agreement described in subsection (c) relates if the takings
are incidental to--
``(A) the restoration, enhancement, or management
of the habitat pursuant to the habitat management plan
under the agreement, or
``(B) the use of the property to which the
agreement pertains at any time after the expiration of
the easement or the specified period described in
subsection (c)(4)(A), but only if such use will leave
the qualified species at least as well off on the
property as it was before the agreement was made.
``(9) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit under any credit allowable
under subsection (a) if the Secretary determines that--
``(A) the taxpayer has failed to carry out the
duties of the taxpayer under the terms of a qualified
perpetual habitat protection agreement, a qualified 30-
year habitat protection agreement, or a qualified
habitat protection agreement, and
``(B) there are no other available means to
remediate such failure.''.
(b) GAO Study.--
(1) In general.--The Comptroller General of the United
States shall undertake a study on the effectiveness of the
credit allowed under section 30E of the Internal Revenue Code
of 1986 (as added by this Act).
(2) Issues to be studied.--The study under paragraph (1)
shall--
(A) evaluate--
(i) the contributions that habitat
management plans established under such credit
have made in restoring or enhancing species
habitat and reducing threats to species, and
(ii) the implementation of the credit
allocation program established in section
30E(f)(2) of such Code (as so added), and
(B) include recommendations for improving the
effectiveness of such credit.
(3) Reports.--
(A) Interim report.--Not later than 3 years after
the date of the enactment of this Act, the Comptroller
General of the United States shall submit to Congress
an interim report on the study conducted under
paragraph (1).
(B) Final report.--Not later than 5 years after the
date of the enactment of this Act, the Comptroller
General of the United States shall submit to Congress a
final report on the study conducted under paragraph
(1).
(c) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (36), by striking the period at the end of
paragraph (37) and inserting ``, and'', and by inserting after
paragraph (37) the following new paragraph:
``(38) to the extent provided in section 30E(g)(5).''.
(2) The table of sections for subpart B of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by inserting after the item relating to section 30D the
following new item:
``Sec. 30E. Endangered species recovery and restoration credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 12205. DEDUCTION FOR ENDANGERED SPECIES RECOVERY EXPENDITURES.
(a) Deduction for Endangered Species Recovery Expenditures.--
(1) In general.--Paragraph (1) of section 175(c) (relating
to definitions) is amended by inserting after the first
sentence the following new sentence: ``Such term shall include
expenditures paid or incurred for the purpose of achieving
site-specific management actions recommended in recovery plans
approved pursuant to the Endangered Species Act of 1973.''.
(2) Conforming amendments.--
(A) Section 175 is amended by inserting ``, or for
endangered species recovery'' after ``prevention of
erosion of land used in farming'' each place it appears
in subsections (a) and (c).
(B) The heading of section 175 is amended by
inserting ``; endangered species recovery
expenditures'' before the period.
(C) The item relating to section 175 in the table
of sections for part VI of subchapter B of chapter 1 is
amended by inserting ``; endangered species recovery
expenditures'' before the period.
(b) Limitations.--Paragraph (3) of section 175(c) (relating to
additional limitations) is amended--
(1) in the heading, by inserting ``or endangered species
recovery plan'' after ``conservation plan'', and
(2) in subparagraph (A)(i), by inserting ``or the recovery
plan approved pursuant to the Endangered Species Act of 1973''
after ``Department of Agriculture''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred after the date of the enactment
of this Act.
SEC. 12206. EXCLUSION FOR CERTAIN PAYMENTS AND PROGRAMS RELATING TO
FISH AND WILDLIFE.
(a) In General.--Subsection (a) of section 126 (relating to certain
cost-sharing payments) is amended by redesignating paragraph (10) as
paragraph (13) and by inserting after paragraph (9) the following new
paragraphs:
``(10) The Partners for Fish and Wildlife Program
authorized by the Partners for Fish and Wildlife Act.
``(11) The Landowner Incentive Program, the State Wildlife
Grants Program, and the Private Stewardship Grants Program
authorized by the Fish and Wildlife Act of 1956.
``(12) The Forest Health Protection Program and the program
related to integrated pest management authorized by the
Cooperative Forestry Assistance Act of 1978.''.
(b) Effective Date.--The amendments made by this section shall
apply to payments received after the date of the enactment of this Act.
SEC. 12207. CREDIT FOR EASEMENTS GRANTED UNDER CERTAIN DEPARTMENT OF
AGRICULTURE CONSERVATION PROGRAMS.
(a) In General.--
(1) Allowance of credit.--Subpart B of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by adding at the end the following new section:
``SEC. 30F. AGRICULTURE CONSERVATION EASEMENT CREDIT.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to the
sum of--
``(1) the wetlands reserve conservation credit, plus
``(2) the grassland reserve conservation credit.
``(b) Limitations.--
``(1) Limitation based on amount of tax.--The credit
allowed under this section for any taxable year shall not
exceed the excess of--
``(A) the regular tax liability for the taxable
year reduced by the sum of the credits allowable under
subpart A and sections 27, 30, 30B, 30C, 30D,
30E(a)(1), and 30E(a)(2), over
``(B) the tentative minimum tax for the taxable
year.
``(2) Limitation based on allocated portion of national
limitation.--The credit allowed under subsection (a) for any
taxpayer for any taxable year shall not exceed the excess of--
``(A) the amount of the national credit limitation
allocated to such taxpayer under subsection (e) for
such taxable year and all prior taxable years, over
``(B) the credit allowed under subsection (a) for
all prior taxable years.
``(c) Wetlands Reserve Conservation Credit.--
``(1) In general.--For purposes of subsection (a)(1), in
the case of a wetlands reserve eligible taxpayer, the wetlands
reserve conservation credit for any taxable year is an amount
equal to the applicable percentage of the wetlands reserve
easement value.
``(2) Wetlands reserve eligible taxpayer.--For purposes of
this section, the term `wetlands reserve eligible taxpayer'
means any taxpayer who--
``(A) has granted an easement to the Secretary of
Agriculture under the wetlands reserve program, and
``(B) who has made an election under section
1237A(f)(5) of the Food Security Act of 1985 to receive
an allocation under subsection (e)(2) in lieu of a
payment under section 1237A(f)(1) of such Act.
``(3) Applicable percentage.--For purposes paragraph (1),
the term `applicable percentage' means the percentage equal
to--
``(A) 100 percent, minus
``(B) the highest percentage of tax which would
apply under section 1 or 11 with respect to the
taxpayer if the taxable income of the taxpayer were
increased by an amount equal to the wetlands reserve
easement value.
``(4) Wetlands reserve easement value.--For purposes of
this section, the term `wetlands reserve easement value' means
the lesser of--
``(A) the product of--
``(i) the wetlands reserve geographic area
rate for the area in which the real property to
which the easement pertains is located, and
``(ii) the number of acres to which the
easement applies, or
``(B) the value of any payment to which the
taxpayer would be entitled with respect to such
easement under section 1237A(f)(1) of the Food Security
Act of 1985 if the taxpayer had not made an election
under section 1237A(f)(5) of such Act.
``(5) Wetlands reserve geographic area rate.--For purposes
of paragraph (4)(A)(i), the wetlands reserve geographic area
rate with respect to any geographic area shall be the rate per
acre, determined by the Secretary in consultation with the
Secretary of Agriculture, appropriate for easements granted
under the wetlands reserve program in such area.
``(d) Grassland Reserve Conservation Credit.--
``(1) In general.--For purposes of subsection (a)(2), in
the case of any grassland reserve eligible taxpayer, the
grassland reserve conservation credit for any taxable year is
an amount equal to the applicable percentage of the grassland
reserve easement value.
``(2) Grassland reserve eligible taxpayer.--For purposes of
this section, the term `grassland reserve eligible taxpayer'
means any taxpayer who--
``(A) has granted an easement under the grassland
reserve program to an eligible easement holder, and
``(B) who has made an election under section
1238P(b)(2)(C) of the Food Security Act of 1985 to
receive an allocation under subsection (e)(2) in lieu
of a payment under section 1238P(b)(2)(A)(i) of such
Act.
``(3) Applicable percentage.--For purposes paragraph (1),
the term `applicable percentage' means the percentage equal
to--
``(A) 100 percent, minus
``(B) the highest percentage of tax which would
apply under section 1 or 11 with respect to the
taxpayer if the taxable income of the taxpayer were
increased by an amount equal to the grassland reserve
easement value.
``(4) Grassland reserve easement value.--For purposes of
this section, the term `grassland reserve easement value'
means--
``(A) in the case of a permanent conservation
easement (within the meaning of section 1238N(3) of the
Food Security Act of 1985), the lesser of--
``(i) the product of--
``(I) the grassland reserve program
geographic area rate for the area in
which the real property to which the
easement pertains is located, and
``(II) the number of acres to which
the easement applies, or
``(ii) the value of any payment to which
the taxpayer would be entitled in return for
such easement under section
1238P(b)(2)(A)(i)(I) of the Food Security Act
of 1985 if the taxpayer had not made an
election under section 1238P(b)(2)(C) of such
Act, and
``(B) in the case of a 30-year conservation
easement (within the meaning of section 1238O(b)(2) of
such Act), the lesser of--
``(i) 30 percent of the lesser of the
amount determined under clause (i) or (ii) of
subparagraph (A), or
``(ii) the value of any payment to which
the taxpayer would be entitled in return for
such easement under section
1238P(b)(1)(A)(i)(II) of such Act if the
taxpayer had not made an election under section
1238P(b)(2)(C) of such Act.
``(5) Grassland reserve geographic area rate.--For purposes
of paragraph (4)(A)(i)(I), the grassland reserve geographic
area rate with respect to any geographic area shall be the
rate, determined by the Secretary in consultation with the
Secretary of Agriculture, appropriate for easements granted
under the grassland reserve program in such area.
``(e) National Conservation Credit Limitation.--
``(1) In general.--The aggregate credits allowed under
subsection (a) for all taxpayers shall not exceed
$1,000,000,000.
``(2) Allocation.--The Secretary, in consultation with the
Secretary of Agriculture, shall allocate the credit limitation
under paragraph (1) to taxpayers who--
``(A) have granted an easement--
``(i) to the Secretary of Agriculture under
the wetlands reserve program, or
``(ii) to an eligible easement holder under
the grassland reserve program, and
``(B) make an election under such program to
receive an allocation under this paragraph in lieu of a
payment under such program.
``(3) Limitation on allocation.--No amount of the credit
limitation may be allocated to any taxpayer for any taxable
year which ends after September 30, 2012.
``(f) Carryforward.--If the amount of the credit allowable under
subsection (a) for any taxpayer for any taxable year (determined
without regard to subsection (b)(1)) exceeds the limitation under
subsection (b)(1), such excess may be carried forward to the succeeding
taxable year and added to the credit allowable under subsection (a) for
such succeeding taxable year.
``(g) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Wetlands reserve program.--The term `wetlands reserve
program' means the wetlands reserve program established under
subchapter C of chapter 1 of subtitle D of title XII of the
Food Security Act of 1985.
``(2) Grassland reserve program.--The term `grassland
reserve program' means the grassland reserve program
established under subchapter C of chapter 2 of subtitle D of
title XII of the Food Security Act of 1985.
``(3) Eligible easement holder.--The term `eligible
easement holder' means the Secretary of Agriculture or a State.
``(4) Denial of double benefit.--No deduction or other
credit shall be allowed under this chapter for any amount with
respect to which a credit is allowed under subsection (a).
``(5) Reduction in basis.--For purposes of this subtitle,
the basis of any property for which a credit is allowed under
subsection (a) shall be reduced by the amount of basis which is
allocated, under regulations prescribed by the Secretary, to
the easement granted under the wetlands reserve program or the
grassland reserve program.
``(6) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) if the Secretary, in consultation with the
Secretary of Agriculture, determines that--
``(A) the eligible taxpayer has failed to carry out
the duties of the taxpayer under the terms of the
easement, and
``(B) there are no other available means to
remediate such failure.''.
(2) Conforming amendments.--
(A) Section 1016(a), as amended by this Act, is
amended by striking ``and'' at the end of paragraph
(37), by striking the period at the end of paragraph
(38) and inserting ``, and'', and by inserting after
paragraph (38) the following new paragraph:
``(39) to the extent provided in section 30F(g)(5).''.
(B) The table of sections for subpart B of part IV
of subchapter A of chapter 1, as amended by this Act,
is amended by inserting after the item relating to
section 30E the following new item:
``Sec. 30F. Agriculture conservation easement credit.''.
(3) Effective date.--The amendments made by this subsection
shall apply to easements granted after September 30, 2007, in
taxable years ending after such date.
(b) Conforming Amendments to the Food Security Act of 1985.--
(1) Wetlands reserve program.--Section 1237A(f) of the Food
Security Act of 1985 (16 U.S.C. 3837a(f)), as amended by this
Act, is amended by adding at the end the following new
paragraph:
``(5) Election to receive tax credits in lieu of
payments.--
``(A) In general.--In lieu of a payment in cash
under paragraph (1), the landowner may elect to receive
an allocation of tax credits under section 30E(e)(2) of
the Internal Revenue Code of 1986.
``(B) Limitation.--No election may be made under
this paragraph with respect to payments to a landowner
under a special wetlands reserve enhancement program
described in subsection (h).''.
(2) Grassland reserve program.--Section 1238P(b)(2) of the
Food Security Act of 1985 (16 U.S.C. 3838p(b)(2)) is amended by
adding at the end the following new subparagraph:
``(C) Election to receive tax credits in lieu of
certain payments.--In lieu of a payment in return for a
permanent conservation easement under subparagraph
(A)(i)(I) or a 30-year conservation easement under
subparagraph (A)(i)(II), the landowner may elect to
receive an allocation of tax credits under section
30E(e)(2) of the Internal Revenue Code of 1986.''.
PART II--TIMBER PROVISIONS
SEC. 12211. FOREST CONSERVATION BONDS.
(a) Tax-Exempt Bond Financing.--
(1) In general.--For purposes of the Internal Revenue Code
of 1986, any qualified forest conservation bond shall be
treated as an exempt facility bond under section 142 of such
Code.
(2) Qualified forest conservation bond.--For purposes of
this section, the term ``qualified forest conservation bond''
means any bond issued as part of an issue if--
(A) 95 percent or more of the net proceeds (as
defined in section 150(a)(3) of such Code) of such
issue are to be used for qualified project costs, and
(B) such bond is issued before the date which is 36
months after the date of the enactment of this Act.
(3) Limitation on aggregate amount issued.--
(A) In general.--The maximum aggregate face amount
of bonds which may be issued under this subsection
shall not exceed $1,500,000,000 for all projects
(excluding refunding bonds).
(B) Enforcement of limitation.--An issue shall not
be treated as an issue described in paragraph (2) if
the aggregate face amount of bonds issued pursuant to
such issue for any qualified projects costs (when added
to the aggregate face amount of bonds previously so
issued for such costs) exceeds the amount allocated
under subparagraph (C).
(C) Initial allocation of limitation.--The
limitation described in subparagraph (A) shall be
allocated by the Secretary of the Treasury among
qualified organizations as follows:
(i) 35 percent for qualified project costs
with respect to the cost of acquisition by any
qualified organization in the Pacific Northwest
region.
(ii) 30 percent for qualified project costs
with respect to the cost of acquisition by any
qualified organization in the Western region.
(iii) 17.5 percent for qualified project
costs with respect to the cost of acquisition
by any qualified organization in the Southeast
region.
(iv) 17.5 percent for qualified project
costs with respect to the cost of acquisition
by any qualified organization in the Northeast
region.
(D) Secondary allocation procedure.--If for the
period ending on the last day of the 24th month after
the date of the enactment of this Act, the limitation
amount for any region under subparagraph (C) exceeds
the amount of bonds allocated by the Secretary of the
Treasury during such period, the Secretary of the
Treasury may allocate such excess among qualified
organizations in any other region in such manner as the
Secretary of the Treasury determines appropriate.
(E) Regions.--For purposes of this paragraph--
(i) Pacific northwest region.--The term
``Pacific Northwest region'' means Region 6 as
defined by the United States Forest Service of
the Department of Agriculture under section
200.2 of title 36, Code of Federal Regulations.
(ii) Western region.--The term ``Western
region'' means Regions 1, 2, 3, 4, 5, and 10
(as so defined).
(iii) Southeast region.--The term
``Southeast region'' means Region 8 (as so
defined).
(iv) Northeast region.--The term
``Northeast region'' means Region 9 (as so
defined).
(4) Qualified project costs.--For purposes of this
subsection, the term ``qualified project costs'' means the
costs of acquisition by a qualified organization from an
unrelated person of forests and forest land which, at the time
of acquisition or immediately thereafter, are subject to a
conservation restriction described in subsection (c)(2).
(5) Special rules.--In applying the Internal Revenue Code
of 1986 to any qualified forest conservation bond, the
following modifications shall apply:
(A) Section 146 of such Code (relating to volume
cap) shall not apply.
(B) For purposes of section 147(b) of such Code
(relating to maturity may not exceed 120 percent of
economic life), the land and standing timber acquired
with proceeds of qualified forest conservation bonds
shall have an economic life of 35 years.
(C) Subsections (c) and (d) of section 147 of such
Code (relating to limitations on acquisition of land
and existing property) shall not apply.
(6) Treatment of current refunding bonds.--Paragraphs
(2)(B) and (3) shall not apply to any bond (or series of bonds)
issued to refund a qualified forest conservation bond issued
before the date which is 36 months after the date of the
enactment of this Act, if--
(A) the average maturity date of the issue of which
the refunding bond is a part is not later than the
average maturity date of the bonds to be refunded by
such issue,
(B) the amount of the refunding bond does not
exceed the outstanding amount of the refunded bond, and
(C) the net proceeds of the refunding bond are used
to redeem the refunded bond not later than 90 days
after the date of the issuance of the refunding bond.
For purposes of subparagraph (A), average maturity shall be
determined in accordance with section 147(b)(2)(A) of such
Code.
(7) Effective date.--This subsection shall apply to
obligations issued on or after the date which is 180 days after
the date of the enactment of this Act.
(b) Items From Qualified Harvesting Activities Not Subject To Tax
or Taken Into Account.--
(1) In general.--Income, gains, deductions, losses, or
credits from a qualified harvesting activity conducted by a
qualified organization shall not be subject to tax or taken
into account under subtitle A of the Internal Revenue Code of
1986.
(2) Limitation.--The amount of income excluded from gross
income under paragraph (1) for any taxable year shall not
exceed the amount used by the qualified organization to make
debt service payments during such taxable year for qualified
forest conservation bonds.
(3) Qualified harvesting activity.--For purposes of
paragraph (1)--
(A) In general.--The term ``qualified harvesting
activity'' means the sale, lease, or harvesting, of
standing timber--
(i) on land owned by a qualified
organization which was acquired with proceeds
of qualified forest conservation bonds, and
(ii) pursuant to a qualified conservation
plan adopted by the qualified organization.
(B) Exceptions.--
(i) Cessation as qualified organization.--
The term ``qualified harvesting activity''
shall not include any sale, lease, or
harvesting for any period during which the
organization ceases to qualify as a qualified
organization.
(ii) Exceeding limits on harvesting.--The
term ``qualified harvesting activity'' shall
not include any sale, lease, or harvesting of
standing timber on land acquired with proceeds
of qualified forest conservation bonds to the
extent that--
(I) the average annual area of
timber harvested from such land exceeds
2.5 percent of the total area of such
land, or
(II) the quantity of timber removed
from such land exceeds the quantity
which can be removed from such land
annually in perpetuity on a sustained-
yield basis with respect to such land.
The limitations under subclauses (I) and (II)
shall not apply to post-fire restoration and
rehabilitation or sanitation harvesting of
timber stands which are substantially damaged
by fire, windthrow, or other catastrophes, or
which are in imminent danger from insect or
disease attack.
(4) Termination.--This subsection shall not apply to any
qualified harvesting activity of a qualified organization
occurring after the date on which--
(A) there is no outstanding qualified forest
conservation bond with respect to such qualified
organization, or
(B) any such bond ceases to be a tax-exempt bond.
(5) Partial recapture of benefits if harvesting limit
exceeded.--If, as of the date that this subsection ceases to
apply under paragraph (4)(B), the average annual area of timber
harvested from the land exceeds the requirement of subclause
(I) or (II) of paragraph (3)(B)(ii), the tax imposed by chapter
1 of the Internal Revenue Code of 1986 shall be increased,
under rules prescribed by the Secretary of the Treasury, by the
sum of the tax benefits attributable to such excess and
interest at the underpayment rate under section 6621 of such
Code for the period of the underpayment.
(c) Definitions.--For purposes of this section--
(1) Qualified conservation plan.--The term ``qualified
conservation plan'' means a multiple land use program or plan
which--
(A) is designed and administered primarily for the
purposes of protecting and enhancing wildlife and fish,
timber, scenic attributes, recreation, and soil and
water quality of the forest and forest land,
(B) mandates that conservation of forest and forest
land is the single-most significant use of the forest
and forest land, and
(C) requires that timber harvesting be consistent
with--
(i) restoring and maintaining reference
conditions for the region's ecotype,
(ii) restoring and maintaining a
representative sample of young, mid, and late
successional forest age classes,
(iii) maintaining or restoring the
resources' ecological health for purposes of
preventing damage from fire, insect, or
disease,
(iv) maintaining or enhancing wildlife or
fish habitat, or
(v) enhancing research opportunities in
sustainable renewable resource uses.
(2) Conservation restriction.--The conservation restriction
described in this paragraph is a restriction which--
(A) is granted in perpetuity to an unrelated person
which is described in section 170(h)(3) of such Code
and which, in the case of a nongovernmental unit, is
organized and operated for conservation purposes,
(B) meets the requirements of clause (ii) or
(iii)(II) of section 170(h)(4)(A) of such Code,
(C) obligates the qualified organization to pay the
costs incurred by the holder of the conservation
restriction in monitoring compliance with such
restriction, and
(D) requires an increasing level of conservation
benefits to be provided whenever circumstances allow
it.
(3) Qualified organization.--The term ``qualified
organization'' means a nonprofit organization--
(A) substantially all the activities of which are
charitable, scientific, or educational, including
acquiring, protecting, restoring, managing, and
developing forest lands and other renewable resources
for the long-term charitable, educational, scientific,
and public benefit,
(B) which periodically conducts educational
programs designed to inform the public of
environmentally sensitive forestry management and
conservation techniques,
(C) which has at all times a board of directors--
(i) at least 20 percent of the members of
which are representatives of the conservation
community,
(ii) at least 20 percent of the members of
which are public officials, and
(iii) not more than one-third of the
members of which are individuals who are or
were at any time within 5 years before the
beginning of a term of membership on the board,
an employee of, independent contractor with
respect to, officer of, director of, or held a
material financial interest in, a commercial
forest products enterprise with which the
qualified organization has a contractual or
other financial arrangement,
(D) the bylaws of which require at least two-thirds
of the members of the board of directors to vote
affirmatively to approve the qualified conservation
plan and any change thereto, and
(E) upon dissolution, is required to dedicate its
assets to--
(i) an organization described in section
501(c)(3) of such Code which is organized and
operated for conservation purposes, or
(ii) a governmental unit described in
section 170(c)(1) of such Code.
(4) Unrelated person.--The term ``unrelated person'' means
a person who is not a related person.
(5) Related person.--A person shall be treated as related
to another person if--
(A) such person bears a relationship to such other
person described in section 267(b) (determined without
regard to paragraph (9) thereof), or 707(b)(1), of such
Code, determined by substituting ``25 percent'' for
``50 percent'' each place it appears therein, and
(B) in the case such other person is a non-profit
organization, if such person controls directly or
indirectly more than 25 percent of the governing body
of such organization.
SEC. 12212. DEDUCTION FOR QUALIFIED TIMBER GAIN.
(a) In General.--Part I of subchapter P of chapter 1 is amended by
adding at the end the following new section:
``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.
``(a) In General.--In the case of a taxpayer which elects the
application of this section for a taxable year, there shall be allowed
a deduction against gross income in an amount equal to 60 percent of
the lesser of--
``(1) the taxpayer's qualified timber gain for such year,
or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section, the
term `qualified timber gain' means, with respect to any taxpayer for
any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(2) the sum of the taxpayer's losses described in such
subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--
``(1) In the case of any qualified timber gain of a pass-
thru entity (as defined in section 1(h)(10)) other than a real
estate investment trust, the election under this section shall
be made separately by each taxpayer subject to tax on such
gain.
``(2) In the case of any qualified timber gain of a real
estate investment trust, the election under this section shall
be made by the real estate investment trust.
``(d) Election.--An election under this section may be made only
with respect to the first taxable year beginning after the date of the
enactment of this section.''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2) of
section 1(h) is amended to read as follows:
``(2) Reduction of net capital gain.--For purposes of this
subsection, the net capital gain for any taxable year shall be
reduced (but not below zero) by the sum of--
``(A) the amount which the taxpayer takes into
account as investment income under section
163(d)(4)(B)(iii), and
``(B) in the case of a taxable year with respect to
which an election is in effect under section 1203, the
lesser of--
``(i) the amount described in paragraph (1)
of section 1203(a), or
``(ii) the amount described in paragraph
(2) of such section.''.
(2) Corporations.--Section 1201 is amended by redesignating
subsection (b) as subsection (c) and inserting after subsection
(a) the following new subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For purposes
of this section, in the case of a corporation with respect to which an
election is in effect under section 1203, the net capital gain for any
taxable year shall be reduced (but not below zero) by the corporation's
qualified timber gain (as defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes Other
Deductions.--Subsection (a) of section 62 is amended by inserting
before the last sentence the following new paragraph:
``(22) Qualified timber gains.--The deduction allowed by
section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current Earnings.--
Subparagraph (C) of section 56(g)(4) is amended by adding at the end
the following new clause:
``(vii) Deduction for qualified timber
gain.--Clause (i) shall not apply to any
deduction allowed under section 1203.''.
(e) Deduction Allowed in Computing Taxable Income of Electing Small
Business Trusts.--Subparagraph (C) of section 641(c)(2) is amended by
inserting after clause (iii) the following new clause:
``(iv) The deduction allowed under section
1203.''.
(f) Treatment of Qualified Timber Gain of Real Estate Investment
Trusts.--Paragraph (3) of section 857(b) is amended by inserting after
subparagraph (F) the following new subparagraph:
``(G) Treatment of qualified timber gain.--For
purposes of this part, in the case of a real estate
investment trust with respect to which an election is
in effect under section 1203--
``(i) Reduction of net capital gain.--The
net capital gain of the real estate investment
trust for any taxable year shall be reduced
(but not below zero) by the real estate
investment trust's qualified timber gain (as
defined in section 1203(b)).
``(ii) Adjustment to shareholder's basis
attributable to deduction for qualified timber
gains.--
``(I) In general.--The adjusted
basis of shares in the hands of the
shareholder shall be increased by the
amount of the deduction allowable under
section 1203(a) as provided in
subclauses (II) and (III).
``(II) Allocation of basis increase
for distributions made during taxable
year.--For any taxable year of a real
estate investment trust for which an
election is in effect under section
1203, in the case of a distribution
made with respect to shares during such
taxable year of amounts attributable to
the deduction allowable under section
1203(a), the adjusted basis of such
shares shall be increased by the amount
of such distributions.
``(III) Allocation of excess.--If
the deduction allowable under section
1203(a) for a taxable year exceeds the
amount of distributions described in
subclause (II), the excess shall be
allocated to every shareholder of the
real estate investment trust at the
close of the trust's taxable year in
the same manner as if a distribution of
such excess were made with respect to
such shares.
``(IV) Designations.--To the extent
provided in regulations, a real estate
investment trust shall designate the
amounts described in subclauses (II)
and (III) in a manner similar to the
designations provided with respect to
capital gains described in
subparagraphs (C) and (D).
``(V) Definitions.--As used in this
subparagraph, the terms `share' and
`shareholder' shall include beneficial
interests and holders of beneficial
interests, respectively.
``(iii) Earnings and profits deduction for
qualified timber gains.--The deduction
allowable under section 1203(a) for a taxable
year shall be allowed as a deduction in
computing the earnings and profits of the real
estate investment trust for such taxable year.
The earnings and profits of any such
shareholder which is a corporation shall be
appropriately adjusted in accordance with
regulations prescribed by the Secretary.''.
(g) Loss Attributable to Basis Adjustment for Deduction for
Qualified Timber Gain of Real Estate Investment Trusts.--
(1) Section 857(b)(8) is amended by redesignating
subparagraphs (B) and (C) as subparagraphs (C) and (D),
respectively, and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Loss attributable to basis adjustment for
deduction for qualified timber gain.--If--
``(i) a shareholder of a real estate
investment trust receives a basis adjustment
provided under subsection (b)(3)(G)(ii), and
``(ii) the taxpayer has held such share or
interest for 6 months or less,
then any loss on the sale or exchange of such share or
interest shall, to the extent of the amount described
in clause (i), be disallowed.''.
(2) Subparagraph (D) of section 857(b)(8), as redesignated
by paragraph (1), is amended by striking ``subparagraph (A)''
and inserting ``subparagraphs (A) and (B)''.
(h) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the exclusion under section 1202, and the
deduction under section 1203, shall not be allowed.''.
(2) Paragraph (4) of section 642(c) is amended by striking
the first sentence and inserting ``To the extent that the
amount otherwise allowable as a deduction under this subsection
consists of gain described in section 1202(a) or qualified
timber gain (as defined in section 1203(b)), proper adjustment
shall be made for any exclusion allowable to the estate or
trust under section 1202 and for any deduction allowable to the
estate or trust under section 1203.''
(3) Paragraph (3) of section 643(a) is amended by striking
the last sentence and inserting ``The exclusion under section
1202 and the deduction under section 1203 shall not be taken
into account.''.
(4) Subparagraph (C) of section 643(a)(6) is amended to
read as follows:
``(C) Paragraph (3) shall not apply to a foreign
trust. In the case of such a trust--
``(i) there shall be included gains from
the sale or exchange of capital assets, reduced
by losses from such sales or exchanges to the
extent such losses do not exceed gains from
such sales or exchanges, and
``(ii) the deduction under section 1203
shall not be taken into account.''.
(5) Paragraph (4) of section 691(c) is amended by inserting
``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by inserting
``or 1203,'' after ``1202,''.
(7) The table of sections for part I of subchapter P of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 1203. Deduction for qualified timber gain.''.
(i) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 12213. EXCISE TAX NOT APPLICABLE TO SECTION 1203 DEDUCTION OF REAL
ESTATE INVESTMENT TRUSTS.
(a) In General.--
(1) Ordinary income.--Subparagraph (B) of section
4981(e)(1) is amended to read as follows:
``(B) by not taking into account--
``(i) any gain or loss from the sale or
exchange of capital assets (determined without
regard to any reduction that would be applied
for purposes of section 857(b)(3)(G)(i)), and
``(ii) any deduction allowable under
section 1203, and''.
(2) Capital gain net income.--Section 4981(e)(2) is amended
by adding at the end the following new subparagraph:
``(D) Qualified timber gain.--The amount determined
under subparagraph (A) shall be determined without
regard to any reduction that would be applied for
purposes of section 857(b)(3)(G)(i) but shall be
reduced for any deduction allowable under section 1203
for such calendar year.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 12214. TIMBER REIT MODERNIZATION.
(a) In General.--Section 856(c)(5) is amended by adding after
subparagraph (G) the following new subparagraph:
``(H) Treatment of timber gains.--
``(i) In general.--Gain from the sale of
real property described in paragraph (2)(D) and
(3)(C) shall include gain which is--
``(I) recognized by an election
under section 631(a) from timber owned
by the real estate investment trust,
the cutting of which is provided by a
taxable REIT subsidiary of the real
estate investment trust;
``(II) recognized under section
631(b); or
``(III) income which would
constitute gain under subclause (I) or
(II) but for the failure to meet the 1-
year holding period requirement.
``(ii) Special rules.--
``(I) For purposes of this
subtitle, cut timber, the gain of which
is recognized by a real estate
investment trust pursuant to an
election under section 631(a) described
in clause (i)(I) or so much of clause
(i)(III) as relates to clause (i)(I),
shall be deemed to be sold to the
taxable REIT subsidiary of the real
estate investment trust on the first
day of the taxable year.
``(II) For purposes of this
subtitle, income described in this
subparagraph shall not be treated as
gain from the sale of property
described in section 1221(a)(1).
``(iii) Termination.--This subparagraph
shall not apply to dispositions after the
termination date.''.
(b) Termination Date.--Subsection (c) of section 856 is amended by
adding at the end the following new paragraph:
``(8) Termination date.--For purposes of this subsection,
the term `termination date' means the last day of the first
taxable year beginning after the date of the enactment of this
paragraph.''.
(c) Effective Date.--The amendments made by subsection (a) shall
apply to dispositions in taxable years beginning after the date of the
enactment of this Act.
SEC. 12215. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.
(a) In General.--Section 856(c)(2) is amended by striking ``and''
at the end of subparagraph (G), by inserting ``and'' at the end of
subparagraph (H), and by adding after subparagraph (H) the following
new subparagraph:
``(I) mineral royalty income earned in the first
taxable year beginning after the date of the enactment
of this subparagraph from real property owned by a
timber real estate investment trust held, or once held,
in connection with the trade or business of producing
timber by such real estate investment trust;''.
(b) Timber Real Estate Investment Trust.--Section 856(c)(5), as
amended by this Act, is amended by adding after subparagraph (H) the
following new subparagraph:
``(I) Timber real estate investment trust.--The
term `timber real estate investment trust' means a real
estate investment trust in which more than 50 percent
in value of its total assets consists of real property
held in connection with the trade or business of
producing timber.''.
(c) Effective Date.--The amendments by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
SEC. 12216. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST FOR
TIMBER REITS.
(a) In General.--Section 856(c)(4)(B)(ii) is amended by inserting
``(in the case of a quarter which closes on or before the termination
date, 25 percent in the case of a timber real estate investment
trust)'' after ``not more than 20 percent of the value of its total
assets is represented by securities of one or more taxable REIT
subsidiaries''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 12217. SAFE HARBOR FOR TIMBER PROPERTY.
(a) In General.--Section 857(b)(6) (relating to income from
prohibited transactions) is amended by adding at the end the following
new subparagraph:
``(G) Special rules for sales to qualified
organizations.--
``(i) In general.--In the case of sale of a
real estate asset (as defined in section
856(c)(5)(B)) to a qualified organization (as
defined in section 170(h)(3)) exclusively for
conservation purposes (within the meaning of
section 170(h)(1)(C)), subparagraph (D) shall
be applied--
``(I) by substituting `2 years' for
`4 years' in clause (i), and
``(II) by substituting `2-year
period' for `4-year period' in clauses
(ii) and (iii).
``(ii) Termination.--This subparagraph
shall not apply to sales after the termination
date.''.
(b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is amended by
inserting ``or, in the case of a sale on or before the termination
date, a taxable REIT subsidiary'' after ``independent contractor (as
defined in section 856(d)(3)) from whom the trust itself does not
derive or receive any income''.
(c) Sales That Are Not Prohibited Transactions.--Section 857(b)(6),
as amended by subsection (a), is amended by adding at the end the
following new subparagraph:
``(H) Sales of property that are not a prohibited
transaction.--In the case of a sale on or before the
termination date, the sale of property which is not a
prohibited transaction through application of
subparagraph (D) shall be considered property held for
investment or for use in a trade or business and not
property described in section 1221(a)(1) for all
purposes of this subtitle.''.
(d) Termination Date.--Section 857(b)(6), as amended by subsections
(a) and (c), is amended by adding at the end the following new
subparagraph:
``(I) Termination date.--For purposes of this
paragraph, the term `termination date' means the last
day of the first taxable year beginning after the date
of the enactment of this subparagraph.''.
(e) Effective Date.--The amendments made by this section shall
apply to dispositions in taxable years beginning after the date of the
enactment of this Act.
Subtitle C--Energy Provisions
PART I--ELECTRICITY GENERATION
SEC. 12301. CREDIT FOR RESIDENTIAL AND BUSINESS WIND PROPERTY.
(a) Residential Wind Property.--
(1) In general.--Section 25D(a) (relating to allowance of
credit) is amended by striking ``and'' at the end of paragraph
(2), by striking the period at the end of paragraph (3) and
inserting ``, and'', and by adding at the end the following new
paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such year.''.
(2) Limitation.--Section 25D(b)(1) (relating to maximum
credit) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(D) $500 with respect to each half kilowatt of
capacity (not to exceed $4,000) of wind turbines for
which qualified small wind energy property expenditures
are made.''.
(3) Qualified small wind energy property expenditures.--
(A) In general.--Section 25D(d) (relating to
definitions) is amended by adding at the end the
following new paragraph:
``(4) Qualified small wind energy property expenditure.--
The term `qualified small wind energy property expenditure'
means an expenditure for qualified small wind energy property
(as defined in section 48(c)(3)(A)) installed on or in
connection with a dwelling unit located in the United States
and used as a residence by the taxpayer.''.
(B) No double benefit.--Section 45(d)(1) (relating
to wind facility) is amended by adding at the end the
following new sentence: ``Such term shall not include
any facility with respect to which any qualified small
wind energy property expenditure (as defined in
subsection (d)(4) of section 25D) is taken into account
in determining the credit under such section.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) (relating to maximum expenditures) is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end the following new clause:
``(iv) $1,667 in the case of each half
kilowatt of capacity (not to exceed $13,333) of
wind turbines for which qualified small wind
energy property expenditures are made.''.
(b) Business Wind Property.--
(1) In general.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(iii), by adding ``or'' at the end of clause (iv), and by
inserting after clause (iv) the following new clause:
``(v) qualified small wind energy
property,''.
(2) 30 percent credit.--Section 48(a)(2)(A)(i) is amended
by striking ``and'' at the end of subclause (II) and by
inserting after subclause (III) the following new subclause:
``(IV) qualified small wind energy
property, and''.
(3) Qualified small wind energy property.--Section 48(c) is
amended--
(A) by inserting ``; Qualified Small Wind Energy
Property'' after ``Qualified Microturbine Property'' in
the heading,
(B) by striking ``For purposes of this subsection''
and inserting ``For purposes of this section'',
(C) by striking ``paragraph (1)'' in paragraphs
(1)(B) and (2)(B) and inserting ``subsection (a)(1)'',
and
(D) by adding at the end the following new
paragraph:
``(3) Qualified small wind energy property.--
``(A) In general.--The term `qualified small wind
energy property' means property which uses a qualifying
small wind turbine to generate electricity.
``(B) Limitation.--In the case of qualified small
wind energy property placed in service during the
taxable year, the credit otherwise determined under
subsection (a)(1) for such year with respect to such
property shall not exceed $4,000 with respect to any
taxpayer.
``(C) Qualifying small wind turbine.--The term
`qualifying small wind turbine' means a wind turbine
which--
``(i) has a nameplate capacity of not more
than 100 kilowatts, and
``(ii) meets the performance standards of
the American Wind Energy Association.
``(D) Termination.--The term `qualified small wind
energy property' shall not include any property for any
period after December 31, 2008.''.
(4) Conforming amendment.--Section 48(a)(1) is amended by
striking ``paragraphs (1)(B) and (2)(B)'' and inserting
``paragraphs (1)(B), (2)(B), and (3)(B)''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures after December 31, 2007.
SEC. 12302. LANDOWNER INCENTIVE TO ENCOURAGE ELECTRIC TRANSMISSION
BUILD-OUT.
(a) In General.--Part III of subchapter B of chapter 1 (relating to
items specifically excluded from gross income) is amended by inserting
after section 139A the following new section:
``SEC. 139B. ELECTRIC TRANSMISSION EASEMENT PAYMENTS.
``(a) In General.--Gross income shall not include any qualified
electric transmission easement payment.
``(b) Qualified Electric Transmission Easement Payment.--For
purposes of this section, the term `qualified electric transmission
payment' means any payment which is made--
``(1) by an electric utility or electric transmission
entity pursuant to an easement or other agreement granted by
the payee (or any predecessor of such payee), and
``(2) for the right of such entity (or any successors of
such entity) to locate on such payee's property transmission
lines and equipment used to transmit electricity at 230 or more
kilovolts, primarily from qualified facilities described in
section 45(d) (without regard to any placed in service date or
the last sentence of paragraph (4) thereof) or energy property
(as defined in section 48(a)(3)) placed in service after the
date of the enactment of this section.
``(c) No Increase in Basis.--Notwithstanding any other provision of
this subtitle, no increase in the basis or adjusted basis of any
property shall result from any amount excluded under this subsection
with respect to such property.
``(d) Denial of Double Benefit.--Notwithstanding any other
provision of this subtitle, no deduction or credit shall be allowed (to
the person for whose benefit a qualified electric transmission easement
payment is made) for, or by reason of, any expenditure to the extent of
the amount excluded under this section with respect to such
expenditure.''.
(b) Clerical Amendment.--The table of sections for such part III is
amended by inserting after the item relating to section 139A the
following new item:
``Sec. 139B. Electric transmission easement payments.''.
(c) Effective Date.--The amendments made by this section shall
apply to payments received after the date of the enactment of this Act.
SEC. 12303. EXCEPTION TO REDUCTION OF RENEWABLE ELECTRICITY CREDIT.
(a) In General.--Section 45(b)(3) (relating to credit reduced for
grants, tax-exempt bonds, subsidized energy financing, and other
credits) is amended by adding after the last sentence the following:
``This paragraph shall not apply with respect to any loans, loan
guarantees, or grants issued by the Secretary of Agriculture under
authority granted by section 9007 of the Farm Security and Rural
Investment Act of 2002.''
(b) Effective Date.--The amendment made by this section shall apply
to facilities placed in service after the date of the enactment of this
Act.
PART II--ALCOHOL FUEL
SEC. 12311. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC BIOFUEL PLANT
PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) (relating to
special allowance for cellulosic biomass ethanol plant property) is
amended to read as follows:
``(3) Cellulosic biofuel.--For purposes of this subsection,
the term `cellulosic biofuel' means any alcohol, ether, ester,
or hydrocarbon produced from any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis.''.
(b) Conforming Amendments.--
(1) Subsection (l) of section 168 is amended by striking
``cellulosic biomass ethanol'' each place it appears and
inserting ``cellulosic biofuel''.
(2) The heading of section 168(l) is amended by striking
``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic
Biofuel''.
(3) The heading of paragraph (2) of section 168(l) is
amended by striking ``cellulosic biomass ethanol'' and
inserting ``cellulosic biofuel''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 12312. CREDIT FOR PRODUCTION OF CELLULOSIC BIOFUEL.
(a) In General.--Subsection (a) of section 40 (relating to alcohol
used as fuel) is amended by striking ``plus'' at the end of paragraph
(2), by striking the period at the end of paragraph (3) and inserting
``, plus'', and by adding at the end the following new paragraph:
``(4) the cellulosic biofuel producer credit.''.
(b) Cellulosic Biofuel Producer Credit.--
(1) In general.--Subsection (b) of section 40 is amended by
adding at the end the following new paragraph:
``(6) Cellulosic biofuel producer credit.--
``(A) In general.--The cellulosic biofuel producer
credit of any taxpayer is an amount equal to the
applicable amount for each gallon of qualified
cellulosic biofuel production.
``(B) Applicable amount.--For purposes of
subparagraph (A), the applicable amount means the
excess of--
``(i) $1.25, over
``(ii) the sum of--
``(I) the amount of the credit in
effect for alcohol which is ethanol
under subsection (b)(1) (without regard
to subsection (b)(3)) at the time of
the qualified cellulosic biofuel
production, plus
``(II) the amount of the credit in
effect under subsection (b)(4) at the
time of such production.
``(C) Qualified cellulosic biofuel production.--For
purposes of this section, the term `qualified
cellulosic biofuel production' means any cellulosic
biofuel which during the taxable year--
``(i) is sold by the taxpayer to another
person--
``(I) for use by such other person
in the production of a qualified
cellulosic biofuel mixture in such
other person's trade or business (other
than casual off-farm production),
``(II) for use by such other person
as a fuel in a trade or business, or
``(III) who sells such cellulosic
biofuel at retail to another person and
places such cellulosic biofuel in the
fuel tank of such other person, or
``(ii) is used or sold by the taxpayer for
any purpose described in clause (i).
The qualified cellulosic biofuel production of any
taxpayer for any taxable year shall not include any
alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of
the alcohol by additional distillation.
``(D) Qualified cellulosic biofuel mixture.--For
purposes of this paragraph, the term `qualified
cellulosic biofuel mixture' means a mixture of
cellulosic biofuel and any petroleum fuel product
which--
``(i) is sold by the person producing such
mixture to any person for use as a fuel, or
``(ii) is used as a fuel by the person
producing such mixture.
``(E) Cellulosic biofuel.--
``(i) In general.--The term `cellulosic
biofuel' has the meaning given such term under
section 168(l)(3), but does not include any
alcohol with a proof of less than 150.
``(ii) Determination of proof.--The
determination of the proof of any alcohol shall
be made without regard to any added
denaturants.
``(F) Allocation of cellulosic biofuel producer
credit to patrons of cooperative.--Rules similar to the
rules under subsection (g)(6) shall apply for purposes
of this paragraph.
``(G) Application of paragraph.--This paragraph
shall apply with respect to qualified cellulosic
biofuel production after December 31, 2007, and before
April 1, 2015.''.
(2) Termination date not to apply.--Subsection (e) of
section 40 (relating to termination) is amended--
(A) by inserting ``or subsection (b)(6)(G)'' after
``by reason of paragraph (1)'' in paragraph (2), and
(B) by adding at the end the following new
paragraph:
``(3) Exception for cellulosic biofuel producer credit.--
Paragraph (1) shall not apply to the portion of the credit
allowed under this section by reason of subsection (a)(4).''.
(c) Biofuel Not Used as a Fuel, etc.--
(1) In general.--Paragraph (3) of section 40(d) is amended
by redesignating subparagraph (D) as subparagraph (E) and by
inserting after subparagraph (C) the following new
subparagraph:
``(D) Cellulosic biofuel producer credit.--If--
``(i) any credit is allowed under
subsection (a)(4), and
``(ii) any person does not use such fuel
for a purpose described in subsection
(b)(6)(C),
then there is hereby imposed on such person a tax equal
to the applicable amount for each gallon of such
cellulosic biomass biofuel.''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 40(d)(3) is amended
by striking ``producer'' in the heading and inserting
``small ethanol producer''.
(B) Subparagraph (E) of section 40(d)(3), as
redesignated by paragraph (1), is amended by striking
``or (C)'' and inserting ``(C), or (D)''.
(d) Biofuel Produced in the United States.--Section 40(d) is
amended by adding at the end the following new paragraph:
``(6) Special rule for cellulosic biofuel producer
credit.--No cellulosic biofuel producer credit shall be
determined under subsection (a) with respect to any cellulosic
biofuel unless such cellulosic biofuel is produced in the
United States.''.
(e) Waiver of Credit Limit for Cellulosic Biofuel Production by
Small Ethanol Producers.--Section 40(b)(4)(C) is amended by inserting
``(determined without regard to any qualified cellulosic biofuel
production'' after ``15,000,000 gallons''.
(f) Effective Date.--The amendments made by this section shall
apply to fuel produced after December 31, 2007.
SEC. 12313. EXTENSION OF SMALL ETHANOL PRODUCER CREDIT.
Paragraph (1) of section 40(e) (relating to termination) is
amended--
(1) in subparagraph (A), by inserting ``(December 31, 2012,
in the case of the credit allowed by reason of subsection
(a)(3))'' after ``December 31, 2010'', and
(2) in subparagraph (B), by inserting ``(January 1, 2013,
in the case of the credit allowed by reason of subsection
(a)(3))'' after ``January 1, 2011''.
SEC. 12314. CREDIT FOR PRODUCERS OF FOSSIL FREE ALCOHOL.
(a) In General.--Subsection (a) of section 40 (relating to alcohol
used as fuel), as amended by this Act, is amended by striking ``plus''
at the end of paragraph (3), by striking the period at the end of
paragraph (4) and inserting ``, plus'', and by adding at the end the
following new paragraph:
``(5) the small fossil free alcohol producer credit.''.
(b) Small Fossil Free Alcohol Producer Credit.--Subsection (b) of
section 40, as amended by this Act, is amended by adding at the end the
following new paragraph:
``(7) Small fossil free alcohol producer credit.--
``(A) In general.--In addition to any other credit
allowed under this section, there shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to 10 cents for each
gallon of not more than 60,000,000 gallons of qualified
fossil free alcohol production.
``(B) Qualified fossil free alcohol production.--
For purposes of this section, the term `qualified
fossil free alcohol production' means alcohol which is
produced by an eligible small fossil free alcohol
producer at a fossil free alcohol production facility
and which during the taxable year--
``(i) is sold by the taxpayer to another
person--
``(I) for use by such other person
in the production of a qualified
alcohol mixture in such other person's
trade or business (other than casual
off-farm production),
``(II) for use by such other person
as a fuel in a trade or business, or
``(III) who sells such alcohol at
retail to another person and places
such alcohol in the fuel tank of such
other person, or
``(ii) is used or sold by the taxpayer for
any purpose described in clause (i).
``(C) Additional distillation excluded.--The
qualified fossil free alcohol production of any
taxpayer for any taxable year shall not include any
alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of
the alcohol by additional distillation.''.
(c) Eligible Small Fossil Free Alcohol Producer.--Section 40 is
amended by adding at the end the following new subsection:
``(i) Definitions and Special Rules for Small Fossil Free Alcohol
Producer.--For purposes of this section--
``(1) In general.--The term `eligible small fossil free
alcohol producer' means a person, who at all times during the
taxable year, has a productive capacity for alcohol from all
fossil free alcohol production facilities of the taxpayer which
is not in excess of 60,000,000 gallons.
``(2) Fossil free alcohol production facility.--The term
`fossil free alcohol production facility' means any facility at
which 90 percent of the energy used in the production of
alcohol is produced from biomass (as defined in section
45K(c)(3)).
``(3) Aggregation rule.--For purposes of the 60,000,000
gallon limitation under paragraph (1) and subsection (b)(7)(A),
all members of the same controlled group of corporations
(within the meaning of section 267(f)) and all persons under
common control (within the meaning of section 52(b) but
determined by treating an interest of more than 50 percent as a
controlling interest) shall be treated as 1 person.
``(4) Partnership, s corporations, and other pass-thru
entities.--In the case of a partnership, trust, S corporation,
or other pass-thru entity, the limitation contained in
paragraph (1) shall be applied at the entity level and at the
partner or similar level.
``(5) Allocation.--For purposes of this subsection, in the
case of a facility in which more than 1 person has an interest,
productive capacity shall be allocated among such persons in
such manner as the Secretary may prescribe.
``(6) Regulations.--The Secretary may prescribe such
regulations as may be necessary to prevent the credit provided
for in subsection (a)(5) from directly or indirectly
benefitting any person with a direct or indirect productive
capacity of more than 60,000,000 gallons of alcohol from fossil
free alcohol production facilities during the taxable year.
``(7) Allocation of small fossil free alcohol producer
credit to patrons of cooperative.--Rules similar to the rules
under subsection (g)(6) shall apply for purposes of this
subsection.''.
(d) Alcohol Not Used as a Fuel, etc.--
(1) In general.--Paragraph (3) of section 40(d), as amended
by this Act, is amended by redesignating subparagraph (E) as
subparagraph (F) and by inserting after subparagraph (D) the
following new subparagraph:
``(E) Small fossil free alcohol producer credit.--
If--
``(i) any credit is allowed under
subsection (a)(5), and
``(ii) any person does not use such fuel
for a purpose described in subsection
(b)(7)(B),
then there is hereby imposed on such person a tax equal
to 10 cents for each gallon of such alcohol.''.
(2) Conforming amendment.--Subparagraph (F) of section
40(d)(3), as redesignated by paragraph (1) and amended by this
Act, is amended by striking ``or (D)'' and inserting ``(D), or
(E)''.
(e) Alcohol Produced in the United States.--Section 40(d)(6), as
added by this Act, is amended--
(1) by inserting ``or small fossil free alcohol producer
credit'' after ``cellulosic alcohol producer credit'', and
(2) by inserting ``and fossil free'' after ``cellulosic''
in the heading.
(f) Termination.--Paragraph (1) of section 40(e), as amended by
this Act, is amended--
(1) in subparagraph (A), by inserting ``, and December 31,
2011, in the case of the credit allowed by reason of subsection
(a)(5)'' after ``subsection (a)(3)'', and
(2) in subparagraph (B), by inserting ``, and January 1,
2012, in the case of the credit allowed by reason of subsection
(a)(5)'' after ``subsection (a)(3)''.
(g) Effective Date.--The amendments made by this section shall
apply to fuel produced after December 31, 2007.
SEC. 12315. MODIFICATION OF ALCOHOL CREDIT.
(a) Income Tax Credit.--Subsection (h) of section 40 (relating to
reduced credit for ethanol blenders) is amended by adding at the end
the following new paragraph:
``(3) Reduced amount after sale of 7,500,000,000 gallons.--
``(A) In general.--In the case of any calendar year
beginning after the date described in subparagraph (B),
the last row in the table in paragraph (2) shall be
applied by substituting `46 cents' for `51 cents'.
``(B) Date described.--The date described in this
subparagraph is the first date on which 7,500,000,000
gallons of ethanol (including cellulosic ethanol) have
been produced in or imported into the United States
after the date of the enactment of this paragraph, as
certified by the Secretary, in consultation with the
Administrator of the Environmental Protection
Agency.''.
(b) Excise Tax Credit.--
(1) In general.--Paragraph (2) of section 6426(b) (relating
to alcohol fuel mixture credit) is amended by adding at the end
the following new subparagraph:
``(C) Reduced amount after sale of 7,500,000,000
gallons.--In the case of any alcohol fuel mixture
produced in a calendar year beginning after the date
described in section 40(h)(3)(B), subparagraph (A)
shall be applied by substituting `46 cents' for `51
cents'.''.
(2) Conforming amendment.--Subparagraph (A) of section
6426(b)(2) is amended by striking ``subparagraph (B)'' and
inserting ``subparagraphs (B) and (C)''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 12316. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL CREDITS.
(a) In General.--Paragraph (4) of section 40(d) (relating to volume
of alcohol) is amended by striking ``5 percent'' and inserting ``2
percent''.
(b) Conforming Amendment for Excise Tax Credit.--Section 6426(b)
(relating to alcohol fuel mixture credit) is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Volume of alcohol.--For purposes of determining under
subsection (a) the number of gallons of alcohol with respect to
which a credit is allowable under subsection (a), the volume of
alcohol shall include the volume of any denaturant (including
gasoline) which is added under any formulas approved by the
Secretary to the extent that such denaturants do not exceed 2
percent of the volume of such alcohol (including
denaturants).''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2007.
SEC. 12317. ETHANOL TARIFF EXTENSION.
Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff
Schedule of the United States are each amended in the effective period
column by striking ``1/1/2009'' and inserting ``1/1/2011''.
SEC. 12318. LIMITATIONS ON, AND REDUCTIONS OF, DUTY DRAWBACK ON CERTAIN
IMPORTED ETHANOL.
(a) In General.--Section 313(p) of the Tariff Act of 1930 (19
U.S.C. 1313(p)) is amended by adding at the end the following new
paragraph:
``(5) Special rules for ethyl alcohol.--For purposes of
this subsection, an exported article that does not contain
ethyl alcohol or a mixture of ethyl alcohol shall not be
treated as the same kind and quality as a qualified article
that does contain ethyl alcohol or a mixture of ethyl
alcohol.''.
(b) Limitations on, and Reductions of, Drawbacks.--Section 313 of
the Tariff Act of 1930 (19 U.S.C. 1313) is amended by adding at the end
the following new subsection:
``(z) Limitations on, and Reductions of, Drawbacks.--
``(1) Limitations.--
``(A) In general.--Ethyl alcohol or mixture
containing ethyl alcohol described in subparagraph (B)
may be treated as being of the same kind and quality
under subsection (b) of this section or may be treated
as being commercially interchangeable with any other
ethyl alcohol or mixture containing ethyl alcohol under
subsection (j)(2) of this section, only if the other
ethyl alcohol or mixture--
``(i) if imported, is subject to the
additional duty under subheading 9901.00.50 of
the Harmonized Tariff Schedule of the United
States; or
``(ii) if domestic, is suitable for use as
a fuel or in a mixture to be used as a fuel as
described in such subheading 9901.00.50.
``(B) Ethyl alcohol or mixture containing ethyl
alcohol described.--Ethyl alcohol or mixture containing
ethyl alcohol described in this subparagraph means--
``(i) ethyl alcohol classifiable under
subheading 2207.10.60 or 2207.20.00 of the
Harmonized Tariff Schedule of the United
States, or
``(ii) a mixture containing ethyl alcohol
classifiable under heading 2710 or 3824 of the
Harmonized Tariff Schedule of the United
States,
which, if imported would be subject to additional duty
under subheading 9901.00.50 of such Schedule.
``(2) Reduction of drawback.--For purposes of subsections
(b), (j)(2), and (p) of this section, the amount of the refund
as drawback under this section shall be reduced by an amount
equal to any Federal tax credit or refund of any Federal tax
paid on the merchandise with respect to which the drawback is
claimed.''.
(c) Effective Date.--The amendments made by this section apply to
articles exported on or after the date that is 15 days after the date
of the enactment of this Act.
PART III--BIODIESEL AND RENEWABLE DIESEL FUEL
SEC. 12321. EXTENSION AND MODIFICATION OF CREDIT FOR BIODIESEL AND
RENEWABLE DIESEL USED AS FUEL.
(a) Extension.--
(1) Income tax credits for biodiesel and renewable diesel
and small agri-biodiesel producer credit.--Section 40A(g)
(relating to termination) is amended by striking ``December 31,
2008'' and inserting ``December 31, 2010 (December 31, 2012, in
the case of the credit allowed by reason of subsection
(a)(3))''.
(2) Excise tax credit.--Section 6426(c)(6) (relating to
termination) is amended by striking ``2008'' and inserting
``2010''.
(3) Fuels not used for taxable purposes.--Section
6427(e)(5)(B) (relating to termination) is amended by striking
``2008'' and inserting ``2010''.
(b) Modification of Credit for Renewable Diesel.--Section 40A(f)
(relating to renewable diesel) is amended by adding at the end the
following new paragraph:
``(4) Special rule for co-processed renewable diesel.--In
the case of a taxpayer which produces renewable diesel through
the co-processing of biomass and petroleum at any facility,
this subsection shall not apply to so much of the renewable
diesel produced at such facility and sold or used during the
taxable year in a mixture described in subsection (b)(1)(B) as
exceeds 60,000,000 gallons.''.
(c) Modification Relating to Definition of Agri-Biodiesel.--
Paragraph (2) of section 40A(d) (relating to agri-biodiesel) is amended
by striking ``and mustard seeds'' and inserting ``mustard seeds, and
camelina''.
(d) Eligibility of Certain Aviation Fuel.--Section 40A(f)(3)
(defining renewable diesel) is amended by adding at the end the
following new flush sentence:
``The term `renewable diesel' also means fuel derived from
biomass (as defined in section 45K(c)(3)) using a thermal
depolymerization process which meets the requirements of a
Department of Defense specification for military jet fuel or an
American Society of Testing and Materials specification for
aviation turbine fuel.''.
(e) Effective Dates.--The amendments made by this section shall
apply to fuel sold or used after the date of the enactment of this Act.
SEC. 12322. TREATMENT OF QUALIFIED ALCOHOL FUEL MIXTURES AND QUALIFIED
BIODIESEL FUEL MIXTURES AS TAXABLE FUELS.
(a) In General.--
(1) Qualified alcohol fuel mixtures.--Paragraph (2) of
section 4083(a) (relating to gasoline) is amended--
(A) by striking ``and'' at the end of subparagraph
(A),
(B) by redesignating subparagraph (B) as
subparagraph (C), and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) includes any qualified mixture (as defined in
section 40(b)(1)(B)), and''.
(2) Qualified biodiesel fuel mixtures.--Subparagraph (A) of
section 4083(a)(3) (relating to diesel fuel) is amended by
striking ``and'' at the end of clause (ii), by redesignating
clause (iii) as clause (iv), and inserting after clause (ii)
the following new clause:
``(iii) any qualified biodiesel mixture (as
defined in section 40A(b)(1)(B)), and''.
(b) Modification of Biodiesel Certification Requirement.--Paragraph
(4) of section 40A(b) is amended by striking ``which identifies'' and
all that follows and inserting ``which--
``(A) identifies the product produced and the
percentage of biodiesel and agri-biodiesel in the
product, and
``(B) documents that the biodiesel was
independently tested and meets the requirements of ASTM
D6751.''.
(c) Information Reporting Requirement for Producers of Qualified
Mixtures.--Section 4101(d) (relating to information reporting) is
amended to read as follows:
``(d) Information Reporting.--The Secretary--
``(1) may require--
``(A) information reporting by any person
registered under this section, and
``(B) information reporting by such other persons
as the Secretary deems necessary to carry out this
part, and
``(2) shall require information reporting by any person
registered under this section and producing any qualified
mixture (as defined in section 40(b)(1)(B)) or any qualified
biodiesel mixture (as defined in section 40A(b)(1)(B)).
Any person who is required to report under this subsection and who has
25 or more reportable transactions in a month shall file such report in
electronic format.''.
(d) Effective Date.--The amendments made by this section shall
apply to fuels removed, entered, or sold after December 31, 2007.
PART IV--ALTERNATIVE FUEL
SEC. 12331. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL CREDIT.
(a) Extension.--
(1) Alternative fuel credit.--Paragraph (4) of section
6426(d) (relating to alternative fuel credit) is amended by
striking ``September 30, 2009'' and inserting ``December 31,
2010''.
(2) Alternative fuel mixture credit.--Paragraph (3) of
section 6426(e) (relating to alternative fuel mixture credit)
is amended by striking ``September 30, 2009'' and inserting
``December 31, 2010''.
(3) Payments.--Subparagraph (C) of section 6427(e)(5)
(relating to termination) is amended by striking ``September
30, 2009'' and inserting ``December 31, 2010''.
(b) Modifications.--
(1) Alternative fuel to include compressed or liquified
biomass gas.--Paragraph (2) of section 6426(d) (relating to
alternative fuel credit) is amended by striking ``and'' at the
end of subparagraph (E), by redesignating subparagraph (F) as
subparagraph (G), and by inserting after subparagraph (E) the
following new subparagraph:
``(F) compressed or liquefied biomass gas, and''.
(2) Credit allowed for aviation use of fuel.--Paragraph (1)
of section 6426(d) is amended by inserting ``sold by the
taxpayer for use as a fuel in aviation,'' after ``motorboat,''.
(c) Carbon Capture Requirement for Certain Fuels.--
(1) In general.--Subsection (d) of section 6426, as amended
by subsection (a), is amended by redesignating paragraph (4) as
paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) Carbon capture requirement.--
``(A) In general.--The requirements of this
paragraph are met if the fuel is certified, under such
procedures as required by the Secretary, as having been
derived from coal produced at a gasification facility
which separates and sequesters not less than the
applicable percentage of such facility's total carbon
dioxide emissions.
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage is--
``(i) 50 percent in the case of fuel
produced after the date of the enactment of
this paragraph and on or before the earlier
of--
``(I) the date the Secretary makes
a determination under subparagraph (C),
or
``(II) December 30, 2010, and
``(ii) 75 percent in the case of fuel
produced after the date on which the applicable
percentage under clause (i) ceases to apply.
``(C) Determination to increase applicable
percentage before december 31, 2010.--If the Secretary,
after considering the recommendations of the Carbon
Sequestration Capability Panel, finds that the
applicable percentage under subparagraph (B) should be
75 percent for fuel produced before December 31, 2010,
the Secretary shall make a determination under this
subparagraph. Any determination made under this
subparagraph shall be made not later than 30 days after
the Secretary receives from the Carbon Sequestration
Panel the report required under section 331(c)(3)(D) of
the Heartland, Habitat, Harvest, and Horticulture Act
of 2007.''.
(2) Conforming amendment.--Subparagraph (E) of section
6426(d)(2) is amended by inserting ``which meets the
requirements of paragraph (4) and which is'' after ``any liquid
fuel''.
(3) Carbon sequestration capability panel.--
(A) Establishment of panel.--There is established a
panel to be known as the ``Carbon Sequestration
Capability Panel'' (hereafter in this paragraph
referred to as the ``Panel'').
(B) Membership.--The Panel shall be composed of--
(i) 1 representative from the National
Academy of Sciences,
(ii) 1 representative from the University
of Kentucky Center for Applied Energy Research,
and
(iii) 1 individual appointed jointly by the
representatives under clauses (i) and (ii).
(C) Study.--The Panel shall study the appropriate
percentage of carbon dioxide for separation and
sequestration under section 6426(d)(4) of the Internal
Revenue Code of 1986 consistent with the purposes of
such section. The panel shall consider whether it is
feasible to separate and sequester 75 percent of the
carbon dioxide emissions of a facility, including costs
and other factors associated with separating and
sequestering such percentage of carbon dioxide
emissions.
(D) Report.--Not later than 6 months after the date
of the enactment of this Act, the Panel shall report to
the Secretary of Treasury, the Committee on Finance of
the Senate, and the Committee on Ways and Means of the
House of Representatives on the study under
subparagraph (C).
(d) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after the date of the enactment of this Act.
SEC. 12332. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY
CREDIT.
Paragraph (2) of section 30C(g) (relating to termination) is
amended by striking ``December 31, 2009'' and inserting ``December 31,
2010''.
Subtitle D--Agricultural Provisions
SEC. 12401. INCREASE IN LOAN LIMITS ON AGRICULTURAL BONDS.
(a) In General.--Subparagraph (A) of section 147(c)(2) (relating to
exception for first-time farmers) is amended by striking ``$250,000''
and inserting ``$450,000''.
(b) Inflation Adjustment.--Section 147(c)(2) is amended by adding
at the end the following new subparagraph:
``(H) Adjustments for inflation.--In the case of
any calendar year after 2008, the dollar amount in
subparagraph (A) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2007' for `calendar year 1992'
in subparagraph (B) thereof.
If any amount as increased under the preceding sentence
is not a multiple of $100, such amount shall be rounded
to the nearest multiple of $100.''.
(c) Modification of Substantial Farmland Definition.--Section
147(c)(2)(E) (defining substantial farmland) is amended by striking
``unless'' and all that follows through the period and inserting
``unless such parcel is smaller than 30 percent of the median size of a
farm in the county in which such parcel is located.''.
(d) Conforming Amendment.--Section 147(c)(2)(C)(i)(II) is amended
by striking ``$250,000'' and inserting ``the amount in effect under
subparagraph (A)''.
(e) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 12402. MODIFICATION OF INSTALLMENT SALE RULES FOR CERTAIN FARM
PROPERTY.
(a) In General.--Section 453(i) (relating to recognition of
recapture income in year of disposition) is amended by adding at the
end the following new paragraph:
``(3) Exception for certain farm property.--Paragraph (1)
shall not apply to any installment sale of any single purpose
agricultural or horticultural structure or any tree or vine
bearing fruit or nuts eligible for classification as 10-year
property under section 168(e)(3)(D).''.
(b) Effective Date.--The amendment made by this section shall apply
to installment sales occurring after the date of the enactment of this
Act.
SEC. 12403. ALLOWANCE OF SECTION 1031 TREATMENT FOR EXCHANGES INVOLVING
CERTAIN MUTUAL DITCH, RESERVOIR, OR IRRIGATION COMPANY
STOCK.
(a) In General.--Section 1031 (relating to exchange of property
held for productive use or investment) is amended by adding at the end
the following new subsection:
``(i) Special Rules for Mutual Ditch, Reservoir, or Irrigation
Company Stock.--For purposes of subsection (a)(2)(B), the term `stocks'
shall not include shares in a mutual ditch, reservoir, or irrigation
company if at the time of the exchange--
``(1) the mutual ditch, reservoir, or irrigation company is
an organization described in section 501(c)(12)(A) (determined
without regard to the percentage of its income that is
collected from its members for the purpose of meeting losses
and expenses), and
``(2) the shares in such company have been recognized by
the highest court of the State in which such company was
organized or by applicable State statute as constituting or
representing real property or an interest in real property.''.
(b) Effective Date.--The amendment made by this section shall apply
to exchanges completed after the date of the enactment of this Act.
SEC. 12404. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
(a) In General.--Subpart H of part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the end the
following new section:
``SEC. 54A. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
rural renaissance bond on 1 or more credit allowance dates of the bond
occurring during any taxable year, there shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of the credits determined under subsection (b) with
respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a rural renaissance bond is 25 percent of the annual credit
determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any rural renaissance bond is the product of--
``(A) the credit rate determined by the Secretary
under paragraph (3) for the day on which such bond was
sold, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Determination.--For purposes of paragraph (2), with
respect to any rural renaissance bond, the Secretary shall
determine daily or caused to be determined daily a credit rate
which shall apply to the first day on which there is a binding,
written contract for the sale or exchange of the bond. The
credit rate for any day is the credit rate which the Secretary
or the Secretary's designee estimates will permit the issuance
of rural renaissance bonds with a specified maturity or
redemption date without discount and without interest cost to
the qualified issuer.
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term also includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for any taxable year shall not exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under this part
(other than subpart C, section 1400N(l), and this section).
``(d) Rural Renaissance Bond.--For purposes of this section--
``(1) In general.--The term `rural renaissance bond' means
any bond issued as part of an issue if--
``(A) the bond is issued by a qualified issuer
pursuant to an allocation by the Secretary to such
issuer of a portion of the national rural renaissance
bond limitation under subsection (f)(2),
``(B) 95 percent or more of the proceeds from the
sale of such issue are to be used for capital
expenditures incurred by qualified borrowers for 1 or
more qualified projects,
``(C) the qualified issuer designates such bond for
purposes of this section and the bond is in registered
form,
``(D) the issue meets the requirements of
subsection (h), and
``(E) such bond is not a federally guaranteed bond
(within the meaning of section 149(b)(2)).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified project'
means 1 or more projects described in subparagraph (B)
located in a rural area.
``(B) Projects described.--A project described in
this subparagraph is a project eligible for assistance
under--
``(i) the utilities programs described in
section 381E(d)(2) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009d(d)(2)),
``(ii) the distance learning or
telemedicine programs authorized pursuant to
chapter 1 of subtitle D of title XXIII of the
Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 950aaa et seq.),
``(iii) the rural electric programs
authorized pursuant to the Rural
Electrification Act of 1936 (7 U.S.C. 901 et
seq.),
``(iv) the rural telephone programs
authorized pursuant to the Rural
Electrification Act of 1936 (7 U.S.C. 901 et
seq.),
``(v) the broadband access programs
authorized pursuant to title VI of the Rural
Electrification Act of 1936 (7 U.S.C. 950bb et
seq.), and
``(vi) the rural community facility
programs as described in section 381E(d)(1) of
the Consolidated Farm and Rural Development Act
(7 U.S.C. 2009d(d)(1)).
``(C) Refinancing rules.--For purposes of paragraph
(1)(B), a qualified project may be refinanced with
proceeds of a rural renaissance bond only if the
indebtedness being refinanced (including any obligation
directly or indirectly refinanced by such indebtedness)
was originally incurred by a qualified borrower after
the date of the enactment of this section.
``(D) Reimbursement.--For purposes of paragraph
(1)(B), a rural renaissance bond may be issued to
reimburse a qualified borrower for amounts paid after
the date of the enactment of this section with respect
to a qualified project, but only if--
``(i) prior to the payment of the original
expenditure, the qualified borrower declared
its intent to reimburse such expenditure with
the proceeds of a rural renaissance bond,
``(ii) not later than 60 days after payment
of the original expenditure, the qualified
issuer adopts an official intent to reimburse
the original expenditure with such proceeds,
and
``(iii) the reimbursement is made not later
than 18 months after the date the original
expenditure is paid.
``(E) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent
that a qualified borrower or qualified issuer takes any
action within its control which causes such proceeds
not to be used for a qualified project. The Secretary
shall prescribe regulations specifying remedial actions
that may be taken (including conditions to taking such
remedial actions) to prevent an action described in the
preceding sentence from causing a bond to fail to be a
rural renaissance bond.
``(F) Treatment of other subsidies.--For purposes
of subparagraph (B), a qualified project does not
include any portion of a project financed by grants or
subsidized financing provided (directly or indirectly)
under a Federal program, including any State or local
obligation used to provide financing for such portion
the interest on which is exempt from tax under section
103.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be treated as a
rural renaissance bond if the maturity of such bond exceeds the
maximum term determined by the Secretary under paragraph (2)
with respect to such bond.
``(2) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under this
paragraph for bonds issued during the following calendar month.
Such maximum term shall be the term which the Secretary
estimates will result in the present value of the obligation to
repay the principal on the bond being equal to 50 percent of
the face amount of such bond. Such present value shall be
determined without regard to the requirements of paragraph (3)
and using as a discount rate the average annual interest rate
of tax-exempt obligations having a term of 10 years or more
which are issued during the month. If the term as so determined
is not a multiple of a whole year, such term shall be rounded
to the next highest whole year.
``(3) Ratable principal amortization required.--A bond
shall not be treated as a rural renaissance bond unless it is
part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each
calendar year that the issue is outstanding.
``(f) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a national rural
renaissance bond limitation of $400,000,000.
``(2) Allocation by secretary.--
``(A) In general.--In accordance with subparagraph
(B), the Secretary shall allocate the amount described
in paragraph (1) among at least 20 qualified projects,
or such lesser number of qualified projects with proper
applications filed after 12 months after the adoption
of the selection process under subparagraph (B).
``(B) Selection process.--In consultation with the
Secretary of Agriculture, the Secretary shall adopt a
process to select projects described in subparagraph
(A). Under such process, the Secretary shall not
allocate more than 15 percent of the allocation under
subparagraph (A) to qualified projects within a single
State.
``(g) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the qualified issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the
sale of the issue are to be spent for 1 or more
qualified projects within the 5-year period beginning
on the date of issuance of the rural renaissance bond,
``(B) a binding commitment with a third party to
spend at least 10 percent of the proceeds from the sale
of the issue will be incurred within the 6-month period
beginning on the date of issuance of the rural
renaissance bond or, in the case of a rural renaissance
bond the proceeds of which are to be loaned to 2 or
more qualified borrowers, such binding commitment will
be incurred within the 6-month period beginning on the
date of the loan of such proceeds to a qualified
borrower, and
``(C) such projects will be completed with due
diligence and the proceeds from the sale of the issue
will be spent with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related projects
will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of the
proceeds of such issue are expended by the close of the 5-year
period beginning on the date of issuance (or if an extension
has been obtained under paragraph (2), by the close of the
extended period), the qualified issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such period.
For purposes of this paragraph, the amount of the nonqualified
bonds required to be redeemed shall be determined in the same
manner as under section 142.
``(i) Special Rules Relating to Arbitrage.--A bond which is part of
an issue shall not be treated as a rural renaissance bond unless, with
respect to the issue of which the bond is a part, the qualified issuer
satisfies the arbitrage requirements of section 148 with respect to
proceeds of the issue.
``(j) Definitions and Special Rules Relating to Issuers and
Borrowers.--For purposes of this section--
``(1) Qualified issuer.--The term `qualified issuer'
means--
``(A) a rural renaissance bond lender,
``(B) a cooperative electric company, or
``(C) a governmental body.
``(2) Qualified borrower.--The term `qualified borrower'
means--
``(A) a mutual or cooperative electric company
described in section 501(c)(12) or 1381(a)(2)(C), or
``(B) a governmental body.
``(3) Rural renaissance bond lender.--The term `rural
renaissance bond lender' means a lender which is a cooperative
which is owned by, or has outstanding loans to, 100 or more
cooperative electric companies and is in existence on February
1, 2002, and shall include any affiliated entity which is
controlled by such lender.
``(4) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C), or a not-for-profit electric utility which has
received a loan or loan guarantee under the Rural
Electrification Act.
``(5) Governmental body.--The term `governmental body'
means any State, territory, possession of the United States,
the District of Columbia, Indian tribal government, and any
political subdivision thereof.
``(k) Special Rules Relating to Pool Bonds.--No portion of a pooled
financing bond may be allocable to loan unless the borrower has entered
into a written loan commitment for such portion prior to the issue date
of such issue.
``(l) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Pooled financing bond.--The term `pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
``(3) Rural area.--The term `rural area' shall have the
meaning given such term by section 1393(a)(2).
``(4) Partnership; s corporation; and other pass-thru
entities.--
``(A) In general.--Under regulations prescribed by
the Secretary, in the case of a partnership, trust, S
corporation, or other pass-thru entity, rules similar
to the rules of section 41(g) shall apply with respect
to the credit allowable under subsection (a).
``(B) No basis adjustment.--In the case of a bond
held by a partnership or an S corporation, rules
similar to the rules under section 1397E(i) shall
apply.
``(5) Bonds held by regulated investment companies.--If any
rural renaissance bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
``(6) Reporting.--Issuers of rural renaissance bonds shall
submit reports similar to the reports required under section
149(e).
``(7) Termination.--This section shall not apply with
respect to any bond issued after December 31, 2008.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to returns
regarding payments of interest) is amended by adding at the end the
following new paragraph:
``(9) Reporting of credit on rural renaissance bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 54A(g) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 54A(b)(4)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A), subsection
(b)(4) shall be applied without regard to subparagraphs
(A), (H), (I), (J), (K), and (L)(i) of such subsection.
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) The table of sections for subpart H of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54A. Credit to holders of rural renaissance bonds.''.
(2) Section 54(c)(2) is amended by inserting ``section
54A,'' after ``subpart C,''.
(d) Issuance of Regulations.--The Secretary of Treasury shall issue
regulations required under section 54A (as added by this section) not
later than 120 days after the date of the enactment of this Act.
(e) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 12405. AGRICULTURAL CHEMICALS SECURITY CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) is amended by adding at the end
the following new section:
``SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.
``(a) In General.--For purposes of section 38, in the case of an
eligible agricultural business, the agricultural chemicals security
credit determined under this section for the taxable year is 30 percent
of the qualified security expenditures for the taxable year.
``(b) Facility Limitation.--The amount of the credit determined
under subsection (a) with respect to any facility for any taxable year
shall not exceed--
``(1) $100,000, reduced by
``(2) the aggregate amount of credits determined under
subsection (a) with respect to such facility for the 5 prior
taxable years.
``(c) Annual Limitation.--The amount of the credit determined under
subsection (a) with respect to any taxpayer for any taxable year shall
not exceed $2,000,000.
``(d) Qualified Chemical Security Expenditure.--For purposes of
this section, the term `qualified chemical security expenditure' means,
with respect to any eligible agricultural business for any taxable
year, any amount paid or incurred by such business during such taxable
year for--
``(1) employee security training and background checks,
``(2) limitation and prevention of access to controls of
specified agricultural chemicals stored at the facility,
``(3) tagging, locking tank valves, and chemical additives
to prevent the theft of specified agricultural chemicals or to
render such chemicals unfit for illegal use,
``(4) protection of the perimeter of specified agricultural
chemicals,
``(5) installation of security lighting, cameras, recording
equipment, and intrusion detection sensors,
``(6) implementation of measures to increase computer or
computer network security,
``(7) conducting a security vulnerability assessment,
``(8) implementing a site security plan, and
``(9) such other measures for the protection of specified
agricultural chemicals as the Secretary may identify in
regulation.
Amounts described in the preceding sentence shall be taken into account
only to the extent that such amounts are paid or incurred for the
purpose of protecting specified agricultural chemicals.
``(e) Eligible Agricultural Business.--For purposes of this
section, the term `eligible agricultural business' means any person in
the trade or business of--
``(1) selling agricultural products, including specified
agricultural chemicals, at retail predominantly to farmers and
ranchers, or
``(2) manufacturing, formulating, distributing, or aerially
applying specified agricultural chemicals.
``(f) Specified Agricultural Chemical.--For purposes of this
section, the term `specified agricultural chemical' means--
``(1) any fertilizer commonly used in agricultural
operations which is listed under--
``(A) section 302(a)(2) of the Emergency Planning
and Community Right-to-Know Act of 1986,
``(B) section 101 of part 172 of title 49, Code of
Federal Regulations, or
``(C) part 126, 127, or 154 of title 33, Code of
Federal Regulations, and
``(2) any pesticide (as defined in section 2(u) of the
Federal Insecticide, Fungicide, and Rodenticide Act), including
all active and inert ingredients thereof, which is customarily
used on crops grown for food, feed, or fiber.
``(g) Controlled Groups.--Rules similar to the rules of paragraphs
(1) and (2) of section 41(f) shall apply for purposes of this section.
``(h) Regulations.--The Secretary may prescribe such regulations as
may be necessary or appropriate to carry out the purposes of this
section, including regulations which--
``(1) provide for the proper treatment of amounts which are
paid or incurred for purpose of protecting any specified
agricultural chemical and for other purposes, and
``(2) provide for the treatment of related properties as
one facility for purposes of subsection (b).
``(i) Termination.--This section shall not apply to any amount paid
or incurred after December 31, 2012.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) is amended by striking ``plus'' at the end of paragraph (30), by
striking the period at the end of paragraph (31) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(32) in the case of an eligible agricultural business (as
defined in section 45O(e)), the agricultural chemicals security
credit determined under section 45O(a).''.
(c) Denial of Double Benefit.--Section 280C is amended by adding at
the end the following new subsection:
``(f) Credit for Security of Agricultural Chemicals.--No deduction
shall be allowed for that portion of the expenses otherwise allowable
as a deduction taken into account in determining the credit under
section 45O for the taxable year which is equal to the amount of the
credit determined for such taxable year under section 45O(a).''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45O. Agricultural chemicals security credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
SEC. 12406. CREDIT FOR DRUG SAFETY AND EFFECTIVENESS TESTING FOR MINOR
ANIMAL SPECIES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits), as amended by this Act, is
amended by adding at the end the following new section:
``SEC. 45P. DRUG SAFETY AND EFFECTIVENESS TESTING FOR MINOR ANIMAL
SPECIES.
``(a) Allowance of Credit.--For purposes of section 38, in the case
of an eligible taxpayer, the drug safety and effectiveness testing for
minor animal species credit determined under this section for the
taxable year shall be an amount equal to 50 percent of the qualified
safety and effectiveness testing expenses paid or incurred by the
taxpayer during the taxable year.
``(b) Eligible Taxpayer.--For purposes of this section, the term
`eligible taxpayer' any taxpayer--
``(1) which--
``(A) applies for the designation of a new animal
drug for use on a minor animal species under section
573 of the Federal Food, Drug, and Cosmetic Act, or
``(B) owns animals which are the subject of safety
and effectiveness testing, and
``(2) which elects the application of this section for the
taxable year.
``(c) Qualified Safety and Effectiveness Testing Expenses.--For
purposes of this section--
``(1) In general.--The term `qualified safety and
effectiveness testing expenses' means the sum of the following
amounts which are paid or incurred by the eligible taxpayer
during the taxable year in carrying on any trade or business of
such taxpayer:
``(A) In-house safety and effectiveness testing
expenses.
``(B) Contract safety and effectiveness testing
expenses.
Such term does not include any amount to the extent such amount
is funded by any grant, contract, or otherwise by another
person (or any governmental entity).
``(2) In-house safety and effectiveness testing expenses.--
``(A) In general.--The term `in-house safety and
effectiveness testing expenses' means--
``(i) any wages paid or incurred to an
employee for qualified services performed by
such employee,
``(ii) any amount paid or incurred for
supplies used in the conduct of safety and
effectiveness testing, and
``(iii) under regulations prescribed by the
Secretary, any amount paid or incurred to
another person for the right to use computers
in the conduct of safety and effectiveness
testing.
Clause (iii) shall not apply to any amount to the
extent that the taxpayer (or any person with whom the
taxpayer must aggregate expenditures under rules
specified under subsection (f)(2)) receives or accrues
any amount from any other person for the right to use
substantially identical personal property.
``(B) Qualified services.--The term `qualified
services' means services consisting of--
``(i) engaging in safety and effectiveness
testing, or
``(ii) engaging in the direct supervision
or direct support of such testing.
If substantially all of the services performed by an
individual for the taxpayer during the taxable year
consists of services meeting the requirements of clause
(i) or (ii), the term `qualified services' means all of
the services performed by such individual for the
taxpayer during the taxable year.
``(C) Wages and supplies.--The terms `wages' and
`supplies' have the meanings given such terms by
section 41(b).
``(3) Contract safety and effectiveness testing expenses.--
``(A) In general.--The term `contract safety and
effectiveness testing expenses' means any amount paid
or incurred by the taxpayer to any person (other than
an employee of the taxpayer) for safety and
effectiveness testing.
``(B) Prepaid amounts.--If any contract safety and
effectiveness testing expenses paid or incurred during
any taxable year are attributable to safety and
effectiveness testing to be conducted after the close
of such taxable year, such amount shall be treated as
paid or incurred during the period during which the
safety and effectiveness testing is conducted.
``(d) Safety and Effectiveness Testing.--For purposes of this
section--
``(1) In general.--The term `safety and effectiveness
testing' means any testing which--
``(A) is related to the use of a new animal drug
for use on a minor animal species for which it was
designated under section 573 of the Federal Food, Drug,
and Cosmetic Act,
``(B) is carried out under an exemption for such
new animal drug under section 512(j) of such Act (or
regulations issued under such section),
``(C) occurs--
``(i) after the date on which the
application for designation of such new animal
drug under section 573 of such Act is filed,
and
``(ii) before the date on which such
application is approved under section 512(c) of
such Act, and
``(D) which is conducted by or on behalf of an
eligible taxpayer.
``(2) Minor animal species.--
``(A) In general.--The term `minor animal species'
means animals, other than humans, which are not major
animal species.
``(B) Major animal species.--The term `major animal
species' means cattle, horses, swine, chickens,
turkeys, dogs, cats, and any other species as
determined by the Secretary, after consultation with
the Secretary of Agriculture.
``(e) Treatment of Qualified Safety and Effectiveness Testing
Expenses.--
``(1) In general.--Except as provided in paragraph (2), any
qualified safety and effectiveness testing expenses for a
taxable year to which an election under this section applies
shall not be taken into account for purposes of determining the
credit allowable under section 41 for such taxable year.
``(2) Treated as base period research expenses.--Any
qualified safe and effectiveness testing expenses for any
taxable year which are qualified research expenses (within the
meaning of section 41(b)) shall be taken into account in
determining base period research expenses for purposes of
applying section 41 to subsequent taxable years.
``(f) Special Rules.--
``(1) Limitation.--No credit shall be allowed under this
section with respect to any safety and effectiveness testing
conducted by a corporation to which an election under section
936 applies.
``(2) Aggregation of expenditures and allocations of
credit.--Rules similar to the rules of paragraphs (1) and (2)
of section 41(f) and section 41(g) shall apply for purposes of
this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b), as amended by this Act, is amended by striking ``plus'' at the
end of paragraph (31), by striking the period at the end of paragraph
(32) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(33) the drug safety and effectiveness testing for minor
animal species credit determined under section 45P(a).''.
(c) Denial of Double Benefit.--Section 280C, as amended by this
Act, is amended by adding at the end the following new subsection:
``(g) Drug Safety and Effectiveness Testing for Minor Animal
Species Credit.--
``(1) In general.--No deduction shall be allowed for that
portion of the qualified safety and effectiveness testing
expenses (as defined in section 45P(c)(1)) otherwise allowable
as a deduction for the taxable year which is equal to the
amount of the credit determined for such taxable year under
section 45P(a).
``(2) Similar rule where taxpayer capitalizes rather than
deducts expenses.--If--
``(A) the amount of the credit determined for the
taxable year under section 45P(a), exceeds
``(B) the amount allowable as a deduction for such
taxable year for qualified safety and effectiveness
testing expenses (determined without regard to
paragraph (1)),
the amount chargeable to capital account for the taxable year
for such expenses shall be reduced by the amount of such
excess.
``(3) Controlled groups.--Paragraph (3) of subsection (b)
shall apply for purposes of this subsection.''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1, as amended by this Act, is
amended by adding at the end the following new item:
``Sec. 45P. Drug safety and effectiveness testing for minor animal
species.''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
SEC. 12407. CERTAIN FARMING BUSINESS MACHINERY AND EQUIPMENT TREATED AS
5-YEAR PROPERTY.
(a) In General.--Section 168(e)(3)(B) (defining 5-year property) is
amended by striking ``and'' at the end of clause (v), by striking the
period at the end of clause (vi)(III) and inserting ``, and'', and by
inserting after clause (vi) the following new clause:
``(vii) any machinery or equipment (other
than any grain bin, cotton ginning asset,
fence, or other land improvement) which is used
in a farming business (as defined in section
263A(e)(4)), the original use of which
commences with the taxpayer after the date of
the enactment of this clause, and which is
placed in service before January 1, 2010.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) (relating to special rule for certain property assigned to
classes) is amended by inserting after the item relating to
subparagraph (B)(iii) the following:
``(B)(vii).............................................. 10''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 12408. EXPENSING OF BROADBAND INTERNET ACCESS EXPENDITURES.
(a) In General.--Part VI of subchapter B of chapter 1 (relating to
itemized deductions for individuals and corporations) is amended by
inserting after section 190 the following new section:
``SEC. 191. BROADBAND EXPENDITURES.
``(a) Treatment of Expenditures.--
``(1) In general.--A taxpayer may elect to treat any
qualified broadband expenditure which is paid or incurred by
the taxpayer as an expense which is not chargeable to a capital
account. Any expenditure which is so treated shall be allowed
as a deduction.
``(2) Election.--An election under paragraph (1) shall be
made at such time and in such manner as the Secretary may
prescribe by regulation.
``(b) Qualified Broadband Expenditures.--For purposes of this
section--
``(1) In general.--The term `qualified broadband
expenditure' means, with respect to any taxable year, any
direct or indirect costs incurred after the date of the
enactment of this section, and on or before the first December
31 which is 3 years after such date, and properly taken into
account with respect to--
``(A) the purchase or installation of qualified
equipment (including any upgrades thereto), and
``(B) the connection of such qualified equipment to
any qualified subscriber.
``(2) Certain satellite expenditures excluded.--Such term
shall not include any costs incurred with respect to the
launching of any satellite equipment.
``(3) Leased equipment.--Such term shall include so much of
the purchase price paid by the lessor of qualified equipment
subject to a lease described in subsection (c)(2)(B) as is
attributable to expenditures incurred by the lessee which would
otherwise be described in paragraph (1).
``(4) Limitation with regard to current generation
broadband services.--Only 50 percent of the amounts taken into
account under paragraph (1) with respect to qualified equipment
through which current generation broadband services are
provided shall be treated as qualified broadband expenditures.
``(c) When Expenditures Taken Into Account.--For purposes of this
section--
``(1) In general.--Qualified broadband expenditures with
respect to qualified equipment shall be taken into account with
respect to the first taxable year in which--
``(A) current generation broadband services are
provided through such equipment to qualified
subscribers, or
``(B) next generation broadband services are
provided through such equipment to qualified
subscribers.
``(2) Limitation.--
``(A) In general.--Qualified expenditures shall be
taken into account under paragraph (1) only with
respect to qualified equipment--
``(i) the original use of which commences
with the taxpayer, and
``(ii) which is placed in service after the
date of the enactment of this Act.
``(B) Sale-leasebacks.--For purposes of
subparagraph (A), if property--
``(i) is originally placed in service after
the date of the enactment of this Act by any
person, and
``(ii) sold and leased back by such person
within 3 months after the date such property
was originally placed in service,
such property shall be treated as originally placed in
service not earlier than the date on which such
property is used under the leaseback referred to in
clause (ii).
``(d) Special Allocation Rules.--
``(1) Current generation broadband services.--For purposes
of determining the amount of qualified broadband expenditures
under subsection (a)(1) with respect to qualified equipment
through which current generation broadband services are
provided, if the qualified equipment is capable of serving both
qualified subscribers and other subscribers, the qualified
broadband expenditures shall be multiplied by a fraction--
``(A) the numerator of which is the sum of the
number of potential qualified subscribers within the
rural areas and the underserved areas which the
equipment is capable of serving with current generation
broadband services, and
``(B) the denominator of which is the total
potential subscriber population of the area which the
equipment is capable of serving with current generation
broadband services.
``(2) Next generation broadband services.--For purposes of
determining the amount of qualified broadband expenditures
under subsection (a)(1) with respect to qualified equipment
through which next generation broadband services are provided,
if the qualified equipment is capable of serving both qualified
subscribers and other subscribers, the qualified broadband
expenditures shall be multiplied by a fraction--
``(A) the numerator of which is the sum of--
``(i) the number of potential qualified
subscribers within the rural areas and
underserved areas, plus
``(ii) the number of potential qualified
subscribers within the area consisting only of
residential subscribers not described in clause
(i),
which the equipment is capable of serving with next
generation broadband services, and
``(B) the denominator of which is the total
potential subscriber population of the area which the
equipment is capable of serving with next generation
broadband services.
``(e) Definitions.--For purposes of this section--
``(1) Antenna.--The term `antenna' means any device used to
transmit or receive signals through the electromagnetic
spectrum, including satellite equipment.
``(2) Cable operator.--The term `cable operator' has the
meaning given such term by section 602(5) of the Communications
Act of 1934 (47 U.S.C. 522(5)).
``(3) Commercial mobile service carrier.--The term
`commercial mobile service carrier' means any person authorized
to provide commercial mobile radio service as defined in
section 20.3 of title 47, Code of Federal Regulations.
``(4) Current generation broadband service.--The term
`current generation broadband service' means the transmission
of signals at a rate of at least 5,000,000 bits per second to
the subscriber and at least 1,000,000 bits per second from the
subscriber.
``(5) Multiplexing or demultiplexing.--The term
`multiplexing' means the transmission of 2 or more signals over
a single channel, and the term `demultiplexing' means the
separation of 2 or more signals previously combined by
compatible multiplexing equipment.
``(6) Next generation broadband service.--The term `next
generation broadband service' means the transmission of signals
at a rate of at least 100,000,000 bits per second to the
subscriber and at least 20,000,000 bits per second from the
subscriber.
``(7) Nonresidential subscriber.--The term `nonresidential
subscriber' means any person who purchases broadband services
which are delivered to the permanent place of business of such
person.
``(8) Open video system operator.--The term `open video
system operator' means any person authorized to provide service
under section 653 of the Communications Act of 1934 (47 U.S.C.
573).
``(9) Other wireless carrier.--The term `other wireless
carrier' means any person (other than a telecommunications
carrier, commercial mobile service carrier, cable operator,
open video system operator, or satellite carrier) providing
current generation broadband services or next generation
broadband service to subscribers through the radio transmission
of energy.
``(10) Packet switching.--The term `packet switching' means
controlling or routing the path of any digitized transmission
signal which is assembled into packets or cells.
``(11) Provider.--The term `provider' means, with respect
to any qualified equipment--
``(A) a cable operator,
``(B) a commercial mobile service carrier,
``(C) an open video system operator,
``(D) a satellite carrier,
``(E) a telecommunications carrier, or
``(F) any other wireless carrier,
providing current generation broadband services or next
generation broadband services to subscribers through such
qualified equipment.
``(12) Provision of services.--A provider shall be treated
as providing services to 1 or more subscribers if--
``(A) such a subscriber has been passed by the
provider's equipment and can be connected to such
equipment for a standard connection fee,
``(B) the provider is physically able to deliver
current generation broadband services or next
generation broadband services, as applicable, to such a
subscriber without making more than an insignificant
investment with respect to such subscriber,
``(C) the provider has made reasonable efforts to
make such subscribers aware of the availability of such
services,
``(D) such services have been purchased by 1 or
more such subscribers, and
``(E) such services are made available to such
subscribers at average prices comparable to those at
which the provider makes available similar services in
any areas in which the provider makes available such
services.
``(13) Qualified equipment.--
``(A) In general.--The term `qualified equipment'
means equipment which provides current generation
broadband services or next generation broadband
services--
``(i) at least a majority of the time
during periods of maximum demand to each
subscriber who is utilizing such services, and
``(ii) in a manner substantially the same
as such services are provided by the provider
to subscribers through equipment with respect
to which no deduction is allowed under
subsection (a)(1).
``(B) Only certain investment taken into account.--
Except as provided in subparagraph (C) or (D),
equipment shall be taken into account under
subparagraph (A) only to the extent it--
``(i) extends from the last point of
switching to the outside of the unit, building,
dwelling, or office owned or leased by a
subscriber in the case of a telecommunications
carrier or broadband-over-powerline operator,
``(ii) extends from the customer side of
the mobile telephone switching office to a
transmission/receive antenna (including such
antenna) owned or leased by a subscriber in the
case of a commercial mobile service carrier,
``(iii) extends from the customer side of
the headend to the outside of the unit,
building, dwelling, or office owned or leased
by a subscriber in the case of a cable operator
or open video system operator, or
``(iv) extends from a transmission/receive
antenna (including such antenna) which
transmits and receives signals to or from
multiple subscribers, to a transmission/receive
antenna (including such antenna) on the outside
of the unit, building, dwelling, or office
owned or leased by a subscriber in the case of
a satellite carrier or other wireless carrier,
unless such other wireless carrier is also a
telecommunications carrier.
``(C) Packet switching equipment.--Packet switching
equipment, regardless of location, shall be taken into
account under subparagraph (A) only if it is deployed
in connection with equipment described in subparagraph
(B) and is uniquely designed to perform the function of
packet switching for current generation broadband
services or next generation broadband services, but
only if such packet switching is the last in a series
of such functions performed in the transmission of a
signal to a subscriber or the first in a series of such
functions performed in the transmission of a signal
from a subscriber.
``(D) Multiplexing and demultiplexing equipment.--
Multiplexing and demultiplexing equipment shall be
taken into account under subparagraph (A) only to the
extent it is deployed in connection with equipment
described in subparagraph (B) and is uniquely designed
to perform the function of multiplexing and
demultiplexing packets or cells of data and making
associated application adaptions, but only if such
multiplexing or demultiplexing equipment is located
between packet switching equipment described in
subparagraph (C) and the subscriber's premises.
``(14) Qualified subscriber.--The term `qualified
subscriber' means--
``(A) with respect to the provision of current
generation broadband services--
``(i) any nonresidential subscriber
maintaining a permanent place of business in a
rural area or underserved area, or
``(ii) any residential subscriber residing
in a dwelling located in a rural area or
underserved area which is not a saturated
market, and
``(B) with respect to the provision of next
generation broadband services--
``(i) any nonresidential subscriber
maintaining a permanent place of business in a
rural area or underserved area, or
``(ii) any residential subscriber.
``(15) Residential subscriber.--The term `residential
subscriber' means any individual who purchases broadband
services which are delivered to such individual's dwelling.
``(16) Rural area.--The term `rural area' means any census
tract which--
``(A) is not within 10 miles of any incorporated or
census designated place containing more than 25,000
people, and
``(B) is not within a county or county equivalent
which has an overall population density of more than
500 people per square mile of land.
``(17) Rural subscriber.--The term `rural subscriber' means
any residential subscriber residing in a dwelling located in a
rural area or nonresidential subscriber maintaining a permanent
place of business located in a rural area.
``(18) Satellite carrier.--The term `satellite carrier'
means any person using the facilities of a satellite or
satellite service licensed by the Federal Communications
Commission and operating in the Fixed-Satellite Service under
part 25 of title 47 of the Code of Federal Regulations or the
Direct Broadcast Satellite Service under part 100 of title 47
of such Code to establish and operate a channel of
communications for distribution of signals, and owning or
leasing a capacity or service on a satellite in order to
provide such point-to-multipoint distribution.
``(19) Saturated market.--The term `saturated market' means
any census tract in which, as of the date of the enactment of
this section--
``(A) current generation broadband services have
been provided by a single provider to 85 percent or
more of the total number of potential residential
subscribers residing in dwellings located within such
census tract, and
``(B) such services can be utilized--
``(i) at least a majority of the time
during periods of maximum demand by each such
subscriber who is utilizing such services, and
``(ii) in a manner substantially the same
as such services are provided by the provider
to subscribers through equipment with respect
to which no deduction is allowed under
subsection (a)(1).
``(20) Subscriber.--The term `subscriber' means any person
who purchases current generation broadband services or next
generation broadband services.
``(21) Telecommunications carrier.--The term
`telecommunications carrier' has the meaning given such term by
section 3(44) of the Communications Act of 1934 (47 U.S.C.
153(44)), but--
``(A) includes all members of an affiliated group
of which a telecommunications carrier is a member, and
``(B) does not include a commercial mobile service
carrier.
``(22) Total potential subscriber population.--The term
`total potential subscriber population' means, with respect to
any area and based on the most recent census data, the total
number of potential residential subscribers residing in
dwellings located in such area and potential nonresidential
subscribers maintaining permanent places of business located in
such area.
``(23) Underserved area.--The term `underserved area'
means--
``(A) any census tract which is located in--
``(i) an empowerment zone or enterprise
community designated under section 1391, or
``(ii) the District of Columbia Enterprise
Zone established under section 1400, or
``(B) any census tract--
``(i) the poverty level of which is at
least 30 percent (based on the most recent
census data), and
``(ii) the median family income of which
does not exceed--
``(I) in the case of a census tract
located in a metropolitan statistical
area, 70 percent of the greater of the
metropolitan area median family income
or the statewide median family income,
and
``(II) in the case of a census
tract located in a nonmetropolitan
statistical area, 70 percent of the
nonmetropolitan statewide median family
income.
``(24) Underserved subscriber.--The term `underserved
subscriber' means any residential subscriber residing in a
dwelling located in an underserved area or nonresidential
subscriber maintaining a permanent place of business located in
an underserved area.
``(f) Special Rules.--
``(1) Property used outside the united states, etc., not
qualified.--No expenditures shall be taken into account under
subsection (a)(1) with respect to the portion of the cost of
any property referred to in section 50(b) or with respect to
the portion of the cost of any property specified in an
election under section 179.
``(2) Basis reduction.--
``(A) In general.--For purposes of this title, the
basis of any property shall be reduced by the portion
of the cost of such property taken into account under
subsection (a)(1).
``(B) Ordinary income recapture.--For purposes of
section 1245, the amount of the deduction allowable
under subsection (a)(1) with respect to any property
which is of a character subject to the allowance for
depreciation shall be treated as a deduction allowed
for depreciation under section 167.
``(3) Coordination with section 38.--No credit shall be
allowed under section 38 with respect to any amount for which a
deduction is allowed under subsection (a)(1).''.
(b) Special Rule for Mutual or Cooperative Telephone Companies.--
Section 512(b) (relating to modifications) is amended by adding at the
end the following new paragraph:
``(20) Special rule for mutual or cooperative telephone
companies.--A mutual or cooperative telephone company which for
the taxable year satisfies the requirements of section
501(c)(12)(A) may elect to reduce its unrelated business
taxable income for such year, if any, by an amount that does
not exceed the qualified broadband expenditures which would be
taken into account under section 191 for such year by such
company if such company was not exempt from taxation. Any
amount which is allowed as a deduction under this paragraph
shall not be allowed as a deduction under section 191 and the
basis of any property to which this paragraph applies shall be
reduced under section 1016(a)(40).''.
(c) Conforming Amendments.--
(1) Section 263(a)(1) (relating to capital expenditures) is
amended by striking ``or'' at the end of subparagraph (J), by
striking the period at the end of subparagraph (K) and
inserting ``, or'', and by adding at the end the following new
subparagraph:
``(L) expenditures for which a deduction is allowed
under section 191.''.
(2) Section 1016(a), as amended by this Act, is amended by
striking ``and'' at the end of paragraph (38), by striking the
period at the end of paragraph (39) and inserting ``, and'',
and by adding at the end the following new paragraph:
``(40) to the extent provided in section 191(f)(2).''.
(3) The table of sections for part VI of subchapter A of
chapter 1 is amended by inserting after the item relating to
section 190 the following new item:
``Sec. 191. Broadband expenditures.''.
(d) Designation of Census Tracts.--
(1) In general.--The Secretary of the Treasury shall, not
later than 90 days after the date of the enactment of this Act,
designate and publish those census tracts meeting the criteria
described in paragraphs (16), (22), and (23) of section 191(e)
of the Internal Revenue Code of 1986 (as added by this
section). In making such designations, the Secretary of the
Treasury shall consult with such other departments and agencies
as the Secretary determines appropriate.
(2) Saturated market.--
(A) In general.--For purposes of designating and
publishing those census tracts meeting the criteria
described in subsection (e)(19) of such section 191--
(i) the Secretary of the Treasury shall
prescribe not later than 30 days after the date
of the enactment of this Act the form upon
which any provider which takes the position
that it meets such criteria with respect to any
census tract shall submit a list of such census
tracts (and any other information required by
the Secretary) not later than 60 days after the
date of the publication of such form, and
(ii) the Secretary of the Treasury shall
publish an aggregate list of such census tracts
and the applicable providers not later than 30
days after the last date such submissions are
allowed under clause (i).
(B) No subsequent lists required.--The Secretary of
the Treasury shall not be required to publish any list
of census tracts meeting such criteria subsequent to
the list described in subparagraph (A)(ii).
(e) Other Regulatory Matters.--
(1) Prohibition.--No Federal or State agency or
instrumentality shall adopt regulations or ratemaking
procedures that would have the effect of eliminating or
reducing any deduction or portion thereof allowed under section
191 of the Internal Revenue Code of 1986 (as added by this
section) or otherwise subverting the purpose of this section.
(2) Treasury regulatory authority.--It is the intent of
Congress in providing the election to deduct qualified
broadband expenditures under section 191 of the Internal
Revenue Code of 1986 (as added by this section) to provide
incentives for the purchase, installation, and connection of
equipment and facilities offering expanded broadband access to
the Internet for users in certain low income and rural areas of
the United States, as well as to residential users nationwide,
in a manner that maintains competitive neutrality among the
various classes of providers of broadband services.
Accordingly, the Secretary of the Treasury shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of section 191 of such Code, including--
(A) regulations to determine how and when a
taxpayer that incurs qualified broadband expenditures
satisfies the requirements of section 191 of such Code
to provide broadband services, and
(B) regulations describing the information,
records, and data taxpayers are required to provide the
Secretary to substantiate compliance with the
requirements of section 191 of such Code.
SEC. 12409. CREDIT FOR ENERGY EFFICIENT MOTORS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits), as amended by this Act, is
amended by inserting at the end the following new section:
``SEC. 45Q. CREDIT FOR ENERGY EFFICIENT MOTORS.
``(a) In General.--For purposes of section 38, the energy efficient
motors credit determined under this section for any taxable year is an
amount equal to the lesser of--
``(1) $15 per horsepower generated by qualified energy
efficient motors the original use of which begins with the
taxpayer during such taxable year, or
``(2) $1,250,000.
``(b) Qualified Energy Efficient Motor.--The term `qualified energy
efficient motor' means a general- or definite-purpose electric motor of
500 horsepower or less which meets or exceeds the efficiency levels
specified in Tables 12-12 or 12-13 of the National Electrical
Manufacturers Association MG-1 (2006).
``(c) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit.
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit.
``(3) Property used outside united states, etc., certain
depreciable property not qualified.--No credit shall be allowed
under subsection (a) with respect to any property referred to
in section 50(b) or with respect to the portion of the cost of
any property taken into account under section 179.
``(d) Termination.--This section shall not apply to any property
placed in service after the date which is 3 years after the date of the
enactment of this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b), as amended by this Act, is amended by striking ``plus'' at the
end of paragraph (32), by striking the period at the end of paragraph
(33) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(34) the credit for energy efficient motors determined
under section 45Q(a).''.
(c) Conforming Amendments.--
(1) Section 1016(a), as amended by this Act, is amended by
striking ``and'' at the end of paragraph (39), by striking the
period at the end of paragraph (40) and inserting ``, and'',
and by adding at the end the following new paragraph:
``(41) to the extent provided in section 45Q(c)(1).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by adding at the end the following new item:
``Sec. 45Q. Credit for energy efficient motors.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
Subtitle E--Revenue Provisions
PART I--MISCELLANEOUS REVENUE PROVISIONS
SEC. 12501. LIMITATION ON FARMING LOSSES OF CERTAIN TAXPAYERS.
(a) In General.--Section 461 (relating to general rule for taxable
year of deduction) is amended by adding at the end the following new
subsection:
``(j) Limitation on Farming Losses of Certain Taxpayers.--
``(1) In general.--If an applicable taxpayer has a farming
loss for the taxable year, such loss shall be allowed for such
taxable year only to the extent such loss does not exceed
$200,000.
``(2) Farming loss.--For purposes of this subsection, the
term `farming loss' means the excess of the deductions of the
taxpayer for the taxable year which are attributable to farming
businesses (as defined in section 263A(e)(4)) of such taxpayer
over income or gain of such taxpayer for the taxable year which
is attributable to such deductions.
``(3) Disallowed loss carried to next year.--Any loss which
is disallowed under paragraph (1) shall be treated as a
deduction of the taxpayer attributable to farming businesses in
the next taxable year.
``(4) Applicable taxpayer.--For purposes of this
subsection, the term `applicable taxpayer' means, with respect
to any taxable year, any individual, partnership, estate, or
trust which receives--
``(A) benefits under subtitle A or B of title I of
the Food and Energy Security Act of 2007 in such
taxable year, or
``(B) Commodity Credit Corporation loans in such
taxable year.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2007.
SEC. 12502. MODIFICATION TO OPTIONAL METHOD OF COMPUTING NET EARNINGS
FROM SELF-EMPLOYMENT.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) In general.--The matter following paragraph (17) of
section 1402(a) is amended--
(A) by striking ``$2,400'' each place it appears
and inserting ``the upper limit'', and
(B) by striking ``$1,600'' each place it appears
and inserting ``the lower limit''.
(2) Definitions.--Section 1402 is amended by adding at the
end the following new subsection:
``(l) Upper and Lower Limits.--For purposes of subsection (a)--
``(1) Lower limit.--The lower limit for any taxable year is
the sum of the amounts required under section 213(d) of the
Social Security Act for a quarter of coverage in effect with
respect to each calendar quarter ending with or within such
taxable year.
``(2) Upper limit.--The upper limit for any taxable year is
the amount equal to 150 percent of the lower limit for such
taxable year.''.
(b) Amendments to the Social Security Act.--
(1) In general.--The matter following paragraph (16) of
section 211(a) of the Social Security Act is amended--
(A) by striking ``$2,400'' each place it appears
and inserting ``the upper limit'', and
(B) by striking ``$1,600'' each place it appears
and inserting ``the lower limit''.
(2) Definitions.--Section 211 of such Act is amended by
adding at the end the following new subsection:
``Upper and Lower Limits
``(k) For purposes of subsection (a)--
``(1) The lower limit for any taxable year is the sum of
the amounts required under section 213(d) for a quarter of
coverage in effect with respect to each calendar quarter ending
with or within such taxable year.
``(2) The upper limit for any taxable year is the amount
equal to 150 percent of the lower limit for such taxable
year.''.
(3) Conforming amendment.--Section 212 of such Act is
amended--
(A) in subsection (b), by striking ``For'' and
inserting ``Except as provided in subsection (c),
for''; and
(B) by adding at the end the following new
subsection:
``(c) For the purpose of determining average indexed monthly
earnings, average monthly wage, and quarters of coverage in the case of
any individual who elects the option described in clause (ii) or (iv)
in the matter following section 211(a)(16) for any taxable year that
does not begin with or during a particular calendar year and end with
or during such year, the self-employment income of such individual
deemed to be derived during such taxable year shall be allocated to the
two calendar years, portions of which are included within such taxable
year, in the same proportion to the total of such deemed self-
employment income as the sum of the amounts applicable under section
213(d) for the calendar quarters ending with or within each such
calendar year bears to the lower limit for such taxable year specified
in section 211(k)(1).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 12503. INFORMATION REPORTING FOR COMMODITY CREDIT CORPORATION
TRANSACTIONS.
(a) In General.--Subpart A of part III of subchapter A of chapter
61 (relating to information concerning persons subject to special
provisions) is amended by inserting after section 6039I the following
new section:
``SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO COMMODITY CREDIT
CORPORATION TRANSACTIONS.
``(a) Requirement of Reporting.--The Commodity Credit Corporation,
through the Secretary of Agriculture, shall make a return, according to
the forms and regulations prescribed by the Secretary of the Treasury,
setting forth any market gain realized by a taxpayer during the taxable
year in relation to the repayment of a loan issued by the Commodity
Credit Corporation, without regard to the manner in which such loan was
repaid.
``(b) Statements To Be Furnished to Persons With Respect to Whom
Information Is Required.--The Secretary of Agriculture shall furnish to
each person whose name is required to be set forth in a return required
under subsection (a) a written statement showing the amount of market
gain reported in such return.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part III of subchapter A of chapter 61 is amended by inserting after
the item relating to section 6039I the following new item:
``Sec. 6039J. Information reporting with respect to Commodity Credit
Corporation transactions.''.
(c) Effective Date.--The amendments made by this section shall
apply to loans repaid on or after January 1, 2007.
SEC. 12504. MODIFICATION OF SECTION 1031 TREATMENT FOR CERTAIN REAL
ESTATE.
(a) In General.--Section 1031 (relating to exchange of property
held for productive use or investment), as amended by this Act, is
amended by adding at the end the following new subsection:
``(j) Special Rule for Subsidized Agricultural Real Property.--
``(1) In general.--Subsidized agricultural real property
and nonagricultural real property are not property of a like
kind.
``(2) Subsidized agricultural real property.--For purposes
of this subsection, the term `subsidized agricultural real
property' means real property--
``(A) which is used as a farm for farming purposes
(within the meaning of section 2032A(e)(5)); and
``(B) with respect to which a taxpayer receives, in
the taxable year in which an exchange of such property
is made, any payment or benefit under--
``(i) part I of subtitle A,
``(ii) part III (other than sections 1307
and 1308) of subtitle A, or
``(iii) subtitle B,
of title I of the Food and Energy Security Act of 2007.
``(3) Nonagricultural real property.--For purposes of this
subsection, the term `nonagricultural real property' means real
property which is not used as a farm for farming purposes
(within the meaning of section 2032A(e)(5)).
``(4) Exception.--Paragraph (1) shall not apply with
respect to any subsidized agricultural real property which, not
later than the date of the exchange, is permanently retired
from any program under which any payment or benefit described
in paragraph (2)(B) is made.''.
(b) Effective Date.--The amendments made by this section shall
apply to exchanges completed after the date of the enactment of this
Act.
SEC. 12505. MODIFICATION OF EFFECTIVE DATE OF LEASING PROVISIONS OF THE
AMERICAN JOBS CREATION ACT OF 2004.
(a) Leases to Foreign Entities.--Section 849(b) of the American
Jobs Creation Act of 2004 is amended by adding at the end the following
new paragraph:
``(5) Leases to foreign entities.--In the case of tax-
exempt use property leased to a tax-exempt entity which is a
foreign person or entity, the amendments made by this part
shall apply to taxable years beginning after December 31, 2006,
with respect to leases entered into on or before March 12,
2004.''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in the enactment of the American Jobs Creation
Act of 2004.
SEC. 12506. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under subparagraph (B) of section 401(1) of the Tax
Increase Prevention and Reconciliation Act of 2005 in effect on the
date of the enactment of this Act is increased by 7.00 percentage
points.
SEC. 12507. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES, AND OTHER
AMOUNTS.
(a) In General.--Subsection (f) of section 162 (relating to trade
or business expenses) is amended to read as follows:
``(f) Fines, Penalties, and Other Amounts.--
``(1) In general.--Except as provided in paragraph (2), no
deduction otherwise allowable shall be allowed under this
chapter for any amount paid or incurred (whether by suit,
agreement, or otherwise) to, or at the direction of, a
government or entity described in paragraph (4) in relation
to--
``(A) the violation of any law, or
``(B) an investigation or inquiry into the
potential violation of any law which is initiated by
such government or entity.
``(2) Exception for amounts constituting restitution or
paid to come into compliance with law.--Paragraph (1) shall not
apply to any amount which--
``(A) the taxpayer establishes--
``(i) constitutes restitution (or
remediation of property) for damage or harm
caused by, or which may be caused by, the
violation of any law or the potential violation
of any law, or
``(ii) is paid to come into compliance with
any law which was violated or involved in the
investigation or inquiry, and
``(B) is identified as an amount described in
clause (i) or (ii) of subparagraph (A), as the case may
be, in the court order or settlement agreement, except
that the requirement of this subparagraph shall not
apply in the case of any settlement agreement which
requires the taxpayer to pay or incur an amount not
greater than $1,000,000.
A taxpayer shall not meet the requirements of subparagraph (A)
solely by reason of an identification under subparagraph (B).
This paragraph shall not apply to any amount paid or incurred
as reimbursement to the government or entity for the costs of
any investigation or litigation unless such amount is paid or
incurred for a cost or fee regularly charged for any routine
audit or other customary review performed by the government or
entity.
``(3) Exception for amounts paid or incurred as the result
of certain court orders.--Paragraph (1) shall not apply to any
amount paid or incurred by order of a court in a suit in which
no government or entity described in paragraph (4) is a party.
``(4) Certain nongovernmental regulatory entities.--An
entity is described in this paragraph if it is--
``(A) a nongovernmental entity which exercises
self-regulatory powers (including imposing sanctions)
in connection with a qualified board or exchange (as
defined in section 1256(g)(7)), or
``(B) to the extent provided in regulations, a
nongovernmental entity which exercises self-regulatory
powers (including imposing sanctions) as part of
performing an essential governmental function.
``(5) Exception for taxes due.--Paragraph (1) shall not
apply to any amount paid or incurred as taxes due.''.
(b) Reporting of Deductible Amounts.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6050V the
following new section:
``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES, PENALTIES, AND
OTHER AMOUNTS.
``(a) Requirement of Reporting.--
``(1) In general.--The appropriate official of any
government or entity which is described in section 162(f)(4)
which is involved in a suit or agreement described in paragraph
(2) shall make a return in such form as determined by the
Secretary setting forth--
``(A) the amount required to be paid as a result of
the suit or agreement to which paragraph (1) of section
162(f) applies,
``(B) any amount required to be paid as a result of
the suit or agreement which constitutes restitution or
remediation of property, and
``(C) any amount required to be paid as a result of
the suit or agreement for the purpose of coming into
compliance with any law which was violated or involved
in the investigation or inquiry.
``(2) Suit or agreement described.--
``(A) In general.--A suit or agreement is described
in this paragraph if--
``(i) it is--
``(I) a suit with respect to a
violation of any law over which the
government or entity has authority and
with respect to which there has been a
court order, or
``(II) an agreement which is
entered into with respect to a
violation of any law over which the
government or entity has authority, or
with respect to an investigation or
inquiry by the government or entity
into the potential violation of any law
over which such government or entity
has authority, and
``(ii) the aggregate amount involved in all
court orders and agreements with respect to the
violation, investigation, or inquiry is $600 or
more.
``(B) Adjustment of reporting threshold.--The
Secretary may adjust the $600 amount in subparagraph
(A)(ii) as necessary in order to ensure the efficient
administration of the internal revenue laws.
``(3) Time of filing.--The return required under this
subsection shall be filed not later than--
``(A) 30 days after the date on which a court order
is issued with respect to the suit or the date the
agreement is entered into, as the case may be, or
``(B) the date specified by the Secretary.
``(b) Statements To Be Furnished to Individuals Involved in the
Settlement.--Every person required to make a return under subsection
(a) shall furnish to each person who is a party to the suit or
agreement a written statement showing--
``(1) the name of the government or entity, and
``(2) the information supplied to the Secretary under
subsection (a)(1).
The written statement required under the preceding sentence shall be
furnished to the person at the same time the government or entity
provides the Secretary with the information required under subsection
(a).
``(c) Appropriate Official Defined.--For purposes of this section,
the term `appropriate official' means the officer or employee having
control of the suit, investigation, or inquiry or the person
appropriately designated for purposes of this section.''.
(2) Conforming amendment.--The table of sections for
subpart B of part III of subchapter A of chapter 61 is amended
by inserting after the item relating to section 6050V the
following new item:
``Sec. 6050W. Information with respect to certain fines, penalties, and
other amounts''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred on or after the date of the enactment
of this Act, except that such amendments shall not apply to amounts
paid or incurred under any binding order or agreement entered into
before such date. Such exception shall not apply to an order or
agreement requiring court approval unless the approval was obtained
before such date.
SEC. 12508. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure To File Correct Information Returns.--
(1) In general.--Section 6721(a)(1) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$250,000'' and inserting
``$3,000,000''.
(2) Reduction where correction in specified period.--
(A) Correction within 30 days.--Section 6721(b)(1)
is amended--
(i) by striking ``$15'' and inserting
``$50'',
(ii) by striking ``$50'' and inserting
``$250'', and
(iii) by striking ``$75,000'' and inserting
``$500,000''.
(B) Failures corrected on or before august 1.--
Section 6721(b)(2) is amended--
(i) by striking ``$30'' and inserting
``$100'',
(ii) by striking ``$50'' and inserting
``$250'', and
(iii) by striking ``$150,000'' and
inserting ``$1,500,000''.
(3) Lower limitation for persons with gross receipts of not
more than $5,000,000.--Section 6721(d)(1) is amended--
(A) in subparagraph (A)--
(i) by striking ``$100,000'' and inserting
``$1,000,000'', and
(ii) by striking ``$250,000'' and inserting
``$3,000,000'',
(B) in subparagraph (B)--
(i) by striking ``$25,000'' and inserting
``$175,000'', and
(ii) by striking ``$75,000'' and inserting
``$500,000'', and
(C) in subparagraph (C)--
(i) by striking ``$50,000'' and inserting
``$500,000'', and
(ii) by striking ``$150,000'' and inserting
``$1,500,000''.
(4) Penalty in case of intentional disregard.--Section
6721(e) is amended--
(A) by striking ``$100'' in paragraph (2) and
inserting ``$500'',
(B) by striking ``$250,000'' in paragraph (3)(A)
and inserting ``$3,000,000''.
(b) Failure To Furnish Correct Payee Statements.--
(1) In general.--Section 6722(a) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting
``$1,000,000''.
(2) Penalty in case of intentional disregard.--Section
6722(c) is amended--
(A) by striking ``$100'' in paragraph (1) and
inserting ``$500'', and
(B) by striking ``$100,000'' in paragraph (2)(A)
and inserting ``$1,000,000''.
(c) Failure To Comply With Other Information Reporting
Requirements.--Section 6723 is amended--
(1) by striking ``$50'' and inserting ``$250'', and
(2) by striking ``$100,000'' and inserting ``$1,000,000''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to information returns required to be filed on or
after January 1, 2008.
SEC. 12509. ASSET TREATMENT OF HORSES.
(a) 3-Year Depreciation for All Race Horses.--
(1) In general.--Clause (i) of section 168(e)(3)(A) of the
Internal Revenue Code of 1986 (relating to 3-year property) is
amended to read as follows:
``(i) any race horse,''.
(2) Effective date.--The amendment made by this section
shall apply to property placed in service on or after the date
of the enactment of this Act.
(b) Reduction of Holding Period to 12 Months for Purposes of
Determining Whether Horses Are Section 1231 Assets.--
(1) In general.--Subparagraph (A) of section 1231(b)(3) of
the Internal Revenue Code of 1986 (relating to definition of
livestock) is amended by striking ``and horses''.
(2) Effective date.--The amendment made by this section
shall apply to taxable years beginning after December 31, 2007.
SEC. 12510. ELIMINATION OF PRIVATE PAYMENT TEST FOR PROFESSIONAL SPORTS
FACILITY BONDS.
(a) In General.--Section 141(a) (defining private activity bond) is
amended by adding at the end the following new flush sentence:
``In the case of any professional sports facility bond, paragraph (1)
shall be applied without regard to subparagraph (B) thereof.''.
(b) Professional Sports Facility Bond Defined.--Section 141 is
amended by adding at the end the following new subsection:
``(f) Professional Sports Facility Bond.--For purposes of
subsection (a)--
``(1) In general.--The term `professional sports facility
bond' means any bond issued as part of an issue any portion of
the proceeds of which are to be used to provide a professional
sports facility.
``(2) Professional sports facility.--The term `professional
sports facility' means real property and related improvements
used, in whole or in part, for professional sports,
professional sports exhibitions, professional games, or
professional training.''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act,
other than bonds with respect to which a resolution was issued by an
issuer or conduit borrower before January 24, 2007.
SEC. 12511. MODIFICATION OF PENALTY FOR FAILURE TO FILE PARTNERSHIP
RETURNS; LIMITATION ON DISCLOSURE.
(a) Extension of Time Limitation.--Section 6698(a) (relating to
failure to file partnership returns) is amended by striking ``5
months'' and inserting ``12 months''.
(b) Increase in Penalty Amount.--Paragraph (1) of section 6698(b)
is amended by striking ``$50'' and inserting ``$100''.
(c) Limitation on Disclosure of Taxpayer Returns to Partners, S
Corporation Shareholders, Trust Beneficiaries, and Estate
Beneficiaries.--
(1) In general.--Section 6103(e) (relating to disclosure to
persons having material interest) is amended by adding at the
end the following new paragraph:
``(10) Limitation on certain disclosures under this
subsection.--In the case of an inspection or disclosure under
this subsection relating to the return of a partnership, S
corporation, trust, or an estate, the information inspected or
disclosed shall not include any supporting schedule,
attachment, or list which includes the taxpayer identity
information of a person other than the entity making the return
or the person conducting the inspection or to whom the
disclosure is made.''.
(2) Effective date.--The amendment made by this subsection
shall take effect on the date of the enactment of this Act.
(d) Effective Date.--The amendments made by subsections (a) and (b)
shall apply to returns required to be filed after the date of the
enactment of this Act.
SEC. 12512. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS ALLOWED TO
TREAT ELECTIVE DEFERRALS AS ROTH CONTRIBUTIONS.
(a) In General.--Section 402A(e)(1) (defining applicable retirement
plan) is amended by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and inserting ``,
and'', and by adding at the end the following:
``(C) an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(b) Elective Deferrals.--Section 402A(e)(2) (defining elective
deferral) is amended to read as follows:
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in
subparagraph (A) or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan
(as defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
PART II--ECONOMIC SUBSTANCE DOCTRINE
SEC. 12521. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.
(a) In General.--Section 7701 is amended by redesignating
subsection (p) as subsection (q) and by inserting after subsection (o)
the following new subsection:
``(p) Clarification of Economic Substance Doctrine; Etc.--
``(1) General rules.--
``(A) In general.--In any case in which a court
determines that the economic substance doctrine is
relevant for purposes of this title to a transaction
(or series of transactions), such transaction (or
series of transactions) shall have economic substance
only if the requirements of this paragraph are met.
``(B) Definition of economic substance.--For
purposes of subparagraph (A)--
``(i) In general.--A transaction has
economic substance only if--
``(I) the transaction changes in a
meaningful way (apart from Federal tax
effects) the taxpayer's economic
position, and
``(II) subject to clause (iii), the
taxpayer has a substantial purpose
(other than a Federal tax purpose) for
entering into such transaction.
``(ii) Special rule where taxpayer relies
on profit potential.--A transaction shall not
be treated as having economic substance solely
by reason of having a potential for profit
unless the present value of the reasonably
expected pre-Federal tax profit from the
transaction is substantial in relation to the
present value of the expected net Federal tax
benefits that would be allowed if the
transaction were respected. In determining pre-
Federal tax profit, there shall be taken into
account fees and other transaction expenses and
to the extent provided by the Secretary,
foreign taxes.
``(iii) Special rules for determining
whether non-federal tax purpose.--For purposes
of clause (i)(II)--
``(I) a purpose of achieving a
financial accounting benefit shall not
be taken into account in determining
whether a transaction has a substantial
purpose (other than a Federal tax
purpose) if the origin of such
financial accounting benefit is a
reduction of Federal tax, and
``(II) the taxpayer shall not be
treated as having a substantial purpose
(other than a Federal tax purpose) with
respect to a transaction if the only
such purpose is the reduction of non-
Federal taxes and the transaction will
result in a reduction of Federal taxes
substantially equal to, or greater
than, the reduction in non-Federal
taxes because of similarities between
the laws imposing the taxes.
``(2) Definitions and special rules.--For purposes of this
subsection--
``(A) Economic substance doctrine.--The term
`economic substance doctrine' means the common law
doctrine under which tax benefits under subtitle A with
respect to a transaction are not allowable if the
transaction does not have economic substance or lacks a
business purpose.
``(B) Exception for personal transactions of
individuals.--In the case of an individual, this
subsection shall apply only to transactions entered
into in connection with a trade or business or an
activity engaged in for the production of income.
``(3) Other provisions not affected.--Except as
specifically provided in this subsection, the provisions of
this subsection shall not be construed as altering or
supplanting any other rule of law or provision of this title,
and the requirements of this subsection shall be construed as
being in addition to any such other rule of law or provision of
this title.
``(4) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of this subsection. Such regulations may include
exemptions from the application of this subsection.''.
(b) Effective Date.--The amendments made by this section shall
apply to transactions entered into after the date of the enactment of
this Act.
SEC. 12522. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO TRANSACTIONS
LACKING ECONOMIC SUBSTANCE, ETC.
(a) In General.--Subchapter A of chapter 68 is amended by inserting
after section 6662A the following new section:
``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO TRANSACTIONS
LACKING ECONOMIC SUBSTANCE, ETC.
``(a) Imposition of Penalty.--If a taxpayer has an noneconomic
substance transaction understatement for any taxable year, there shall
be added to the tax an amount equal to 30 percent of the amount of such
understatement.
``(b) Reduction of Penalty for Disclosed Transactions.--Subsection
(a) shall be applied by substituting `20 percent' for `30 percent' with
respect to the portion of any noneconomic substance transaction
understatement with respect to which the relevant facts affecting the
tax treatment of the item are adequately disclosed in the return or a
statement attached to the return.
``(c) Noneconomic Substance Transaction Understatement.--For
purposes of this section--
``(1) In general.--The term `noneconomic substance
transaction understatement' means any amount which would be an
understatement under section 6662A(b)(1) if section 6662A were
applied by taking into account items attributable to
noneconomic substance transactions rather than items to which
section 6662A would apply without regard to this paragraph.
``(2) Noneconomic substance transaction.--The term
`noneconomic substance transaction' means any transaction if
there is a lack of economic substance (within the meaning of
section 7701(p)(1)(B)) for the transaction giving rise to the
claimed benefit.
``(d) Rules Applicable To Assertion, Compromise, and Collection of
Penalty.--
``(1) In general.--Only the Chief Counsel for the Internal
Revenue Service may assert a penalty imposed under this section
or may compromise all or any portion of such penalty. The Chief
Counsel may delegate the authority under this paragraph only to
an individual holding the position of chief of a branch within
the Office of the Chief Counsel for the Internal Revenue
Service.
``(2) Specific requirements.--
``(A) Assertion of penalty.--The Chief Counsel for
the Internal Revenue Service (or the Chief Counsel's
delegate under paragraph (1)) shall not assert a
penalty imposed under this section unless, before the
assertion of the penalty, the taxpayer is provided--
``(i) a notice of intent to assert the
penalty, and
``(ii) an opportunity to provide to the
Commissioner (or the Chief Counsel's delegate
under paragraph (1)) a written response to the
proposed penalty within a reasonable period of
time after such notice.
``(B) Compromise of penalty.--A compromise shall
not result in a reduction in the penalty imposed by
this section in an amount greater than the amount which
bears the same ratio to the amount of the penalty
determined without regard to the compromise as--
``(i) the reduction under the compromise in
the noneconomic substance transaction
understatement to which the penalty relates,
bears to
``(ii) the amount of the noneconomic
substance transaction understatement determined
without regard to the compromise.
``(3) Rules relating to relevancy requirement.--
``(A) Determination of relevance by chief
counsel.--The Chief Counsel for the Internal Revenue
Service (or the Chief Counsel's delegate under
paragraph (1)) may assert, compromise, or collect a
penalty imposed by this section with respect to a
noneconomic substance transaction even if there has not
been a court determination that the economic substance
doctrine was relevant for purposes of this title to the
transaction if the Chief Counsel (or delegate)
determines that either was so relevant.
``(B) Final order of court.--If there is a final
order of a court that determines that the economic
substance doctrine was not relevant for purposes of
this title to a transaction (or series of
transactions), any penalty imposed under this section
with respect to the transaction (or series of
transactions) shall be rescinded.
``(4) Applicable rules.--The rules of paragraphs (2) and
(3) of section 6707A(d) shall apply to a compromise under
paragraph (1).
``(e) Coordination With Other Penalties.--Except as otherwise
provided in this part, the penalty imposed by this section shall be in
addition to any other penalty imposed by this title.
``(f) Cross References.--
``(1) For coordination of penalty with
understatements under section 6662 and other
special rules, see section 6662A(e).
``(2) For reporting of penalty imposed under
this section to the Securities and Exchange
Commission, see section 6707A(e).''.
(b) Coordination With Other Understatements and Penalties.--
(1) The second sentence of section 6662(d)(2)(A) is amended
by inserting ``and without regard to items with respect to
which a penalty is imposed by section 6662B'' before the period
at the end.
(2) Subsection (e) of section 6662A is amended--
(A) in paragraph (1), by inserting ``and
noneconomic substance transaction understatements''
after ``reportable transaction understatements'' both
places it appears,
(B) in paragraph (2)(A)--
(i) by inserting ``6662B or'' before
``6663'' in the text, and
(ii) by striking ``penalty'' in the heading
and inserting ``and economic substance
penalties'',
(C) in paragraph (2)(B)--
(i) by inserting ``and section 6662B''
after ``This section'', and
(ii) by striking ``penalty'' in the heading
and inserting ``and economic substance
penalties'',
(D) in paragraph (3), by inserting ``or noneconomic
substance transaction understatement'' after
``reportable transaction understatement'', and
(E) by adding at the end the following new
paragraph:
``(4) Noneconomic substance transaction understatement.--
For purposes of this subsection, the term `noneconomic
substance transaction understatement' has the meaning given
such term by section 6662B(c).''.
(3) Subsection (e) of section 6707A is amended--
(A) by striking ``or'' at the end of subparagraph
(B), and
(B) by striking subparagraph (C) and inserting the
following new subparagraphs:
``(C) is required to pay a penalty under section
6662B with respect to any noneconomic substance
transaction, or
``(D) is required to pay a penalty under section
6662(h) with respect to any transaction and would (but
for section 6662A(e)(2)(B)) have been subject to
penalty under section 6662A at a rate prescribed under
section 6662A(c) or to penalty under section 6662B,''.
(c) Clerical Amendment.--The table of sections for part II of
subchapter A of chapter 68 is amended by inserting after the item
relating to section 6662A the following new item:
``Sec. 6662B. Penalty for understatements attributable to transactions
lacking economic substance, etc.''.
(d) Effective Date.--The amendments made by this section shall
apply to transactions entered into after the date of the enactment of
this Act.
SEC. 12523. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS
ATTRIBUTABLE TO NONECONOMIC SUBSTANCE TRANSACTIONS.
(a) In General.--Section 163(m) (relating to interest on unpaid
taxes attributable to nondisclosed reportable transactions) is
amended--
(1) by striking ``attributable'' and all that follows and
inserting the following: ``attributable to--
``(1) the portion of any reportable transaction
understatement (as defined in section 6662A(b)) with respect to
which the requirement of section 6664(d)(2)(A) is not met, or
``(2) any noneconomic substance transaction understatement
(as defined in section 6662B(c)).'', and
(2) by inserting ``and Noneconomic Substance Transactions''
in the heading thereof after ``Transactions''.
(b) Effective Date.--The amendments made by this section shall
apply to transactions after the date of the enactment of this Act in
taxable years ending after such date.
Subtitle F--Protection of Social Security
SEC. 12601. PROTECTION OF SOCIAL SECURITY.
To ensure that the assets of the trust funds established under
section 201 of the Social Security Act (42 U.S.C. 401) are not reduced
as a result of the enactment of this Act, the Secretary of the Treasury
shall transfer annually from the general revenues of the Federal
Government to those trust funds the following amounts:
(1) For fiscal year 2009, $86,000,000.
(2) For fiscal year 2010, $90,000,000.
(3) For fiscal year 2011, $88,000,000.
(4) For fiscal year 2012, $88,000,000.
(5) For fiscal year 2013, $5,000,000.
(6) For fiscal year 2014, $5,000,000.
(7) For fiscal year 2015, $4,000,000.
(8) For each fiscal year after fiscal year 2015,
$2,000,000.
SEC. 12602. INTEREST RATES FOR WATER AND WASTE DISPOSAL FACILITIES
LOANS.
Section 307(a)(3) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1927(a)(3)) is amended by adding at the end the
following:
``(E) Interest rates for water and waste disposal
facilities loans.--Notwithstanding subparagraph (A),
for loans (other than guaranteed loans) for water and
waste disposal facilities--
``(i) in the case of a loan that would be
subject to the 5 percent interest rate
limitation under subparagraph (A), the
Secretary shall set the interest rate equal to
60 percent of the current market yield for
outstanding municipal obligations with
remaining periods to maturity comparable to the
average maturity of such loans, adjusted to the
nearest one-eight of 1 per centum; and
``(ii) in the case of a loan that would be
subject to the 7 percent limitation in
subparagraph (A), the Secretary shall set the
interest rate equal to 80 percent of the
current market yield for outstanding municipal
obligations with remaining periods to maturity
comparable to the average maturity of such
loans, adjusted to the nearest one-eight of 1
per centum.''.
Subtitle G--Kansas Disaster Tax Relief Assistance
SEC. 12701. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND
SURROUNDING AREA.
The following provisions of or relating to the Internal Revenue
Code of 1986 shall apply, in addition to the areas described in such
provisions, to an area with respect to which a major disaster has been
declared by the President under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (FEMA-1699-DR, as in
effect on the date of the enactment of this Act) by reason of severe
storms and tornados beginning on May 4, 2007, and determined by the
President to warrant individual or individual and public assistance
from the Federal Government under such Act with respect to damages
attributed to such storms and tornados:
(1) Suspension of certain limitations on personal casualty
losses.--Section 1400S(b)(1) of the Internal Revenue Code of
1986, by substituting ``May 4, 2007'' for ``August 25, 2005''.
(2) Extension of replacement period for nonrecognition of
gain.--Section 405 of the Katrina Emergency Tax Relief Act of
2005, by substituting ``on or after May 4, 2007, by reason of
the May 4, 2007, storms and tornados'' for ``on or after August
25, 2005, by reason of Hurricane Katrina''.
(3) Employee retention credit for employers affected by may
4 storms and tornados.--Section 1400R(a) of the Internal
Revenue Code of 1986--
(A) by substituting ``May 4, 2007'' for ``August
28, 2005'' each place it appears,
(B) by substituting ``January 1, 2008'' for
``January 1, 2006'' both places it appears, and
(C) only with respect to eligible employers who
employed an average of not more than 200 employees on
business days during the taxable year before May 4,
2007.
(4) Special allowance for certain property acquired on or
after may 5, 2007.--Section 1400N(d) of such Code--
(A) by substituting ``qualified Recovery Assistance
property'' for ``qualified Gulf Opportunity Zone
property'' each place it appears,
(B) by substituting ``May 5, 2007'' for ``August
28, 2005'' each place it appears,
(C) by substituting ``December 31, 2008'' for
``December 31, 2007'' in paragraph (2)(A)(v),
(D) by substituting ``December 31, 2009'' for
``December 31, 2008'' in paragraph (2)(A)(v),
(E) by substituting ``May 4, 2007'' for ``August
27, 2005'' in paragraph (3)(A),
(F) by substituting ``January 1, 2009'' for
``January 1, 2008'' in paragraph (3)(B), and
(G) determined without regard to paragraph (6)
thereof.
(5) Increase in expensing under section 179.--Section
1400N(e) of such Code, by substituting ``qualified section 179
Recovery Assistance property'' for ``qualified section 179 Gulf
Opportunity Zone property'' each place it appears.
(6) Expensing for certain demolition and clean-up costs.--
Section 1400N(f) of such Code--
(A) by substituting ``qualified Recovery Assistance
clean-up cost'' for ``qualified Gulf Opportunity Zone
clean-up cost'' each place it appears, and
(B) by substituting ``beginning on May 4, 2007, and
ending on December 31, 2009'' for ``beginning on August
28, 2005, and ending on December 31, 2007'' in
paragraph (2) thereof.
(7) Treatment of public utility property disaster losses.--
Section 1400N(o) of such Code.
(8) Treatment of net operating losses attributable to storm
losses.--Section 1400N(k) of such Code--
(A) by substituting ``qualified Recovery Assistance
loss'' for ``qualified Gulf Opportunity Zone loss''
each place it appears,
(B) by substituting ``after May 3, 2007, and before
on January 1, 2010'' for ``after August 27, 2005, and
before January 1, 2008'' each place it appears,
(C) by substituting ``May 4, 2007'' for ``August
28, 2005'' in paragraph (2)(B)(ii)(I) thereof,
(D) by substituting ``qualified Recovery Assistance
property'' for ``qualified Gulf Opportunity Zone
property'' in paragraph (2)(B)(iv) thereof, and
(E) by substituting ``qualified Recovery Assistance
casualty loss'' for ``qualified Gulf Opportunity Zone
casualty loss'' each place it appears.
(9) Treatment of representations regarding income
eligibility for purposes of qualified rental project
requirements.--Section 1400N(n) of such Code.
(10) Special rules for use of retirement funds.--Section
1400Q of such Code--
(A) by substituting ``qualified Recovery Assistance
distribution'' for ``qualified hurricane distribution''
each place it appears,
(B) by substituting ``on or after May 4, 2007, and
before January 1, 2009'' for ``on or after August 25,
2005, and before January 1, 2007'' in subsection
(a)(4)(A)(i),
(C) by substituting ``qualified storm
distribution'' for ``qualified Katrina distribution''
each place it appears,
(D) by substituting ``after November 4, 2006, and
before May 5, 2007'' for ``after February 28, 2005, and
before August 29, 2005'' in subsection (b)(2)(B)(ii),
(E) by substituting ``beginning on May 4, 2007, and
ending on November 5, 2007'' for ``beginning on August
25, 2005, and ending on February 28, 2006'' in
subsection (b)(3)(A),
(F) by substituting ``qualified storm individual''
for ``qualified Hurricane Katrina individual'' each
place it appears,
(G) by substituting ``December 31, 2007'' for
``December 31, 2006'' in subsection (c)(2)(A),
(H) by substituting ``beginning on June 4, 2007,
and ending on December 31, 2007'' for ``beginning on
September 24, 2005, and ending on December 31, 2006''
in subsection (c)(4)(A)(i),
(I) by substituting ``May 4, 2007'' for ``August
25, 2005'' in subsection (c)(4)(A)(ii), and
(J) by substituting ``January 1, 2008'' for
``January 1, 2007'' in subsection (d)(2)(A)(ii).
Subtitle H--Other Provisions
SEC. 12801. INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION WITH
THE EXXON VALDEZ LITIGATION.
(a) Income Averaging of Amounts Received From the Exxon Valdez
Litigation.--For purposes of section 1301 of the Internal Revenue Code
of 1986--
(1) any qualified taxpayer who receives any qualified
settlement income in any taxable year shall be treated as
engaged in a fishing business (determined without regard to the
commercial nature of the business), and
(2) such qualified settlement income shall be treated as
income attributable to such a fishing business for such taxable
year.
(b) Contributions of Amounts Received to Retirement Accounts.--
(1) In general.--Any qualified taxpayer who receives
qualified settlement income during the taxable year may, at any
time before the end of the taxable year in which such income
was received, make one or more contributions to an eligible
retirement plan of which such qualified taxpayer is a
beneficiary in an aggregate amount not to exceed the lesser
of--
(A) $100,000 (reduced by the amount of qualified
settlement income contributed to an eligible retirement
plan in prior taxable years pursuant to this
subsection), or
(B) the amount of qualified settlement income
received by the individual during the taxable year.
(2) Time when contributions deemed made.--For purposes of
paragraph (1), a qualified taxpayer shall be deemed to have
made a contribution to an eligible retirement plan on the last
day of the taxable year in which such income is received if the
contribution is made on account of such taxable year and is
made not later than the time prescribed by law for filing the
return for such taxable year (not including extensions
thereof).
(3) Treatment of contributions to eligible retirement
plans.--For purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with respect to
qualified settlement income, then--
(A) except as provided in paragraph (4)--
(i) to the extent of such contribution, the
qualified settlement income shall not be
included in gross income, and
(ii) for purposes of section 72 of such
Code, such contribution shall not be considered
to be investment in the contract,
(B) the qualified taxpayer shall, to the extent of
the amount of the contribution, be treated--
(i) as having received the qualified
settlement income--
(I) in the case of a contribution
to an individual retirement plan (as
defined under section 7701(a)(37) of
such Code), in a distribution described
in section 408(d)(3) of such Code, and
(II) in the case of any other
eligible retirement plan, in an
eligible rollover distribution (as
defined under section 402(f)(2) of such
Code), and
(ii) as having transferred the amount to
the eligible retirement plan in a direct
trustee to trustee transfer within 60 days of
the distribution,
(C) section 408(d)(3)(B) of the Internal Revenue
Code of 1986 shall not apply with respect to amounts
treated as a rollover under this paragraph, and
(D) section 408A(c)(3)(B) of the Internal Revenue
Code of 1986 shall not apply with respect to amounts
contributed to a Roth IRA (as defined under section
408A(b) of such Code) or a designated Roth contribution
to an applicable retirement plan (within the meaning of
section 402A of such Code) under this paragraph.
(4) Special rule for roth iras and roth 401(k)s.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with respect to
qualified settlement income to a Roth IRA (as defined under
section 408A(b) of such Code) or as a designated Roth
contribution to an applicable retirement plan (within the
meaning of section 402A of such Code), then--
(A) the qualified settlement income shall be
includible in gross income, and
(B) for purposes of section 72 of such Code, such
contribution shall be considered to be investment in
the contract.
(5) Eligible retirement plan.--For purpose of this
subsection, the term ``eligible retirement plan'' has the
meaning given such term under section 402(c)(8)(B) of the
Internal Revenue Code of 1986.
(c) Treatment of Qualified Settlement Income Under Employment
Taxes.--
(1) SECA.--For purposes of chapter 2 of the Internal
Revenue Code of 1986 and section 211 of the Social Security
Act, no portion of qualified settlement income received by a
qualified taxpayer shall be treated as self-employment income.
(2) FICA.--For purposes of chapter 21 of the Internal
Revenue Code of 1986 and section 209 of the Social Security
Act, no portion of qualified settlement income received by a
qualified taxpayer shall be treated as wages.
(d) Qualified Taxpayer.--For purposes of this section, the term
``qualified taxpayer'' means--
(1) any individual who is a plaintiff in the civil action
In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D.
Alaska); or
(2) any individual who is a beneficiary of the estate of
such a plaintiff who--
(A) acquired the right to receive qualified
settlement income from that plaintiff; and
(B) was the spouse or an immediate relative of that
plaintiff.
(e) Qualified Settlement Income.--For purposes of this section, the
term ``qualified settlement income'' means any interest and punitive
damage awards which are--
(1) otherwise includible in gross income (determined
without regard to subsection (b)), and
(2) received (whether as lump sums or periodic payments) in
connection with the civil action In re Exxon Valdez, No. 89-
095-CV (HRH) (Consolidated) (D. Alaska) (whether pre- or post-
judgment and whether related to a settlement or judgment).
SEC. 12802. 2-YEAR EXTENSION AND EXPANSION OF CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF FOOD INVENTORY.
(a) In General.--Section 170(e)(3)(C) (relating to special rule for
certain contributions of inventory and other property) is amended--
(1) by striking ``December 31, 2007'' in clause (iv) and
inserting ``December 31, 2009'', and
(2) by redesignating clauses (iii) and (iv) as clauses (iv)
and (v), respectively, and by inserting after clause (ii) the
following new clause:
``(iii) Determination of basis.--If a
taxpayer--
``(I) does not account for
inventories under section 471, and
``(II) is not required to
capitalize indirect costs under section
263A,
the taxpayer may elect, solely for purposes of
subparagraph (B), to treat the basis of any
apparently wholesome food as being equal to 25
percent of the fair market value of such
food.''.
(b) Effective Date.--The amendments made by this section shall
apply to contributions made after December 31, 2007.
SEC. 12803. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS EXCLUDED
FROM GROSS INCOME.
(a) In General.--Part III of subchapter B of chapter 1 is amended
by inserting after section 139A the following new section:
``SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS.
``(a) In General.--Gross income of an individual does not include
amounts received, from an organization described in section 170(c), as
reimbursement of operating expenses with respect to use of a passenger
automobile for the benefit of such organization. The preceding sentence
shall apply only to the extent that such reimbursement would be
deductible under this chapter if section 274(d) were applied--
``(1) by using the standard business mileage rate in effect
under section 162(a) at the time of such use, and
``(2) as if the individual were an employee of an
organization not described in section 170(c).
``(b) Application to Volunteer Services Only.--Subsection (a) shall
not apply with respect to any expenses relating to the performance of
services for compensation.
``(c) No Double Benefit.--No deduction or credit shall be allowed
under any other provision of this title with respect to the expenses
excludable from gross income under subsection (a).''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section 139A and
inserting the following new item:
``Sec. 139B. Reimbursement for use of passenger automobile for
charity.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 12804. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING
CHARITABLE CONTRIBUTIONS OF PROPERTY.
(a) Technical Amendment Related to Section 1203 of the Pension
Protection Act of 2006.--Subsection (d) of section 1366 is amended by
adding at the end the following new paragraph:
``(4) Application of limitation on charitable
contributions.--In the case of any charitable contribution of
property to which the second sentence of section 1367(a)(2)
applies, paragraph (1) shall not apply to the extent of the
excess (if any) of--
``(A) the shareholder's pro rata share of such
contribution, over
``(B) the shareholder's pro rata share of the
adjusted basis of such property.''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in the provision of the Pension Protection Act of
2006 to which it relates.
SEC. 12805. PRIVATE PAYMENT TEST FOR PROFESSIONAL SPORTS FACILITY
BONDS.
Section 141, as amended by this Act, is amended--
(1) by striking the last sentence of subsection (a), and
(2) by striking subsection (f).
SEC. 12806. APPLICATION OF REHABILITATION CREDIT AND DEPRECIATION
SCHEDULES TO CERTAIN LOW-INCOME HOUSING FOR THE ELDERLY.
(a) In General.--Section 251(d)(4)(X) of the Tax Reform Act of 1986
is repealed.
(b) Effective Date.--The repeal made by this section shall apply to
property placed in service after the date of the enactment of this Act.
SEC. 12807. COMPETITIVE CERTIFICATION AWARDS MODIFICATION AUTHORITY.
(a) In General.--Section 48A (relating to qualifying advanced coal
project credit) is amended by adding at the end the following new
subsection:
``(h) Competitive Certification Awards Modification Authority.--In
implementing this section or section 48B, the Secretary is directed to
modify the terms of any competitive certification award and any
associated closing agreement where such modification--
``(1) is consistent with the objectives of such section,
``(2) is requested by the recipient of the competitive
certification award, and
``(3) involves moving the project site to improve the
potential to capture and sequester carbon dioxide emissions,
reduce costs of transporting feedstock, and serve a broader
customer base,
unless the Secretary determines that the dollar amount of tax credits
available to the taxpayer under such section would increase as a result
of the modification or such modification would result in such project
not being originally certified. In considering any such modification,
the Secretary shall consult with other relevant Federal agencies,
including the Department of Energy.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act and is applicable to
all competitive certification awards entered into under section 48A or
48B of the Internal Revenue Code of 1986, whether such awards were
issued before, on, or after such date of enactment.
SEC. 12808. QUALIFIED FORESTRY CONSERVATION BONDS.
(a) In General.--Part IV of subchapter A of chapter 1 (relating to
credits against tax) is amended by adding at the end the following new
subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. Qualified forestry conservation bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified tax
credit bond on one or more credit allowance dates of the bond during
any taxable year, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the sum
of the credits determined under subsection (b) with respect to such
dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified tax credit bond is 25 percent of the annual
credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tax credit bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate is 70 percent of the rate which
the Secretary estimates will permit the issuance of qualified
tax credit bonds with a specified maturity or redemption date
without discount and without interest cost to the qualified
issuer. The applicable credit rate with respect to any
qualified tax credit bond shall be determined as of the first
day on which there is a binding, written contract for the sale
or exchange of the bond.
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
part (other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this section--
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a qualified forestry conservation bond which
is part of an issue that meets the requirements of paragraphs
(2), (3), (4), (5), and (6).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated as
meeting the requirements of this paragraph if, as of
the date of issuance, the issuer reasonably expects--
``(i) 100 percent or more of the available
project proceeds to be spent for 1 or more
qualified purposes within the 3-year period
beginning on such date of issuance, and
``(ii) a binding commitment with a third
party to spend at least 10 percent of such
available project proceeds will be incurred
within the 6-month period beginning on such
date of issuance.
``(B) Failure to spend required amount of bond
proceeds within 3 years.--
``(i) In general.--To the extent that less
than 100 percent of the available project
proceeds of the issue are expended by the close
of the expenditure period for 1 or more
qualified purposes, the issuer shall redeem all
of the nonqualified bonds within 90 days after
the end of such period. For purposes of this
paragraph, the amount of the nonqualified bonds
required to be redeemed shall be determined in
the same manner as under section 142.
``(ii) Expenditure period.--For purposes of
this subpart, the term `expenditure period'
means, with respect to any issue, the 3-year
period beginning on the date of issuance. Such
term shall include any extension of such period
under clause (iii).
``(iii) Extension of period.--Upon
submission of a request prior to the expiration
of the expenditure period (determined without
regard to any extension under this clause), the
Secretary may extend such period if the issuer
establishes that the failure to expend the
proceeds within the original expenditure period
is due to reasonable cause and the expenditures
for qualified purposes will continue to proceed
with due diligence.
``(C) Qualified purpose.--For purposes of this
paragraph, the term `qualified purpose' means a purpose
specified in section 54B(e).
``(D) Reimbursement.--For purposes of this
subtitle, available project proceeds of an issue shall
be treated as spent for a qualified purpose if such
proceeds are used to reimburse the issuer for amounts
paid for a qualified purpose after the date that the
Secretary makes an allocation of bond limitation with
respect to such issue, but only if--
``(i) prior to the payment of the original
expenditure, the issuer declared its intent to
reimburse such expenditure with the proceeds of
a qualified tax credit bond,
``(ii) not later than 60 days after payment
of the original expenditure, the issuer adopts
an official intent to reimburse the original
expenditure with such proceeds, and
``(iii) the reimbursement is made not later
than 18 months after the date the original
expenditure is paid.
``(3) Reporting.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer of qualified tax
credit bonds submits reports similar to the reports required
under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated as
meeting the requirements of this paragraph if the
issuer satisfies the requirements of section 148 with
respect to the proceeds of the issue.
``(B) Special rule for investments during
expenditure period.--Available project proceeds
invested during the expenditure period shall not be
subject to the requirements of subparagraph (A).
``(C) Special rule for reserve funds.--An issue
shall not be treated as failing to meet the
requirements of subparagraph (A) by reason of any fund
which is expected to be used to repay such issue if--
``(i) such fund is funded in a manner
reasonably expected to result in an amount not
greater than an amount necessary to repay the
issue, and
``(ii) the yield on such fund is not
greater than the discount rate determined under
paragraph (5)(B) with respect to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall be treated as
meeting the requirements of this paragraph if the
maturity of any bond which is part of such issue does
not exceed the maximum term determined by the Secretary
under subparagraph (B).
``(B) Maximum term.--During each calendar month,
the Secretary shall determine the maximum term
permitted under this paragraph for bonds issued during
the following calendar month. Such maximum term shall
be the term which the Secretary estimates will result
in the present value of the obligation to repay the
principal on the bond being equal to 50 percent of the
face amount of such bond. Such present value shall be
determined using as a discount rate the average annual
interest rate of tax-exempt obligations having a term
of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a
whole year, such term shall be rounded to the next
highest whole year.
``(6) Prohibition on financial conflicts of interest.--An
issue shall be treated as meeting the requirements of this
paragraph if the issuer certifies that--
``(A) applicable State and local law requirements
governing conflicts of interest are satisfied with
respect to such issue, and
``(B) if the Secretary prescribes additional
conflicts of interest rules governing the appropriate
Members of Congress, Federal, State, and local
officials, and their spouses, such additional rules are
satisfied with respect to such issue.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an
issue, over
``(ii) the issuance costs financed by the
issue (to the extent that such costs do not
exceed 2 percent of such proceeds), and
``(B) the proceeds from any investment of the
excess described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this subtitle,
the credit determined under subsection (a) shall be treated as interest
which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a tax credit
bond held by an S corporation or partnership, the allocation of the
credit allowed by this section to the shareholders of such corporation
or partners of such partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real Estate
Investment Trusts.--If any qualified tax credit bond is held by a
regulated investment company or a real estate investment trust, the
credit determined under subsection (a) shall be allowed to shareholders
of such company or beneficiaries of such trust (and any gross income
included under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries) under
procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit under
this section shall be allowed to the person who on the credit
allowance date holds the instrument evidencing the entitlement
to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a stripped
bond and to the credit under this section as if it were a
stripped coupon.
``SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS.
``(a) Qualified Forestry Conservation Bond.--For purposes of this
subchapter, the term `qualified forestry conservation bond' means any
bond issued as part of an issue if--
``(1) 100 percent of the available proceeds of such issue
are to be used for one or more qualified forestry conservation
purposes,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under subsection
(a) by any issuer shall not exceed the limitation amount allocated to
such issuer under subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified forestry conservation bond limitation of
$500,000,000.
``(d) Allocations.--
``(1) In general.--The Secretary shall make allocations of
the amount of the national qualified forestry conservation bond
limitation described in subsection (c) among qualified forestry
conservation purposes in such manner as the Secretary
determines appropriate so as to ensure that all of such
limitation is allocated before the date which is 24 months
after the date of the enactment of this section.
``(2) Solicitation of applications.--The Secretary shall
solicit applications for allocations of the national qualified
forestry conservation bond limitation described in subsection
(c) not later than 90 days after the date of the enactment of
this section.
``(e) Qualified Forestry Conservation Purpose.--For purposes of
this section, the term `qualified forestry conservation purpose' means
the acquisition by a State or 501(c)(3) organization (as defined in
section 150(a)(4)) from an unrelated person of forest and forest land
that meets the following qualifications:
``(1) Some portion of the land acquired must be adjacent to
United States Forest Service Land.
``(2) At least half of the land acquired must be
transferred to the United States Forest Service at no net cost
to the United States and not more than half of the land
acquired may either remain with or be donated to a State.
``(3) All of the land must be subject to a native fish
habitat conservation plan approved by the United States Fish
and Wildlife Service.
``(4) The amount of acreage acquired must be at least
40,000 acres.
``(f) Qualified Issuer.--For purposes of this section, the term
`qualified issuer' means a State or 501(c)(3) organization (as defined
in section 150(a)(4)).''.
(b) Reporting.--Subsection (d) of section 6049 (relating to returns
regarding payments of interest) is amended by adding at the end the
following new paragraph:
``(9) Reporting of credit on qualified tax credit bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 54A and such amounts shall
be treated as paid on the credit allowance date (as
defined in section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ``subpart C'' and inserting ``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking ``subpart
H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and H'' and
inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter A of
chapter 1 is amended by striking ``Certain Bonds'' and
inserting ``Clean Renewable Energy Bonds''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by striking the item relating to subpart H
and inserting the following new items:
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(d) Effective Dates.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
TITLE XIII--AMENDMENTS TO COMMODITY EXCHANGE ACT
SEC. 13001. SHORT TITLE.
This title may be cited as the ``CFTC Reauthorization Act of
2007''.
Subtitle A--General Provisions
SEC. 13101. CFTC AUTHORITY OVER OFF-EXCHANGE RETAIL FOREIGN CURRENCY
TRANSACTIONS.
(a) In General.--Section 2(c)(2) of the Commodity Exchange Act (7
U.S.C. 2(c)(2)) is amended by striking subparagraphs (B) and (C) and
inserting the following:
``(B) Agreements, contracts, and transactions in
retail foreign currency.--
``(i) This Act applies to, and the
Commission shall have jurisdiction over, an
agreement, contract, or transaction in foreign
currency that--
``(I) is a contract of sale of a
commodity for future delivery (or an
option on such a contract) or an option
(other than an option executed or
traded on a national securities
exchange registered pursuant to section
6(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78f(a))); and
``(II) is offered to, or entered
into with, a person that is not an
eligible contract participant, unless
the counterparty, or the person
offering to be the counterparty, of the
person is--
``(aa) a financial
institution;
``(bb)(AA) a broker or
dealer registered under section
15(b) (except paragraph (11)
thereof) or 15C of the
Securities Exchange Act of 1934
(15 U.S.C. 78o(b), 78o-5); or
``(BB) an associated person
of a broker or dealer
registered under section 15(b)
(except paragraph (11) thereof)
or 15C of the Securities
Exchange Act of 1934 (15 U.S.C.
78o(b), 78o-5) concerning the
financial or securities
activities of which the broker
or dealer makes and keeps
records under section 15C(b) or
17(h) of the Securities
Exchange Act of 1934 (15 U.S.C.
78o-5(b), 78q(h));
``(cc) a futures commission
merchant registered under this
Act (that is not also a person
described in item (bb)), or an
affiliated person of such a
futures commission merchant
(that is not also a person
described in item (bb)) if such
futures commission merchant
makes and keeps records under
section 4f(c)(2)(B) of this Act
concerning the futures and
other financial activities of
such affiliated person;
``(dd) an insurance company
described in section
1a(12)(A)(ii) of this Act, or a
regulated subsidiary or
affiliate of such an insurance
company;
``(ee) a financial holding
company (as defined in section
2 of the Bank Holding Company
Act of 1956); or
``(ff) an investment bank
holding company (as defined in
section 17(i) of the Securities
Exchange Act of 1934 (15 U.S.C.
78q(i))).
``(ii) Notwithstanding item (cc) of clause
(i)(II) of this subparagraph, agreements,
contracts, or transactions described in clause
(i) of this subparagraph shall be subject to
subsection (a)(1)(B) of this section and
sections 4(b), 4b, 4c(b), 4o, 6(c) and 6(d)
(except to the extent that sections 6(c) and
6(d) prohibit manipulation of the market price
of any commodity in interstate commerce, or for
future delivery on or subject to the rules of
any market), 6c, 6d, 8(a), 13(a), and 13(b) if
the agreements, contracts, or transactions are
offered, or entered into, by a person that is
registered as a futures commission merchant or
an affiliated person of a futures commission
merchant registered under this Act that is not
also a person described in any of items (aa),
(bb), (dd), (ee), or (ff) of clause (i) of this
subparagraph.
``(iii)(I) Notwithstanding item (cc) of
clause (i)(II), a person shall not participate
in the solicitation or recommendation of any
agreement, contract, or transaction described
in clause (i) entered into with or to be
entered into with a person described in such
item, unless the person--
``(aa) is registered in such
capacity as the Commission by rule,
regulation, or order shall determine;
and
``(bb) is a member of a futures
association registered under section
17.
``(II) Subclause (I) shall not
apply to--
``(aa) any person described
in any of items (aa), (bb),
(dd), (ee), or (ff) of
subparagraph (B)(i)(II); or
``(bb) any such person's
associated persons.
``(C)(i)(I) This subparagraph shall apply to any
agreement, contract, or transaction in foreign currency
that is--
``(aa) offered to, or entered into with, a
person that is not an eligible contract
participant (except that this subparagraph
shall not apply if the counterparty, or the
person offering to be the counterparty, of the
person that is not an eligible contract
participant is a person described in any of
items (aa), (bb), (dd), (ee), or (ff) of
subparagraph (B)(i)(II)); and
``(bb) offered, or entered into, on a
leveraged or margined basis, or financed by the
offeror, the counterparty, or a person acting
in concert with the offeror or counterparty on
a similar basis.
``(II) Subclause (I) shall not apply to--
``(aa) a security that is not a security
futures product; or
``(bb) a contract of sale that--
``(AA) results in actual delivery
within 2 days; or
``(BB) creates an enforceable
obligation to deliver between a seller
and buyer that have the ability to
deliver and accept delivery,
respectively, in connection with their
line of business.
``(ii)(I) Agreements, contracts, or transactions described
in clause (i) of this subparagraph shall be subject to
subsection (a)(1)(B) of this section and sections 4(b), 4b,
4c(b), 4o, 6(c) and 6(d) (except to the extent that sections
6(c) and 6(d) prohibit manipulation of the market price of any
commodity in interstate commerce, or for future delivery on or
subject to the rules of any market), 6c, 6d, 8(a), 13(a), and
13(b).
``(II) Subclause (I) of this clause shall not apply to--
``(aa) any person described in any of items (aa),
(bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II);
or
``(bb) any such person's associated persons.
``(iii)(I) A person shall not participate in the solicitation or
recommendation of any agreement, contract, or transaction described in
clause (i) of this subparagraph unless the person is registered in such
capacity as the Commission by rule, regulation, or order shall
determine, and is a member of a futures association registered under
section 17.
``(II) Subclause (I) shall not apply to--
``(aa) any person described in any of items (aa), (bb),
(dd), (ee), or (ff) of subparagraph (B)(i)(II); or
``(bb) any such person's associated persons.
``(iv)(I) Sections 4(b) and 4b shall apply
to any agreement, contract, or transaction
described in clause (i) of this subparagraph as
if the agreement, contract, or transaction were
a contract of sale of a commodity for future
delivery.
``(II) The Commission may, after issuing
notice and soliciting comment, issue rules
proscribing fraud in connection with any
agreement, contract, or transaction described
in clause (i) in an exempt commodity or an
agricultural commodity. Nothing in this
provision shall affect the determination of
whether such agreement, contract, or
transaction is a contract for the purchase or
sale of a commodity for future delivery for
purposes of section 4(a).
``(v) This subparagraph shall not be
construed to limit any jurisdiction that the
Commission may otherwise have under any other
provision of this Act over an agreement,
contract, or transaction that is a contract of
sale of a commodity for future delivery.
``(vi) This subparagraph shall not be
construed to limit any jurisdiction that the
Commission or the Securities and Exchange
Commission may otherwise have under any other
provision of this Act with respect to security
futures products and persons effecting
transactions in security futures products.''.
(b) Effective Date.--Clause (iii) of section 2(c)(2)(B) and clause
(iii) of section 2(c)(2)(C) of the Commodity Exchange Act, as amended
by subsection (a) of this section, shall be effective 120 days after
the date of the enactment of this Act or such other time as the
Commodity Futures Trading Commission shall determine.
SEC. 13102. LIAISON WITH DEPARTMENT OF JUSTICE.
Section 2(a)(9) of the Commodity Exchange Act (7 U.S.C. 2(a)(9)) is
amended by adding at the end the following:
``(C) Liaison with department of justice.--
``(i) In general.--The Commission shall, in
cooperation with the Attorney General, maintain
a liaison between the Commission and the
Department of Justice to coordinate civil and
criminal investigations and prosecutions of
violations of this Act as appropriate.
``(ii) Designation.--The Attorney General
shall designate a person as liaison and take
such steps as are necessary to facilitate
communications described in clause (i).''.
SEC. 13103. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO-PRINCIPAL
TRANSACTIONS.
Section 4b of the Commodity Exchange Act (7 U.S.C. Section 6b) is
amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by striking ``SEC.4b.'' and all that follows through
the end of subsection (a) and inserting the following:
``SEC. 4B. CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD.
``(a) Unlawful Actions.--It shall be unlawful--
``(1) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
in interstate commerce or for future delivery that is made, or
to be made, on or subject to the rules of a designated contract
market, for or on behalf of any other person; or
``(2) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
for future delivery, or other agreement, contract, or
transaction subject to paragraphs (1) and (2) of section 5a(g),
that is made, or to be made, for or on behalf of, or with, any
other person, other than on or subject to the rules of a
designated contract market--
``(A) to cheat or defraud or attempt to cheat or
defraud the other person;
``(B) willfully to make or cause to be made to the
other person any false report or statement or willfully
to enter or cause to be entered for the other person
any false record;
``(C) willfully to deceive or attempt to deceive
the other person by any means whatsoever in regard to
any order or contract or the disposition or execution
of any order or contract, or in regard to any act of
agency performed, with respect to any order or contract
for or, in the case of paragraph (2), with the other
person; or
``(D)(i) to bucket an order if the order is either
represented by the person as an order to be executed,
or is required to be executed, on or subject to the
rules of a designated contract market; or
``(ii) to fill an order by offset against the order
or orders of any other person, or willfully and
knowingly and without the prior consent of the other
person to become the buyer in respect to any selling
order of the other person, or become the seller in
respect to any buying order of the other person, if the
order is either represented by the person as an order
to be executed, or is required to be executed, on or
subject to the rules of a designated contract market
unless the order is executed in accordance with the
rules of the designated contract market.
``(b) Clarification.--Subsection (a)(2) of this section shall not
obligate any person, in or in connection with a transaction in a
contract of sale of a commodity for future delivery, or other
agreement, contract or transaction subject to paragraphs (1) and (2) of
section 5a(g), with another person, to disclose to the other person
nonpublic information that may be material to the market price, rate,
or level of the commodity or transaction, except as necessary to make
any statement made to the other person in or in connection with the
transaction not misleading in any material respect.''.
SEC. 13104. CRIMINAL AND CIVIL PENALTIES.
(a) Enforcement Powers of the Commission.--Section 6(c) of the
Commodity Exchange Act (7 U.S.C. 9, 15) is amended in paragraph (3) of
the 10th sentence--
(1) by inserting ``(A)'' after ``assess such person''; and
(2) by inserting after ``each such violation'' the
following: ``, or (B) in any case of manipulation or attempted
manipulation in violation of this subsection, subsection (d),
or section 9(a)(2), a civil penalty of not more than the
greater of $1,000,000 or triple the monetary gain to such
person for each such violation,''.
(b) Nonenforcement of Rules of Government or Other Violations.--
Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) is amended--
(1) in the first sentence, by inserting before the period
at the end the following: ``, or, in any case of manipulation
or attempted manipulation in violation of sections 6(c), 6(d),
or 9(a)(2), a civil penalty of not more than $1,000,000 for
each such violation''; and
(2) in the second sentence, by inserting before the period
at the end the following: ``, except that if the failure or
refusal to obey or comply with the order involved any offense
under section 9(a)(2), the registered entity, director,
officer, agent, or employee shall be guilty of a felony and, on
conviction, shall be subject to penalties under section
9(a)(2)''.
(c) Action to Enjoin or Restrain Violations.--Section 6c(d) of the
Commodity Exchange Act (7 U.S.C. 13a-1(d)) is amended by striking
``(d)'' and all that follows through the end of paragraph (1) and
inserting the following:
``(d) Civil Penalties.--
``(1) In general.--In any action brought under this
section, the Commission may seek and the court shall have
jurisdiction to impose, on a proper showing, on any person
found in the action to have committed any violation--
``(A) a civil penalty in the amount of not more
than the greater of $100,000 or triple the monetary
gain to the person for each violation; or
``(B) in any case of manipulation or attempted
manipulation in violation of sections 6(c), 6(d), or
9(a)(2), a civil penalty in the amount of not more than
the greater of $1,000,000 or triple the monetary gain
to the person for each violation.''.
(d) Violations Generally.--Section 9 of the Commodity Exchange Act
(7 U.S.C. 13) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1)--
(A) by striking ``(or $500,000 in the case of a
person who is an individual)''; and
(B) by striking ``five years'' and inserting ``10
years'';
(2) by re-designating subsection (f) as subsection (e); and
(3) in paragraph (1) of subsection (e) (as redesignated by
paragraph (2)), by striking the period at the end and inserting
``; or''.
SEC. 13105. AUTHORIZATION OF APPROPRIATIONS.
Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) is
amended to read as follows:
``(d) There are authorized to be appropriated such sums as are
necessary to carry out this Act for each of the fiscal years 2008
through 2013.''.
SEC. 13106. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 6a(e)) is
amended in the last proviso by striking ``section 9(c)'' and inserting
``section 9(a)(5)''.
(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 6f(c)(4)(B)(i)) is
amended by striking ``compiled'' and inserting ``complied''.
(c) Section 4k of such Act (7 U.S.C. 6k) is amended by
redesignating the second paragraph (5) as paragraph (6).
(d) The Commodity Exchange Act is amended--
(1) by redesignating the first section 4p (7 U.S.C. 6o-1),
as added by section 121 of the Commodity Futures Modernization
Act of 2000, as section 4q; and
(2) by moving such section to after the second section 4p,
as added by section 206 of Public Law 93-446.
(e) Subsections (a)(1) and (d)(1) of section 5c of such Act (7
U.S.C. 7a-2(a)(1), (d)(1)) are each amended by striking ``5b(d)(2)''
and inserting ``5b(c)(2)''.
(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a-2(f), 21(r))
are each amended by striking ``4d(3)'' and inserting ``4d(c)''.
(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is amended in
the matter following subparagraph (B)--
(1) by striking ``commenced'' in the 2nd place it appears;
and
(2) by inserting ``commenced'' after ``in a judicial
proceeding''.
(h) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) is amended by
striking ``5b(b)(1)(E)'' and inserting ``5b(c)(2)(H)''.
SEC. 13107. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES.
(a) The agencies represented on the President's Working Group on
Financial Markets shall work to ensure that the Securities and Exchange
Commission (SEC), the Commodity Futures Trading Commission (CFTC), or
both, as appropriate, have taken the actions required under subsection
(b).
(b) The SEC, the CFTC, or both, as appropriate, shall take action
under their existing authorities to permit--
(1) by September 30, 2008, risk-based portfolio margining
for security options and security futures products; and
(2) by June 30, 2008, the trading of futures on certain
security indexes by resolving issues related to foreign
security indexes.
Subtitle B--Significant Price Discovery Contracts on Exempt Commercial
Markets
SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS.
(a) Definitions.--Section la of the Commodity Exchange Act (7
U.S.C. la) is amended--
(1) by redesignating paragraph (33) as paragraph (34); and
(2) by inserting after paragraph (32) the following:
``(33) Significant price discovery contract.--The term
`significant price discovery contract' means an agreement,
contract, or transaction subject to section 2(h)(7)(A).''.
(b) Standards Applicable to Significant Price Discovery
Contracts.--Section 2(h) of the Commodity Exchange Act (7 U.S.C. 2(h))
is amended by adding at the end the following:
``(7) Standards applicable to significant price discover
contracts.--
``(A) In general.--An agreement, contract, or
transaction conducted in reliance on the exemption in
paragraph (3) shall be subject to the provisions of
subparagraphs (B) through (E), under such rules and
regulations as the Commission may promulgate, provided
that the Commission determines, in its discretion, that
the agreement, contract, or transaction performs a
significant price discovery function as described in
subparagraph (B).
``(B) Significant price discovery determination.--
In making a determination whether an agreement,
contract, or transaction performs a significant price
discovery function, the Commission shall consider, as
appropriate:
``(i) Price linkage.--The extent to which
the agreement, contract, or transaction uses or
otherwise relies on a daily or final settlement
price, or other major price parameter, of a
contract or contracts listed, for trading on or
subject to the rules of a designated contract
market or a derivatives transaction execution
facility, or a significant price discovery
contract traded on an electronic trading
facility, to value a position, transfer or
convert a position, cash or financially settle
a position, or close out a position.
``(ii) Arbitrage.--The extent to which the
price for the agreement, contract, or
transaction is sufficiently related to the
price of a contract or contracts listed for
trading on or subject to the rules of a
designated contract market or derivatives
transaction execution facility so as to permit
market participants to effectively arbitrage
between the markets by simultaneously
maintaining positions or executing trades in
the contracts on the electronic trading
facility and the designated contract market or
derivatives transaction execution facility on a
frequent and recurring basis.
``(iii) Material price reference.--The
extent to which, on a frequent and recurring
basis, bids, offers, or transactions in a
commodity are directly based on, or are
determined by referencing, the prices generated
by agreements, contracts, or transactions being
traded or executed on the electronic trading
facility.
``(iv) Material liquidity.--The extent to
which the volume of agreements, contracts, or
transactions in the commodity being traded on
the electronic trading facility is sufficient
to have a material impact on other agreements,
contracts, or transactions listed for trading
on or subject to the rules of a designated
contract market, a derivatives trading
execution facility, or an electronic trading
facility operating in reliance on the exemption
in paragraph (3).
``(v) Other material factors.--Such other
material factors as the Commission specifies by
rule as relevant to determine whether an
agreement, contract, or transaction serves a
significant price discovery function.
``(C) Core principles applicable to significant
price discovery contracts.--
``(i) In general.--An electronic trading
facility on which significant price discovery
contracts are traded or executed shall, with
respect to those contracts, comply with the
core principles specified in this subparagraph.
``(ii) Core principles.--The electronic
trading facility shall have reasonable
discretion in establishing the manner in which
it complies with the following core principles:
``(I) Contracts not readily
susceptible to manipulation.--The
electronic trading facility shall list
only significant price discovery
contracts that are not readily
susceptible to manipulation.
``(II) Monitoring of trading.--The
electronic trading facility shall
monitor trading in significant price
discovery contracts to prevent market
manipulation, price distortion, and
disruptions of the delivery or cash-
settlement process through market
surveillance, compliance, and
disciplinary practices and procedures,
including methods for conducting real-
time monitoring of trading and
comprehensive and accurate trade
reconstructions.
``(III) Ability to obtain
information.--The electronic trading
facility shall--
``(aa) establish and
enforce rules that will allow
the electronic trading facility
to obtain any necessary
information to perform any of
the functions described in this
subparagraph;
``(bb) provide such
information to the Commission
upon request; and
``(cc) have the capacity to
carry out such international
information-sharing agreements
as the Commission may require.
``(IV) Position limitations or
accountability.--The electronic trading
facility shall adopt position
limitations or position accountability
for speculators in significant price
discovery contracts, where necessary
and appropriate, to reduce the
potential threat of market
manipulation, price distortion, and
disruptions of the delivery or cash-
settlement process or congestion,
especially during trading in the
delivery month.
``(V) Emergency authority.--The
electronic trading facility shall adopt
rules to provide for the exercise of
emergency authority, in consultation or
cooperation with the Commission, where
necessary and appropriate, including
the authority--
``(aa) to liquidate open
positions in a significant
price discovery contract; and
``(bb) to suspend or
curtail trading in a
significant price discovery
contract.
``(VI) Daily publication of trading
information.--The electronic trading
facility shall make public daily
information on price, trading volume,
and other trading data for significant
price discovery contracts, as the
Commission considers appropriate.
``(VII) Compliance with rules.--The
electronic trading facility shall
monitor and enforce compliance with any
rules of the electronic trading
facility applicable to significant
price discovery contracts, including
the terms and conditions of such
contracts and any limitations on access
to the electronic trading facility with
respect to such contracts.
``(VIII) Conflict of interest.--The
electronic trading facility shall--
``(aa) establish and
enforce rules to minimize
conflicts of interest in its
decision-making process; and
``(bb) establish a process
for resolving the conflicts.
``(IX) Antitrust considerations.--
Unless necessary or appropriate to
achieve the purposes of this Act, the
electronic trading facility shall
endeavor to avoid--
``(aa) adopting any rules
or taking any actions that
result in any unreasonable
restraints of trade; or
``(bb) imposing any
material anticompetitive burden
on trading on the electronic
trading facility.
``(D) Implementation.--The electronic trading
facility shall have discretion to take into account
differences between cleared and uncleared significant
price discovery contracts in applying core principles
in subclauses (IV) and (V) of subparagraph (C), and the
Commission shall take such differences into
consideration when reviewing the implementation of such
core principles by an electronic trading facility.
``(E) New significant price discovery contracts.--
``(i) Notification.--An electronic trading
facility shall notify the Commission whenever
the electronic trading facility has reason to
believe that an agreement, contract, or
transaction conducted in reliance on the
exemption provided in paragraph (3) displays
any of the factors relating to a significant
price discovery function as described in
subparagraph (B) (including regulations under
this paragraph).
``(ii) Review.--In addition to any review
conducted upon receiving a notification
pursuant to clause (i), at any other such time
the Commission determines to be appropriate,
but at least on an annual basis, the Commission
shall conduct an evaluation, appropriate to the
agreement, contract, or transaction, to
determine whether any agreement, contract, or
transaction conducted on an electronic trading
facility in reliance on the exemption provided
in paragraph (3) is performing a significant
price discovery function.''.
SEC. 13202. LARGE TRADER REPORTING.
(a) Reporting and Recordkeeping.--Section 4g of the Commodity
Exchange Act (7 U.S.C. 6g) is amended in subsection (a) by striking
``elsewhere;'' and inserting ``elsewhere, and in any significant price
discovery contract traded or executed on an electronic trading
facility;''.
(b) Reports of Positions Equal to or in Excess of Trading Limits.--
Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is amended--
(1) by inserting ``, or any significant price discovery
contract on an electronic trading facility'' after ``subject to
the rules of any contract market or derivatives transaction
execution facility'' ; and
(2) by inserting in the matter following paragraph (2),
``or electronic trading facility'' after ``subject to the rules
of any other board of trade''.
SEC. 13203. CONFORMING AMENDMENTS.
(a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7 U.S.C.
1a(12)(A)(x)) is amended by inserting ``(other than an electronic
trading facility with respect to a significant price discovery
contract)'' after ``registered entity''.
(b) Section 1a(29) of the Commodity Exchange Act (7 U.S.C. 1a(29))
is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(E) with respect to a contract that the
Commission determines is a significant price discovery
contract, any electronic trading facility on which the
contract is executed or traded.''.
(c)(1) Section 2(a)(1)(A) of the Commodity Exchange Act (7 U.S.C.
2(a)(1)(A)) is amended by inserting after ``section 19 of this Act''
the following: ``, and significant price discovery contracts traded or
executed on an electronic trading facility''.
(2) Nothing contained in this subtitle or amendments made by this
subtitle shall be construed to affect the jurisdiction that the
Commission or any regulatory authority may otherwise have under any
other provision of law with respect to contracts, agreements, or
transactions that are not significant price discovery contracts.
(d) Section 2(h)(3) of the Commodity Exchange Act (7 U.S.C.
2(h)(3)) is amended by striking ``paragraph (4)'' and inserting
``paragraphs (4) and (7)''.
(e) Section 2(h)(4) of the Commodity Exchange Act (7 U.S.C.
2(h)(4)) is amended by striking subparagraph (D) and inserting the
following:
``(D) such rules, regulations, and orders as the
Commission may issue to ensure timely compliance with
any of the provisions of this Act applicable to a
significant price discovery contract traded on or
executed on any electronic trading facility.''.
(f) Section 2(h)(5)(B)(iii)(I) of the Commodity Exchange Act (7
U.S.C. 2(h)(5)(B)(iii)(I)) is amended by inserting ``or to make the
determination described in subparagraph (B) of paragraph (7)'' after
``paragraph (4)''.
(g) Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is
amended--
(1) in subsection (a)--
(A) in the first sentence, by inserting ``, or on
electronic trading facilities with respect to a
significant price discovery contract'' after
``derivatives transaction execution facilities''; and
(B) in the second sentence, by inserting ``, or on
an electronic trading facility with respect to a
significant price discovery contract,'' after
``derivatives transaction execution facility''; and
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``or electronic
trading facility with respect to a significant price
discovery contract'' after ``facility or facilities'';
and
(B) in paragraph (2), by inserting ``or electronic
trading facility with respect to a significant price
discovery contract'' after ``derivatives transaction
execution facility''; and
(3) in subsection (e)--
(A) in the first sentence--
(i) by inserting ``or by any electronic
trading facility'' after ``registered by the
Commission'';
(ii) by inserting ``or on an electronic
trading facility'' after ``derivatives
transaction execution facility'' the second
place it appears; and
(iii) by inserting ``or electronic trading
facility'' before ``or such board of trade''
each place it appears; and
(B) in the second sentence, by inserting ``or
electronic trading facility with respect to a
significant price discovery contract'' after
``registered by the Commission''.
(h) Section 5a(d) of the Commodity Exchange Act (7 U.S.C. 7a(d)(1))
is amended--
(1) by redesignating paragraphs (4) through (9) as
paragraphs (5) through (10); and
(2) by inserting after paragraph (3) the following:
``(4) Position limits or accountability.--To reduce the
potential threat of market manipulation, price distortion, and
disruption of the delivery or cash-settled process or
congestion, especially during trading in the delivery month,
the derivatives transaction execution facility shall adopt
position limits or position accountability for speculators,
where necessary and appropriate for a contract, agreement or
transaction with an underlying commodity that has a physically
deliverable supply.''.
(i) Section 5c(a) of the Commodity Exchange Act (7 U.S.C. 7a-2(a))
is amended in paragraph (1) by inserting ``, and section 2(h)(7) with
respect to significant price discovery contracts,'' after ``, and
5b(d)(2)''.
(j) Section 5c(b) of the Commodity Exchange Act (7 U.S.C. 7a-2(b))
is amended--
(1) by striking paragraph (1) and inserting following:
``(1) In general.--A contract market, derivatives
transaction execution facility, or electronic trading facility
with respect to a significant price discovery contract may
comply with any applicable core principle through delegation of
any relevant function to a registered futures association or a
registered entity that is not an electronic trading
facility.'';
(2) in paragraph (2), by striking ``contract market or
derivatives transaction execution facility'' and inserting
``contract market, derivatives transaction execution facility,
or electronic trading facility''; and
(3) in paragraph (3), by striking ``contract market or
derivatives transaction execution facility'' each place it
appears and inserting ``contract market, derivatives
transaction execution facility, or electronic trading
facility''.
(k) Section 5c(d)(1) of the Commodity Exchange Act (7 U.S.C. 7a-
2(d)(1)) is amended by inserting ``or 2(h)(7)(C) with respect to a
significant price discovery contract traded or executed on an
electronic trading facility,'' after ``5b(d)(2)''.
(l) Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) is
amended by inserting ``, or revocation of the right of an electronic
trading facility to rely on the exemption set forth in section 2(h)(3)
with respect to a significant price discovery contract,'' after
``revocation of designation as a registered entity'' ;
(m) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 8(b)) is
amended by striking the first sentence and all that follows through
``resubmitted in completed form: Provided,'' and inserting the
following:
``The Commission is authorized to suspend for a period not to
exceed 6 months or to revoke the designation or registration of any
contract market or derivatives transaction execution facility, or to
revoke the right of an electronic trading facility to rely on the
exemption set forth in section 2(h)(3) with respect to a significant
price discovery contract, on a showing that the contract market or
derivatives transaction execution facility is not enforcing or has not
enforced its rules of government, made a condition of its designation
or registration as set forth in sections 5 through 5b or section 5f, or
that the contract market or derivatives transaction execution facility
or electronic trading facility, or any director, officer, agent, or
employee thereof, otherwise is violating or has violated any of the
provisions of this Act or any of the rules, regulations, or orders of
the Commission thereunder. Such suspension or revocation shall only be
made after a notice to the officers of the contract market or
derivatives transaction execution facility or electronic trading
facility affected and upon a hearing on the record: Provided,''.
SEC. 13204. EFFECTIVE DATE.
(a) In General.--Except as provided in this section, this subtitle
shall become effective on the date of enactment of this Act.
(b) Significant Price Discovery Standards Rulemaking.--The
Commission shall--
(1) not later than 180 days after the date of the enactment
of this Act, issue a proposed rule regarding the significant
price discovery standards in section 13201; and
(2) not later than 270 days after the date of enactment of
this Act, issue a final rule.
(c) Significant Price Discovery Determinations.--With respect to
any electronic trading facility operating on the effective date of the
final rule regarding significant price discovery standards, the
Commission shall complete a review of the agreements, contracts, and
transactions of such facilities not later than 180 days after that
effective date to determine whether any such agreement, contract, or
transaction performs a significant price discovery function.
Attest:
Secretary.
110th CONGRESS
1st Session
H. R. 2419
_______________________________________________________________________
AMENDMENT